Page 19 - THE SOUTH CHINA BUSINESS JOURNAL

Q3 2023 Small Business Index reaches a post-pandemic
high score as more small businesses feel confident about the
state of the economy and their business health.

Small Businesses Say They Have
Advantage as Employee Retention
Concerns Creep Up

Amid the ongoing worker shortage, small
businesses report a slow uptick in concern
for employee retention and being able to
afford employee benefits. But in the fight
for talent—they also believe they have
advantages many big corporations lack.

This quarter, small businesses are twice
as likely to say employee retention is one
of their biggest challenges compared to
two years ago (15% vs. 7% in Q3 2021).
Small businesses are also having a harder
time keeping up with workers’ salary
expectations: this quarter a majority (56%)
of small businesses said keeping up with
employee salary expectations is a challenge.

This quarter’s survey also asked small
business leaders about the unique benefits
and advantages that small businesses offer
employees in a competitive job market.
Roughly nine in ten say their company feels
like a family and that this environment
has helped them retain employees (89%
vs. 77% in Q3 2021). Similarly, four in five
small businesses (82%) agree that small
businesses are uniquely qualified to provide
employees with connections to—and
support from—upper management.

The Index’s overall score rose slightly to
69.2 this quarter from 63.1 last quarter. This
is similar to readings before the COVID-19
pandemic struck in early 2020.

The Q3 2023 SBI survey was conducted
between July 20 – August 8, 2023. For more
findings from this quarter, and to explore
and browse years of small business data,
visit: https://www.uschamber.com/sbindex/.

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