Posted on 08/18/2011 6:20:48 AM PDT by freedombiz
The unemployed, once a rich source of new entrepreneurs, started businesses at the slowest pace on record in the second quarter, reports Challenger, Gray & Christmas Inc., an outplacement firm that has been tracking this activity since 2000.
(Excerpt) Read more at jan.ocregister.com ...
>>>Government regulations and taxes make starting a business not worth the risk. What do you think?
I think it is more to do with the decline in housing prices. Home equity was frequently a source of funds and collateral for start-ups. With many homes underwater, that source of funds is not available. Also, still tight lending by banks has limited funding for start-ups.
Financing and unemployment compensation. Necessity is the mother of invention...
The big story 20-25 years ago, following the loss of 1000s of jobs on Wall Street, was how these folks reinvented themselves and started successful ventures in areas completely unrelated to finance. I haven’t read anything similar during this recession.
Having been through two successful start ups in the past, I can guarantee you there’s no way in he11 I’d even consider it today. The economy totally sucks, gvt red tape equals strangulation, rules and regs are onerous.
No way!
Under the table business is likely at an all-time high.
hope and change...
Common sense.
Back in the Bush days I said they should ease the red tape at the Small Business Admin and start loaning money out to those willing to start some small business. If nothing else, it will generate taxes, sales (from buying things to get started), and give people job experience if they fail. It doesn’t have to be forever, and shouldn’t be, but zero unleashed billions of dollars for “jobs”, but all the money went to people who already had jobs (unemployment is still at an all time high). In this recession/depression, helping people start their own businesses would be a boon to the economy.
There are no markets. There are no customers. No one is buying anything they don’t have to buy and even then, people only buy sales/markdowns/used/reconditioned. Most folks are into DIY.
Add in the regulations, taxes, fees, red tape and why bother?
Where are the unemployed going to get the seed capital to start a new business.
Banks aren’t loaning because of government orders and policy for them to buy treasury bills to prop up the government instead of the economy.
There was a time when every city and town had small independent banks where you knew your banker and he knew you and the banker might be willing to risk a little money on your character and not your fat bank statement that shows you don’t need a loan.
Those banks are gone forever, swallowed up by giant multi-state banks.
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