SMALL BUSINESS OWNERS HOLD THE LINE ON HIRING AND REMAIN FOCUSED ON GROWTH IN UNCERTAIN ECONOMY

A good article on small businesses and the economy
http://home3.americanexpress.com/corp/pc/2007/07sbm.asp

Special thanks to Amy Hoyt

*Hiring plans among small business owners are at their second lowest point in the seven-year history of the OPEN from American Express ® Small Business Monitor, a semi-annual survey of business owners. This fall hiring plans among business owners have dropped, with three in ten business owners reporting plans (31%) to hire full and/or part-time staff in the next six-months. That is down from 34% in fall 2006, 37% in fall 2005, 35% in fall 2004, 34% in fall 2003 and 26% in fall 2002.

*Despite a lack of robust hiring plans, growth remains a top priority for entrepreneurs. More than one-third (37%) of small business owners report growing their business as their company's single most important priority

*Business owners are adjusting to higher energy and gas costs. A much fewer number report having lost sales as a result of higher energy costs. More business owners believe the downturn in the housing market and rising interest rates have negatively impacted their business.

*Rising costs and uncertain economic conditions (each 20%) are the biggest challenges entrepreneurs face in growing their business. Finding the right staff (19%) and being too busy satisfying existing customers (17%) present additional challenges.

*Entrepreneurs are not letting the economy dictate their plans for growth. Over the next six months, nearly half (48%) of business owners expect their business to grow regardless of the economy.

*In addition to capital investments, business owners plan to invest marketing dollars as a way to grow. Entrepreneurs are taking advantage of online marketing techniques, with the company website being the most utilized online marketing technique. Male business owners are more likely to agree that marketing dollars have a direct positive impact on sales - Banners, email campaigns, Job Site Hosting anyone?????

*Those with Hiring Plans Center on Growth; Males Most Likely to Hire to Increase BusinessAlthough hiring plans over the next six months are near record lows, among those businesses that plan to hire, three-quarters (75%) say they need to hire to handle their growing business. Two thirds (65%) will hire to help increase business volume. This number is greater among male business owners as seven out of ten plan to hire for this reason (71% vs. 46% of female owners). Two out of five (43%) will hire because they have a new business venture, one-in-three say they will hire because they have finally found the right candidate for the position (33%), or need seasonal help (28%).