Small businesses in real estate finance include around 15,000 mortgage brokerages and countless service providers. The results of a new survey indicate that more than half of small business owners would be unlikely to step up hirings because of government incentives.
At Wells Fargo’s small business segment, company executive Doug Case says America’s small businesses employ around half of all non-government employees.
Small businesses account for more than 60 percent of all new jobs created each year, according to Case.
But when asked if they would be encouraged to hire unemployed workers this year through tax credits, 52 percent of small business owners indicated that they would be “very unlikely” to do so. Just over a third said they have been hiring fewer employees than needed — with most expressing concerns about inadequate revenues.
“As business owners keep an eye on the economic recovery in America, they appear to be operating in a static environment with 53 percent of business owners maintaining current staffing levels — only hiring as many employees as needed,” a news release said.
The survey, Wells Fargo/Gallup Small Business Index, was conducted between April 12 and April 16. It was based on telephone interviews with 603 small business owners.
A little more than two-thirds of the respondents indicated that they have no plans to increase the number of hours their employees are working, while 19 percent are cutting back.
“Small businesses are critical to the health and strength of our economy,” Case added. “This has been a challenging period for small businesses. They are looking for assurance of an economic rebound before staffing for growth.”
But the mortgage industry has been known to thrive in the face of economic adversity.
One example followed the September 11, 2001, attacks — when the U.S. economy came to a standstill and President George W. Bush pleaded with Americans to spend money. That episode led to the record-breaking refinance wave in 2003 — when residential lenders originated in the neighborhood of $3.5 trillion.
