I always knew that entrepreneurs liked their work, but I never knew just how much. How much? Apparently quite a lot.
If you own a business, are self-employed, or otherwise know people who work for themselves, you know this to be true. Small business owners are in it for a good many
reasons – economics for sure, necessity sometimes, and often most importantly, for the pure enjoyment of doing what they love.
According to Bank of America’s Fall 2018 Small Business Owner Report (SBOR), an amazing 90 percent of small business owners say they would recommend entrepreneurship as a career path to others. That is amazing.
But what about the long hours you say, the hard work and uncertainty?
Even more respondents – 91 percent – say it’s all worth it.
This is not to say entrepreneurship is easy, because it is not. The SBOR is a bi-annual survey that looks at the state of small business in America, and it always offers a fascinating glimpse into the real world of the small business owner.
For example, looking at economic and hiring trends, the Fall 2018 SBOR report zeroed in on what it takes to succeed in your own business.
- Access to capital? Partially, according to 68 percent of respondents
- A solid network? Yup, 78 percent thought that was the answer
- Luck? A forthcoming 56 percent agreed luck played a role
But in the end, and not surprisingly, the small business owners who participated in the survey thought that the keys to success were perseverance (96 percent) and good old-fashioned hard work (97 percent.)
One of the biggest challenges small business owners have today, and not surprising given the strong state of the economy, is attracting and retaining top talent is tougher than ever.
“While business owners are pleased with the direction of the economy and planning for growth, they are confronted with a new challenge. More entrepreneurs are looking to hire in the year ahead against the backdrop of one of the tightest job markets in half a century,” the report noted.
Consider these findings:
- 58 percent report difficulty finding qualified candidates to fill vacancies
- 50 percent believe the tightening labor market had a direct impact on their ability to hire, and
- 25 percent believe it took more time to fill positions this year than last year
The good news: The Fall 2018 SBOR shares some interesting ways small business employers use to recruit talent.
For instance, fully a quarter of the respondents said they have shifted to a more flexible culture to attract talent. Specifically, the SBOR drilled down into some differences in individual cities and found employers in Boston are most likely to give holiday perks to their team. In Dallas, employers use ongoing training to keep employees involved. And in the San Francisco area, flex hours are the key.
With 55 percent of respondents saying they expect the national economy to improve over the next year (compared to 29 percent in 2016), it makes sense that small business owners are looking to grow their own businesses and find the right mix of employees who can help them do that.
And I think what those employers are looking for may be the other big surprise in this SBOR. Do they want a well-educated workforce? Of course (30 percent). Do they want a staff with experience? Yes, that too (53 percent).
But most of all, what these small business owners looked for were . . . people with “integrity” (60 percent). That’s amazing when you think about it. By a 2-to-1 margin, small business owners value integrity over education when choosing their staff.
As I said, I love when the Bank of America Small Business Owner Report comes out because I always learn something new and unexpected. I bet you will too. You can see the infographic for the report here.
Learn more about attracting and retaining employees:
- 3 Big Problems Small Business Owners Struggle With, Part 2: Finding and Retaining Employees by Rieva Lesonsky
- 6 Things Entrepreneurs Can Do to Attract and Retain Good Employees by Rieva Lesonsky
- Four Steps to find your best employees by Ebong Eka
About Steve Strauss
Steven D. Strauss is one of the world's leading experts on small business and is a lawyer, writer, and speaker. The senior small business columnist for USA Today, his Ask an Expert column is one of the most highly-syndicated business columns in the country. He is the best-selling author of 17 books, including his latest, The Small Business Bible, now out in a completely updated third edition. You can also listen to his weekly podcast, Small Business Success.© Steven D. Strauss.
Bank of America, N.A. engages with Steve Strauss to provide informational materials for your discussion or review purposes only. Steve Strauss is a registered trademark, used pursuant to license. The third parties within articles are used under license from Steve Strauss. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.
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