Small Businesses As Employers


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Steve Adams
New England Regional Advocate
U.S. Office of Advocacy

Published in: Business, Economy & Finance
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Small Businesses As Employers

  1. 1. Small Businesses As Employers Steve Adams New England Regional Advocate U.S. Office of Advocacy
  2. 2. The Small Business Market <ul><li>What does post crisis economy mean for jobs? </li></ul><ul><li>What is the small business sector? </li></ul><ul><li>How is the small business sector different? </li></ul><ul><li>Engaging the small business sector. </li></ul>
  3. 3. Economy that emerges from recession will be very different. <ul><li>High consumer debt + slow income growth = Weak consumer spending in US. </li></ul><ul><li>Less capital sloshing around the world + weak demand = much lower investment returns. </li></ul>
  4. 4. United States household credit market outstanding debt
  5. 5. Small firms will be source of most net new jobs <ul><li>General demand will stagnate causing large companies to shed jobs. </li></ul><ul><li>Growth will come from serving niche markets and providing specialized goods and services. </li></ul><ul><li>Small firms will be best suited to exploit growth opportunities. </li></ul>
  6. 6. Small firms are the market <ul><li>Small firms employ 50% of workers. </li></ul><ul><li>86% of all NE and US employers have <20 employees. </li></ul><ul><li>Small firms represented 70% of net new jobs in last decade. </li></ul><ul><li>Smalls dominate all sectors, not just “mom & pops”. </li></ul>
  7. 7. Massachusetts small businesses Company Sales Emp Business Cantata Technology $95,000,000 200 Computer software development; Haley & Aldrich Inc $92,229,903 200 Business Consulting, Engineering Services Conversent Communications $70,000,000 200 Data Telephone Communications Wsi Corp $75,000,000 190 Data Processing/Preparation Princess House Inc $90,634,000 166 Wholesale Nondurable Goods Universal Millennium $95,000,000 150 Commercial lithographic printing Hallmark Health Corp $91,300,000 150 Health Services Business Services Newbury Comics Inc $74,481,176 125 Retail Records/Cd's/Tapes Ret Gifts/Books Dover Saddlery Inc $81,392,373 120 Retailer Of Equestrian Equipment E & P Enterprises Inc $100,000,000 110 Travel Agency Edgewater Tech $73,743,000 100 Technology Management Consulting Sleepmed Inc $89,975,000 96 Medical Laboratory Home Health Care Services Vertical Communications $72,594,000 71 Business & professional software publishers
  8. 8. Massachusetts small businesses Company Sales Emp Business Dotcommerce Ltd $35,000,000 21 Internet Web Page Design Northeast Interiors $34,834,018 24 Residential Construction Jfs Inc $32,115,063 10 Data Processing/Preparation Computer Services Data Associates Business Trust $28,000,000 30 Prints promotionals May Technolgies Inc $26,000,000 5 Manufacturing Representitives Harpell Inc $25,800,000 15 Transactive Marketing Allied Supply Chain Solutions $22,432,890 13 Supply Chain Management,Consumer Electronics Daymark Solutions Inc $22,000,000 25 Whol Computers/Peripherals Intra Systems Inc $20,000,000 23 Computer Systems Design Ebizbrokers Inc $17,500,000 7 Business Services Overdrive Interactive LLC $15,000,000 30 Management Consulting Services
  9. 9. Small firms can be attractive <ul><li>Opportunity to get diversity of experiences, play numerous roles. </li></ul><ul><li>Willingness to train to suit need. </li></ul><ul><li>Can be more cohesive environment. </li></ul><ul><li>High-energy, more purposeful. </li></ul><ul><li>Differences between small and large firms are shrinking – that post-crisis economy thing. </li></ul>
  10. 10. Small Businesses Don’t Always Stay Small <ul><li>Inc 500 companies </li></ul><ul><ul><li>56% started in founder’s home </li></ul></ul><ul><ul><li>93% from working or middle-class families </li></ul></ul><ul><ul><li>46% founders had less than a 4-year degree </li></ul></ul><ul><ul><li>24% started with less than $10,000 </li></ul></ul><ul><ul><li>70% started with less than $50,000 </li></ul></ul><ul><ul><li>62% started with at least one partner </li></ul></ul><ul><ul><li>Average age of company - 8 years old </li></ul></ul>
  11. 12. Workforce Issues Top Small Business Concerns <ul><li>Finding qualified workers is among top 3 barriers to small business growth. </li></ul><ul><li>Rising cost of health care insurance is #1. </li></ul>
  12. 13. Small firms need help finding qualified workers
  13. 14. Small business outreach: This takes work <ul><li>Recognize challenges faced by small firms. </li></ul><ul><ul><li>Time, expertise, schedule flexibility, HR outreach capability. </li></ul></ul><ul><li>Specialize. </li></ul><ul><li>Partner with trade associations. </li></ul>
  14. 15. Small business outreach <ul><li>Innovative (?) approaches: </li></ul><ul><ul><li>Have students ID firm-types and firms with data bases, e.g. Dunn & Bradstreet. </li></ul></ul><ul><ul><li>School facilitate match-making. </li></ul></ul><ul><li>Facilitate strategic partnerships between College department and businesses: </li></ul><ul><ul><li>Provide access to continuing education, pipeline of workers, access to workforce programs. </li></ul></ul>
  15. 16. Resources/Trade Associations <ul><li>Hitachi Foundation Report: Building Strong Partnerships with Businesses Maximizing Your Organization’s Workforce Development Potential . /pdfs/pocket_guide_nonprofit.pdf </li></ul><ul><li>Smaller Business Association of New England: Trade association of small businesses. </li></ul><ul><li>Massachusetts Innovation & Technology Exchange: industry association where digital marketing, media and technology converge. </li></ul><ul><li>Greater New England Minority Supplier Development Council: Local affiliate of national organization created by large corporations to certify minority-owned suppliers. </li></ul><ul><li>Regional Technology Corporation: Western Massachusetts organization of technology firms. . </li></ul><ul><li>New England Technology Sales Executives Association. </li></ul><ul><li>  </li></ul><ul><li>National Federation of Independent Businesses.. </li></ul><ul><li>  </li></ul>
  16. 17. Thank You Steve Adams New England Regional Advocate (617) 565-8418 [email_address]