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,
http://brucewilds.blogspot.com/2012/01/small-business-endangered-species.html
Footnote #2; A more recent post related to job creation and this subject can be found below,
http://brucewilds.blogspot.com/2013/10/amazon-not-answer.html
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