The Lucas Group SMB Job Generation Outlook began in 2013 as the only national report defining the economic and employment landscape for small to mid-sized businesses.

1. SMB JOB
GENERATION
OUTLOOK
Q2 2014
HIRING OR DOWNSIZING
IN NEXT QUARTER
After increasing each of the past three quarters,
percent of SMBs who report plans to hire in
coming months remained steady in Q2.
ECONOMIC PROSPECTS
FOR YOUR COMPANY
HIRE
ADDITIONAL
EMPLOYEES
NO CHANGE
IN WORKFORCE
OR DON’T
KNOW
DOWNSIZE
WORKFORCE
COMPANY POSITION
A majority of SMB executives report their
companies to be in a healthy condition of either
stability or growth.
5% 7%
40%
48%
Survival
Controlled
Retrenchment
Growth
Maintaining
Stability
#1 BUSINESS ISSUE FACING SMBS
Healthcare costs continue to be of chief concern to
SMBs, though talent availability challenges have
steadily increased to close the gap.
Rank:
45%
46%
9%
SMBs generally continue to be optimistic about
the economic prospects for their own companies.
1%
Very pessimistic
8%
Somewhat pessimistic
22%
Neither optimistic
nor pessimistic
47%
Somewhat optimistic
22%
Very optimistic
12%
Uncertainty in tax policy
8%
Environmental
regulations
28%
Talent availability
18%
Domestic and
international costs
33%
Healthcare costs
1%
Other HIRING DIFFICULTY
SMB leaders report ongoing and increasing
challenges in finding qualified talent for
open professional positions.
14%
EXTREMELY
DIFFICULT
50%
DIFFICULT
4%
EASY
1%
EXTREMELY
EASY
31%
NEITHER EASY
OR DIFFICULT
IMPACT OF PATIENT PROTECTION
AND AFFORDABLE CARE ACT
The vast majority of SMBs report that they
expect the ACA to project some level of impact
onto their businesses.
The Q2 Outlook noted an Outlook high in
the percentage of SMBs who report their
companies have prepared and are ready for
ACA implementation.
9% NO IMPACT
17% A LITTLE IMPACT
41% SOME IMPACT
33% A LARGE IMPACT
40% A LOT OF PREPARATION,
AND WE’RE READY
44% WE’RE WORKING ON IT,
BUT WE’RE NOT READY YET
6% WE HAVE NOT DONE ANYTHING TO
PREPARE, BUT WE PLAN TO
10% WE WILL NOT DO ANYTHING TO PREPARE
MINIMUM WAGE
SMBs shared how a $10.10 minimum wage increase
could affect their businesses. (Multiple responses allowed)
Asked to identify an ideal
minimum wage via sliding scale,
SMBs expressed varied levels of
acceptance toward an increase.
We will increase prices to
our end customers...........................25%
We will reduce our new
hiring plans......................................22%
We will reduce our
current work force...........................15%
We will eliminate all new hiring....... 7%
We will not stay in business............. 3%
Increasing the minimum wage
will not impact my business............49%
Other.................................................. 3%
Don’t know........................................ 3%
$7.25–$8.20...................................31%
$8.21–$9.15....................................27%
$9.16–$10.10..................................19%
$10.11–$11.05................................12%
$11.06–$12.00............................... 11%
IMPACT OF RETIRING BABY BOOMERS
While the influence of retirements may not be truly
felt by businesses yet, expectation of impact on
SMBs increased again in Q2 to reach a survey high.
52%
SOME IMPACT
19%
VERY BIG IMPACT
29%
NO IMPACT AT ALL
For more survey results and data from
the Q2 2014 SMB Job Generation Outlook,
download the full report here.
Join the conversation on
Twitter @Lucas_Group.
HOW RETIREMENT IMPACTS COMPANIES
SMBs report a mixture of both positive and
negative business impact from Baby Boomer
retirement. (Multiple responses allowed)
27% ENHANCES PROSPECTS
FOR FUTURE INNOVATION
AND GROWTH
34% IMPROVES ABILITY TO
CONSIDER NEW
APPROACHES & PROCESSES
59% CREATES A KNOWLEDGE
GAP THAT’S DIFFICULT
TO BRIDGE
2% OTHER
12% IMPAIRS ABILITY TO
COMPETE