Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
Happy Friday. Hopefully you’ve got some great things in store over the weekend, but before you head out the door, check out these stories: the relatively high unemployment (and underemployment) rate among recent college grads, the ascendency of MSBOs and the value of treating your employees like family … or at least family members that you actually like and respect. Have a good one!
Unemployment rate among new grads higher than general population
Despite ongoing labor shortages and a hot job market, the rate of unemployment among recent college grads is higher than that of the general population for the first time in decades. Furthermore, of those college grads who are employed, many of them are actually underemployed or seeing little return, in terms of wages, from their degrees. This is troubling considering $1.6 trillion in student debt.
The Number: 40%. Approximately 4 out of 10 college graduates are currently working a job that does not require a degree.
The Quote: “It takes time for people just out of school to find a job, and recent graduates change jobs more frequently.”
Important stats about Millennial Small Business Owners (MSBOs)
Globally, Millennials make up a bigger percentage of the population than any generation, and they own more small businesses than ever before. In fact, a recent study found that Millennial Small Business Owners are foregoing buying homes or starting families in favor of establishing their businesses. In fact, the research indicates that they have money and they’re not afraid to spend it, making MSBOs an important demographic for marketing (and not just mocking).
The Number: $150 billion. Millennial small business owners spend approximately $150 billion annually, accounting for nearly a quarter of all SBO spending.
The Quote: “…[N]ew ways of funding, like GoFundMe and Kickstarter, have made it more financially feasible for Millennials to get the money they need to get their businesses started.”
Treating employees “like family” to minimize turnover
As one might guess, Cousins Subs takes family seriously. So seriously, in fact, that they’ve made treating their employees “like family” a key part of their strategy to minimize turnover. Department of Labor statistics indicate that the number of food service workers has nearly caught up to the number of manufacturing jobs, and restaurants are finding that they have to implement new strategies to retain workers, such as cultivating a company culture that truly does value employees like family members.
The Number: 72%. Research data from 2018 found that the voluntary turnover rate among accommodation and food services workers is 72%.
The Quote: “The world has changed … but we try really hard to keep that fun, family work environment.”