Small Business Finance News

Half Of Small Businesses Plan To Hire, Increase Wages In 2012

Written by Tim Morral
Published: 1/5/2012

SurePayroll's December Small Business Scorecard indicates growing optimism among small business owners.

Payroll services provider SurePayroll released its December Scorecard yesterday, revealing substantial growth in optimism among small business owners.

SurePayroll Hiring Projections for 2012

December's small business optimism score was 63% -- a remarkable increase from a score of 53% during the previous two months and a score of 33% in September.

The December Scorecard also includes several other positive signs that small business may be turning a corner at the start of 2012:

  • One in two (50%) small business owners plan to hire additional workers in 2012.
  • More than half of SMB owners (56%) intend to increase wages for some or all of their employees in the next twelve months.
  • Virtually no small business owners (2%) are planning to reduce wages in their workforce during the coming year.

"We saw caution in 2011, but the leading indicators suggest 2012 looks positive," said SurePayroll CEO and President Michael Alter. "The sun is on the horizon. Optimism is higher, 50 percent plan to hire and wages look to go up."

The Scorecard also confirmed the widespread belief that lending will be a critical factor for both small businesses and the growth of the U.S. economy in 2012. More than one in five (21%) of small business owners plan to pursue borrowing to fund their growth initiatives.

"We really need to make sure lending is easy and accessible," Alter adds. "It's been a challenge over the last few years, but hopefully as we look ahead to 2012 that will change."

If lending is available, respondents indicate that they plan to invest in marketing, new technology and equipment, and upgrades to their facilities. Scorecard respondents named banks or commercial lenders as their primary venue for borrowing this year.

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