Over a third of small commercial property firms responding to a new survey will not be producing new jobs in 2012, while 86 per cent of commercial property firms do not intend to create more jobs this year than in 2011.
Over half (59 per cent) will take on fewer people compared to last year, whereas over a third (36 per cent) will not create any new jobs at all in 2012.
Small business buying group Huddlebuy, who carried out the study, said that the UK economy should be looking to entrepreneurial commercial property businesses to increase the jobs market, however small commercial property business owners have to be cautious in their outlook.
In fact, financial concerns are driving commercial property SMEs to find innovative ways to hold onto crucial talent, with 81 per cent of respondents questioned claiming that incentives help increase staff loyalty. Meanwhile, 87 per cent of potential workers believe incentives would make it more likely they’d commit to a commercial property SME.
More than a third of workers nowadays look for long-term financial incentives from commercial property SMEs aside from salary, such as share option.
Commercial property SMEs offering extras undoubtedly make themselves more attractive to potential employees, nine out of ten workers questioned said that without extra perks they would be more likely to join a bigger commercial property business for more money.
CEO of Huddlebuy, Saurav Chopra said: “The small business engine simply cannot fire on all cylinders when it is getting hammered by high taxes, greedy suppliers, oppressive employment regulation and poor trading conditions. This is the clearest indication yet that small business are struggling to create the jobs that we need to get the economy moving this year and they need real help urgently.
“That is why we are calling on George Osborne to make this a budget for small businesses and entrepreneurs. Employer national insurance costs need to be cut by at least 10 per cent for small businesses – and higher still for those employing 18-24 year olds who are struggling to find employment.
He further added: “The government also needs to introduce a business rate holiday for start-ups and a national freeze on business rates for small businesses until the economy shows real signs of sustained improvement.”
