Welcome to the Small Business Run Down. Each day, we bring you stories and trends that impact small business owners and their workforce.
Today we look at the success of senior citizens who open small businesses, the trend towards bonuses over raises at companies of all sizes, and the importance of small businesses in inner city job creation.
Entrepreneurial senior citizens more likely to succeed in business than millenials
Ageism might keep older Americans from landing a job, but it’s not keeping them from succeeding in business. Research shows that 70% of small businesses run by senior citizens are still open after 3 years, compared to 28% of businesses run by younger entrepreneurs. Senior Planet, a retirement center and co-working space in New York, is dedicated to helping older entrepreneurs gain the technological skills needed to be competitive in today’s business environment…which is a good thing since the Department of Labor estimates that American workers 55 and older will make up the biggest segment of the labor force by 2024.
The Number: 40%. People who retire are 40% more likely to be diagnosed with depression, suggesting that working into old age is good for mental health.
The Quote: “And I’m like, ‘If that’s what retirement does for you, I don’t want it.’ So I plan on working until God calls me home or just until I can’t work any longer.”
US companies back off wage increases and focus on bonuses and benefits
For companies looking to attract top talent in a tight labor market, variable compensation is taking precedence over big wage increases. In an effort to hold the line on fixed-costs and salary budgets, more businesses are turning to bonuses and personalized benefits packages to attract workers. In fact, companies are finding that flexible schedules, work-from-home options and health and wellness programs can successfully attract and retain employees in the absence of big yearly raises.
The Number: 3%. US companies of all sizes are looking to cap wage increases at 3% due to rising healthcare costs.
The Quote: “By leveraging tailor-made benefits and compensation strategies, organizations can create a deeper connection with their workforce and, at the same time, keep expenses in check.”
Small businesses have big impact in urban job creation
It’s no secret that small businesses are the backbone of the American economy. They’re also critical to the economic and social health of inner cities. A recent study shows just how important small businesses are for the creation of jobs in ten of the largest cities across the US. Remember that next time your city doesn’t win the bid…
The Number: 71%. Small businesses create 71% of the jobs in Miami and account for 63% of jobs in Dallas.
The Quote: “A modest increase in the number of employees hired by existing small businesses (about one to three employees per business) could create enough employment opportunities for all currently unemployed inner city residents.”