The Daily Rundown: The Giving Habits of Business Owners, Miami Tops the List for “Very Small Business”
Welcome to the Small Business Run Down. Each day, we bring you stories that impact small business owners and their workforce.
The holiday season is well underway, so it’s a good time to think about year-end giving and some of the ways that male and female business owners differ when it comes to charitable contributions. We’ll also take a look at the fairness of hiring algorithms and some stats about “very small” businesses in the U.S.
Regardless of gender, entrepreneurs value charitable giving more
A recent supplemental report to a study on the giving habits of business owners found that male and female entrepreneurs give similar amounts to charity, as opposed to their non-business owning counterparts. The research found that the same traits that made entrepreneurs successful have more influence on their giving habits than their gender. Even so, there are slight nuances and differences when it comes to men and women business owners’ motivations and attitudes toward giving.
The Number: 7. While men and women in the population at large showed different attitudes toward charitable giving, the study found that both male and female entrepreneurs spend an average of 7 hours volunteering each month.
The Quote: “While men and women at large might have different ways of giving back, entrepreneurs of all genders tend to approach charitable giving and volunteering with similar generosity and personal involvement.”
Fairness of hiring algorithms still in question, research says
New research out of Cornell University calls into question just how much bias is removed by using automated screening tools for hiring. The research found that tech companies who create these algorithms tend to lack consensus when it comes to defining basic terms like “bias” and “fairness” and that this, in turn, allows developers to continue to operate under relatively opaque conditions.
The Number: 19. The researchers focused on 19 vendors that use algorithmic pre-employment screenings, including questions, video interview analysis and games.
The Quote: “Plenty of vendors make no mention of efforts to combat bias, which is particularly worrying since either they’re not thinking about it at all, or they’re not being transparent about their practices.”
Florida and California are hot-spots for “very small businesses”
Very small businesses are a big deal in Miami, with 85% of businesses in the southern Florida city employing 10 employees or fewer. A study looked at “where very small businesses dominate” and found that small businesses do more than their fair share to support the economy in big metropolitan areas. Where they don’t dominate? Louisville, KY. Huh.
The Number: 89%. While the U.S. Small Business Administration classifies any organization with between 100 and 1,500 employees as a “small business,” most businesses are actually much smaller. 89% of U.S. businesses have 20 employees or fewer.
The Quote: “The City of Los Angeles offers several resources and incentives to support small businesses, such as the Restaurant and Hospitality Express Program, which streamlines the permit approval process for food service establishments.”