SBO’s Optimistic About Future Job Growth – OnlineBusinessDegree.org
While 88% of U.S. small business owners think the current economy is fair or poor, 60% expect the economy to grow in 2013, according to a recent CEO survey conducted by ORC International for NYSE Euronext.
The annual report reveals the views and attitudes of public company CEOs from around the world as well as U.S. entrepreneurs and small business owners about the future of jobs, company growth and the economy.
Nearly three-quarters of CEOs predict company growth in 2013 and 74% of small business owners anticipate company growth in the next three years.
Though findings show opinions on job growth to be optimistic, locating the capital to grow businesses remains an issue, with 20% of CEOs and 47% of small business owners admitting they do not have enough capital. While 70% of CEOs say their companies will fulfill capital needs through debt and equity markets, the majority of entrepreneurs, at 58%, say they are more likely to use their personal savings to grow their businesses.
Job creation is an area in which CEOs and business owners disagree. More than half of U.S. small business owners believe the government should team with the private sector to generate jobs, but 77% of U.S. CEOs think the private sector is the engine that creates job growth. However, all agree – 57% of CEOs and 53% of business owners – that the best way to accelerate job creation is by reducing business tax rates.
According to the survey, small entrepreneurial companies will be the primary source for new jobs in the next three years. Fifty-one percent of jobs are most likely to be added in sales, followed by manufacturing at 34%, and general management and marketing, both at 30%.
Sixty-four percent of CEOs expect to add to their workforce in 2013 while 20% expect to keep about the same amount of workers, compared to 34% of small business owners who plan to add to their workforce and 61% who expect to employ about the same number.
The report also finds that small business owners believe giving employees time to be creative results in more innovation and entrepreneurs are more apt to use non-traditional methods – including social media and crowdsourcing – to generate innovation.
Findings for the report were generated from an online survey administered July 9 through July 30 and included responses from 340 public-company CEOs from 26 countries and 285 U.S. entrepreneurs and small business owners.
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