Better Bottom Lines, But Not Ready to Hire

Small business owners are starting to feel good about the economy – but a positive outlook isn’t necessarily translating into more jobs, according to a recent poll. Capital One’s second quarter Spark Small Business Barometer surveyed more than 1,900 small businesses around the United States, and found that optimism is on the rise. Nearly half of small business owners believe finances will be better in six months, a 7% increase from the last quarter of 2012. Additionally, 35% of small businesses say their financial position is better than it was a year ago – which is nearly twice the number that says business has gotten worse over the same time period. But a rosy perspective on the future and better bottom lines don’t seem to be affecting hiring plans. “While many small businesses have seen an uptick in sales over the past six months, this is not necessarily translating into significant new hires or investments in the business,” says Jon Witter, president of direct, consumer and small business banking at Capital One. In fact, 67% of small businesses surveyed have no plans to hire in the next six months, which has actually gone up since the same time last year. The survey notes that business owners are likely waiting to see “continued positive economic indicators and more regulatory and tax certainty from Washington” before making plans to bring on new staffers. Also discouragingly, recent grads looking to small businesses for job opportunities may be out of luck. Only 18% of the businesses that do plan to hire are considering recent college graduates. Meanwhile, 28% of small business owners reportedly plan to hire military veterans over the next six months.