I
recently wrote about the problems of operating a small business when
politicians use business folks as targets for class warfare.
To repeat the facts of life:
1) Many small businesses are constantly on the edge of going broke; a large percentage does go under each year.
2) Most small businesses, by far, do not provide sufficient return on the capital invested. For every $100,000 of capital placed at business risk, the owner ought to get at least $10,000 a year for the risk involved. This is hardly ever the case in small business.
3) Above the return on risk capital, the business man should get paid for time on the job, often ten or more hours a day. This translates into very little, well below the minimum wage for most entrepreneur's.
4) Those who buy a small business by borrowing have to repay the loans with after-tax dollars. I find that in most instances this is done only by taking away from honest returns on personal investment in the business and sweat running it.
A finger-pointing politician at any level, or a unionized government bureaucrat who finds faults, nitpicking small business operations, is in an extraordinarily better financial position. They’re covered by minimum wage laws. The boss is not. The latter often earns less than the minimum wage.(See the Earl J. Weinreb NewsHole® comments.)
To repeat the facts of life:
1) Many small businesses are constantly on the edge of going broke; a large percentage does go under each year.
2) Most small businesses, by far, do not provide sufficient return on the capital invested. For every $100,000 of capital placed at business risk, the owner ought to get at least $10,000 a year for the risk involved. This is hardly ever the case in small business.
3) Above the return on risk capital, the business man should get paid for time on the job, often ten or more hours a day. This translates into very little, well below the minimum wage for most entrepreneur's.
4) Those who buy a small business by borrowing have to repay the loans with after-tax dollars. I find that in most instances this is done only by taking away from honest returns on personal investment in the business and sweat running it.
A finger-pointing politician at any level, or a unionized government bureaucrat who finds faults, nitpicking small business operations, is in an extraordinarily better financial position. They’re covered by minimum wage laws. The boss is not. The latter often earns less than the minimum wage.(See the Earl J. Weinreb NewsHole® comments.)
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