Small businesses are an integral part of the U.S. economic and political landscape. Many small businesses have fewer than 500 employees make up more than half of U.S. total private-sector workforce and contribute to more than 80 percent of overall new employment. As these statistics suggest, the small business boom is on the rise. But as laws governing entrepreneurship change the future for small business in the U.S. looks a little dark.
Technological advances are playing a key role in many small businesses’ success or failure. In addition to the Internet, many entrepreneurs are turning to social media to promote their products and services. However, many laws regulating this kind of internet activity are still vague and untested. Facebook and other social networks may face regulation from the Federal Trade Commission, which could limit how these companies communicate with their customers. It’s unclear what impact, if any, this law will have on small firms that rely solely on email for communications.
Another area that is ripe for government intervention is intellectual property law. This area encompasses many different types of intellectual property, such as patents, copyrights, trademarks, and trade secrets. The Agricultural and State Affairs committee recently reintroduced legislation that would require pharmaceutical manufacturers to disclose the way they develop drugs. Many small businesses would benefit from this regulation, but drug manufacturers might put off investing the time necessary for such legislation, which could dampen innovation. Some of the sponsors of the legislation have strong ties to industry groups that support medical disclosure.
Entrepreneurship and small business economics suggest that there are a few other areas that should be examined by policymakers. One possible area of concern is online scams, which can lead to financial harm to consumers and investors. Online scams are difficult to track because users anonymously surf the Web, and it can take a long time before the perpetrator is discovered. However, online scams can hurt small firms by stealing business away from parent firms.
Another potential problem for many small businesses is staff turnover. Staff members are less likely to quit if the firm has interesting workable ideas. This means that the small business owner must devote adequate time to finding qualified and attractive employees. Additionally, a good recruiting process can significantly boost employee productivity. Recruitment does not always bring new employees, however. A recruitment service can help solve this problem by providing a pool of qualified applicants to small business owners who need to hire.
As mentioned earlier, one of the concerns that many small business owners have relates to their personal credit scores. Because many small businesses are start-ups, it can be difficult for owners to obtain traditional credit cards, especially if they have bad credit scores. For this reason, many small business owners turn to a cash advance credit card. Cash advances are designed specifically for small business owners who do not have traditional credit scores. This type of credit card can significantly increase your business’ cash flow, as well as improve your personal credit scores.
One of the biggest challenges that many small businesses face relates to payroll. Payroll can be a very time-consuming process for a small business owner. Small business payroll typically consists of between twenty and thirty employees. Payroll must be calculated each week, and this can prove extremely difficult for small business owners with limited staff. Furthermore, many small businesses experience payroll delays each Friday because employees are not able to pay their taxes or adjust their hours until their paycheck arrives. A payroll company can alleviate these problems by having a line of credit that automatically clears your employees’ paychecks on Friday.
Protecting your small business against cyber crime can be tricky, but there are several steps you can take to protect your company from cyber criminals and hackers. Many small businesses rely solely on e-commerce to expand their customer base. However, cyber criminals have learned how to hack into and damage e-commerce websites. It is imperative for small businesses to have a system in place for detecting and blocking cyber threats. Mandiant offers one of the most comprehensive anti-cyber security systems available.