The document summarizes the results of a survey of small and medium sized businesses (SMBs) on various issues facing their companies. Some key findings include: - The majority of SMB executives report their companies are stable or growing. - Healthcare costs and talent availability remain the top business issues for SMBs. - More SMBs plan to hire in the coming quarter compared to the same time last year. - SMBs are generally optimistic about their own economic prospects. - SMBs report ongoing challenges finding qualified talent. - The majority of SMBs expect the Affordable Care Act to impact their businesses.

1. SMB JOB
GENERATION OUTLOOK
COMPANY POSITION
A majority of SMB executives report their
companies to be in a healthy condition of either
stability or growth.
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:
Q2 2014
HIRING OR DOWNSIZING
IN NEXT QUARTER
The percent of SMBs who plan to hire in the
coming months is up 6 points from this same
time last year.
HIRE
ADDITIONAL
EMPLOYEES
NO CHANGE
IN WORKFORCE
OR DON’T
KNOW
DOWNSIZE
WORKFORCE
ECONOMIC PROSPECTS
FOR YOUR COMPANY
SMBs generally continue to be optimistic
about the economic prospects for their own
companies.
1%
Very pessimistic
8%
Somewhat pessimistic
16%
Neither optimistic
nor pessimistic
52%
Somewhat optimistic
23%
Very optimistic
HIRING DIFFICULTY
SMB leaders report ongoing and increasing
challenges in finding qualified talent for
open professional positions.
IMPACT OF PATIENT PROTECTION
AND AFFORDABLE CARE ACT
The majority of SMBs report that they expect
full ACA implementation to project some level
of impact onto their businesses.
Close to half of respondents say their
companies have prepared and are ready for
ACA implementation, the highest percentage
ever recorded by the
SMB Outlook.
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..........................21%
We will reduce our new
hiring plans......................................16%
We will reduce our
current work force..........................12%
We will eliminate all new hiring...... 7%
We will not stay in business............ 3%
Increasing the minimum wage
will not impact my business...........55%
Other...................................................1%
Don’t know........................................ 5%
$7.25–$8.20..................................28%
$8.21–$9.15...................................25%
$9.16–$10.10.................................39%
$10.11–$11.05.................................. 2%
$11.06–$12.00................................. 6%
IMPACT OF RETIRING BABY BOOMERS
With 10,000 Baby Boomers retiring every
day for the next 15 years, a majority of SMBs
expect business impact from this generational
workforce shift.
53%
SOME IMPACT
16%
VERY BIG IMPACT
31%
NO IMPACT AT ALL
For more survey results and data from the
Q4 2014 SMB Job Generation Outlook, download the full report at
http://www.lucasgroup.com/smb-job-generation/#SKxOlfjEgklXgzKO.97
Join the conversation on
Twitter @Lucas_Group.
HOW RETIREMENT IMPACTS COMPANIES
Q4 2014
2%
8%
44% 46%
10%
Uncertainty in tax policy
6%
Environmental
regulations
29%
Talent availability
21%
Domestic and
international costs
32%
Health care costs
2%
Other
“Brain drain” continues to be the chief
retirement effect expected by SMBs.
(multiple responses allowed)
20% ENHANCES PROSPECTS
FOR FUTURE INNOVATION
AND GROWTH
26% IMPROVES ABILITY TO
CONSIDER NEW
APPROACHES &
PROCESSES
65% CREATES A KNOWLEDGE
GAP THAT’S DIFFICULT
TO BRIDGE
14% IMPAIRS ABILITY TO
COMPETE
5% OTHER
59%
30%
11%
14%
EXTREMELY
DIFFICULT
46%
DIFFICULT
5%
EASY
2%
EXTREMELY
EASY
33%
NEITHER EASY
OR DIFFICULT
16% NO IMPACT
22% A LITTLE IMPACT
36% SOME IMPACT
26% A LARGE IMPACT
48% A LOT OF PREPARATION,
AND WE’RE READY
36% 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