SMB JOB GENERATION

OUTLOOK

Q3 2013

TITLES & COMPANY REVENUE

Respondent title:

46%$50M - $150M

21%$151M - $300M

22%$301M - $600M

11%$601M - $1B

2012 company revenues of responding executives:

35%President

36%CEO

29%Business Owner

HOW RETIREMENT IMPACTS COMPANIES

IMPACT OF PATIENT PROTECTIONAND AFFORDABLE CARE ACT

SMBs report a mixture of both positive and negative business impact from Baby Boomer retirement. (multiple responses allowed)

How much of an impact will the Patient Protection and Affordable Care Act have on your business plans?

60% CREATES A KNOWLEDGE GAP THAT’S DIFFICULT TO BRIDGE

10% NO IMPACT

20% A LITTLE IMPACT

36% SOME IMPACT

34% A LARGE IMPACT

28% IMPROVES ABILITY TO CONSIDER NEW APPROACHES & PROCESSES

14% IMPAIRS ABILITY TO COMPETE5% OTHER

17% ENHANCES PROSPECTS FOR FUTURE INNOVATION AND GROWTH

ECONOMIC PROSPECTS FORCOMPANY AND COUNTRY

Almost 68% of SMBs report a somewhat or very optimistic opinion on their own company’s 2013 economic prospects, while only 44% feel the same toward the overall U.S. economy.

22% VERY OPTIMISTIC

46% SOMEWHAT OPTIMISTIC

17% NEITHER OPTIMISTIC NOR PESSIMISTIC

14% SOMEWHAT PESSIMISTIC

1% VERY PESSIMISTIC

ECONOMIC PROSPECTS FOR YOUR COMPANY IN 2013

12% VERY OPTIMISTIC

32% SOMEWHAT OPTIMISTIC

22% NEITHER OPTIMISTIC NOR PESSIMISTIC

26% SOMEWHAT PESSIMISTIC

8% VERY PESSIMISTIC

ECONOMIC PROSPECTS FOR THE UNITED STATES IN 2013

59% OPTIMISTIC

20% NEITHER OPTIMISTIC NOR PESSIMISTIC

21% PESSIMISTIC

36% OPTIMISTIC

27% NEITHER OPTIMISTIC NOR PESSIMISTIC

37% 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.

5% 7%

45% 43%

SurvivalControlled RetrenchmentMaintaining StabilityGrowth

WORKFORCE RETIREMENT IN 2013

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

Respondents % to Retire

67% <5%

16% 5% - 10%

6% 11% - 15%

4% 16% - 20%

7% Don’t know

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

I SEE MY COMPANY AS A JOB GENERATOR.

41%AGREE

STRONGLY

40%AGREE

6%DISAGREE

0% DISAGREE STRONGLY

13%NEITHER AGREE NOR DISAGREE

31%AGREE

STRONGLY 44%AGREE

6%DISAGREE

0% DISAGREE STRONGLY

19%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 16%

Will not target military veterans for hiring 9%

Hire military veterans but do not have a

specific plan 75%

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

51%Increased

63%Increased

57%Increased

38%Stayed the same

34%Stayed the same

39%Stayed the same

11%Decreased

3%Decreased

4%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., 58% of SMBs expect some level of business impact from retirements in 2013.

50%SOME IMPACT

8%VERY BIG IMPACT1%

DON’T KNOW

41%NO IMPACT AT ALL

HIRING DIFFICULTY

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

5%EXTREMELY

DIFFICULT

46%DIFFICULT

9%EASY

40%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 36% feel the same about overall U.S. job prospects.