Business and Management faculty chair at Rio Salado College
 |
| Otis White |
During National Small Business Week last May, Brian Morris, a leading small business and entrepreneurship blogger reported that there were more than 27 million small businesses in the U.S. He also reported that between 60 and 80 percent of all new jobs, depending on the industry sector, would be created by small and medium sized businesses that will hopefully startup operation after the recession is over. Well, it is after the recession and the country is looking for those new businesses.
What worries researchers and small business advocates is that the nation’s confidence in starting a business is actually slipping to lows not seen in years, according to the National Federation of Independent Businesses. Many blame the housing crash as home equity is a major source of funding for new businesses. Bank lending for new business is at an all-time low and venture capital sources are becoming more and more selective.
In Arizona, statistics show that small business drives 26.1 billion in payroll or 28.8 percent of the state’s total payroll. In the United States more than 30 percent of all payroll ($1.5 trillion) and 21 percent of all business revenue ($7.8 trillion) is driven by small and medium sized business. We cannot afford to lose the will and drive to create new business ventures and there has never been a better time to do so.
A recent Intuit report ranks the U.S. as the fourth lowest in start-up costs of the eight leading economic opportunity countries in the world, and third in ease of operation. It costs less to begin a business today than it has over the past 15 years and the ability for anyone to start a business has never been easier from a regulatory and operations point of view. In addition, the time could not be better with the expanding “buy local” movement that is spreading across the country.
It is entrepreneurship and risk taking as said by economist Joseph Schumpeter, “which creates the new and vibrant economy out of the ashes of the cold stagnant one.” Our nation has lots of ashes
.
All successful companies began with an idea. For those who have ideas and are interested in starting a new business the possibilities are endless and might even be able to help sweep up some of the ashes. Here’s to a growing and prosperous 2012. Let’s start something.
Supporting the Entrepreneur Process
• Frequent local businesses who are shouldering risk. Revenue which flows through local businesses expands payrolls, creates jobs and strengthens the fundamental base of consumers which is the bedrock of our economy.
• Make small business growth a legislative imperative. Support candidates who favor small business growth in all state-wide elections and make it a requirement for that support.
• Encourage high schools, community colleges and universities to take the leading role in supporting startups and growth companies from all business sectors and infuse curriculums with entrepreneurship content across all disciplines.
• Fund education supporting entrepreneurship and small business creation and the free enterprise system by making courses and resources abundantly available to all citizens whether young or old, at low or no cost.
This article appeared in the Tempe Republic, Jan. 25, 2012
10 comments:
Operating a small commercial and residential interior and exterior painting business has been a challenge, especially in this economy. Coping with various fees, taxes and regulations places a unique burden on small businesses that are principally operated by one or two people. In addition, most loans and grants are not geared to help these kinds of businesses.
Like larger businesses, we, too, hire people and create prosperity for others. It is my hope that those in the legislative and related processes will come up with ideas and programs to help really small businesses.
nice article,
thanks for sharing.. :)
I can tell you from first hand experience that larger companies...when they do hire in the last couple of years, are for minimum wage jobs at best.
What people used to get hired for at $15 per hour is now down to $8 an hour at a local big box retailer.
I firmly believe, and agree with this post that small business and entreprenuers are what are going to drive the economy, much as they have done in the past.
Larger companies have the resources to sift through all the CVs of disinterested people who are prepared to work for minimum wage if only for financial release.
The big companies can only employ a percentage of the populace. When you put the small businesses together you discover they are contributing highly to GDP and that several hands are employed through them.
To start up a small business one needs ideas, managerial skills and availability of funds. When the people have the basic skills and the monetary support is provided by government and other financial institutions, they will be willing to take the risk to start up something that should fend for them and their families.
There are actually a lot of Small Business Investment Opportunities here and there; but putting the right legislative backup and financial support in place would go a long way at encouraging people to start their own businesses and depend less on goverment and the big firms.
Nice article! Small businesses are the only hope our country has of making a economic comeback. I really hope that our politicians start making it easier for small businesses to thrive and hire more workers so our economy can recover. The current tax structure is not small business friendly and restricts businesses from growing.
You said "Fund education supporting entrepreneurship and small business creation and the free enterprise system by making courses and resources abundantly available to all citizens whether young or old, at low or no cost. "
DECA is a great example of a program that does work to educate kids in high school about running a business. For the most part, it is a self supported program-i.e. the kids raise the money needed, and grow as a result.
Here is another angle we should be thinking of. Employers that want to hire better manpower but can’t afford to do so through payroll can get health insurance tax credit through the state.
As a start up/small business owner I'm always interested in how the U.S. government's policies will affect me and my employees.
Some of the "lack of confidence" mentioned in the article stems directly from uncertainty out of Washington...we need for regulators to step aside and let us do what we do best...create opportunities.
--Robert http://vvego.com/index.htm
Could'nt agree more with your article, and totally agree with Robert.
Post a Comment