Are tiny businesses the real job creators?
A new study says the smallest US companies are some of the biggest employment drivers.
That's according to a new study by -- surprise -- the California Association for Micro Enterprise Opportunity. But the numbers do seem to be legitimate.
Microbusinesses with one to four employees created a net 5.5 million jobs from 2004 to 2010, according to the study. Large companies with more than 500 workers lost 1.8 million jobs over the same period. The study used data from the U.S. Department of Commerce and the U.S. Census Bureau.
In the especially painful years of 2009 and 2010, microbusinesses were the only category to create jobs. All others cut employment during that time.
And microbusinesses were net job creators in 50 states from 2004 to 2010, while companies with five to nine employees were net job creators in 41 states. The largest companies, those with more than 500 employees, were net job creators in 17 states.
A separate report out recently clarifies the issue a bit more, saying that overall job creation has been negative over the last two decades except for one area: new firms less than a year old. That's mostly because new companies are only adding jobs, so their net job creation rate is typically at 100%.
About half of all companies fail within the first five years, but the ones that do survive that rocky period generally do well and have robust hiring. The report was by Ian Hathaway, an economic adviser to a lobbying group for tech startups.
The studies point to a fact that was very apparent in the recent recession. Americans are generally a resourceful bunch, eager to start their own businesses when other jobs are scarce. But there's a huge divide between starting up a business and getting enough revenue to sustain that operation, and all the optimism in the world won't help when the money isn't coming in.
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Last week I asked my insurance company about expanding my agriculture business to possibly include a part time employee. I have a farm policy, already in place. After, listening to all the added expenses I realized that I can afford to pay the employee, but unfortunately I would have to get a part time job myself to cover the added cost of getting workman's compensation, additional liability insurance, additional book keeping and regulatory compliance, ect.... It really doesn't make sense to pay out so much first, and then try to recoup it or at least try and break even with the small additional income I would make by the additional employee. The only one that is guaranteed to profit is my fat cat insurance broker. He drives a beautiful new BMW and I drive a ten year old American truck.
What a sad small business model !! Yikes, this is ridiculous...is this the way of our future??
And these are the ones big government wants to tax and regulate to death. It is the tax-dodging multinational huge corporations that can just police themselves, according to the politicians that they own.
At the heart of this is the fact that D.C does not want any of the citizenry to be self-sufficient. They want complete dependency by, and control of, the populace.
When it comes to Net Income, those numbers can be so manipulated so I won't bother to expand on it.
What's with the thumbs down for my comment to Vishus?
Don't like the f*cking truth? Whether the person who gave my comment a thumbs down, wants to admit it or not, a scared person is much EASIER for GOVERNMENTS AND CORPORATIONS TO CONTROL. Want proof? Let a couple of bombs go off, have a few shootings in public places, and voila, idiot people and corrupt politicians start SCREAMING for more useless laws that restrict more freedoms and DON'T solve the problem. Afraid of losing your job because the unemployment rate is so high due to government policies? THAT'S why corporations LOVE high unemployment rates. They HAVE YOU BY THE BALLS. They can pay LOWER wages, got people running scared, afraid to stand up for their rights, because they can get a replacement for you tomorrow. No GD problem for them!!!
And, OF COURSE, the more AFRAID people are, the BETTER the corporations and fascists LIKE IT. A scared person is MUCH easier to control.
There's only one problem Jacob Wentz,
And that is the so-called "progressives" [read socialists, communists, what have you] don't WANT you to start a small business and succeed. THAT will make you independent [especially of them and the government programs they're promoting]. They don't want THAT.
You want proof, all you doubters out there? Try and start your own business, without these rats coming out of the woodwork looking for money [yours of course], using every bit of stalling tactics that they can, in the form of paperwork that you MUST fill out in triplicate [Why? What business is it of theirs?], inspections, [which in a LOT of places you WON'T pass unless some money changes hands], etc. Oh yes, also kissing the a$$ of every petty, stupid, bureaucrat, with more time on his hands than brains. they ONLY thing they've learned since they've been hired, is to throw ANY AND ALL IMPEDIMENTS in your way. God forbid THEY should actually HELP YOU. [Which is supposedly their job] And you KNOW GD well you'd better treat him/her like a king/queen, or they'll do their DAMNDEST to put you out of business.
Republicans can vote 40 plus times to repeal ObamaCares but they can't sit down for one minute and offer improvements. Fact is, the Republican Party has ZERO answers on how to address the rising cost of Health-Care. I mean really folks,when are you guys going to offer America any Real Solutions that actually helps to solve our problems. This Feed the already SuperRich hasn't worked, and it never will.
I am all for reducing any undue burdens on Small Business Owners and even reducing taxes on the business itself. However I tire of all the BS excuses of those that Fail and blame the Government instead of where it truly lies most times, themselves. These folks expect you to go through hell to reach the American Dream, however they want a cakewalk for themselves.
Now one poster made an very important point, those insurance crooks ripping him off. Most folks have a long way to go before any taxes and or regulations cause major headwinds since most are losing money and are just simple money pits. Those that are doing very well, taxes and regulations are hardly a problem. It has become more of a built in excuse after failure and or greed. Take your pick.
It is far easier to start a business now than ever before and folks are doing it in DROVES. The rest are making excuses. We clearly see that more folks are starting a business as they tire of doing all the work yet reaping little of the benefits at their old jobs. Meanwhile certain groups prefer to play the blame game, blame anyone but themselves. Big Banks and Big Corporations don't want any new competition. So either they buy you out and or try and de-fund you.
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