Although the economy has been showing signs of improvement, the majority of small and midsized businesses (SMBs) don't plan on hiring in 2013.
However, as demand picks up for their product or service, SMBs reported hiring could increase. This could occur, as the National Association of Business Economists projects economic growth to accelerate to 2.4 percent from the fourth quarter in 2012 to the same period in 2013.
In addition to hiring more people, wholesalers and manufacturers might need to utilize purchase order financing as demand for their products pick up.
Only one-in-four of U.S. small and midsized businesses said they have hired or will hire in 2013, the Sage SMB Hiring Outlook Survey reported. The driving factor behind more hiring is increased demand for products or services, as 81 percent of SMBs said they would hire more if demand was higher.
"If you ask small or midsized business owners, they will tell you that demand is one of the primary drivers behind many of their business decisions, including hiring, and the Sage SMB Hiring Outlook Survey highlights this sentiment," said Connie Certusi, executive vice president and general manager at Sage Small Business Solutions.
Should demand pick up as economic growth increases toward the end of the year, small and midsized wholesalers and manufacturers may need to turn to purchase order financing to help fill orders.
Even with the ability to hire more workers, companies of this size can struggle to fill orders larger than the usually handle due to limited available capital and resources.
Luckily, purchase order financing is available to provide a company with up to 100 percent of the funds needed to fill an order. Without this financing option, wholesalers and manufacturers may be forced to sell equity in their company to complete a large order.