If our presidential candidates are telling you that small businesses will lead to more jobs, you may want to continue reading…
A census survey showed that the number of small businesses without employees increased by .04% totaling approximately 72.72 non-employers for every thousand residents. The average sales by these businesses, on the other hand, decreased by approximately 0.2%. The survey suggests that the supply products offered by these non-employee businesses exceeds the demand or, alternatively, that small businesses start up without offering any products for market. Though the ADP national employment report shows that private sector jobs rose by approximately 182,000 jobs in October 2015, small business job creation was down one point from the previous month.
Analysts suggest that while these small, non-employer businesses offer an economic function, their increasing number, combined with less than 4% of all business revenue, leads to a greater spread and, therefore, diluted revenue for these companies.
The census data accounts for the increasing number of non-employer businesses as part-time endeavors by self-employed people or full-time workers engaged in on-the-side, self employed business activity. For those small businesses that do seek to become employers, the inhibition to do so stems from factors such as high costs for benefits, health care, and wages.
In conclusion, our presidential candidates need to outline a plan to curb the high costs of employee benefits and employee healthcare for the small business owner. Lowering these costs may lead to additional hiring by the small business owner. In turn, hiring new talent may lead to more sales, more projects, and, thus, growth!
TAKE MATTERS INTO YOUR OWN HANDS!
While government tries to figure out a plan to lower the costs for the small business owner, Larry Spiegel, continues working with entrepreneurs to start and grow their business! Listen to Larry’s radio show, “Start, Expand, Buy, Sell Your Business”, episodes for a common sense approach to starting and growing your business. Spiegel provides sound advice based on decades of attending the school of hard knocks, bootstrapping his way to the top.
Listen Here!