Posts Tagged ‘economy’
Thursday, December 10th, 2009
Blog content provided by Barbara Weltman, Publisher of Big Ideas for Small Business ®
Many small business owners nationwide have been astounded by the proposals and laws that have come out of Washington in the past 11 months. Despite rhetoric that Washington values small businesses and recognizes their importance as job creators, the drift from the city on the Potomac has been anything but helpful; sometimes it’s been downright hostile. Maybe now we know why…
According to information from JP Morgan Global Wealth Management (as reported in The Enterprise Blog and in other places), the current administration has virtually know one in it with business experience (let alone small business experience).
Since Teddy Roosevelt, the number of cabinet appointees with private sector experience generally averaged around 40% (the percentage reached 58% with Eisenhower and 56% with Reagan while falling to a low of 31% with Carter and 28% with Kennedy). The percentage for the current administration is only 8%–practically no one in charge of business policy has any real life experience working in a business or running one. How can policy be made that directly affects business without understanding the impact it would have on business?
A quick look at the new regulations, taxes, and other burdens that would be imposed on business by health care reform and cap and trade demonstrates the lack of understanding about small business. How can a jobs policy be made when key representatives of employers, including the National Federation of Independent Business (NFIB), the U.S. Chamber of Commerce, and the National Association of Manufacturers, are not invited to the jobs summit?
The NFIB Index of Small Business Optimism continues to plummet, as evidenced for numbers released for November. The biggest problem cited by respondents was the lack of customers, but I suspect things go deeper.
According to NFIB Chief Economist, William C. Dunkelberg, “The economy may be turning, but small firms are not convinced things will improve anytime in the near future.” One reason for this pessimism—no support from Washington.
While homeowners, car manufacturers and car buyers, big banks, and other sectors have received bailouts, tax incentives, and other government support, there has been almost nothing for small businesses. With practically no one in authority in Washington who understand business’s plight, it’s unlikely that there will be any meaningful assistance forthcoming for small business.
Tags: BAYM, BAYMAM, Blog, Blogging, Blogs, business, businesses, But Are You Making Any Money?, butareyoumakinganymoney, economy, entrepreneur, entrepreneurs, government, jobs, Majcher, Marley, Marley Majcher, money, NFIB, profit, small business, small business owners, small businesses, start ups, starting your business, Washington D.C., women in business, your own business
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Wednesday, November 25th, 2009
Blog content provided by Barbara Weltman, Publisher of Big Ideas for Small Business ®
Holidays give us pause to stop and reflect, and this Thanksgiving may be particularly poignant for many small business owners. As a sector, small businesses have seen credit lines curtailed or cut, the government burden of taxes and regulations has continued to grow, and sales have waned.
Still, there are surely many things business owners can be thankful for.
Customers. During these tough economic times, many customers have remained loyal. Some may have scaled back their spending, but at least continue to patronize your company. These loyal customers, and the referrals, good reviews, and word-of-mouth advertising they give, are now the basis for rebuilding as the economy improves.
Employees. During these tough economic times, some business owners have asked employees to make sacrifices—scaling back pay and/or hours and forgoing raises and employer contributions to 401(k) plans. Where staff has been laid off, remaining workers have been asked to do more, and they have!
Market share. As companies have closed, some owners may now find themselves with a greater market share than before the recession began. Survival of the fittest at work!
Bottom line. If you’re still here, you have the biggest blessing of all—the hope that the economy will continue to improve so you can grow your business and prosper.
Tags: Barbara, Barbara Weltman, BAYM, BAYMAM, Big Ideas for Small Business, Blog, Blogging, Blogs, business, businesses, But Are You Making Any Money?, butareyoumakinganymoney, economy, entrepreneur, entrepreneurs, Majcher, Marley, Marley Majcher, money, profit, small business, small business owners, small businesses, start ups, starting your business, Thanksgiving, weltman, women in business, www.barbaraweltman.com/blog, your own business
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Wednesday, September 9th, 2009
Blog content provided by Barbara Weltman, Publisher of Big Ideas for Small Business ®
In this tough economy, many small businesses are struggling to survive. The SBA’s Office of Advocacy has released an updated fact sheet shedding light on survival. The data present a picture that is more optimistic than might be expected.
About 627,000 new businesses started up in 2008, despite the declining economy. This was fewer than the number of start-ups in 2007 (664,100), but it still means that people with good business ideas are finding the capital and the means to start up companies.
About 595,000 businesses closed their doors in 2008; this is only slightly higher than in 2007 (571,300) and fewer than in 2006 (599,333). The turnover rate is about 10%, but it’s three times higher for companies with no payroll versus companies with employees.
According to the latest data, about 70% of companies survive for at least two years, and about 51% for five years. The survival rates are higher than those reported last year, when only 67% lasted two years, 44% at least four years, and 31% for at least seven years. The survival rates are similar across states and major industries.
Tags: Barbara, Barbara Weltman, BAYM, BAYMAM, Big Ideas for Small Business, Blog, Blogging, Blogs, business, businesses, But Are You Making Any Money?, butareyoumakinganymoney, economy, entrepreneur, entrepreneurs, Majcher, Marley, Marley Majcher, money, profit, sba, small business, small business owners, small businesses, start ups, starting your business, weltman, women in business, www.barbaraweltman.com/blog, your own business
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Wednesday, May 27th, 2009
Blog content provided by Barbara Weltman, Publisher of Big Ideas for Small Business ®
Recent surveys show that small business owners are working harder than ever during this recession to keep their businesses afloat. Discover Small Business Watch reports that owners are working longer hours and longer work weeks and taking little or no vacation, in part due to the economy.
In fact, 39% say they work more than 10 hours a day, compared with just 30% last year (and only 20% of average workers). When it comes to working six or seven days a week, 61% admit to doing so now, up from 45% last year (and only 22% of average workers).
Summer vacation? According to the American Express OPEN Small Business Monitor, while the number of owners planning to take at least a week off this summer is about the same as last year (56% compared to 59% in 2008), 28% link their vacation to business to save time and money.
In a down economy, it may be time for owners to reassess priorities and mind their health. Slow down and take time off to recharge yourself and be poised to leap when the recovery occurs.
Tags: american express, Barbara Weltman, Big Ideas for Small Business, business, But Are You Making Any Money?, butareyoumakinganymoney, economy, entrepreneurs, longer hours, Marley Majcher, reassess, recession, recovery, small business, small businesses, small c corporations, start ups, starting your business, summer vacation, vacation, women in business, work hours, work survey statistics, work week
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Wednesday, April 15th, 2009
Blog content provided by Barbara Weltman, Publisher of Big Ideas for Small Business ®
The IRS announced the dollar limits on the amount of depreciation that can be claimed for passenger cars, light trucks, and vans purchased for business and placed in service in 2009. The limits for passenger cars are the same as those in 2008; the limits for light trucks and vans are slightly lower.
The limits for new (not pre-owned) vehicles reflect the $8,000 allowance resulting from 50% bonus depreciation in 2009, for a first-year dollar limit of $10,960 for passenger cars; the limit is only $2,960 for used passenger cars.
Those who lease vehicles v
alued at more than $18,500 must include an amount (called the “inclusion amount”) in income based on IRS tables. The inclusion amounts for vehicles first leased in 2009 that are used for business are substantially lower than the amounts for vehicles first leased in 2008.
You’ll find details in Rev. Proc. 2009-24, which will be posted in Internal Revenue Bulletin 2009-17.
Blog content provided by Barbara Weltman, Publisher of Big Ideas for Small Business ®
Tags: Add new tag, Barbara Weltman, Big Ideas for Small Business, business, But Are You Making Any Money?, butareyoumakinganymoney, depreciation, depreciation limits, economy, entrepreneurs, IRS, Marley Majcher, small business, start ups, starting your business, tax, tax credit, tax increases, tax refund, taxes, taxing, vehicle depretiation
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Tuesday, March 10th, 2009
Blog content provided by Barbara Weltman, Publisher of Big Ideas for Small Business®
Businesses need capital to startup and grow. A key way to stimulate more investment in businesses is to make risk-taking attractive.
In Communist China, there is no tax on capital gains (whether assets are held long term or short term). They figured out that taxing investments less leads to more investments.
In contrast, President Obama wants to raise the current capital gains tax rate from 15% to 20% (or maybe more). This just doesn’t make any economic sense.
Tags: But Are You Making Any Money?, butareyoumakinganymoney, capital, china, communist, communist china, economy, entrepreneurs, investments, Marley Majcher, obama, president obama, small business, start ups, starting your business, tax, taxes, taxing, women in business
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