Because of the current economy, only 29% of SBOs plan to hire in the next six months, according to a Capital One report.
While small business owners (SBOs) aren't currently feeling the business impacts of the fluctuating economy, they aren't as confident in how their organizations could be affected in the future, according to a Capital One report released on Wednesday.
The report surveyed 500 SBOs to gauge how the economy is affecting business conditions. While SBOs are currently optimistic, nearly half (49%) said they are concerned that a recession could impact the success of their company over the next year, the report found.
SEE: Recruiting and hiring top talent: A guide for business leaders (free PDF) (TechRepublic)
The tight labor market and economic conditions could especially impact hiring conditions, the report found. Only 29% of SBOs said they plan on hiring in the next six months, which is down 33% from fall 2018. Of the 71% who said they do not plan on hiring, most (29%) blamed financial reasons, with the added expense of hiring being too much of a burden in the current economy.
A third (34%) of business owners are leveraging the gig economy to help fill the talent gap in the tight labor market, the report sound. Some 19% reported the gig economy to make a huge difference in getting work done and reaching business goals.
Along with the economy, SBOs are also nervous about the impact of artificial intelligence (AI) and machine learning on business, the report found. Some 48% of SBOs are nervous about hiring the right tech talent that can handle constantly evolving technology.
However, most SBOs said they don't think automation will ultimately replace employees' roles, the report noted. Only 8% said they think AI and machine learning would replace roles in the next five years.
To learn how automation could help fill the tech talent gap, check out this TechRepublic article.
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