2023 New Hampshire Small Business Survey Results

Staffing Needs

Respondents indicate that their businesses employ very slightly more people currently than they did a year ago. More than four in ten expect their staffing needs to increase in the next year, unchanged since 2022, and very few expect their staffing needs to decrease. Healthcare and social assistance businesses are particularly likely to expect their staff needs to increase. Three-quarters of businesses struggled a lot or some to hire employees in the past six months, matching results in 2022, particularly health care and social assistance and manufacturing businesses and those with more than 25 employees. Among those who struggled to hire, a majority offered increased compensation or flexible hours to help with hiring, but less than a quarter used any other strategy.

Employees
Most respondents say that their business offers paid vacations to full-me employees, but less than half provided other benefits such as medical insurance or paid sick leave. Nearly half of respondents say that at least some of their business's employees work remotely at least one day per week on average. Most respondents think that their employees find it difficult to access affordable housing and many believe their employees struggle to access childcare. The vast majority believe that their employees are satisfied with their work schedule, their compensation, and their benefits.

More than three-quarters of respondents say that they are very or somewhat concerned about their business being able to find new employees and paying their current employees competitive wages. Majorities are also concerned about being able to retain their current employees and offering competitive benefits. To help with employee retention, about four in ten say their business increased compensation and three in ten offered flexible hours to their employees.

Workplace Disability Accommodations
About one in six respondents say that their business provided workplace accommodations to employees experiencing a disability in the past year, particularly larger businesses. The most commonly used types of accommodation were modified schedules, job restructuring or modified dues, and flexible breaks.

Supply Chain Issues
Six in ten respondents say their business has been affected a lot or some by supply chain issues in 2023, down from three-quarters who said this was the case in 2022. Arts, entertainment, and recreation and retail trade businesses saw particularly large drops in the proportion who have been affected a lot or some by supply chain issue. A majority say they have experienced supply chain issues in the form of higher costs or price uncertainty, while more than one-third have experienced higher shipping costs or delays in sourcing from suppliers.

Resiliency
Four in ten respondents say that their business has a resiliency or continuity plan, down slightly from 2022, particularly among retail trade and accommodation and food services businesses. Among those who have such a plan, a majority say they created their plan in the past four years. Half or more say that their plan includes a plan for disruptive events, unexpected death or incapacity of the owner or proprietor, and a list of potential threats to business operations, but less than half have other components such as cybersecurity protocols or employees having being trained to implement the plan. Larger businesses and those located in Hillsborough County tend to be more likely to have a plan and have plans with a greater number of components.

Business's Financial Health
Two-thirds of respondents or more are very or somewhat concerned about inflation, maintaining revenue, energy costs, and maintaining customers. Compared to 2022, respondents are less concerned about energy costs and supply chain interruptions but are slightly more concerned about access to capital. Few are concerned about being forced to lay off or furlough employees or defaulting on existing loans. Respondents who do not identify as Caucasian/White only are a good deal more likely than others to be concerned about timely payment of bills, being forced to lay off employees, and defaulting on existing loans.

About one-third say their business is beer off than a year ago, while just under a quarter say they are worse off. Respondents are slightly more opmisc when projecng into the future, as four in ten expect their business will be beer off in a year, unchanged compared to 2022, and only one-tenth expect to be worse off. Younger people, those whose business is in the professional, scientific, and technical services industry, and those located on the Seacoast are most optimistic about their business's financial outlook.

State Business Environment
Half of respondents expect mixed business conditions in New Hampshire over the next year, while a quarter expect good times, up from about one-fifth who felt that way in 2022.

When asked what they consider to be the most important problem facing the business community in New Hampshire, respondents most frequently mention the labor shortage or labor costs, housing availability or costs, or inflation. Respondents are less likely to mention inflation than they were in 2022 but are slightly more likely to mention healthcare or child care. When asked for one positive thing about the New Hampshire business environment, respondents most frequently mention an overall good business environment, a lack of sales or income tax, and a supportive business community. Respondents under the age of 40 are more likely to mention a supportive business community and the state having good customers, while those over the age of 70 are more likely to mention low taxes

The downloadable abridged pdf report is available here:

2023 NH Small Business Survey Report

If you would like a link to the full report, please email ben.dion@unh.edu with your request.