Saturday, August 21, 2010

Why Entrepreneurs Are Not Starting New Business

In past recessionary cycles, many new businesses were started; usually those without jobs had added incentives and opportunity. More than half of the Fortune 2009's 500 list of companies were begun during recessions or bear stock markets. Times may have been bad, but hope was abundant.

I started an employee contracting business during such a recession in the economy and stock market. With a single office, I soon had ten offices, with 74 around the country and in Canada, after 17 years. when I sold my company interest.

I eventually employed well over 10,000 permanent employees, and a large multiple of that number on a part-time basis.

All this without government stimulus or hand-out funds. The company had started from scratch with private capital and then sold stock to the public for additional financing. It made operating profits all the years I was part of ownership and top management.

What we need today are more entrepreneurs starting up new business that creates real jobs, and less high-tax government standing in the way. We are not getting jobs, because of fear and a lack of hope.

That can be attributed to a dread of much higher taxes on business with no expectation that anti-business rhetoric from Washington will subside.

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