This book exposes how the Small Business Administration (SBA) and the National Federation of Independent Business (NFIB), using erroneous data, have developed and perpetuated the belief that "small business creates all the new jobs". It shows further that, since the early 1990s, this belief has become a mantra for allowing the SBA and NBIF to lobby effectively for preferential treatment such as low-interest loans and exemption from mandated employee benefits and worker safety regulations.
This book exposes how the Small Business Administration (SBA) and the National Federation of Independent Business (NFIB), using erroneous data, have developed and perpetuated the belief that "small business creates all the new jobs". It shows further that, since the early 1990s, this belief has become a mantra for allowing the SBA and NBIF to lobby effectively for preferential treatment such as low-interest loans and exemption from mandated employee benefits and worker safety regulations.
Starting a small business and making it a success isn’t easy. In fact, most small business owners don’t get rich and many fail. This book presents the straight truth on small business success. It doesn’t offer cure-alls for every small business. Instead, it outlines real, effective principles for continued small business growth and success. Written by business growth expert Steven Little, The 7 Irrefutable Rules of Small Business Growth skips empty small business positivism in exchange for real-world, practical solutions. If you’re a small business owner or an entrepreneur just starting out, you’ll find answers to all your most important questions on topics such as technology, business plans, hiring, and much more.
Does an organization like a small business exist? There are many different definitions for this term. The American Small Business Association (SBA) defines: a one-member private business and an enterprise with more than one to 499 employees are small businesses. A flea market vendor is not like a software design company with 400 employees. It is obviously illogical to include all small businesses under this definition. In some ways, the SBA itself acknowledges the omission of what constitutes a small business in this 29-page definition. And these are actual numbers. You think you don't need to know them when you grow your business, but I encourage you to read on. According to a 2002 Census report, there are 22 million small businesses in operation. If you take a closer look at this figure, there are about 17 million small businesses without employees. Some businesses are simply the covers that accountants and lawyers have set up for tax breaks. Others are businesses that are unable or unwilling to scale up. Although there are no employees, you can still set up a small business if: • You sell part-time candles, cleaning products, or cosmetics and make a profit of several hundred dollars per year; • You quit a job at a company and the company hired you to work as an independent contract worker; • You are retired, but still consulting in your field; • You open a stall at a local arts festival to sell home-made handicrafts; • You buy and resell some things at a higher price to make a profit, such as: cars, rental houses, valuable collectibles ...; • You get a return on your investment. There is no problem with this type of business. They bring money to the owner, so these activities are business, not merely hobbies. Many business activities even help them lead a more comfortable life. But these small businesses rarely hire more employees. In many cases, employers do not want to grow their business. They only intend to earn enough money to live or earn extra income.
For the past 20 years, corporations have been receiving huge tax breaks and subsidies in the name of "jobs, jobs, jobs." But, as Greg LeRoy demonstrates in this important new book, it's become a costly scam. Playing states and communities off against each other in a bidding war for jobs, corporations reduce their taxes to next-to-nothing and win subsidy packages that routinely exceed $100,000 per job. But the subsidies come with few strings attached. So companies feel free to provide fewer jobs, or none at all, or even outsource and lay people off. They are also free to pay poverty wages without health care or other benefits. All too often, communities lose twice. They lose jobs--or gain jobs so low-paying they do nothing to help the community--and lose revenue due to the huge corporate tax breaks. That means fewer resources for maintaining schools, public services, and infrastructure. In the end, the local governments that were hoping for economic revitalization are actually worse off. They're forced to raise taxes on struggling small businesses and working families, or reduce services, or both. Greg LeRoy uses up-to-the-minute examples, naming names--including Wal-Mart, Raytheon, Fidelity, Bank of America, Dell, and Boeing--to reveal how the process works. He shows how carefully corporations orchestrate the bidding wars between states and communities. He exposes shadowy "site location consultants" who play both sides against the middle, and he dissects government and corporate mumbo-jumbo with plain talk. The book concludes by offering common-sense reforms that will give taxpayers powerful new tools to deter future abuses and redirect taxpayer investments in ways that will really pay off.
