- Nearly half of new microbusinesses are women-owned
- Many microbusiness owners are pulling double duty, depending on a
second job to make ends meet
- Despite struggles, 69 percent of microbusiness owners say they have
the ideal job
- Microbusinesses would rather spend more time serving customers than
taking time off
WASHINGTON & BENTONVILLE, Ark. -- (Business Wire)
One in three microbusiness owners (31%) depend more on a second job for
their personal income than they do on their business, yet 69 percent say
owning their business is the ideal job, according to the new Sam’s
Club/Gallup Microbusiness Tracker.
In collaboration with Gallup, Sam’s Club unveiled a new quarterly
tracking poll today focused on America’s smallest businesses –
microbusinesses -- with five or fewer workers. With more than 25 million
microbusinesses in the United States*, they account for approximately 10
percent of all American jobs across a broad spectrum of businesses, such
as pizza shops and cafes, convenience stores, pet groomers, mechanics,
offices, day care centers and more.
The results of the inaugural Sam’s Club/Gallup Microbusiness Tracker
provide new insights into the preparedness, concerns and needs of
America’s vital microbusiness segment. The results reflect 868 phone
interviews made in March 2014 with companies of five or fewer employees.
The first tracker reveals several important findings:
Rise in Women Entrepreneurs
-
Women-owned microbusinesses are on the rise in the past two decades –
Nearly half (45.7%) of newer microbusinesses are started or owned by
women, while only 28.3 percent of microbusinesses 20 years or older
are women-owned.
-
Women (25%) are less likely than men (34%) to use bank loans to
finance their business.
-
Compared to their male counterparts, women are more likely to worry
about working too hard and overdoing it (43.5% vs. 35.7%) and to agree
that they struggle to balance work and life (36.3% vs. 32.0%).
Financing Their Business
-
Over 60 percent of microbusiness owners have financed their business
from personal savings, and nearly as many (55%) say having access to
cash reserves is a major issue facing their business.
-
Over two-thirds of microbusiness owners are choosing not to re-invest
their tax refunds into their business, preferring to use the tax
refund toward loan repayment or personal use.
-
Despite working two jobs and investing their own money, 69 percent of
microbusiness owners say they have the ideal job.
-
Almost a third (30%) of older microbusinesses, those more than three
years old, are experiencing flat revenue growth and are more likely to
be letting employees go compared to newer microbusinesses.
Top Concerns
-
While the day-to-day management of their business dominates much of
their time, microbusiness owners want to spend more time serving
customers (34%) than taking personal time off (25%) or planning for
the company’s future (21%).
-
Rising taxes and fees on goods and services (68%) is the number one
concern for microbusiness owners. The cost of utilities (39%),
inventory or raw materials (35%) and transportation (34%) are other
issues weighing heavily on the minds of microbusinesses.
-
Approximately one third (34%) of microbusinesses with employees say
that providing adequate employee benefits is a major issue for them;
meanwhile, four in 10 microbusiness owners (41%) said they are
concerned about employee healthcare costs going up significantly in
the coming year.
“Sam’s Club has served microbusiness members for more than 30 years,”
said Rosalind Brewer, President and CEO of Sam’s Club. “We’re always
conducting research with members to understand their needs and concerns,
but with the Microbusiness Tracker, we want to give a broader, national
voice to microbusiness. We believe these vital community businesses and
the challenges of these entrepreneurs aren’t always represented in the
small business discourse.”
“Microbusinesses are a unique segment within American small businesses –
which the federal government defines as companies with up to 500
employees. Microbusinesses are the smallest of the small. It’s important
that not only owners themselves, but policy makers, understand the
different challenges microbusinesses are facing,” said Sangeeta Badal
PhD, Gallup’s lead researcher for entrepreneurship and job creation.
“Microbusiness owners are constantly juggling multiple tasks, from
managing the day-to-day running of the business to generating leads and
finding customers. This leads to uneven sales. Very few have enough cash
to pay their bills let alone save for future growth. These business
owners operate on little-to-no margin of error and need support. The
unique data of the Sam’s Club/Gallup Microbusiness Tracker not only aids
policy and decision-making at the national level, but also provides real
actionable insight for microbusiness owners,” added Badal.
For further information please review the article Three
in Ten Microbusiness Owners Depend on Second Job for Most of Their Income
and the Frequently Asked Questions document.
Note: Survey results are available upon request.
About The Sam’s Club/Gallup Microbusiness Tracker
The Sam’s Club/Gallup Microbusiness Tracker is a nationally
representative survey that regularly reports on U.S. businesses with
fewer than 5 employees, a key driver of Main Street economic growth. The
tracker provides valuable insight into the mood and mind of
microbusiness owners for decision makers and influencers in government
and commerce by highlighting the unique concerns and challenges of
microbusinesses along their path from startup to maturity. To learn more
about the Sam’s Club/Gallup Microbusiness Tracker, visit SamsClub.com/Newsroom
or Gallup.com.
About Gallup
Gallup delivers forward-thinking research, analytics, and advice to help
leaders solve their most pressing problems. Combining more than 75 years
of experience with its global reach, Gallup knows more about the
attitudes and behaviors of the world's constituents, employees, and
customers than any other organization.
About Sam’s Club
Sam’s Club®, a division of Wal-Mart Stores, Inc. (NYSE: WMT),
is a leading membership warehouse club offering superior products,
savings and services to millions of members in 635 clubs across the U.S.
Sam’s Club serves more than 600,000 business members every day. To learn
more about Sam’s Club, visit the Sam’s
Club Newsroom, shop at SamsClub.com,
and interact with Sam’s Club on Twitter
and Facebook.
*According to the Association of Enterprise Opportunity (AEO) “Power
of One in Three” report, 2013; AEO is a Sam’s Club Giving Program
grantee.
Contacts:
Sam’s Club Media Relations
Carrie Foster Moore, 1-800-331-0085
news.walmart.com/reporter
SamsClub.com/newsroom
Source: Sam’s Club
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