At Johnson Search Group, one of the areas we specialize in recruiting for is SBA Business Development Officers. As we talk with our clients and candidates, we understand the vital importance of small businesses within the California market. In 2015, California small businesses employed 7.0 million people or 48.8 percent of the private workforce. Since then, the labor market has only continued to grow!
Today, small businesses make up 99.8 percent of all companies in the state. And California’s GDP grew at a rate of 3.5 percent through the third quarter of 2018, outpacing the U.S. national growth rate of 3.4 percent. It’s no coincidence that San Jose, CA was named the 2nd top city for small businesses in 2019! While this growth is incredible for small business, it’s putting a strain on the SBA BDO talent market. And it’s causing fierce competition to hire qualified Business Development professionals. But what exactly is driving this growth?
Rapidly Advancing Technology
With the advancement of technology like virtual reality, artificial intelligence, and 3D printing, many small businesses are innovating how they work. Along with new technology comes lower barriers to entry. This makes it easier than ever for people to achieve their dream of starting a small business. High-tech companies make up nearly 12 percent of private-sector companies in San Jose, the highest concentration in the U.S., and almost three times higher than the national average. Just in the greater San Jose area, there are more than 6,600 technology-focused companies.
In 2018, the top state for loan applications from women-owned businesses was California, with 13 percent. Nationwide, 1,821 new women-owned businesses were launched every day, with optimism the highest on record. Furthermore, women of color founded 64 percent of those businesses.
As of 2015, California boasted 1.6 million minority businesses. “California, Texas, New York, and Florida, the nation’s most populous states and home to nearly half of all minority residents, had the largest number of minority-owned businesses.”
Competition For Talent
While the entire U.S. is in a candidate-driven market right now, the competition is even more fierce in California. In a labor market this competitive, it requires more time and effort to fill critical positions with qualified talent. “Some entrepreneurs view the competitive labor market as an opportunity to improve their internal processes and position themselves advantageously for the future.” And while small businesses are forced to compete with large public companies, partnering with a recruiter can make a world of difference.
The recruiters at Johnson Search Group understand the markets you work in every day. In the SBA BDO space, we sympathize with your efforts to find great Business Development Officers. However, we also go a step further to immerse ourselves in the clients we partner with. So as your team hustles to keep up with the growing demand, we’ll be by your side providing the qualified talent you need to continue driving business.