RICHMOND, Va.--(BUSINESS WIRE)--Budding entrepreneurs looking for more lucrative pay or more leisure hours by starting their own business may be in for disappointment. According to a just-released national survey of small business owners commissioned by hourly job Web site SnagAJob.com, only one in five (21%) business owners with between two and 10 employees is earning more than they had hoped to make when they started their companies. And it’s not for lack of hard work: These small business owners say they put in an average of 58 hours per week toward their business.
Yet, among small business owners with two to 100 employees, almost two-thirds (63%) say that starting their own business has been more personally fulfilling than they ever thought it would be. For company founders in growth mode – those planning to increase headcount within the next 12 months – that figure rises to 71 percent.
Earning a higher income is not the biggest reason for becoming an entrepreneur, although it is among the top three for 72 percent of small business owners. The top motivation? A whopping 91 percent say “being their own boss” was among their top-three influencers, and 44 percent say it was No. 1.
Being the head honcho, however, comes with its share of headaches. Topping the list of frustrations are bookkeeping (cited by 38%), HR issues like benefits (31%) and recruiting (18%). And when it comes to recruiting, 58 percent of business owners say that “identifying qualified applicants” is their biggest challenge. Small businesses are most likely to build a pool of job applicants using free methods, stating that referrals (60%) are the best recruiting method, followed by newspaper classified ads (13%), walk-in traffic (8%) and free online job boards (8%), among several other methods.
“Small businesses – much like the hourly workers we serve – are the backbone of America’s economy,” said Shawn Boyer, CEO of SnagAJob.com, who was named the National Small Business Person of the Year in 2008 for founding a website for hourly jobs. “Small businesses employ just over half of private-sector employees, and more than half of the U.S. workforce is employed by the hour. Therefore, we’re in a unique position to help match these large segments of the workforce. ”
To help small business owners better identify qualified job applicants, SnagAJob.com is offering a 60-day free trial to post positions for lightly skilled, hourly workers, including screening questions to help owners focus in on the right-fit hire. According to the survey, 61 percent of small business owners will do some kind of hiring in the next 12 months, with 35 percent expecting to increase headcount and 26 percent hiring because of turnover.
Other survey findings:
Survey Methodology: This online survey was conducted by IPSOS Public Affairs, a third-party research firm, on behalf of SnagAJob.com between Apr. 15 – 22, 2010. Respondents included a national sample of 511 small business owners who employ 2 to 100 employees. The margin of error for the entire survey is 4.34% at a 95% confidence level. The margin of error for the subgroup of small business owners with between 2 and 10 employees (255 respondents) is 6.14%. Similarly, the margin of error for the subgroup of small business owners with between 11 and 100 employees (256 respondents) is 6.13%.
About SnagAJob.com: SnagAJob.com, America’s largest hourly job Web site, has helped connect hourly workers with quality full-time and part-time jobs in a wide range of industries since 2000. Headquartered in Richmond, Va., current clients include DISH Network®, Verizon Wireless®, FedEx®, Boston Market®, Chick-fil-A®, Bed Bath & Beyond®, Michaels® and Jiffy Lube®. Learn more about the No. 1 source for hourly employment at SnagAJob.com and hiring.snagajob.com.