Global CEOs and U.S. Small Business Owners Have Mixed Views on Job Growth in 2013
CEOs of NYSE-listed companies are twice as likely as U.S. small business owners to expand their workforce in 2013, according to the recently released NYSE Euronext 2012 CEO Report.
More downbeat compared to their optimistic large-company counterparts, two-thirds of U.S. small business owners say they may not add jobs in 2013, with some anticipating reductions in their workforce. Among report respondents, 57% of CEOs and 53% of U.S. small business owners believe that reducing tax rates on businesses would be the most effective solution to accelerate the growth of permanent jobs.
The NYSE Euronext 2012 CEO Report, now in its 8th year, presents the thinking of a diverse set of business leaders on the global economy, business growth, job creation and the impact of the U.S. elections.
“More than half of respondents believe that most private sector job creation over the next three years will come from small entrepreneurial companies,” said Duncan L. Niederauer, Chief Executive Officer, NYSE Euronext. “However, more than 80% of U.S. small business leaders said that lack of access to capital, economic uncertainty and other burdens are having a significant impact on their ability to create jobs.”
When asked about policy actions that would accelerate the growth of permanent jobs, U.S. small business owners suggested increasing funding for programs targeted to small businesses, tax credits for hiring workers and providing incentives for the repatriation of jobs. Participating CEOs of NYSE-listed companies suggested reducing compliance-related regulation, providing tax incentives to fund innovation efforts and spending to improve the nation’s infrastructure.
Among survey respondents, approximately 25% of public company CEOs also indicated their company currently has a program in place to connect their business with startup, early stage or small businesses in general.
Earlier this year, NYSE Euronext launched the NYSE Big StartUp, a nationwide jobs growth initiative that connects startups and small business entrepreneurs with Corporate America to accelerate new business, funding and success. The program calls on the nation’s corporate community to lend support, experience and resources to startups and small businesses to improve procurement, networking, business development, training, marketing and information sharing.
“With the NYSE Big StartUp initiative, we also launched Corporate Connections, an innovative and secure web-based platform that enables startups to connect directly with large corporations,” added Niederauer. “The web portal is an opportunity for large companies to review and consider pre-screened startups for potential new business opportunities and mentoring relationships.”
Participating CEOs of NYSE-listed companies offered the following advice for the next U.S. Administration:
- “The key priorities should be to address our debt issues, our entitlement issues, and the increasing bureaucratic chokehold on our economy. Real and permanent solutions to these issues would unleash confidence in our economy and help it grow.”
- “Invest in people, in education, in innovation. Some traditional jobs are gone forever through technological advances. We must adapt to thrive in this new reality.”
U.S. small business owners provided the following input on growth and job creation:
- “Stimulate internal job creation by providing tax benefits for U.S. job creation, Incentivize banks to lend to small businesses at special rates and aggressively.”
- “We must make it more attractive for businesses to conduct operations in the USA. This means simplifying the tax code, perhaps lowering tax rates, and making it far easier to get qualified international workers to come to the U.S.”
The 2012 NYSE Euronext CEO Report, conducted this past July by ORC International and presented in cooperation with FOX Business Network, reflects the insights of 340 CEOs from companies listed on NYSE Euronext markets from 26 countries and 285 U.S. small-business owners. Complete results of the report are available at: www.nysemagazine.com/CEOreport and via the NYSE Magazine iPad app, which can be downloaded for free through iTunes.