SmallBizResource Blog -- SmallBizResource

Small-Biz Numbers Everywhere

Posted by Gayle Kesten Monday, Sep 8, 2008, 12:43 PM ET

Forecasts, predictions, reflections -- plenty of researchers are kindly keeping tabs on our small businesses to help us assess the bigger landscape we're all part of and, perhaps, adjust ourselves accordingly.

Here are some of the latest findings from our survey-taking friends:

1. According to payroll processor ADP's National Employment Report for August [PDF], businesses with fewer than 50 employees added 20,000 jobs during the eighth month of the year. Meantime, midsize and large businesses (50 to 499 employees and 500-plus employees, respectively) experienced a combined lost of 53,000.

"Though this growth declined from last month’s revised increase of 46,000, these figures continue to offer evidence of the resiliency small-size businesses have demonstrated over the past several years when compared to the job losses experienced at larger firms,”said Joel Prakken, chairman of Macroeconomic Advisers, which prepared the report.

Apples to apples, the overall trend for August remains unchanged year-over-year in that small businesses added jobs in August 2007 while all others saw losses. The actual numbers, however, were drastically different: Small business employment grew by 44,000, while medium and large businesses shed 6,000 jobs.

2. A majority of small and midsize businesses -- 81 percent of 300 surveyed -- plan to spend on advertising in the year to come, according to The Kelsey Group and ConStat's Local Commerce Monitor. Of that total, 47 percent will maintain their ad spend, while the remaining 34 plan to spend more. SMBs are also realizing the importance of Web 2.0 technologies to their plans, with 40 percent planning to add customer reviews to their Web sites, 30 percent adding links or placing ads on social sites or blogs, and 26 percent incorporating video on their sites

3. Small-business owners work harder than those in the government and at big corporations , according to a new survey from Rasmussen Reports. (Thanks to SmallBusinessNewz for the pointer.) More specifically, 78 percent of the 1,000 adults surveyed by phone say small business owners work harder than government workers, 77 percent say small business owners work harder than employees of big corporations, and 72 percent say small business owners work harder than corporate CEOs.

4. Discover Small Business Watch found "small business owners’ economic confidence rose for the second straight month in August, climbing away from a 22-month low in June as their concerns about the state of the overall economy improved." The number of respondents who think the economy is worsening fell to 60 percent from 71 percent in July, though more are experiencing cash-flow problems (42 percent vs. July's 33 percent).

Of note, Discover's finding of increased optimism is the opposite of the finding I told you about from the National Federation of Independent Businesses, which reported small-business owners (presiding over 15 or fewer employees) to be less optimistic in July than in previous months. Just sayin'.

5. Small Business Newz also cites a study out of the U.K. that found small businesses' employees are among the workforce's most cheerful employees. "Employees in small firms also felt most engaged by their employer and reported the most freedom to choose their working patterns. There were also far fewer reports of bullying in small businesses; lower stress levels and less complaints about long working hours."

Optimistic or pessimistic -- where do you stand? And, in general, how much stock do you take in industry reports?

Research | SmallBizResource