Poll: Small Business Owners Weigh In on Tax Reform and It Will Impact Salaries, Hiring and More

New BizBuySell survey reveals tax reform benefit will ultimately benefit employees and those looking for work.

SAN FRANCISCO – February 27, 2018 - BizBuySell, the Internet's largest business-for-sale marketplace, surveyed 1,100 small business owners to get their perspective on the impact of tax reform on business operations and hiring. The poll also looks into approval of President Trump, the qualities owners look for in hiring as well as Amazon's impact on the retail industry.

Topic: Tax Reform

Do you support President Trump’s tax reform policies?

• Yes - 51%
• No - 23%
• Unsure - 26%

Do you believe President Trump’s tax reform policies benefit small business overall?

• Yes - 48%
• No - 24%
• Unsure - 27%

Will President Trump’s tax reform policies give your business tax savings?

• Yes - 39%
• No - 22%
• Unsure - 39%

Topic: Business Owners Who Will Receive Tax Savings as a Result of Tax Reform

How do you plan to use the MAJORITY of your tax savings?

• Invest in hiring - 13%
• Invest in current employees - 12%
• Invest in physical improvements to business - 21%
• Invest in marketing & sales initiatives - 32%
• Use savings toward year-end profits - 13%
• Other - 10%

Pay down debt is the top cited response for those owners selecting "Other".

Have you or do you plan to provide extra compensation for employees (salary, bonuses, etc.) because of the tax savings?

• Yes - 57%
• No - 43%

(If yes to above) Were you planning to provide extra compensation in 2018 despite tax reform changes?

• Yes, I was planning to increase salaries regardless - 50%
• No, but I am now going to increase salaries - 50%

How do you plan to provide extra compensation? (select all that apply)

• Increase wages - 57%
• Provide bonuses - 53%
• Provide incentives - 36%
• Provide or improve healthcare - 18%
• PTO - 9%
• Other - 8%

If you are increasing wages with your tax reform benefits, by how much?

• 1 percent - 5 percent increase - 51%
• 6 percent -10 percent increase - 31%
• 10 percent or more - 17%

Owners who are increasing salary as a result of tax reform savings will provide an average increase of 8%.

If you are increasing wages, what is the deciding factor when raising salaries?

• Based on individual performance - 28%
• Based on the overall business financials - 19%
• Combination - 52%

If you are not planning to increase wages, why?

• No revenue available for it - 25%
• Using revenue for other business purposes (inventory, technology, etc.) - 27%
• Saving revenue for year-end profit - 14%
• Other - 35%

Are you planning to hire additional employees in 2018?

• Yes - 60%
• No - 40%

If you are hiring, how many employees do you plan to add?

• 1 employee - 20%
• 2 employees - 33%
• 3 employees - 15%
• 4 employees - 5%
• 5 employees - 5%
• More than 5 employees - 23%

Owners who are benefiting from reform savings and hiring will add an average of 3.3 employees.

Would you have invested in hiring if you did NOT receive tax savings?

• Yes - 29%
• No - 41%
• Unsure - 31%

If you are hiring for the business this year, why?

• Strong financials (revenue, cash flow, etc.) - 22%
• Expanding geographical presence - 30%
• Focus on diversity & inclusion - 7%
• Currently understaffed - 32%
• Other - 8%

If you are NOT hiring this year, why?

• Stagnant or declining financials (revenue, cash flow, etc.) - 6%
• Plan to reduce workforce instead - 3%
• Not necessary; Happy with current state of business - 76%
• Other - 15%

Do you believe your business will perform better in 2018 compared to 2017?

• Yes - 84%
• No - 4%
• Unsure - 11%

Topic: Business Owners Who WILL NOT Receive Tax Savings as a Result of Tax Reform

Are you planning to increase your current employees' salaries in 2018?

• Yes - 38%
• No - 62%

If you are increasing salaries, what is the deciding factor when raising salaries?

• Based on individual performance - 36%
• Based on the overall business financials - 12%
• Combination - 52%

If you are not planning to increase wages, why?

• No revenue available for it - 50%
• Using revenue for other business purposes (inventory, technology, etc.) - 14%
• Saving revenue for year-end profit - 10%
• Other - 26%

Are you planning to hire additional employees in 2018?

• Yes - 30%
• No - 70%

If you are hiring, how many employees do you plan to add?

• 1 employee - 24%
• 2 employees - 32%
• 3 employees - 18%
• 4 employees - 6%
• 5 employees - 3%
• More than 5 employees - 17%

Owners who are hiring, but not benefiting from tax reform will add an average of 3 employees.

If you are hiring for the business this year, why?

• Strong financials (revenue, cash flow, etc.) - 13%
• Expanding geographical presence - 21%
• Focus on diversity & inclusion - 10%
• Currently understaffed - 43%
• Other - 14%

If you are NOT hiring this year, why?

• Stagnant or declining financials (revenue, cash flow, etc.) - 27%
• Plan to reduce workforce instead - 10%
• Not necessary; Happy with current state of business - 48%
• Other - 15%

Do you believe your business will perform better in 2018 compared to 2017?

• Yes - 56%
• No - 16%
• Unsure - 28%

Topic: Hiring & Competitive Questions

Which of the following generations do you consider yourself a part of?

• Gen Z (mid 90s-mid 2000s) - 3%
• Millennial (early 80s-mid 90s) - 11%
• Gen X (1965-1980) - 40%
• Baby Boomer (1946-60s) - 44%
• Silent/Greatest Generation (1910-45) - 3%

How do you recruit new talent/hires? (select all that apply)

• Traditional job postings (newspapers, flyers, etc.) - 23%
• Online job posting sites - 46%
• Social media - 28%
• Word of mouth - 56%
• Family & friends - 36%
• Other (please specify) - 10%

What generation are you typically targeting when hiring?

• Gen Z (mid 90s-mid 2000s) - 25%
• Millennial (early 80s-mid 90s) - 41%
• Gen X (1965-1980) - 26%
• Baby Boomer (1946-60s) - 5%
• Silent/Greatest Generation (1910-45) - 2%

When deciding to hire a candidate, what top two qualities best resonate with you?

• Work experience - 28%
• Personality - 26%
• Creativity - 5%
• Trustworthiness - 42%
• Work ethic - 60%
• Promptness - 7%
• Appearance - 7%
• Communication - 19%
• Other - 6%

If you are in retail, do you consider Amazon a threat to your success?

• Yes - 24%
• No, my customers still value small business retailers - 22%
• No, Amazon is not competitive with my business - 49%
• Unsure - 5%

Media Contact:

Cara Lutz
Walker Sands Communications
office: (312) 561-2484
email: cara.lutz@walkersands.com

NOTE: For additional statistics, please see the latest BizBuySell Insights Report

About BizBuySell

BizBuySell is the Internet's largest business for sale marketplace. Since 1996, BizBuySell has offered tools that make it easy for business owners and brokers to sell a business, and potential buyers to find the business of their dreams. BizBuySell currently has an inventory of approximately businesses - spanning 80 countries - for sale at any one time and receives more than monthly visits. The site also features an extensive franchise directory as well as an easy-to-use business valuation tool. Please visit www.bizbuysell.com for more information.

BizBuySell was founded in 1996 and in 2012 became a division of CoStar Group, Inc. (NASDAQ - CSGP) - commercial real estate's leading provider of information and analytic services. CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information and offers a suite of online services enabling clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. For more information, visit www.costar.com.

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