Many business owners are still holding back on hiring despite economic growth over the past several years, recent reports have found. A Bank of America study found that 52 percent of business owners plan to take on new hires over the next year, while Wells Fargo reported just 21 percent planned the same. A separate Citibank survey found that 25 percent planned to increase staff over the same period. While these results are mixed, it is clear from the findings that entrepreneurs are refraining from hiring in large numbers. Why?
More money needed to expand hiring
The hiring problem is multifaceted, encompassing a wide variety of issues including staff burnout, health care compliance and regulatory concerns, but for many business owners, hiring often boils down to one thing: money. Joe Carter, a business owner who runs a company that removes toxic materials such as lead paint and asbestos from buildings, told the AP that he needs more money before he can add to his payroll. However, dealing with large financial institutions has been troublesome for him in the past.
“This week, we were delayed again on a project because the bank had not met all the regulatory requirements on the deal,” Carter told the source.
Carter also said he has trouble finding the right hires for his company, as he must comply with background check requirements, conduct physical fitness examinations and must find individuals willing to perform the challenging tasks of the job each day.
Gaining access to small business working capital can be a challenge for all types of business owners, and strict credit requirements and standards often get in the way of access to funds. Those interested in expanding staff can contact National Funding to find out more about their financial options.