Straight from the U.S. Small Business Administration Office of Advocacy come the following figures from 2009:
- The almost 30 million U.S. small businesses employ over half of the country’s private sector workforce.
- U.S. small businesses hire 40% of high tech employees.
This is the good news. The bad news is that about half of all new small businesses close within five years of opening their doors.
Much of the problem can be laid at the feet of the uber-competitive environment of a global economy. Fast-paced services and innovative products have forced small businesses to stay at the top of their games. And that means they don’t have time to deal with avoidable personnel issues… like hiring the wrong person.
That’s one of the reasons that background checks performed on all employees are absolutely essential for any small business that wants to succeed. Not only are background checks a method of protecting a company’s reputation, but they can also mean the difference between being around for a five-year anniversary… or not.
Fortunately, background checks are available at an excellent value, even for start-ups with modest budgets. And they offer a return on investment very quickly. (Hiring mistakes can bring a small business to its knees.)
If you’re a small business, prepare yourself to be around for the long term. Background check every worker you hire, including consultants. Doing so will give you a leg-up on the competition.