U.S. businesses are being destroyed faster than they’re being created
This is what happens when you elect a noob as the CEO of the world's remaining superpower. Well, we were five years ago at least...
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OTOH, Perhaps its that due to NY regulations people had to register companies while in states with less onerous regs they could operate independently without being blessed by looters.
I'm shocked the business creation has be declining. It goes against everything I thought about lowered barriers to entry and ability to sell to the long tail.
All these rules regarding capital acquisition has squeezed our both banks and small companies.
one caveat has been the rise of crowd funding.
Score tells prospective small business people that it they want to have a income of $40k a year from their small retail business they will need at least $240k per year in operation expenses. I don't know many people who have that laying around or who have parents willing to "fund" a dream.
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It's clearly easier to generate returns on capital than to create something that generates returns and therefore has value. People shouldn't focus on what they can't do but rather think of new ways to help customers. The heroes in AS weren't about creating higher than average return on equity. They created equity.
Regarding whether I know anything about getting started, I still remember the table in our living room where my wife started her law practice and the wooden bench with in the basement of the half duplex we rented from someone we knew at church where I started making boards that I sold off-the-shelf and the custom boards. I remember my wife quitting her job with the legislature when the side legal projects overwhelmed her. I remember negotiating four days a week for the same pay with my boss after our first baby and quitting after our second baby because my boards were doing so well. Our income was several times what we made from jobs. Then there were a bunch of huge ups and downs for both of us related to amazing/problem clients/employees. I know something about owning our own jobs and turning them into businesses that struggle to earn as much as freelance jobs. I know something about business but am not expert yet. Over the course of the year we average decent profits and are slowly building wealth. We know at least SOMETHING about it.
If anybody is thinking about starting a business, SCORE will tell them exactly what they need, where their business plan is weak and how much money you will need to start up a small business.
The number one mistake people make when starting a small retail store is that they think you "don't need much money". It's also why 85% of all small businesses fail within 5 years. Almost anybody will stick out year 1 based on their savings, year 2 on credit cards, year three by taking every cent that came into the store since starting, year 4 by dismissing all employees and working any family still willing to help out for free and year five it ends with no credit left, no cash left and you can't pay the rent anymore from the cash coming in. There are many bad decisions that are made along this path from renting a store front in the wrong place to cutting the advertising budget when things get tight - when what is more often needed is buying more advertising.
What determines when a business will fail can be as simple as a appetite for eating out too much or gambling, just too relax. Money is a tool and you will use it or waste it, but to the small businessman with a startup company, you can't afford to waste a penny. You NEVER have enough money to start a retail store as a SB owner and you never have enough cash to KEEP things running when things are tight if you aren't a good manager and you are prone to thinking that money is anything other than a tool. You don't use a airplane to build a house - and you can't build a business by thinking that you can "bootstrap" a startup with spare change.
This is apparently what hope and change looks like.
http://www.bls.gov/news.release/empsit.t...
I know. Isn't that a kicker?!?! They know the useful idiots will not look deeper than the headlines. Everything is coming up roses... la de da de da...
By the way, if you don't mind, may I address you as YNGH in the future?
Regards,
O.A.
The study is very troubling, though. I would have expected entrepreneurship to have increased because the Internet lowers barriers to entry. The results were completely opposite from what I thought.
The article is quick to say it's not as simple as taxes. I agree. But what is the cause?
Come to think of it, our household has an EIN for domestic employees. I wonder if we get counted as a business. Probably not. They probably only count LLCs, S-corps, and C-corps.
https://www.youtube.com/watch?v=9Ty7WU87...