10 Things Every Business Owner Should Know
The global economy is facing the aftermath of an economic depression. The US is also facing the similar problem of recession. There are three kinds of companies in the US. They are small companies, middle- market companies and Big companies. These small companies and middle- market companies have said that they expect 2016 to be a profitable year for them.
On the flip side, they expect stumbling blocks in the form of difficulties in recruiting talented employees, controlling labor costs, increasing the company's earnings, Etc.
If we contemplate the facts we can understand that almost all the surveys done to know the expectation of the small and mid-market companies, reflect the similar kind of concerns. These concerns are about increasing their business operations and the additional intake of the workforce in these companies.
Almost 70% of the small and middle market companies taken together said that they expect 2016 to be good for business people. But, surprisingly only a low percentage as 27 among the entrepreneurs said they expect to reap profits during this year. The percentage of middle market companies which expect a growth is as low as 10%.
The middle market companies are the backbone of the US because there are more than 2,00,000 such companies which totally contributes a revenue of 10 trillion dollars every year. This figure is huge because it accounts for 1/3 rd of the total revenue of this economy. But the middle market companies express their doubts for growth more than the other two types of companies.
The percentage of people who are optimistic about the growth of the business has comparatively shrunken from 70 last year to 39%. This percentage is better even during 2014 because 50% of middle size company employees had expressed their expectation for growth in that year.
To swim the tide the middle market businessmen have come up with a solution. They are planning to increase the number of full- time employees in their organizations. Unlike mid- size companies, small companies said that they are not planning to increase the number of people in full- time employment. They said they are worried about the growth prospects of their companies.
Moreover, the unpredictable nature of the economy is the cause of annoyance for most of them.
When asked further in the survey, about 40% of the mid- sized business owners said that the health insurance cost has gone up to 10% more during the last year.
The health insurance cost component is the factor which makes it difficult for small as well as middle market businessmen to control overall costs of their business. This is mainly because of the fact that the employees are becoming more and more health conscious.
In short, the global recession has affected the American economy like anywhere. This is clearly evident from the survey done by JP Morgan Chase. Almost 1394 mid- size company employees, around 950 small company employees were studied during 2015 and 2016.
The study, which was done this year shows the worries and anxieties of the businessmen of small and mid- market companies have increased during 2016.