Too Many Small Business Owners Earn Less Than Minimum Wage

I recently wrote about the problems of operating a small business while politicians use businessmen as targets for class warfare.

                       

To repeat the facts:

                       

1) Many small businesses are constantly on the edge of going broke; a large percentage does go under each year.

                       

2) Most small businesses do not provide sufficient return on the capital invested. For every $100,000 they ought to get a $10,000 return for capital risk.

                                           

3) The business man should also get paid for time on the job, often ten or more hours a day. This translates into very little, well below the minimum wage.

                       

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 and time spent.

                       

However, the boss/entrepreneur often actually earns less than the minimum wage. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)