Most businesses expect staff size to remain stable or grow.

On Eve of Labor Day, Small Businesses Expect to Expand Rather Than Contract by Six to One, According to New IPA SBRB Poll.

BUFFALO GROVE, IL (September 3, 2004) -- More than one-third (36%) of the small business owners responding to a new study by the International Profit Associates Small Business Research Board (IPA SBRB) said they planned to hire more staff during the remainder of 2004.

By comparison the IPA SBRB poll showed that only 6% of the small businesses expect to reduce staff. The poll also showed 58% of the responding businesses anticipate employment to hold steady. 

The opinions of small business owners parallel those of larger businesses as indicated by a new poll from The Business Roundtable, the main association of U.S. chief executive officers. In the coming months, 40% of U.S. large company CEOs expect their companies to add jobs, 48% expect hiring to remain flat, and 12% may reduce staff, according to The Business Roundtable poll.

"The polls show mixed results," said Gregg Steinberg, President of International Profit Associates. "Fewer small businesses are adding staff than large companies. At the same time more large companies are reducing staff size compared to small businesses."

In comparing the job growth enjoyed in the 1990s to today’s expectations, Steinberg noted, "During the 1990s we experienced the largest economic expansion in our country’s history. At that time small business job creation led large business job growth by a substantial margin. In analyzing today’s poll results we clearly see small business job growth lagging behind that of big business and small businesses are typically the first to hire in a job market rebound. In my judgment this creates a cautious outlook for the coming months, and does not necessarily reflect an economy primed for robust growth."

The International Profit Associates Small Business Research Board has been created to determine the opinions of small business owners and managers on a wide variety of topics related to their own business as well as national and international issues that may impact their operations.

Participants in the poll provide feedback on significant issues and allow for real-time insight into the state of small businesses nationwide. The universe of participants is developed from among small businesses across the United States. More than 170 small businesses participated in this IPA SBRB poll. The IPA SBRB study is a voluntary survey conducted via phone, email and fax. The poll was structured and supervised through an independent resource.