According to the June 16th article in USA Today, small-business employment growth has been slowing down. They referenced ADP, which said that in May, businesses with less than 50 employees added 27,000 jobs compared to May, 2010 which only added 14,000. But this is down sharply from the 84,000 jobs added in April and advances of more than 100,000 in December and January. As mentioned in the article, the National Federation of Independent Businesses believes businesses are unsure about what policies will be enacted by the government.
Small businesses are such an essential piece of our economy and they are the ones to hire people. However, because of the Great Recession, they have been very cautious in hiring new employees. Economists are watching them closely as an indication of economic recovery. But they are moving slowly.
Another indication: entrepreneurs are not formally incorporating- - LLCs, partnerships, etc. numbers are way down. According to the same article, entrepreneurs have started up the fewest new U.S. businesses in more than a decade. I talked to an attorney lately and he also confirmed this from his own firm statistics. They are seeing more business dissolutions than business start-ups.
Solutions:
1. Though there are many laws regarding such, and will have to be reviewed and possibly revised, we may have to encourage bartering for awhile. People can see right in front of them what they are getting. It is not done electronically or on paper. This encourages trust. We take a step back in order to go several steps forward.
2. One of the hallmarks of the United States is its entrepreneurial spirit. We are creative and think outside of the box. We must continue to encourage ideas to become reality. If entrepreneurs are worried about what is going on in Washington, and possibly their own state capital, then it is time to make sure our legislators know they are having this direct effect on our economy. Agencies' policies, procedures, and rules won't change until legislators make it so. We need small businesses to be able to conduct business.
3. Using the Green Bay Packers as the model- -The Packers are the only non-profit, community-owned major league professional sports team in the United States- - create something similar to support small business(s) in your town. Everyone benefits and supports the home grown success.
This was a great post. I enjoyed reading it. If you are a small business where can you go for help?
ReplyDeleteI absolutely agree that small businesses and communities working together to support each other are the key to survival when we cannot depend on the international economy.
ReplyDeleteThere are quite a few resources which small businesses aren't even aware of and quite a few are no charge. I would start with the local Small Business Development Center (SBDC). they have many resources and connections, but one that comes up all the time is helping you write a solid business plan. Just talked to several banks today. They all said that many small businesses do not have a plan or need much help with the one they bring to the bank. A business plan is key to unlocking many doors.
ReplyDeleteCheck with your local economic development office.
Their knowledge of your town is valuable information and they may have suggestions for you and can introduce you to organizations/people who can match your specific needs.
I really appreciated this post. I totally agree with other bloggers on this post. Small business have to be able to get the support they need to keep going. It allows us to have a touch of reality instead of major corporations who forget that one on one customer service we all want.
ReplyDeleteI wanted to make sure my readers know this as well.
ReplyDeleteMore new businesses filed with the Secretary of State this May than May, 2010. See http://www.dispatch.com/live/content/business/stories/2011/06/18/climb-in-new-business-filings-called-evidence-of-ohios-recovery.html?sid=101.
As the article states, this does not mean that these business are open, merely that they filed. Again, I am glad to see improvement. It will take those in your town who understand the big picture to work together and support one another. Thanks all for your comments!