Tag Archives: business failures

The Mystery of Business Births and Deaths–2014

Business births and deaths in the U.S. have always been a mystery—for a couple of reasons:

  1. The government and academia only try to track about 22% of all businesses—those with the greatest potential for a high growth rate—and what little information they do produce is several years in arrears.
  2. The remaining 78% of all U.S. businesses are generally ignored—considered not to exist—not only by the government and academia, but also by the business pundits and “experts” within the business community itself.

As a result, there is little to no information about the lives of 78% of all businesses in the U.S.—and information on the other 22% is years late, often contradictory, and highly suspect.

Since, apparently, no one else in the U.S. cares much about whether our small businesses live or die, I thought I would research the mystery of small business births and deaths myself.

The results of this endeavor are presented in a report I created titled Business Survival Reality: The Mystery of Business Births and Deaths in the U.S.

 

business-survival-smcover-2014

 

You can download a free pdf copy of this report here (no opt-in), or for more information about this report, click here.

 

 

This report looks at the following issues:

  • Why this information is important
  • The definition of a business
  • A total business census in the U.S.
  • Annual business growth (including all businesses)
  • Business Births by year
  • Business Deaths by year
  • Conclusions and Final Thoughts about the entire mystery

My primary intent in writing this report is to try and generate a dialogue about the 78% of all businesses in the U.S. that no one seems to care about.

There is a dearth of information being directed specifically at this important segment of our business community. Also, any kind of assistance offered by either government or private entities is almost nonexistent.

This large group of small businesses is composed of the businesses in the U.S. that need the most help—and receive none.

We in the business community need to do more to help these millions of small businesses that try to start a business every year, and more often than not—fail.

Take a look at this small report—you can download it free here with no opt-in—and let me know what you think about the information presented in it.

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Small Business–Caught in the Middle

I posted about this subject before, but I thought it would be a good idea to see if anything has changed since then. Apparently it has, but not for the good of small business.

“…community banks have plenty of money to loan, but thanks to increased regulatory scrutiny, all banks–even those that had no part in the subprime mess–are being forced to tighten their lending standards and are therefore narrowing the range of acceptable borrowers.”
–Paul Merski, Chief economist, and Director of federal tax policy for Independent Community Bankers of America

“We want to lend, but the regulators are flat-out telling us, ‘Get your capital up.’ Then there’s Congress telling you to, ‘lend it all out.”
–Greg Melvin, Board member of FNBCorp, a PA based bank that received $100 million in federal bailout funds.

“The left hand has the banker by the throat, saying ‘We want your ratios adjusted to compensate for diminishing assets,’ while the other hand is saying ‘we need you to start lending.’ They’re coming from different directions.”
–Curtis Cummings, CEO of Alan Jeskey Builders of Las Vegas

Well, as is typical of anything the U.S. government is involved in, the left hand doesn’t know what the right hand is doing–and small business is caught in the middle.

Hundreds (thousands?) of small businesses are closing every day–putting more and more people out of work–because they do not have the financial resources to see them through this recession.

Putting cash in the hands of consumers who are supposed to spend it in businesses that no longer exist doesn’t make much sense.

Small businesses need access to operating capital to keep their business viable until the economy turns around. The banks have the money to loan to deserving businesses, and the willingness to loan it, but the federal government is telling them they cannot loan the money out.

Doesn’t make much sense to me–does it to you?