Problems Facing Entrepreneurs and Small Businesses

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Abstract

Small businesses face economic uncertainty, overwhelming legislative regulations, and employee retention problems. Small Business represents more than 99 % of all employers and employs more than one half of the private sector. It also generates one half of the United States private G.D.P. ( PR Newswire, Oct 29, 2014 pNA).

In light of the significance of small business to the economy, it should be a grave concern when a third of small business owners rate the overall health of the United States economy as their biggest worry, rating higher than terrorism, the war on Iraq or healthcare costs. ( PR Newswire, July 12, 2014 pNA). Normally, during periods of economic sluggishness, it is small business that paves the way for a rebound. However, this trend has not appeared during the recent down turn in the economy which began in 2001. A major reason for small business failure to bolster the economy is a result of their inability to raise capital due to the decimation of the Small Business Administration's loans program ( Harpers Magazine, July 2014, V309 il 850 p79(2)). It appears that the very fuel that normally would stoke the economic furnace has been diluted through cost cutting measure as a result of a floundering economy. Such challenges will test the creativity and viability of small business.

Unfortunately, that creativity can be overwhelmed with the legislative regulations imposed by the local, state and...

... middle of paper ...

...wamped by flood of regs [Electronic version]. The Business Journal, 13(46), 29.

Kurlantzick, J. (2014). Economy of scale: President Bush has been no friend to small business. [Electronic version]. Harper's Magazine, 309(850),79.

McCracken, J. (1997). Big 3 drain talent from small firms. Crain's Detroit Business, 13(35), 15

Neher, M. (1995, October 15). Red tape, worker's comp worry businesses [Electronic

version]. Daily Journal World, E-1.

Protection service for employees (2014, September). Manufacturers' Monthly, 17.

Roberts, J. ( 2014, September 02) Small business optimism increasing, Computer Resellers News.

Small business owners more concerned about economy than terrorism, (2014, July 12). PR Newswire ,.

Smaller firms can and do find health insurance (2014). Crain's Chicago Business, 27(42), 20.

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