Finance Reports

Everyone agrees on a broad level that small businesses are vital to the American economy. However, most people would be surprised to know just how important. The United States Small Business Administration keeps records and statistics on small business in the United States and some of their findings are surprising.

First, the typical perception of a small business as a mom and pop operation with just a few, if any, employees is not the entire picture. The Small Business Administration defines a small business as an independently business with less than 500 employees. There are an estimated 23 million businesses in the United States that meet that classification. In some smaller towns in the United States, these businesses represent a major source of employment.

In fact, small businesses as defined by the Small Business Administration represent 99.7 percent of all the employers in the country and employ half of all private sector employees. More than 45% of the private sector payroll is generated by small business. Over the last decade small businesses have accounted for 60 to 80% of all new jobs created on an annual basis.

Although a large percentage of small businesses are in the retail and service sectors, small businesses are rapidly making gains in the technology sector. 41% of high tech workers like engineers, scientists and computer programmers are employed by small businesses. Employees at small businesses produce 13 to 14 times more patents than those employed by larger companies.

The Small Business Administration also offers some interesting observations on small business survival. Two-thirds of small businesses survive for at least two years declining to 44% after four years. Most of the factors that support a small business surviving are well known, such as access to capital and owner’s education level. However, a lesser known factor in small business survival is that the business is large enough to have employees.

Similarly, barriers to starting a small business include lack of access to start-up capital and lack of education. However, the number one barrier to small business start up and a primary concern of existing small business owners is access to private health insurance. Individual health insurance for sole proprietors is much more expensive than receiving coverage through an employer. If a small business owner is able to offer health insurance to its employees, the administrative and premium costs are often much higher than those for larger businesses.

Jonathon Hardcastle writes articles on many topics including Business, Real Estate, and Employment

Share This

Every business starts with an idea or a dream. To implement this idea or to turn your dream in to reality you require finance. A grant supports the business ideas and turns the dreams of an entrepreneur in to reality.

There are many types of grants offered by the Governments and other financial institutions that include individual grants for personal necessities, business grants for starting new business, education grants for funding education and many more. Grants are always a feasible option to support existing business or financing new business in all fields. While the United States government does not offer direct grants for supporting small business there are many state development agencies, non-profit organizations, intermediary lending institutions and local government, which offer grants to expand and enhance small businesses.

Small businesses always play a significant role in the economic growth of a country and that is the reason governments are always ready to offer financial resources to facilitate small business. You can receive small business grant to start up any type of business. From carpet cleaning, photocopying, private tutoring services to day care business you name any business and these agencies have the grants for you. All U.S. citizens and residents are eligible to receive U.S. Federal Government, State Government and Private Foundation-funded grants and loans. Apart from this these grant programs do not require credit checks, collateral, security deposits or co-signers. Small business grants are easily available. Anyone who is 18 year old and thinking about going into business for himself or wanting to expand his existing business can apply for the grant. Grants varying between $500.00 to $50,000.00 can be obtained from these agencies. Usually there are larger payments for business start up costs. If you are an entrepreneur than you can use the privileges provided by the government. Small business grants are the ideal way to fulfill your dreams of becoming a business owner.

For additional information on Small Business Grants please visit:
http://www.hjventures.com/grants/government-grant-proposal.html

Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing business plans for companies interested in raising capital from Venture Funds and Angel Investors. Howard’s business plans have secured several million dollars in funding.
For more information: http://www.hjventures.com

Share This

The world has woken up to ethical issues in corporate governance & accounting practices. Corporate heads that were not guillotined were forced hang their heads in retrospective shame. The heads that fell were the victimizers, and the axe that fell, fell too late, and the punishment received, was way too little compared to the suffering, pain and financial losses that the organizations’ stakeholders suffered. Trust of millions of investors was lost overnight.

Ethics in governance is one part of the story, the other link in this dubious chain of deceit is usually the professional services like auditing, legal and public relations which work closely with the organization. Such large scale deceit becomes possible only with the active collaboration of these so-called ‘professional’ services. Hardly professional, really!

The Indian investor has been victim to a lot of companies attempting to make a quick buck in the markets. While caveat emptor - let the buyer beware, is the legal term that organizations to get out of such wrangles, it is necessary to look into how these various scams are done, and to recognize the role of the professional services, especially public relations in creating and sustaining the scams.

Circa 1994. Every Indian remembers the bloody battlefield of the stock markets. While the aftereffects are well embedded in everyone’s memory, few remember how it all began. Upbeat stock stories in the newspapers, stories of millions being made overnight, the oldest stock exchange of the country celebrating the index at an unprecedented high. Stock market pages kept the upward arrow next to almost every stock price quoted indicating the trends. Investors scrambled, dinner conversation revolved around the stock prices, 21 year olds were sitting in front of red-blue flashing computer screens, buying and selling tens of thousands of shares in seconds.

While some companies were actually performing well, many slipped through the back-door and slipped up their shares to unwary investors. Why is the investor so gullible? And is the investor really so gullible?

The method that was used to market the fly-by-night companies to the investors combined the well-used public relations concepts of fear, uncertainty and doubt (FUD). Successful FUD pushes to show how you would be the only person who would be left in the race if you did not buy-in into the campaigner’s concept, creates uncertainty about your own analysis & gut-feel and generates doubt about the products or services currently under use. This especially works wonders in a greed-struck stock market, where more often than not, mob-psychology rather than knowledge is the deciding factor.

Usually such scams are orchestrated in connivance with some unscrupulous public relations companies. At other times, the PR companies usually have enough pointers to the possibility of such a scam about to take place. Press conferences are called, headlines blare out the superlative performances of the organization, there is talk of new acquisitions, investor meets happen and stock analysts are shown the factory, the plush office to generate confidence in the investor. The PR agency is rewarded for its great ‘efforts’ by way of a few millions and the investors collective gets duped for a few billions. Case studies of this century in such dubious PR in India would include the CRB scam, MS Shoes, Harshad Mehta & Home Trade fiasco. While these are the few stories which come to light, there are many scams which get away without even getting noticed.

What is the responsibility of the public relations company in such circumstances? The agency must evaluate the client and understand program and take a view that is beyond just the fees that it will generate and take a responsible decision. The PR agency can & must become the watch-dog for the companies, advising them, guiding them and if nothing prevails, then going to the extent of resigning the account for of a larger good. This kind of discussion, though popular conversation in PR cocktail circuits, is still eschewed by the PR intellectuals in more serious forums!

Unless we work as a committed community on the principles that should guide the PR business; and take stringent action against those who use these tools-of-influence to feed their greed, the respectable business of PR will go to the depths of unrecoverable ignominy very soon.

Chandramouli is the CEO of Blue Lotus Communications Consultancy, a leading knowledge based public relations agency located in Mumbai,India. He is an Engineer-MBA with over 16 years of multi-functional experience and has guided Blue Lotus to a core focus in the booming sectors of Healthcare, Finance, Education and Technology.

Share This