Small Businesses Plan Hiring Spree

Good news for the unemployed after the latest survey from online human capital management company CareerBuilder, found that small businesses plan on hiring in the second half of 2010.

Thirty-two percent of companies with 500 or fewer employees plan to add new employees in the months of July through December, the survey found, while 21 percent will hire full-time, 11 percent will hire part-time and six percent will hire contractors or temporary workers.

Hiring Upturn

The online survey, conducted by Harris Interactive, was completed in June 2010 and included more than 1,300 employers in businesses with 500 or fewer employees and more than 4,400 workers.

The survey found of companies with 50 or fewer employees, 24 percent plan to hire in the second half of 2010. In addition to new jobs being added, new small businesses may be emerging to serve as a primary or secondary source of income, the report noted. Of workers who have started a small business in the last year, 96 percent reported that they run a small business in addition to another job.

More than one-quarter (26 percent) of workers who were laid off in the last six months and have not found jobs said they are considering starting their own business instead of finding a new job.

According to the US Small Business Administration, small businesses employ just over half of all private sector employees and account for more than half of private gross domestic product. They have also generated 64 percent of net new jobs over the past 15 years.

SMBs Create Most Jobs

“Historically, it has been the small business sector that has created the most jobs at the end of an economic downturn, allowing the overall job market to bounce back faster,” said Brent Rasmussen, President of CareerBuilder North America. “The intellectual capital that companies were forced to lay off over the last 18-24 months was substantial and it is not surprising that many individuals are using their business skills to create their own opportunities.”

The report also provides a series of tips for job seekers who are thinking about becoming their own bosses, such as establishing yourself through contracting, utilising social media to promote your services, and considering a franchise. “Going in on a franchise business with others or on your own can be a great way to dip your foot in the water of owning your own business,” the report suggests. “Purchasing a franchise typically gives you the right to trademarked names and materials in exchange for a percentage of your profits.”