Posted on 01/28/2015 9:34:29 PM PST by george76
When small and medium-sized businesses are dying faster than they’re being born, so is free enterprise,” writes Jim Clifton, Chairman and CEO of Gallup. “And when free enterprise dies, America dies with it.”
For six years, the number of small businesses closing has exceeded the number of businesses starting. The number of business deaths exceeded births in 2008 for the first time in US history and has gotten worse in the ensuing years. Since 2010, the rate of small business closures has increased.
In the 1980s, the number of new businesses exceeded those closing by more than 100,000 every year. Today, 70,000 more businesses die than are started each year. This somber fact goes a long way to explaining the current weak job market. Two-thirds of all new jobs are created by small businesses.
...
A few years ago, I had an idea for a small business. It wasn’t a flashy tech start-up or a potential billion dollar idea, but I thought it would meet a need in the marketplace. Things were preceding well until I met with lawyers. The amount of regulatory and legal clearance that was required convinced me to bury that idea deep in the ground and never speak of it again.
I doubt my experience is unique.
...
All the rhetoric out of the White House or the halls of Congress can’t arrest this American decline. Small business is literally dying in the United States. By the time the media or the political class notices, it will be far too late.
(Excerpt) Read more at breitbart.com ...
That's very true; also, to consider, is that once there are only a few big businesses in a single sector they get to [via lobbyists] have more access to their politician's ear, which means they can manipulate the regulations to further hurt their competition.
One thing I’ve noticed between the left and the right -
both recognize that big business is tangled up with big gov’t.
But, from the conservative point of view, the “problem” is the power of the gov’t being used to interfere with commerce,
and the left sees their beloved benevolent gov’t being influenced by big business.
The solution would be to have the gov’t NOT HAVE THE POWER to be able to benefit one business over another,
but the left would see that as a serious detriment to the ability of their beloved benevolent gov’t to “do good” on their behalf.
Oh, I'll agree with that.
But they use the legal system [or at least the threat thereof] to do so.
As an example, I have a brother-in-law who was working for a company that was having a particular problem and they asked for ideas for solutions. Well, he designed up a solution which was rejected, when he wanted to develop that idea for himself he got referred to legal who said the company owned the idea (even though it wasn't [ever] going to be used).
Another would be a friend who was a worker at Google. Google was updating their contracts so that everything any employee produced was the intellectual property of Google. There was some song and dance and my friend essentially had to lay-out/prove that the stuff he was was working on predated his joining Google. (It seems that if he didn't have his lab-/research-notes, and several published articles, Google would have been able to seize his work.)
Very true.
I’ve noticed the same thing myself.
Two year ago we lost 14 businesses in town and a major manufacturing firm in the county seat.
Last year the rate of business closings slowed considerably but being there are so few left this is not a reliable indicator.
We could have kept our businesses going by more investment and adding employees but with the Sword of Damocles/Obamacare hanging over our heads and all the other crap Big government is talking about we just didn't see the point. So we are winding it down and now it just gives my 84 year old Father a reason to get up in the mornings. He still enjoys the work but he was dead set against doing anything more than we are doing.
He lived through the Great Depression and he claims it is worse now because there is no feeling of the country getting better.
I know it has never been this bad in my lifetime and the Carter years sucked balls big time.
I know of no reason anyone would open a business around here. We have an epidemic of pillbillies and heroin addicts. I would gather over half the population is on the full government dole with most of the rest getting a government check of some sort. All our city schools are now on full Free Lunch. (Apparently once you pass a certain percentage they just throw in the towel and make everyone on the free lunch dole)
Its like I woke up one day and my town was gone and it was replaced by an inner city ghetto.
Sorry for your family business, your town , and most of America.
Things will likely get even worse.
Future government regulations will soon hit, then close down many existing businesses that once paid good wages and large taxes.
as designed by the socialists.
Socialist Hitler agrees.
My Dad’s small business had the worst year last year since he opened in 1958. He is getting up in years and well past retirement age could retire and shut it down right now. He has one employee who’s been with him for 35 yrs. and she is nearing retirement age. He essentially is keeping the doors open for her to hit retirement age and medicare and then he will sell it or close it down.
He says the government regulations and paperwork are mind numbing and he spends more time fooling with that crap than his actual business at times. He has two or three competitors in the area and one is about his age and will retire and close his doors soon. Another one is “hanging on” until Dad closes his doors or sells and then they think they can take his share of the market.
Reagan knew main street was the answer. The Bush’s and democrats think Wall St. is the answer and now we have the Wall st. sewer system in place. Low wages and long hours...
And of course it goes the other way when 70,000 businesses close.
Demographics is certainly a factor, but I think there are two other major factors. Small business is always risky, and the extra regulations and costs under Obama are killing businesses that would have otherwise barely made it. Also, Amazon is a big factor. Almost all many products are cheaper with no storefront, and people window shop in start-up businesses and then buy from Amazon.
Dental and doctors offices are considered small businesses. They are falling the wayside.
Orrin Hatch. Just as bad as the others.
God bless your dad and his employee.
Good point and I remain convinced that the person most responsible for the boom times of the 1990s was none other than Monica Lewinsky. You see, while the government was fixated on whether BJ got a BJ, there were a couple of years where we all got left alone.
As someone who is struggling to keep my small business going, the biggest problem is that people lack disposable income and small business services rarely supplies necessities (things you can not live without) but luxuries (things that are nice but the lack of them will not kill you).
Then there is also the “Greek phenomenon.” I.e. an increase in the amount of black and grey market activity. I think in Greece its over 50% of their economy.
“1 in 4 adults aged 25 to 54 are not working.”
I wonder what portion of those are simply reporting that they’re not working?
“You’re ignoring all the willing hypocritical contributors to the tax-free zone known as the ‘internet’.”
And its mostly regulation free and largely anonymous. While I wouldn’t argue that its making up for all of the loss in the brick and mortar economy, its picking up some some part of the slack.
That’s a good point, but I wonder how many businesses out there (I’m leaving drug dealers out of the mix) are doing most or their business through black-market and gray-market transactions.
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