Entrepreneurship By The Numbers

By Mike Maddaloni on Monday, March 02, 2009 at 04:00 AM with 0 comments

Small business drives the economy. That statement is said over and over again, but what does it really mean? We hear figures how most new job growth comes from small businesses and entrepreneurs, but then that’s it – no depth is reported and you never hear anything beyond it. Allow me to put some meaning to it.

As you don’t have to go far to find any new unemployment numbers these days, let’s use this report out of the Great State of California where 79,000 were lost in the month of January, 2009 alone.

What one company is going to hire 79,000 people? Or what two companies will hire 39,500 each? Or what 100 companies will hire 790 people each?

Or will it be 79,000 companies hiring one person each? These 79,000 companies are the small businesses and entrepreneurs who are doing all they can to survive – and thrive – in this economy. Issues of extravagant junkets and private jets never come into play for them. As they do well and grow, they have the need to bring on more people. But it is expensive to bring on an employee. First off, you want to make sure you can keep them on the payroll and be able to pay them through the highs and lows of business. Then there is insurance – not just healthcare, but workers comp, unemployment, liability, etc. Add to that whatever tools they need to do their job, and you see the challenge for us entrepreneurs.

As elected officials throw around figures so large that I am sure even themselves don’t quite grasp, let alone those who voted them in, they need to remember who will be doing the actual hiring, and ensure they have the level playing field to do so.

Let the conversation on small business hiring continue!

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