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Standing for the tiny business sector

[picapp align=”left” wrap=”true” link=”term=paperboy&iid=75238″ src=”0072/8b6b57a7-cc06-4e2d-b8ac-6459166865c6.jpg?adImageId=8110054&imageId=75238″ width=”234″ height=”351″ /]There exists a business segment that I’d like to hear and read about more – the tiny business sector.  Businesses with 10 employees or less. Businesses with only one person – the solo-preneur.  Just like the newsboy in the photo, there are millions of people working [or trying to] around the world to make their living out of their home office or garage or a corner of the kitchen.  Or they have a small shop downtown with two or three employees.   You don’t read about federal government bailouts for owners of lemonade stands or taco lunch trucks do you?

I’ve been noticing some articles around the news that seem to be addressing small business, but most seem to be in the jobs creation department rather than the stimulating more consumer spending department which is what the tiny business sector needs.  One interesting article is at  The Huffington Post [dot com], written December 3 by Shahien Nasiripour and titled, “No Easy Jumpstart to Get Small Business Hiring Again.”  There was one spot in the article that caught my attention and I thought was right on the money [so-to-speak]:

  • “…The two leading small-business advocacy organizations – the National Federation of Independent Business (NFIB) and the National Small Business Association (NSBA) – have differing views. The NSBA points to the lack of credit as one of its top priorities. But in a report released last month based on survey data, the NFIB noted that while its members were having difficulty getting loans, it was far from a top priority. ‘Too many [business] owners have no reason to borrow,’ the authors wrote. ‘The biggest problem was a dearth of customers.’…” [note: I kept Mr. Nasiripour’s links intact in this excerpt except one]

What I want to point out is the last statement of that excerpt: “…’The biggest problem was a dearth of customers.’…” – For the tiny business sector getting a business loan seems pointless…what for?  What we need are customers, cash-in-hand paying consumers.  I read a comment on an article somewhere yesterday [forgive my faulty memory as I’m fighting a cold and laryngitis this week] that suggested the U.S. federal government give all taxpayers a monthly ATM card pre-filled with $500 that has to be spent within the 30 days.  The idea was given as a way to boost consumer spending.  An interesting one.

Another article I found today at the Wall Street Journal online by Diana Ransom and titled, “The White House Works It,” summarizes the most recent ideas to create jobs.  Small business owners, about 130 of them, were among those who met at the White House with others representing differing business segments and sectors.  But in looking at those top ideas, none seemed to benefit the tiny business sector – the one sector most probably not expected to be part of  job creation.  The top ideas from the article:

  1. Work Share Tax Credit – the one comment I found relevant was “…Micro-businesses (firms with fewer than 20 employees) would likely be left out, says Dean Baker, a co-director at the nonpartisan Center for Economic and Policy Research in Washington, D.C. “Presumably, you would want to aid firms other than ones that employ close friends and family members,” he says….”
  2. Jobs Tax Credit – solo-preneur businesses will not benefit from this as this type of business does not hire or job share.
  3. ‘Cash for Caulkers’ “…Depending on how many property owners take up the initiative, the plan could not only provide jobs to the hard-hit construction sector, it would limit carbon emissions and reduce owners’ energy costs….” My thought on this one was that if you had a fellow who was an independent contractor, this could be a help to him…and I know two personally; however, this idea does depend on property owners having the budget to hire the work done. [As an aside, it is one thing to offer home owners tax incentives to participate in this type of initiative, but the reality is that they still must have the budget to afford it in the first place.]
  4. Public Works Projects – This one might be valuable to solo-preneurs if there are people with their own business who have these skills and if the initiative would include the solo-preneur.
  5. Payroll Tax Holiday – again this idea is vested in job creation rather than increasing consumer spending.
  6. Capitalizing Community Banks “…would give small businesses a greater chance of landing loans…” – this idea is grounded in the getting loans for expansion which would result in more hiring.  Tiny businesses might need loans for improvement or supplies…what about that kind of loan?

As followers of this weblog may have noted, recently I changed my own solo-preneur business from that as an independent distributor of a direct selling company’s product to being the direct seller of my own [art] product(s).  Life is a journey and it has been interesting to me to watch my own understandings and ‘light bulb’ moments as my business has grown and changed.  I have friends who remain in that other business and this past year their customers have been buying less or dropping as customers altogether.  If any reader is familiar with the art market, for the home-based artist-preneur, the art market for the past two to three years has been like a desert.  I participated in a huge Open Studios tour in 2008 that the previous year had been a financial success for many artists…last year sales were dismal and attendance was down 50%.  People just weren’t buying art.  Even the artists at the event who normally can expect a portion of their annual income went home greatly disappointed and in the red.

So. In all the plans and discussions about economic recovery and helping small business, where are the ideas for the tiny business sector and for jump-starting consumer spending?

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2 Responses

  1. Hi from Ireland, good post, deserves a Digg.

  2. Thank you…how’s the weather where you are? Here in my part of California today it is raining although not cold. I looked at your site and wish you well with your caravan business. – Linda

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