Whether they want to or not, most entrepreneurs start their businesses on their own. Several do want workers but have a difficult time filling open positions.

SCORE’s latest infographic highlights the challenges of entrepreneurs creating the right team in their first year of business.

This infographic highlights the findings of part 3 of The Megaphone of Main Street: Startups report.

Who handled these responsibilities during your company’s first year?

Strategy/Planning:

  • 96.6%: Owner
  • 0.6%: Employee
  • 0.6%: Contractor
  • 0.1%: Intern
  • 2.1%: Family/Friend (unpaid)

Sales

  • 92.9%: Owner
  • 3.5%: Employee
  • 1.5%: Contractor
  • 0.1%: Intern
  • 1.8%: Family/Friend (unpaid)

Marketing

  • 92.3%: Owner
  • 1.5%: Employee
  • 2.4%: Contractor
  • 0.1%: Intern
  • 3.5%: Family/Friend (unpaid)

Logistics/Inventory/Distribution

  • 88.9%: Owner
  • 5.3%: Employee
  • 2.8%: Contractor
  • 0.1%: Intern
  • 2.8%: Family/Friend (unpaid)

Service delivery or Product creation/Manufacturing

  • 82.6%: Owner
  • 9.3%: Employee
  • 6.1%: Contractor
  • 0%: Intern
  • 2.0%: Family/Friend (unpaid)

Technology

  • 79.1%: Owner
  • 2.5%: Employee
  • 10.3%: Contractor
  • 0.3%: Intern
  • 7.8%: Family/Friend (unpaid)

Accounting/Finance

  • 76.7%: Owner
  • 3.5%: Employee
  • 14.3%: Contractor
  • 0%: Intern
  • 5.4%: Family/Friend (unpaid)

Manufacturing

  • 72.7%: Owner
  • 6.1%: Employee
  • 18.8%: Contractor
  • 0.3%: Intern
  • 2.0%: Family/Friend (unpaid)

Legal

  • 60.5%: Owner
  • 1.3%: Employee
  • 32.6%: Contractor
  • 0.4%: Intern
  • 5.1%: Family/Friend (unpaid)

More startups want to hire in the first year than those surveyed in our 2017 Megaphone of Main Street data report:

  • 54% sought employees in their first year in 2019, while
  • 38% sought employees in our 2017 survey.

Finding qualified people is a bigger struggle in 2019:

  • Owners who had difficulty filling job openings: 52% in 2019 and 41% in 2017
  • Owners who could not fill job openings: 33% in 2019 and 14% in 2017

Challenges in filling open positions:

  • Cannot find qualified applicants (skills/expertise): 75.7%
  • Need to raise salary/wages to be competitive: 28.8%
  • Do not offer health care benefits: 27%
  • Too time-consuming to hire qualified workers: 24.3%
  • Company location not desirable to candidates: 7.2%
  • Candidates do not pass drug-testing requirements: 6.3%

Whether you’re a startup or an established business, SCORE mentors can help you succeed.

 

The Megaphone of Main Street: Startups, Infographic #3 - Finding the Right Team  

The Megaphone of Main Street: Startups, Infographic #3 - Finding the Right Team