Survey Shows Small Biz Owners More Confident in Business Growth

ROSELAND, NJ, October 26, 2010 – Despite concern about ongoing economic
challenges, a new survey released today indicates that small business owners
are optimistic about business prospects in the year ahead, but closely link
anticipated growth with the implementation of new operational efficiencies.
Specifically, respondents suggest a desire to acquire new tools and resources
designed to help them run their businesses more efficiently, and from more locations.
The full survey can be viewed in PDF format at www.cpata.com/images/2010_Nov/ADPSurvey2010.pdf.

The survey, commissioned by ADP, a leading provider of HR, payroll and benefits
administration services, looks at a broad cross-section of the small business
sector and assesses the views of small business owners on a variety of topics
related to the economy, business outlook and opportunities for growth. The survey
is the first in a series of research topics to be published by the ADP Research
Institute, a specialized group within ADP that conducts studies on topics of
current interest to HR and payroll professionals.

“In today’s economy, small business owners are watching cash flow
more closely than ever. That reality, combined with ever-growing time pressures,
means small business owners are looking to spend more time growing their businesses
and less time on the administrative burdens of running them,” said Regina
Lee, President of ADP’s Small Business Services and Major Account Services.
“To best serve the needs of today’s business owner, companies serving
the small business sector need to adapt with them, leveraging new technologies
like Smartphones and faster networks to bring trusted resources to clients wherever
they choose to work.”

While a majority of small business owners (80%) indicate that they have been
negatively impacted by the economy, more than 50% expect their businesses to
expand in the coming year. In the survey, respondents identified several key
areas where improving operational efficiency can help grow their business:

• RUNNING PAYROLL: Small business owners spend a significant
  amount of time on administrative tasks (e.g., payroll, HR and benefits administration)—time
  they believe would be better spent on tasks related to running and/or growing
  their businesses; they are also embracing technology as a means of reducing
  administrative burdens.
  • A majority of small business owners say they would dedicate time saved
    on administrative functions to running their businesses (50%) or growing
    them (42%).
  • More than one-third believe that redeploying time spent on payroll
    to other activities would lead to an increase in company revenue.
  • More than half indicate that they’d be interested in using their
    mobile devices to aid with administrative tasks (e.g., payroll).
• LIFESTYLE: The definition of “the office” is
  changing and small business executives are spending a significant amount of
  time outside of the office.
  • Nearly all respondents (90%) say that they spent at least some time
    outside of the office, with an average of 9 hours per week—23% of
    a 40-hour work week.
  • Thirty percent (30%) of those respondents indicate that the amount
    of time spent outside of the office is increasing.
• MOBILE USAGE: Smartphones are currently a frequent companion
  to small business owners nationwide due to their ease of use and functionality.
  • Six out of 10 executives surveyed own a Smartphone and 80% of Smartphone
    users use them for business.
  • Respondents using mobile devices for business do so primarily to aid
    with customer relations (77%) and time management (53%).

To meet the changing needs of its small business clients, ADP is investing
heavily in solutions that help business owners do more with less, quickly and
from wherever their business—or their lifestyle—takes them. The
most recent example is the launch of RUN Powered by ADP mobile payroll,
the first mobile version of its popular payroll platform, which allows small
businesses to manage their payroll remotely from an iPhone, iPod touch or iPad.
More info at www.adp.com/mobilepayroll.

Survey Methodology
A representative sample of small U.S. businesses with 1-49 employees was targeted
for the recent online survey sponsored by ADP and was conducted using the online
panel of eRewards. Qualified respondents were the final purchase decision-maker
in the company for systems/services in payroll, HR, and benefits. Respondents
included Presidents/CEOs/Owners/Partners, CFOs/Controllers, EVPs/SVPs/VPs/General
Managers and Directors/Managers. Quotas were set by employee size groups to
ensure that the sample reflected the profile of all small businesses in the
United States, as reflected in ADP’s in-house database, which combines
Dun & Bradstreet and the Yellow Pages. Once the data came in, the industry
profile of the study sample was compared to ADP’s database to ensure that
no industry group was over- (or under-) represented.