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Capital One: 67% of small businesses not hiring

June 17 2013

Sixty-seven percent of small businesses do not have plans to hire in the next six months, a 1-point decrease from 68 percent in the fourth quarter of 2012, but seven points higher than the 60 percent who did not plan to hire in the second quarter of 2012, according to Capital One’s second quarter 2013 Spark Small Business Barometer. However, the report found increased sales and optimism about the economy.

Forty-five percent of small businesses believe their financial position will be better in six months, according to the report, which could be attributed to the increase in sales that 35 percent of small businesses saw during the past six months.

“Our survey results for the second quarter indicate that while optimism and confidence are on the rise and more small businesses are on sound financial footing, concerns and uncertainty continue to hold back plans for staffing increases and growth,” said Jon Witter, president of direct, consumer and small business banking at Capital One. “While many small businesses have seen an uptick in sales over the past six months, this is not necessarily translating into significant new hires or investments in the business.”

Of the 30 percent of small businesses that did report plans to hire this quarter, 72 percent anticipate hiring between one and five new employees. Twenty-eight percent of small businesses report plans to hire military veterans in the next six months, but only 18 percent have plans to hire recent college graduates.

Braun Research conducted the telephone survey on behalf of Capital One among 1,906 for-profit small businesses with less than $10 million in annual revenue. The interviews were conducted from April 24 to May 8, 2013.


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