2017 arkansas small business owner survey · 2017 arkansas small business owner work and save...

Survey findings show that Arkansas smallbusiness owners and decision makers (those with1-100 additional employees) are concerned abouttheir employees having enough money to retire.More than half (60%) are very or somewhatconcerned. In addition, three-quarters (75%) feelmore needs to be done to help encourage ARresidents to save for retirement.

State Should Do More to Encourage Residentsto Save for Retirement

Fact Sheet

Retirement Savings Plans Provide Arkansas Small BusinessesAn Advantage in Staying Competitive

A strong majority of Arkansas small businessowners/decision makers (78%) agree that beingable to offer a voluntary, portable retirement planwould help small businesses attract/retain qualityemployees and stay competitive.

Majority Concerned About Retirement and Most Feel State Should Do More

Oppose15%Neutral

3%

Support74%

Support or Oppose an ArkansasRetirement Savings Plan

8%

11%

75%

Nothing more

A little more

A lot/Somemore

Most (74%) support legislation creating a basic, privately managed retirement plan that smallbusinesses could use to address the issue of retirement. Furthermore, more than eight in ten (82%)agree that Arkansas lawmakers should support a plan to make it easier for small business owners tooffer their employees a way to save for retirement.

4%

14%

78%

Neutral

Disagree

Agree

Strong Support for State Retirement Savings Plan Legislation

Agree or Disagree Lawmakers Should Supportan Arkansas Retirement Savings Plan

Agree or Disagree Offering a RetirementPlan Provides a Competitive Edge

2017 ARKANSAS SMALL BUSINESS OWNER SURVEYhttps://doi.org/10.26419/res.00176.001

Disagree11%Neutral

3%

Agree82%

32%

44%

64%

Too time consuming

Too complicated

Too costly

Concerns to Employers(% Yes - Small Businesses That Don’t Offer a Plan)

DEMOGRAPHICS n=450 small business owners with 1-100 additional employees in the state of Arkansas

Business Size (additional employees): 1: 18%, 2-3: 32%, 4-8: 28%, 9-100: 21%Business Type: For Profit: 92%, Non-Profit: 6% 2016 Business Revenue: Less than $100,000: 34%, $100,000-$500,000: 30%, $500,000+: 20%Age: 18-49: 43%, 50-64: 34%, 65+: 20% Business Tenure: 0-10 years: 39%, 11-25 years: 34%, 26+ years: 26% Gender: Male: 63%, Female: 37%,Ideology: Conservative: 52%, Moderate: 21%, Liberal: 11% Political Party: Democrat: 15%, Republican: 36%, Independent/ Something else: 42%

METHODOLOGYThe AARP 2017 Arkansas Small Business Owner Work and Save Study was a telephone study among 450 small business owners or decision makers aboutemployee benefits at companies with 1-100 additional employees within the state of Arkansas. Interviews were conducted September 6-September 28, 2017.Respondents were offered a $5 check in appreciation for their participation. Sample, including owner names and companies, came from a Dun & Bradstreetbusiness list. The margin of error for the sample of 450 for Arkansas is +/-4.6%. For full annotation visit www.aarp.org/ARKetirement

For more information contact Ness Nehus, AARP Arkansas 501-217-1621 [email protected] or Jennifer Sauer, AARP Research [email protected] 202-434-6207

Just over one-in-six Arkansas small business owners/decision makers (18%) offer some type of retirementsavings plan to their employees. Top reasons for offering a plan are that it is the right thing to do, it helpsattract/retain quality employees, and it has a positive impact on employee morale.

Among Arkansas small business owners/decision makers who do not offer retirement plans to theiremployees, many (64%) are concerned about the cost of offering a plan. If the proposed legislation (whichwould operate at no cost to the business owner) were enacted, two-thirds (66%) say they likely would offerit to their employees.

Yes18%

No80%

Offer RetirementSavings Plan

Main Reason for Offering Retirement Savings PlanTop Mentions Among Small Businesses That Offer a Plan

Employers Offer Retirement Plans Because They Feel it is the Right Thing toDo and to Attract/Retain Top Talent

Among Those Who Don’t Offer a Plan, Two-Thirds Would Offer Employees aState Retirement Savings Plan if Available

Likely66%

Notlikely30%

Likely to Offer State Retirement Savings Plan(Small Businesses That Don’t Offer a Plan)

13%

21%

40%

Positive impact on employeeattitude/performance

Attract/retain quality employees

Is the right thing to do

2017 ARKANSAS SMALL BUSINESS OWNER SURVEY

*Percentages for each question may not sum to 100% due to rounding. 1

2017A rkansasS m allBusinessO w nerW orkandS aveS urvey(n=450 sm allbusinessow nersinAR ;M arginofError= ± 4.6percent)

S CR EEN ERS A M P L E:450 telephoneinterview sam ong non-franchisesm allbusinessow nersordecisionm akersw ith(1-100)additionalem ployees

IN T R O :Hello, may I please speak with (INSERT NAME FROM SAMPLE).

IF NAME ON LIST NOT AVAILABLE: Is there another business owner or person in charge of employeebenefits that I can speak with?

My name is _____ with the American Institute of Consumer Studies. We are conducting a brief survey ofArkansas business leaders regarding retirement. This is not a sales call. As a leader in the community youropinions are very important. In appreciation of your time, we will mail you a check for $5 if you qualifyand complete the survey. (IF ASKED: This survey will take about 10 minutes).

(R E-IN T R O DU CES U R VEY AS N ECES S A R Y)(Ifaskedw hothesurvey issponsoredby-“ Icanprovidethatinform ationattheendofthesurvey” )**P rogram m ernote:Codecounty basedonFIP S codeinsam plefile,donotaskS 1.**

S1. County: n=450

2% Arkansas

1% Ashley

2% Baxter

8% Benton

2% Boone

<0.5% Bradley

<0.5% Calhoun

1% Carroll

1% Chicot

1% Clark

<0.5% Clay

<0.5% Cleburne

-- Cleveland

1% Columbia

<0.5% Conway

2% Craighead

3% Crawford

1% Crittenden

1% Cross

-- Dallas

1% Desha

-- Drew

2% Faulkner

-- Franklin

<0.5% Fulton

6% Garland

1% Grant

2% Greene

1% Hempstead

1% Hot Spring

<0.5% Howard

1% Independence

<0.5% Izard

1% Jackson

2% Jefferson

<0.5% Johnson

1% Lafayette

1% Lawrence

-- Lee

<0.5% Lincoln

-- Little River

<0.5% Logan

2% Lonoke

1% Madison

-- Marion

<0.5% Miller

1% Mississippi

1% Monroe

<0.5% Montgomery

<0.5% Nevada

<0.5% Newton

1% Ouachita

<0.5% Perry

1% Phillips

<0.5% Pike

2% Poinsett

1% Polk

2% Pope

<0.5% Prairie

16% Pulaski

<0.5% Randolph

1% St. Francis

4% Saline

<0.5% Scott

<0.5% Searcy

2% Sebastian

1% Sevier

1% Sharp

<0.5% Stone

2% Union

1% Van Buren

8% Washington

4% White

<0.5% Woodruff

<0.5% Yell

*Percentages for each question may not sum to 100% due to rounding. 2

S2. Record gender: (DO NOT READ – SELECT ONE ANSWER)

(n=450)63% Male37% Female

S3. First of all, are you the owner of a small business, are you not the owner, but the person who makesdecisions about employee benefits, or are you neither? (DO NOT READ CHOICES - SELECT ONE ANSWER)

(n=450)86% Owner14% Decision maker about employee benefits (NOT OWNER)-- Neither

**P rogram m ernote:IfS 3=1-2,skiptoS 4.**

S3a. May I please speak with the owner or decision maker about employee benefits?

Yes (TRANSFER TO PERSON)Not available (SET UP CALLBACK)No (TERMINATE

**P rogram m ernote:IfS 3a=1,returntoIN T R O .IfS 3a=2,S EN D T O CA L L BA CK.IfS 3a=3,T ER M IN A T E.**

**P rogram m ernote:Allow upto5-digitnum ber.**

S4. N otincludingyourself, approximately how many people does your company employ?_____ [ENTER NUMBER]99999 Don’t know/No answer

(n=450)18% 1 Additional Employees32% 2-3 Additional Employees28% 4-8 Additional Employees21% 9-100 Additional Employees-- Don’t know/No answer

**P rogram m ernote:IfS 4=0 or>100,T ER M IN A T E.**

S5. In what state is your business located?

(n=450)100% Arkansas-- Other (TERMINATE)-- Don’t know/Not sure (TERMINATE)-- Refused (TERMINATE)

**P rogram m ernote:IfS 5=7,8,or9,T ER M IN A T E.**

2017 ARKANSAS SMALL BUSINESS OWNER WORK AND SAVE SURVEY 3

**P rogram m ernote:Insertlistofcountiesfrom S 1 w ithadditionalcodesbelow .**

S6. In what county was your company incorporated?

n=450

2% Arkansas

1% Ashley

2% Baxter

7% Benton

2% Boone

<0.5% Bradley

<0.5% Calhoun

1% Carroll

1% Chicot

1% Clark

-- Clay

-- Cleburne

<0.5% Cleveland

2% Columbia

1% Conway

2% Craighead

2% Crawford

2% Crittenden

1% Cross

1% Dallas

1% Desha

-- Drew

2% Faulkner

-- Franklin

1% Fulton

4% Garland

1% Grant

1% Greene

<0.5% Hempstead

1% Hot Spring

<0.5% Howard

1% Independence

-- Izard

1% Jackson

2% Jefferson

-- Johnson

1% Lafayette

<0.5% Lawrence

-- Lee

<0.5% Lincoln

<0.5% Little River

<0.5% Logan

1% Lonoke

2% Madison

-- Marion

<0.5% Miller

1% Mississippi

<0.5% Monroe

<0.5% Montgomery

<0.5% Nevada

<0.5% Newton

1% Ouachita

-- Perry

<0.5% Phillips

<0.5% Pike

1% Poinsett

1% Polk

2% Pope

1% Prairie

17% Pulaski

<0.5% Randolph

1% St. Francis

2% Saline

-- Scott

<0.5% Searcy

2% Sebastian

<0.5% Sevier

1% Sharp

<0.5% Stone

1% Union

1% Van Buren

8% Washington

3% White

<0.5% Woodruff

1% Yell

4% Not a corporation

<0.5% Other

2% Don’t know/not sure

1% Refuse

**P rogram m ernote:R andom izeorderof“ localbusiness” and“ franchise” .**

S7. And is that a local business or a franchise? (DO NOT READ CHOICES- SELECT ONE ANSWER)(n=450)100% Local business-- Franchise (T ER M IN A T E)-- Don’t know/Not sure (T ER M IN A T E)-- Refused (T ER M IN A T E)

Interviewer: If necessary “A franchise is when a company grants an individual or group permission to carry outspecific commercial activities on its behalf. For example, many McDonald’s locations are independently ownedfranchises.”

**P rogram m ernote:IfS 7=2,8or9,T ER M IN A T E.**


**P rogram m ernote:Allow upto3-digitnum ber.**S8. In general, what percentageof your workforce includes seasonal employees?

_____% [ENTER PERCENTAGE 0-100]999 Don’t know/No answer

(n=450)78% 0%8% 1%-25%3% 26%-50%1% 51%-75%8% 76%-100%2% Don’t know/no answer

S9.What type of business or industry characterizes your company? (DO NOT READ CHOICES –SELECT ONE ANSWER)

(n=450)8% Agriculture, Forestry, Fishing2% Arts, Entertainment, Recreation1% Communications, Telecommunications14% Construction2% Educational services including schools3% Finance, Insurance-- Government (TERMINATE)6% Healthcare, Pharmaceutical3% Hotel, Lodging, Restaurant1% Leasing & Rental5% Manufacturing2% Non-profit4% Real Estate12% Retail27% Services, for example, business, legal, engineering, accounting5% Transportation, Warehousing3% Utilities; for example, electric power, gas, water1% Wholesale Trade<0.5% Other (specify) _____________-- Don’t know/No answer (TERMINATE)-- Refused (TERMINATE)

**P rogram m ernote:IfS 9=07,98,or99 T ER M IN A T E.**


M ainQ uestionnaire

1. How concerned are you that [IF S4=1, “YOUR EMPLOYEE"] [IF S4=2+, “YOUR EMPLOYEES”] will not haveenough money to cover their living expenses when they retire? Are you very concerned, somewhatconcerned, not very concerned or not concerned at all? (SELECT ONE ANSWER)

(n=450)24% Very concerned36% Somewhat concerned13% Not very concerned24% Not concerned at all3% Don’t know/Not sure1% Refused

2. In your opinion, should a lot more, some more, a little more or nothing more be done to help encourageArkansas residents to save for retirement? (SELECT ONE ANSWER)

(n=450)55% A lot more20% Some more11% A little more8% Nothing more5% Don’t know/Not sure1% Refused

3. Are you currently saving for retirement? (DO NOT READ CHOICES – SELECT ONE ANSWER)

(n=450)81% Yes18% No<0.5% Don’t know/Not sure1% Refused

4. Do you offer your employees a retirement savings plan? (SELECT ONE ANSWER)

(n=450)18% Yes80% No2% Don’t know/Not sure (DO NOT READ)-- Refused (DO NOT READ)

**P rogram m ernote:IfQ 4=1,skiptoQ 7.IfQ 4=2,8,9,continuetoQ 5introscreen.**


5. [IF DO NOT OFFER PLAN] INTRO: There are many reasons businesses do not offer a retirement savings

plan. Please tell me if the following reasons are concerns to you as an employer.

**Programmer note: Rotate A-C.**

a. Are you concerned about how complicated it would be to operate a retirement plan? (DO NOT READCHOICES – SELECT ONE ANSWER)


b. Are you concerned about how time consuming it would be to operate a retirement plan? (DO NOTREAD CHOICES – SELECT ONE ANSWER)


c. Are you concerned about how costly it would be to operate a retirement plan? (DO NOT READ CHOICES– SELECT ONE ANSWER)


6. Does your company ever plan to offer a retirement savings plan to your employees? (DO NOT READCHOICES – SELECT ONE ANSWER)


**P rogram m ernote:IfQ 4=2,8,9,skiptoQ 9.**


7. [IF OFFERS PLAN] What type of retirement savings plan does your company offer employees? (DO NOTREAD LIST – SELECT ALL THAT APPLY – PROBE: WHAT ELSE?)

(n=82)48% 401k or 403b34% IRA or Roth IRA6% Simplified employee pension plan or SEP4% Stocks or mutual funds1% Profit Sharing1% Union5% Other (S P ECIFY)______________________________9% Don’t know/Not sure-- Refused

8. [IF OFFERS PLAN] What is the onemain reason your company offers a retirement savings plan toemployees? (DO NOT READ CHOICES – SELECT ONE ANSWER)

IF MORE THAN ONE REASON GIVEN: “Of those reasons, which is the biggest reason?”

(n=82)21% Attract and retain quality employees13% Have a positive impact on employee attitude and performance40% Because it is the right thing to do2% Tax advantages1% I can’t afford to offer health insurance so I offer a retirement plan9% So they can save for their retirement/have supplement for Social Security/have something

(money) for their retirement1% So they can retire/help them retire/safety net for them/so they can retire comfortably1% Benefits/as part of benefit package/compensation/enhances benefits4% Care about employee/want to be fair/help employee/help with their future4% Allows me to do the same/participate in my own retirement plan1% Required/mandated by state law/unions1% Good for business practice/ good for owners and employees-- Other (S P ECIFY)_______________________1% Don’t know/Not sure-- Refused


**************************************************IFN O P R O P O S A L YET A S KQ 9,Q 10,andQ 11.

**************************************************

**P rogram m ernote:R otatestatem entsA andB.**

9. There are two proposals that Arkansas lawmakers could consider to help small businesses provideretirement savings plans to their employees.

One proposal..A) Would create a basic, ready to go or plug-and-play retirement plan that small business owners can

use without having to operate or pay setup or maintenance costs. Small business owners wouldsimply set up a payroll deduction for employees who choose to participate.

While the other…

B) Would create a website bringing together existing retirement plans approved by the state that smallbusiness owners can use. Small business owners would pick a plan, pay for setup and maintenancecosts, and operate the plan for employees who choose to participate.

Which proposal would you be more likely to support?

(n=450)49% Basic plug-and-play plan with no setup or maintenance costs24% Website with existing plans where owners pay for setup and maintenance21% Don’t know/Not sure6% Refused

10.Some Arkansas lawmakers are considering a bill to address the issue of retirement. Under this legislation,

the state would create a basic, ready to go or plug-and-play retirement plan for small businesses to use.

Employers would simply setup a payroll deduction just like they do for taxes. Workers would be able to

choose if, and how much, they want to contribute. If workers leave a job they can take the money and

account with them to their next job. The plan would be privately managed. Do you support or oppose this

legislation? Is that strongly or somewhat? (INTERVIEWER PROBE IF NEEDED: Is that strongly or

somewhat?)

(n=450)30% Strongly support44% Somewhat support3% Neither support nor oppose (DO NOT READ)6% Somewhat oppose9% Strongly oppose4% Don’t know (DO NOT READ, DO NOT COLLAPSE)3% Not sure (DO NOT READ, DO NOT COLLAPSE)<0.5% Refused (DO NOT READ, DO NOT COLLAPSE)

**P rogram m ernote:IfQ 4=2,continuetoQ 11,IFQ 4=1,8,9 S KIP T O Q 12


11.[IF NO PLAN OFFERED TO EMPLOYEES] How likely would you say you are to offer your employees accessto the plan that is being proposed- very likely, somewhat likely, not too likely, or not at all likely?

(n=360)31% Very likely35% Somewhat likely10% Not too likely20% Not at all likely4% Don’t know/Not sure (DO NOT READ)-- Refused (DO NOT READ)

12.Do you agree or disagree with the following statement: “Being able to offer a voluntary, portable,retirement plan would help local small businesses attract and retain quality employees and staycompetitive.” Is that strongly or somewhat? (INTERVIEWER PROBE IF NEEDED: Is that strongly orsomewhat?)

(n=450)44% Strongly agree35% Somewhat agree4% Neither agree nor disagree (DO NOT READ)4% Somewhat disagree9% Strongly disagree4% Don’t know/Not sure (DO NOT READ)1% Refused (DO NOT READ)

13.Do you agree or disagree that Arkansas’ Governor and lawmakers should support a plan to make it easierfor small business owners to offer a way to save for retirement to their employees? (INTERVIEWER PROBEIF NEEDED: Is that strongly or somewhat?)

(n=450)50% Strongly agree32% Somewhat agree3% Neither agree nor disagree (DO NOT READ)4% Somewhat disagree7% Strongly disagree4% Don’t know/Not sure (DO NOT READ)<0.5% Refused (DO NOT READ)


14.How interested would you be in joining a state -wide coalition to support this legislative initiative –veryinterested, somewhat interested, not very interested, or not interested at all? (SELECT ONE ANSWER)

(n=450)6% Very interested34% Somewhat interested21% Not very interested36% Not interested at all2% Don’t know/Not sure (DO NOT READ)1% Refused (DO NOT READ)

DEM O S

D1. I have just a couple more questions. How would you classify your company? Is it a for-profit business or anon-profit business? (SELECT ONE ANSWER)

(n=450)92% For-profit business6% Non- profit business<0.5% Other (S P ECIFY)___________________ (DO NOT READ)1% Don’t know/Not sure (DO NOT READ)1% Refused (DO NOT READ)

D2. What is your age as of your last birthday? [IN YEARS] _____________99 Refused

**P rogram m ernote:coderesponsesintofollow ingagecategories(donotshow ):

(n=450)5% 18-2914% 30-3924% 40-4922% 50-5911% 60-6420% 65+4% RefusedFlag anyone under 18.**

D3. Are you registered to vote in Arkansas (DO NOT READ CHOICES – SELECT ONE ANSWER)

(n=450)92% Yes6% No<0.5% Don’t know/Not sure (DO NOT READ)2% Refused (DO NOT READ)

**P rogram m ernote:R andom izeDem ocrat,R epublican,Independentw ording(show “ som ethingelse” last).**


D4. Do you consider yourself to be a(n) Democrat, Republican, Independent, or something else? (SELECT ONEANSWER)

(n=450)15% Democrat36% Republican27% Independent15% Something else2% Don’t know/Not sure (DO NOT READ)5% Refused (DO NOT READ)

D5. How would you characterize your political views – very conservative, somewhat conservative, moderate,somewhat liberal, very liberal, or none of the above? (SELECT ONE ANSWER)

(n=450)23% Very conservative29% Somewhat conservative21% Moderate7% Somewhat liberal4% Very liberal11% None of the above2% Don’t know/Not sure (DO NOT READ)4% Refused (DO NOT READ)

**P rogram m ernote:show oneitem perscreen.Donotscram ble.**

D6. And, how many years has your current company been in business in Arkansas?Interview erInstruction:Iflessthanoneyear,enteras0

(n=450)39% 0-1034% 11-2526% 26+<0.5% Don’t know/Not sure (Do not read)<0.5% Refused (Do not read)


D7. We realize income is a private matter and so rather than ask you anything specific about your income; I’dlike to ask you to please stop me when I get to the category that includes your business revenue in 2016.Was it… ? (READ CHOICES BELOW – SELECT ONE ANSWER)

(n=450)4% Less than $0, it was negative3% Less than $10,00010% $10,000 to less than $50,00017% $50,000 to less than $100,00016% $100,000 to less than $200,00014% $200,000 to less than $500,0008% $500,000 to less than $1 million13% $1 million or more6% Don’t know/Not sure (DO NOT READ)10% Refused (DO NOT READ)

**P rogram m ernote:IfQ 14=4 or3 askR 1.A llothersskiptoZ1.**

R 1.The Arkansas Coalition for Retirement Options is very interested in people who can share their story to raiseawareness for this important topic. Would you be willing to speak with someone from the Arkansas Coalition forRetirement Options about some of the things related to retirement savings addressed in this survey? This wouldnot be a sales call.

(n=181)46% Yes50% No2% Don’t know/not sure (DO NOT READ)3% Refused (DO NOT READ)

**P rogram m ernote:IfR 1>1,skiptoZ1.**

R2. Because you would be willing to speak with someone from the Arkansas Coalition for Retirement Options, wealso will be providing them some limited information about you. This information will be limited to the following:(1) your first and last name, (2) your telephone number, (3) your gender, (4) your age group, and your responsesabout employer retirement savings plans you gave to this survey. Are you still willing to speak with the coalition?

(n=83)96% Yes4% No-- Don’t know/not sure (DO NOT READ)-- Refused (DO NOT READ)

**P rogram m ernote:IfR 2>1,skiptoZ1.**


R3. Thank you for indicating your willingness to speak with someone from the STATE Coalition for RetirementOptions. The coalition may contact you first to verify that you are still interested in sharing your story. We cannotguarantee that the coalition will contact you, but we will be sure to make a note of your interest in beinginterviewed.

Z1. In order to send you a check for $5 as our way of saying thank you for participating in this study, we will needyour full name and mailing address. This information will only be used to mail you your $5 check. Would you liketo provide this information?

YesNoDon’t know/not sure (DO NOT READ)Refused (DO NOT READ)

**P rogram m ernote:IfZ1=1,askZ2 thenskiptoEN DIN G. IfZ1=2,8,or9,skiptoZ3.**

Z2. Full Name:__________________Address:____________________City__________________State:______ZIP:________

**P rogram m ernote:A fteransw eringZ2,skiptoEN DIN G.**

Z3. Would you like us to donate your $5 to the American Red Cross instead?

YesNoDon’t know/Not sureRefused

EN DIN G:Those are all the questions I have for you. Thank you very much for helping us with this important study.Have a great day/evening.

INTERVIEWER, IF ASKED ABOUT SPONSOR: “The survey sponsor is the Arkansas Coalition for Retirement Options


A A R P is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50and older to choose how they live as they age. With nearly 38 million members and offices in everystate, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthencommunities and advocate for what matters most to families with a focus on health security, financialstability and personal fulfillment. AARP also works for individuals in the marketplace by sparking newsolutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As atrusted source for news and information, AARP produces the nation's largest circulation publications,AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org or follow @AARP and@AARPadvocates on social media.

For more information about this survey, please contact Jennifer Sauer at 202-434-6207 or e-mail [email protected]. For more information about this issue in Arkansas, please contactNess Nehus, Associate State Director of Advocacy, at 501-217-1621 or [email protected]

2017 arkansas small business owner survey · 2017 arkansas small business owner work and save...

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