SMB JOB GENERATION

OUTLOOK

Q2 2013

TITLES & COMPANY REVENUE

Respondent title:

45%$50M - $150M

26%$151M - $300M

18%$301M - $600M

11%$601M - $1B

2012 company revenues of responding executives:

36%President

35%CEO

29%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)

56% CREATES A KNOWLEDGE GAP THAT’S DIFFICULT TO BRIDGE

We will increase prices to our end customers ...23%

We will reduce our new hiring plans .............. 18%

We will reduce our current work force .. 15%

We will eliminate all new hiring ...........................6%

We will not stay in business ...................... 4%

Increasing the minimum wage will not impact my business / other ......... 7%

Don’t know .............. 54%

41% IMPROVES ABILITY TO CONSIDER NEW APPROACHES & PROCESSES

23% IMPAIRS ABILITY TO COMPETE1% OTHER

34% ENHANCES PROSPECTS FOR FUTURE INNOVATION AND GROWTH

ECONOMIC PROSPECTS FORCOMPANY 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.

34% VERY OPTIMISTIC

43% SOMEWHAT OPTIMISTIC

15% NEITHER OPTIMISTIC NOR PESSIMISTIC

8% SOMEWHAT PESSIMISTIC

0% VERY PESSIMISTIC

ECONOMIC PROSPECTS FOR YOUR COMPANY IN 2013

11% VERY OPTIMISTIC

46% SOMEWHAT OPTIMISTIC

22% NEITHER OPTIMISTIC NOR PESSIMISTIC

14% SOMEWHAT PESSIMISTIC

7% VERY PESSIMISTIC

ECONOMIC PROSPECTS FOR THE UNITED STATES IN 2013

51% OPTIMISTIC

38% NEITHER OPTIMISTIC NOR PESSIMISTIC

11% PESSIMISTIC

50% OPTIMISTIC

22% NEITHER OPTIMISTIC NOR PESSIMISTIC

28% PESSIMISTIC

JOB GROWTH PROSPECTS FOR YOUR COMPANY IN 2013

JOB GROWTH PROSPECTS FOR THE UNITED STATES IN 2013

HOW SMBs SEE THEMSELVES IN 2013The vast majority of responding SMBs report a position of maintaining stability or growth in 2013.

3%9%

43%45%

SurvivalControlled RetrenchmentMaintaining StabilityGrowth

WORKFORCE RETIREMENT IN 2013

Expected percentage of SMB workforce to retire in 2013, according to survey respondents.

Respondents % to Retire

74% <5%

9% 5% - 10%

11% 11% - 15%

1% 16% - 20%

5% Don’t know

SMBs ARE THE JOB GENERATORS OF THE U.S. ECONOMY.

I SEE MY COMPANY AS A JOB GENERATOR.

23%AGREE

STRONGLY

40%AGREE

3%DISAGREE

1% DISAGREE STRONGLY

33%NEITHER AGREE NOR DISAGREE

37%AGREE

STRONGLY 47%AGREE

4%DISAGREE

0% DISAGREE STRONGLY

12%NEITHER AGREE OR DISAGREE

HIRING VETERANSThe 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 15%

Will not target military veterans for hiring 5%

Hire military veterans but do not have a

specific plan 80%

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

40%Increased

59%Increased

61%Increased

45%Stayed the same

29%Stayed the same

34%Stayed the same

15%Decreased

12%Decreased

5%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.

59%SOME IMPACT

11%VERY BIG IMPACT2%

DON’T KNOW

28%NO IMPACT AT ALL

HIRING DIFFICULTY

Rate the level of difficulty your company faces in finding qualified candidates for professional and management positions.

7%EXTREMELY

DIFFICULT

54%DIFFICULT

7%EASY

1%EXTREMELY EASY

31%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.

23%

6%7%

4%

18%

54%

15%