63% of US small business owners raised salaries to fight big quit says Guidant
63% of US small business owners raised salaries to fight big quit says Guidant

Guidant 2022 Small Business Report

“Starting a small business has always been hard work, but the past few years have been exceptionally difficult. We owe a debt of gratitude to the small business owners who persevered through it all,” said Jeremy Ames, president of Guidant Financial.

The top two big quit strategies of US small business owners were increasing compensation (63%) and retaining employees (33%), according to results from the company’s latest Small Business Trends Report. small business financing company Guidant Financial. Other prominent strategies included expanded advertising (23%), increased benefits (18%) and hiring bonuses (16%).

The report’s findings are based on Guidant Financial’s annual Small Business Trends Survey.

“Starting a small business has always been hard work, but the past few years have been exceptionally difficult. We owe a debt of gratitude to the small business owners who persevered through it all – they are on the front lines of defending the American economy,” said Jeremy Ames, president of Guidant Financial.

Other key results:

The big resignation

  • 47% of companies report an insufficient number of job seekers and 30% report experiencing headhunting competition from competitors.
  • According to respondents, communication and critical thinking are the skills most often lacking in current small business candidates.
  • Business owners who increased wages were slightly more likely to be profitable (70%) than those who did not (65%).
  • Despite the challenges, 75% of business owners report being somewhat or very satisfied. 15% were somewhat or very unhappy. The remaining 10% were neutral.

business owners

  • The majority of businesses were evenly split between Baby Boomers (45%) and Generation X (46%). Millennials made up 7% of those polled, while Gen Z — also known as Zoomers — and post-war business owners both made up less than 1%.
  • Women small business owners made up just 22% of survey respondents this year.
  • 32% of small business owners do not belong to any political party or do not feel represented by any political party. 41% identified as Republicans and 22% identified as Democrats. Less than 6% identified with another party.

state of affairs

  • The top three priorities were increasing staff (51%), expanding or remodeling their business (41%) and investing in digital marketing (40%).
  • 69% of franchisees have establishments less than 5 years old (or in the process of opening).
  • Behind recruiting (70%), the most common issues for small business owners were changing operations in response to COVID-19 (32%), lack of capital/cash (32%) and administrative work (23%).

COVID-related results

  • 54% of all business owners believe the effects of the pandemic are not over, yet 84% of business owners expect their business to survive the pandemic.
  • Most respondents said they felt somewhat or very confident (46.74%) about the future. Just over 27% of business owners said they felt somewhat unconfident, and a minority of 7.56% of business owners said they felt very unconfident.

Methodology

The report’s findings are based on Guidant’s annual survey of resilient, hard-working small business owners in America. He learns who they are, what their life is like as small business owners, what their plans are for the future, and how their business has held up to current affairs. Guidant Financial conducted the survey by email from January 24 to February 13 with more than 600 current and potential small business owners nationwide.

About Guidant

Guidant helps business owners obtain financing to start, buy or expand a business. An industry leader in corporate 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 financing, SBA loans, unsecured credit, portfolio loans. In total, Guidant has helped more than 25,000 entrepreneurs in all 50 states invest more than $4 billion in funds to start small businesses, resulting in the creation of more than 85,000 jobs in the United States. Visit Guidant at guidingfinancial.com.

About the Small Business Trends Series

The Small Business Trends series was launched by Guidant in 2014 and is designed to support small businesses with trends and data insights. This data-driven insight is intended to help small business owners make key decisions with confidence and bring transparency to small businesses so potential entrepreneurs can learn more about their options.

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