1. Serious labor shortages exist in many places, but these are not the only reasons for the recruiting problems experienced by many small businesses. What are some others?

More and more executives from large corporations are being lured to small companies.
In terms of recruitment tactics, it’s clear that small companies can’t compete with bigger rivals on compensation alone. Other motivators, however, can help attract talent, including greater responsibility, a more collegial corporate culture, the absence of bureaucracy, and the chance to build a business and to cash in if it eventually goes public.
Often, the clincher in terms of closing the deal is the passion that a small-business CEO shows for his or her business. Take Dan Nye, for instance, the CEO of LinkedIn, the online networking service for business professionals. He tries to appeal to the desire of many large-company executives to make more of a mark than they can at their current employers. He says, “You have 20 to 25 years left in your career. Are you going to be the person who didn’t take any risk and just lived a conservative, quiet life? But if you take this risk, even if it doesn’t work out, you’re going to feel great that you tried.”