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Does Less Small Business Hiring Mean Trouble? Not Necessarily

The start of 2019 hasn’t shown much of a slowdown in the economy, except for one section. Federal jobs numbers have been underperforming in regards to expert expectations, but the concern for some in the lower middle market is that it also is occurring in the private sector as well. Small business hiring slowed dramatically in February, which some are seeing as a sign that company owners may be getting cautious about the economy. With economists forecasting a slowing of the economy this year, many owners are taking a cautious stance, which means hiring is down. If you take a look at the last 24 months, however, this is not so much a warning as it is a known effect of the economic trends in the market.

Some were predicting 2019 to stay strong like the previous year, and it has. With things like hiring slowing, that points more to the stabilization of the growth seen in the last two years than it does the pending decline. As everyone from Wall Street to the lower middle market has experienced, the economy during a period of growth does hit a level at which it slows down a bit. Given the record stock numbers and emphasis on domestic growth, it’s not surprising things would slow down at some point. From a hiring standpoint, this means that new hires will be much more specifically chosen as growth slows, so what are small business owners looking for?

A QuickBooks survey found that the following traits were guiding small business hires through this slight calm down in the lower middle market:

Productivity: 21.3%

Staff turnover: 19.6%

Cost of hiring: 18.1%

Training burden: 16.7%

Project cost: 11.4%

Overall, small business owners and hiring managers are less concerned with degrees and other professional education than they are with experience. For those needing to maneuver around the economic changes happening, it comes down much more to output than what new hires look like on paper. In the end, small business hiring isn’t a sign of trouble: it’s a repositioning. When an insane amount of growth starts to slow back down to normal, it’s likely that lower middle market businesses will start pinpointing exactly what they need rather than take chances, and that includes employee hires and business projects.

SA Capital Partners helps lower middle market business owners find their way around new trends in the market. Overall, they’re experts in the industry at raising capital, mergers and acquisitions, and even corporate consulting. If the near future seems unclear, let SA Capital Partners help you see what’s coming next.

About SA Capital Partners:

SA Capital Partners is an innovative financial services firm that specializes in mergers & acquisitions advisory and capital raising for lower middle market businesses. We aspire to give all the tools necessary to complete any transaction. SA Capital Partner’s financial services industry specialists provide comprehensive, integrated solutions to banking transactions. Our breadth of services and industry knowledge allow us to understand each client’s unique business needs. Our goal is to make all financial services available to every small business.

Phone: (212)-235-2761


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