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
Q1 2013
TITLES & COMPANY REVENUE
Respondent title:
49%
$50M - $150M
27%
$151M - $300M
20%
$301M - $600M
4%
$601M - $1B
2012 company revenues
of responding executives:
46%
President
42%
CEO
12%
Business
Owner
HOW RETIREMENT IMPACTS COMPANIES
IMPACT OF MINIMUM WAGE INCREASE
SMBs report a mixture of both positive
and negative business impact expected
in 2013 from Baby Boomer retirement.
(multiple responses allowed)
If the minimum wage was to increase to $9.00
per hour, what impact would that have on your
business? (multiple responses allowed)
37% CREATES A
KNOWLEDGE GAP THAT’S
DIFFICULT TO BRIDGE
We will increase prices to
our end customers....29%
We will reduce our new
hiring plans...............25%
We will reduce our
current work force... 14%
We will eliminate all new
hiring........................... 9%
We will not stay in
business....................... 7%
Increasing the minimum
wage will not impact my
business / other.......... 2%
Don’t know...............50%
32% IMPROVES
ABILITY TO CONSIDER
NEW APPROACHES &
PROCESSES
13% IMPAIRS ABILITY TO COMPETE
4% OTHER
41% ENHANCES
PROSPECTS FOR
FUTURE INNOVATION
AND GROWTH
ECONOMIC PROSPECTS FOR
COMPANY AND COUNTRY
Almost 71% of SMBs report a somewhat or very
optimistic opinion on their own company’s 2013
economic prospects, while less than 55% feel
the same toward the overall U.S. economy.
25% VERY OPTIMISTIC
46% SOMEWHAT OPTIMISTIC
16% NEITHER OPTIMISTIC
NOR PESSIMISTIC
11% SOMEWHAT PESSIMISTIC
2% VERY PESSIMISTIC
ECONOMIC PROSPECTS FOR
YOUR COMPANY IN 2013
11% VERY OPTIMISTIC
43% SOMEWHAT OPTIMISTIC
20% NEITHER OPTIMISTIC
NOR PESSIMISTIC
17% SOMEWHAT PESSIMISTIC
9% VERY PESSIMISTIC
ECONOMIC PROSPECTS FOR
THE UNITED STATES IN 2013
59% OPTIMISTIC
19% NEITHER OPTIMISTIC
NOR PESSIMISTIC
22% PESSIMISTIC
47% OPTIMISTIC
21% NEITHER OPTIMISTIC
NOR PESSIMISTIC
32% PESSIMISTIC
JOB GROWTH PROSPECTS
FOR YOUR COMPANY IN 2013
JOB GROWTH
PROSPECTS FOR THE
UNITED STATES IN 2013
HOW SMBs SEE THEMSELVES IN 2013
The vast majority of responding SMBs report a
position of maintaining stability or growth in 2013.
6%
19%
35%
40%
Survival
Controlled
Retrenchment
Maintaining
Stability
Growth
WORKFORCE RETIREMENT IN 2013
Expected percentage of SMB workforce to retire
in 2013, according to survey respondents.
Respondents % to Retire
66% <5%
16% 5% - 10%
9% 11% - 15%
5% 16% - 20%
4% Don’t know
SMBs ARE THE JOB GENERATORS
OF THE U.S. ECONOMY.
I SEE MY COMPANY AS A JOB GENERATOR.
55%
AGREE
STRONGLY 29%
AGREE
2%
DISAGREE
1% DISAGREE STRONGLY
13%
NEITHER AGREE
NOR DISAGREE
38%
AGREE
STRONGLY
39%
AGREE
6%
DISAGREE
2% DISAGREE STRONGLY
15%
NEITHER AGREE
OR DISAGREE
HIRING VETERANS
The majority of SMBs surveyed were amenable
to hiring veterans, though most do not have
specific plans to do so in 2013.
Specific plans to hire
military veterans 22%
Will not target
military veterans
for hiring 19%
Hire military veterans
but do not have a
specific plan 59%
WORKFORCE, WAGES & SALARIES,
AND BENEFITS INCREASES IN 2012
2012 changes in SMB workforce and related
expenses as shared by survey respondents:
WORKFORCE WAGES &
SALARIES
BENEFITS
EXPENDITURE
44%Increased
54%Increased
55%Increased
41%
Stayed the same
37%
Stayed the same
39%
Stayed the same
15%Decreased
9%Decreased
6%Decreased
HOW SMBs VIEW THEMSELVES
REGARDING JOB GENERATION
SMB Presidents, CEOs, and business owners were
asked how they viewed both the market and their
specific company in terms of U.S. job generation.
IMPACT OF RETIRING BABY BOOMERS
With 10,000 Baby Boomers retiring each day in
the U.S., almost 55% of SMBs expect some level
of business impact from retirements in 2013.
51%
SOME IMPACT
3%
VERY BIG IMPACT
1%
DON’T KNOW
45%
NO IMPACT AT ALL
HIRING DIFFICULTY
Rate the level of difficulty your
company faces in finding qualified
candidates for professional and
management positions.
10%
EXTREMELY
DIFFICULT
50%
DIFFICULT
10%
EASY
3%
EXTREMELY EASY
27%
NEITHER EASY
OR DIFFICULT
JOB GROWTH PROSPECTS
FOR COMPANY AND COUNTRY
While more than half of SMBs report feeling
somewhat or very optimistic about their own
company’s job growth, only 47% feel the same
about overall U.S. job prospects.
29%
9%
7%
2%
25%
50%
14%