Saturday, March 17, 2012

Small Bussiness Under Attack

            Small business, with two to ten employees, are becoming an  endangered species in America. The family business once the backbone of this country is under attack from the unintended consequences of the many laws and mandates passed in recent years. Inspections, a plethora of permits, licenses, taxes, insurance requirements, and regulations make it almost impossible for a small business to open, compete, and operate legally. Big government has become toxic for small business.

            Few Americans risk capital, try to meet payroll, buy health insurance for their workers, try to create and innovate, lease an attractive site, maintain business licenses, observe myriad obscure regulations, compete with cutthroat competitors. While doing these task they are also asked to meet disability access standards, remain on call 24/7 for any business emergencies, and stay up late into the night trying to juggle interests of employees, business and community.

           Today only 2% of all Americans actually employ at least one non-relative employee. According to the Small Business Administration only 10% of Americans own a business and 80% of these are single self employed businesses. The remainder of Americans busy themselves with demanding jobs with higher than average wages, a full complement of generous benefits and frequent paid holidays. Most seek a definite work day without after hour calls.

           America has become not so much a capitalist society as a worker's society demanding socialist protections, this is why workers are not getting any job offers and America has lost its competitive edge.The owners of small businesses are burdened with spending countless hours trying to comply with the red tape rather than in earning a living. Though usually denied by government employees, jobs in Government often pay better and are less demanding while providing security and benefits that the private sector can’t match.

      It has been said that money is the mother’s milk of politics, this in many ways has been the Achilles heal of small business. The lobbyist that represent banks, big business and special interest have had their way  to the detriment of America and small business. They have shaped and crafted regulation that has shifted commerce strongly in their favor. As the stocks of large companies rise we are often oblivious to the names of local businesses that cease to exist. Even as many small businesses try to carve out a niche they can defend against the giant retailers down the street they must also compete against exploiters like Amazon that have no brick and mortar presence and avoid local and state sales tax.
     The question of whether bigger is better is often debated as Wal-Mart expands across the land. The advantage of size allows for whole departments to specialize in dealing with Government regulations that have become the bane of the small businessman. The sad truth, while efficient in distributing goods these behemoths diminish cultural diversity and alter the fabric of society. The jobs they offer neither fulfill or excite, few people grow up filled with desire to work at a big box store like Wal-Mart or in a Amazon warehouse.

       My point is that small business and entrepreneurship were key in making America great, but beyond the Lemonade Stand of childhood  few Americans know anything about running a business. Running a business in America is complex and requires knowledge and smarts, if we want to create more jobs Government must encourage small business formation by slashing through the regulations, simplifying, and removing ,the burdens that make it so difficult. This is the only hope that for America to remain a land of opportunity.

Footnote; If you are interested in this topic, please read my recent post below. Other related articles may be found in my blog archive, thanks for reading, your comments are encouraged,
Footnote #2; A more recent post related to job creation and this subject can be found below,



1 comment:

  1. Small business financial dashboard is perfect to give you an idea on how your company is performing.
    Small Business Financial Dashboard