Small business optimism rise, loan applications increase, job hopping commands premium compensation increases and side hustles go full-time.
Welcome to the Small Business Run Down. Each day, we bring you stories and trends that impact small business owners and their workforce.
Today, optimism keeps growing, the dream keeps side hustles into full-time businesses, small business loan approvals increase, and job hoppers might be making more than you need to pay.
Small Business Optimism Rises
Recession coming? A trade war? None of that is slowing down small business owners.
According to the National Federation of Independent Business optimism index, showed an increase hitting the 105 number. Economists were expecting a decline.
The Number: 1.5. The optimism index rose by 1.5 points, even though economists were anticipating a 1.5-point drop.
The Quote: “Uncertainty levels remain high but owners are focused on a very busy Main Street.“
What Drives Side Hustles into Small Businesses?
What would motivate someone to take their side hustle and turn it into an actual small business? A dream.
According to a Hiscox Insurance survey, the majority of small business owners that began as side hustles, were motivated to make the jump out of desire to fulfill a dream of owning their own business.
The Number: 30%. Of the respondents surveyed, 30% said their motivation was to fulfill a dream of owning their own business.
The Quote: “While passion and optimism fuel the entrepreneurial spirit, we’re seeing people take calculated risks to start their own business often while employed full-time.”
Small Business Loan Approvals Continue Upward Trend
According to an index report, small business loan approvals remain at pre-recession highs. Loan approvals from big banks remain steady, while approvals from smaller banks actually increased in May.
The Number: 49.9%. Approvals of small business loan applications among small banks increased from 49.8% to 49.9%.
The Quote: “Small banks are approving nearly half of the loan requests they receive. This bodes well for entrepreneurs.”
You Might Be Paying a Job Hopper Too Much
How much would you pay a potential employee to leave their current job and join your company? Research suggests “too much.”
US-based workers said they would leave their current role for a 10% compensation increase. But most employers will offer 15% more to lure workers.
The Number: 25%. Twenty-five percent of American workers are currently looking for a new job.
The Quote: “Employee perceptions of the economy are primarily driven by how their company is financially performing, and what they gather from news cycles … Companies need to proactively communicate with their employees about the current business plan and what will keep the organization successful.”
Houston, We have an Onboarding Problem
Data shows a gap between how important employers think onboarding is and how much they invest in onboarding, research says.