Are you a business owner? Do you know what is going on in the business world? Do you know that your business has a lot to do with the economy? Read on for business news and economics that will astound you.
First of all, I want you to understand that business and economics do indeed go hand in hand. Of course, this does not capture the full picture accurately. There is also a bright side: while the small business sector is faltering, many bigger businesses, particularly digital ones, are also sprouting up. These companies are creating jobs, bringing in new consumers (and paying their fair share of taxes) and helping to lift the economy out of the recession.
The sad thing is that we are currently experiencing what economists call an “epidemic” of small businesses. This epidemic is resulting in millions of lost jobs and is driving down the economy. It is the fault of small business entrepreneurs who should have recognized the recession coming and created jobs in the beginning of the crisis. Of course, there were other factors that contributed to the problem, but the fact remains that many small businesses have closed their doors and large corporations are moving out of the country.
Can the small business survive this “epidemic”? Yes, absolutely. If the economy is going to rebound strongly over the next couple years, it will need to have a strong entrepreneurial base in place. The problem right now is that the entrepreneurial class is shrinking due to a variety of reasons, most notably the “epidemic”. However, if the private sector is ready to embrace technology and innovation in order to give itself a competitive advantage over the competition, then it will be possible for small businesses to remain competitive even in this turbulent economic climate.
For small businesses, the biggest challenge will be developing effective ways to attract and retain customers. The two biggest sources of new customers will come from online and mobile advertising. Mobile marketing will become more important as the global population increases its usage of smart phones. However, the government needs to get involved with the development of smartphone apps to promote better consumer connectivity.
In order to improve business climates, business entrepreneurs need to invest in new hires and offer compensation to employees who are willing to work longer hours. The United States government has developed a business startup accelerator called the United States Business Start-Up Accelerator Program to help companies improve their business climates and attract high-performing employees. The government recognizes that having access to a successful entrepreneur can be a tremendous competitive edge. The program has helped fund or award grants to over 100 business startups, so there is certainly no shortage of capital to support the growth of small businesses.
As a result of the Obama administration’s business grant initiatives, there is likely to be an increase in entrepreneurial activity. This is likely to drive up small business start-ups because entrepreneurs are often the most financially motivated. As a result, they tend to act with greater gusto and are willing to take risks that most other business owners would shy away from. The entrepreneurial spirit is good for the economy because it encourages new and innovative ideas. This means that there will be more products and services that are able to compete on price.
Overall, the number of business startups has been rising; however, job creation is lagging behind the rate of entrepreneurial activity. In the past few years, there have been record highs for job creation, but this has been offset by a low number of business start-ups. If these trends continue, the economic recovery will only benefit those firms that create jobs.