Wells Fargo/Gallup Survey: Three-quarters of small business owners say finding qualified employees is difficult; close to three in ten call on their spouse for unpaid help

Running a small business is no easy task -- and neither is finding employees to help keep the business going. In a recent Wells Fargo/Gallup Small Business Index, 74 percent of small business owners who hire paid employees said it was difficult to find qualified employees -- up from 65 percent in March 2005. The major barrier to finding and hiring qualified employees was the cost of providing benefits and insurance -- cited by 58 percent of those surveyed. Forty-four percent said it was the actual task of finding talented employees that was most challenging.

When small business owners are unable to afford to hire new employees, nearly half (47 percent) said they turn to family members for unpaid help. Of those, 57 percent say they ask for help from their spouses, representing nearly one-third of all business owners surveyed.

"Having quality employees is critical to the success of my business, and it can be a challenging process to find and hire them. At times, I need to rely on family members and friends when I need an extra set of hands," said Monique Hayward, owner of Dessert Noir Cafe & Bar in Beaverton, Oregon. "When I do find and hire employees, I provide them as much support as I can because my business would not be as successful without them."

For small business owners who have employees, they do what they can to retain their staff. Seven in 10 offer paid-time-off (69 percent) to their employees and two-thirds offer pay raises on a regular schedule.

"Small businesses generate most of the job opportunities in the United States and their ability to recruit and retain employees, even in tough economic periods, is incredibly important," said Rebecca Macieira-Kaufmann, executive vice president and head of Wells Fargo's small business segment. "Less than half -- 46 percent -- of small business owners offer medical, dental or other health benefits. This creates recruiting and operational challenges for businesses and it is why Wells Fargo developed insurance and retirement solutions to help small business owners navigate these hurdles."

About the Small Business Index

For the last 19 quarters, the Wells Fargo/Gallup Small Business Index (wellsfargo.com/biz) has surveyed small business owners on their current and future perceptions of their business environment relating to their business situation. Results are based on telephone interviews with 600 small business owners nationwide conducted January 15 - January 30, 2008. The margin of sampling error is +/- 4 percentage points.