Is Small-Business Hiring a Dire Situation Around the World?

ba-blog-8

The small business sector is the backbone of the US economy, hiring more than half of total workers in the country. It is no surprise that everyone pays close attention to it, from politicians to investors. However, fewer people are opting for a career choice in the small business, which directly impacts the small business, and thus the US economy.

This article examines several questions: what is the situation with small business today? Will they expand and attract investors and workers? Is the hiring growing, stagnating or weakening? Let's find out.

Wages Growth Is Affecting Small Business

Just one month ago, CNN published an article claiming that this is the best time for small business to expand. Why? When large business and stocks are falling, small business and Main Street are growing.

 

According to the article, small business is raising wage prices due to the shortage of qualified workforce. This wage hike scared Wall Street but is excellent news for all US workers. Moreover, small business will undoubtedly attract new workforce by raising wages, and will eventually grow with the new workforce.

Lack Of Quality Workforce

Though it is an excellent time to invest in small businesses, the lack of quality workforce could affect small business hiring. As one CNN article pointed out, the markets are so hot that both big and small business can't find sufficient workers. For instance, New England is having trouble with finding workers in almost every sector, from waitress to software engineers.

 

There is this dissonance in the small business sector: a shortage of workers is causing wage growth, and the wage growth is attracting more workers. However, if these measures don't attract new workers, it will hurt small business. After all, they can only raise wages so much without hurting their business. And if they don't succeed, they might go out of business.

Importance of Small-Business Service And Retail Operation

Small businesses rely on providing positive retail experience to their customers. It is not all about the productivity and efficiency. This is the reason why small business (like grocery stores, restaurants, hairdressers, etc) need quality workforce because they are providing experience, preferably positive experience.

 

But is old news. Three years ago Guardian published an article in which the newspaper stated that 80% couldn't find qualified staff. The market has yet to work out a concrete measure that would tackle this issue. Some say that the schools and colleges are failing to prepare the students according to the current marketplace. However, others state that small business should offer training programs to their workers. This teeter tottering has been going on for years, and still, there is no solution in sight.

Technology And Small Business

Some business has adapted new technology, giving them an advantage over their rivals. One Forbes article showcases how the AI is changing small business. A perfect example of this transformation is the ModiFace (Toronto), company which is changing the way people select hair color.

 

The AI is already changing the retail industry and can help small business grow and expand. But what effect will the technology have on American workers? And not all small business will be affected in the same way. The consumers will surely greet these new technologies, but these new technologies could deflect people from acquiring specific careers. After all, why would someone decide to be a waitress if the machine will replace him/her soon?

Hard To Predict

When observed one by one and individually, all these things are hard to predict. But if you combine them, they are almost impossible to predict. One thing is clear though: small businesses are in desperate need of quality workforce. If the market can somehow encourage and induce the production of a quality workforce, then the small-business hiring will probably go up.

 

But if it doesn't, if not enough people are interested in working in retail and service providing business then the strong-business hiring will go down. New technologies will help, there is no doubt about it, but the small-business sector needs to be guaranteed and immediate measures and actions to stay on its feet. Otherwise, it might crumble.

 

Related Posts

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Saturday, 22 September 2018
If you'd like to register, please fill in the username, password and name fields.

Member Login

Business Insights & Tips

Leaderboard

1
Ron Immink
731 Points
2
Michael Lane
711 Points
3
Fionan Murray
672 Points
4
Jill Holtz
526 Points
5
ContentLive
252 Points
View Leaderboard