Small businesses hungry to grow are increasingly finding that they can’t do it without remote work arrangements.

More than 29 million small businesses in the U.S. account for 62 percent of new jobs, according to data from the U.S. Small Business Administration. Millennials in particular are embracing the entrepreneurial spirit: 49 percent say they intend to start their own business in the next three years.

Finding top workers for these businesses continues to be a challenge, though. So to reach...