Survey of Over 3,000 Small Business Owners Shows Hiring Challenges Grow in Tight Labor Market

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The 2020 Small Business Survey results from Guidant Financial reveal interesting trends moving into the new decade.

Guidant Financial 2020 Small Business Trends

“We continue to see historically low unemployment and with more jobs open then people seeking them – it’s become increasingly difficult for small businesses to recruit and retain top talent,” says David Nilssen, CEO of Guidant Financial.

The challenge of recruiting and retaining talent has increased by 22% since last year, according to findings from the latest Small Business Trends report released by small business financing company Guidant Financial.

The report’s findings are based on the annual Small Business Trends survey conducted by the Small Business Trends Alliance (SBTA), a group of companies dedicated to supporting small business with data insights. The SBTA teamed up to conduct a joint survey of over 3,100 current and aspiring small business owners across the nation.

“We continue to see historically low unemployment and with more jobs open then people seeking them – it’s become increasingly difficult for small businesses to recruit and retain top talent,” says David Nilssen, CEO of Guidant Financial. “But, the data validates our experience which is that those who venture out on their own are generally happy, profitable and making a meaningful contribution to the economy.”

More Key Findings:

  • 78% percent of small businesses are profitable, remaining unchanged year over year.
  • Small business owners report their top two challenges are 1) lack of capital or cash-flow 2) employee recruiting and retention.
  • 75% of small business owners started either new business or opened a new franchise location, a 47% year over year increase. 25% bought preexisting businesses or franchise locations, a 50% decrease year over year.
  • There was a 14% year over year increase in the use of SBA loans to finance small businesses.
  • The top three political issues for small business owners are 1) business taxes 2) healthcare 3) interest rates.
  • Happiness is high among small business owners, with 77% of respondents ranking their happiness as “somewhat” or “very” happy (on a 5-point scale from “very unhappy” to “very happy”).
  • 76% of small business owners are looking to grow their existing location or open a new one, versus only 7% who are looking to sell.
  • There was a 27% year over year increase in those who started a small business because of dissatisfaction with corporate America.
  • There was also a 22% year over year increase in those who started a small business because they were ready to be their own boss.

Accompanying infographic and report can be found at https://www.guidantfinancial.com/small-business-trends/.

Methodology
The Small Business Trends Alliance, an organization comprised of Deluxe, Guidant Financial, MyCorporation, LendingClub, and FundingCircle, conducted a joint email survey from November 12, 2019 to November 25, 2019 of more than 3,100 current and aspiring small business owners nationwide. Respondent ages ranged from 18 to over 70.

About Guidant Financial
Headquartered in Bellevue, WA Guidant Financial helps business owners secure financing to start, buy, or grow a business. An industry leader in business and franchise financing, Guidant works with new and existing entrepreneurs to identify, evaluate, and deploy customized financing solutions. Their services include, but are not limited to, 401(k) business funding, SBA loans, unsecured credit, and portfolio loans. In total, Guidant has helped over 20,000 entrepreneurs in all 50 states to invest more than $4 billion in funds to start small businesses, resulting in more than 85,000 U.S. jobs created. Visit Guidant at guidantfinancial.com.

About the Small Business Trends Alliance (SBTA)
Founded in 2019, the Small Business Trends Alliance (SBTA) is a group dedicated to supporting small businesses with data trends and insights. These data-backed insights are intended to help small business owners confidently make key decisions, and to bring transparency to small business for prospective entrepreneurs to learn more about their options. The SBTA includes Guidant Financial, Deluxe, Flippa, MyCorporation, LendingClub, and Funding Circle.

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Stacia Kirby
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