167 - 3 Biggest Challenges Facing Small Businesses In 2017

It has become tougher for business owners to plan for success.

1. Hiring

When asked what are your hiring plans for 2016, 50 percent of businesses expected to hire new employees, compared to 38 percent who expected to hire new employees in 2015.

Hiring remains a challenge for small businesses as they anticipate growth while managing overhead costs. This concern seems to remain a dilemma for small-business owners wanting to see an appreciative improvement in revenue. The Linked-In resource Talent Solutions gives insight about what candidates are pursuing.

2. Profit

How do businesses expect to grow their revenue? Of those surveyed, 43 percent said that improving customer experience and retention was key to furthering success in 2016, followed by launching new products at 31 percent and expanding into new markets at 30 percent. Read " How to boost customer loyalty" for insight into retaining customers and deepening relationships.

3. Healthcare

The NFIB Research Foundation’s quadrennial Small Business Problems and Priorities survey suggests that 52 percent of small business owners rank the “cost of health insurance” as a critical problem.

The Medical Expenditure Panel Survey (MEPS) showed the average premium for a health insurance plan cost $2,889 per employee in 2001. That figure in 2015 rose to $5,963.

Small businesses are dropping insurance due to the overburdening cost and opting to pay the penalty, which has become more cost-effective. Cost is the number one reason small businesses with fewer than 50 employees continue to drop or not offer employee healthcare. The Affordable Care Act has become a burden for small business owners as costs continue to climb, inadvertently causing adverse effects including wage stagnation and employee retention.

Source: bizjournals

All the best!

Patty Block