Welcome to the Small Business Run Down. Each day, we bring you stories that impact small business owners and their workforce.
Hello, hello. Today we get the show on the road with a look at the minimum wage debate from a new angle before jumping over to proposed legislation by the congressman from the great state of Maine that seeks to bolster government assistance to SMBs. Finally: the fear of gun violence and workplace safety at small businesses.
Current federal minimum wage behind high turnover
Employee turnover is a costly issue for many small businesses. Research indicates, however, that there’s a strong relationship between the minimum wage threshold and the rate of turnover an employe experiences. The data shows that raising the minimum wage to $15 would indeed reduce turnover … but there’s a catch: the impact diminishes after $15 and other factors start coming to play. Food for thought.
The Number: $7.25. The current federal minimum wage is $7.25 per hour — and 70% of workers earning the current minimum wage are likely to leave their position within a year.
The Quote: “Retaining employees at small businesses is as much a science as it is an art.”
New bills aims to continue support for the country’s entrepreneurs and small businesses
A congressman from Maine introduced new legislation to the House Small Business Committee today that would re-authorize the Small Business Development Center Program and secure future funding for the program. More than half of all workers in the state of Maine are employed by small businesses — a percentage that’s not far off from the national average. The Small Business Development Centers are located across the country and provide key services to entrepreneurs and small business owners.
The Number: 99%. According to Small Business Administration classifications, more than 99% of companies in the state of Maine are small businesses.
The Quote: “Maine has a large concentration of small businesses, and the state’s economy is almost 100 percent driven by small businesses. Congress has not given the Small Business Administration the resources they need to get out into the community.”
Small biz owners take action in the face of workplace gun violence fears
While the actions taken vary widely, The Wall Street Journal reports that over one-third of U.S. small business owners are increasing their workplace defenses against the threat of gun violence. Installing security cameras, locking entrances, moving physical locations, and even applying for concealed weapons permits are among the steps that company heads are taking in an increased effort to protect themselves and their employees.
The Number: 35%. Of the 800 small businesses surveyed, 35% report that they’ve already taken action — or plan to take action soon — to protect employees against the threat of gun violence.
The Quote: “I have made what I think is the educated choice: There is more risk in me owning a pistol than in me not having one in the office.”