The talent search for microbusinesses has neverbeen easy, and in the era of escalating health insurance costs, owners ofthose businesses are particularly challenged.

That’s what Gallup found when it surveyed more than 1,000 ownersof U.S. businesses with five or fewer employees. Many of theseemployers who have actually been in business for as long as adecade still don’t have insurance for themselves through theirbusinesses, let alone offer any type of health insurance toemployees. And that makes recruiting and retaining good peopledifficult.

Read: PPACAhas small businesses dropping coverage

Gallup found that most of these business owners do have healthinsurance. But less than a third (31 percent) provide it forthemselves through their own business or out of their own pockets.Instead, about a third have insurance through another employer, andnearly 20 percent use Medicare.

When it comes to insuring their workers, 21 percent said theyoffer it. The rest simply can’t afford it. Nearly four in 10 toldGallup they’re worried about a significant jump in health insurancecosts in the next 12 months, and the effect that increase mighthave on their business. The most concerned, of course, werethose microbusiness owners who do offer employees health coverage.Two-thirds of them said they’re very concerned about escalatinginsurance costs.

On the other hand, those who offer insurance said they are lessconcerned about finding qualified employees than those who don’t.When asked whether finding good workers is a major issue, 44percent of those who don’t offer insurance said it was a majorissue, compared to 34 percent of those who offerinsurance.

“Microbusinesses must often compete with larger businesses forthe same pool of employee candidates, with a significant handicapin the employee benefits they can offer,” Gallup concluded.“Perhaps more than any other metric, covering at least the owner’shealth coverage appears to be an important milestone for thesesmallest of businesses in becoming self-sufficient enterprises withthe ability to grow.”

Also read: Womenstill paying more for health benefits