Stimulus made no difference, small-biz owners say
A new survey from Suffolk University finds deep economic pessimism among small-business owners, who say the government has done little to help. What do you think?
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DiggI am in the beauty industry & own my own business & single mom of 3. In the last month business has declined 35-40%. I would like to know why the government bails out big businesses, but has no plans to offer something to the small business to help get us thru these bad times so that we dont go under. If you live in a small town as I do and business is declining & trying to keep afloat good luck on any bank wanting to help out. Even they dont want to take a chance. Why? because they will probably be next on the list to have the government bail them out. It is unbelievable that the government will give money to help other countries and now the only people they are willing to help in our own country are those Big businesses that now they can have a controlling interest in and forget the underdogs that put those companies where they are today!Makes you wonder, did they only come up with helping the homeowners that were in trouble first, because they intended on bailing out these companies already, therefore we wouldnt be upset when they gave out billions to these companies?Is it November yet!!!By the way I didnt get a stimulus check because a well known tax service did my last 2yrs taxes wrong & the IRS only goes by your original return. Oh, but I can claim it next year. If there is one. Good luck to everyone going thru these hard times & pray it is over soon!
This economy, state gov., fed. gov., excesses of the 90s, fuel prices, and housing decline have created the perfect storm for being in business. It is brutal being a small business owner.
The higher gas prices and stimulus checks have helped my business this year. My sales are currently up 40% over last year at this time. I’m and internet based company for natural products. People are turning to these products more and more. Higher gas prices have turned people to the internet to make their purchases. I have also had customers tell me they are spending their stimulus check with me. So it’s been great.
Small business owners are taking it on the chin with this economy. Saving money through tightening of expenditures such as advertising is expanding rapidly. Purchasing of products is slipping due to increased costs of shipping and warehousing. Owners need to streamline operations every way possible to outlast this downturn.
Many business owners are re-evaluating inventory and selling off slow moving merchandise to other business owners who have a market for these items by advertising it nationwide.
http://www.sellmyinventory.com
Amen again…..the Walmarting of America has totally ruined our culture and economy in many ways…i won a retail; florist in a town of 6000 people and
shops around me are closing like dominos-only a matter of time forme
Amen to that-the credit card were the first and and still the worst for
predatory lending-especially for small business owners like myself-with large flucuations in cash flow and very small buying power…it is going to get A LOT worse
SMALL BUSINESS ARE THE PEOPLE SUFFERING A LOT.YOU WILL SEE ABOUT 50% OF ALL TYPE OF SMALL BUSINESS WILL CLOSE DOWN BY EARLY 2009.
BUSINESS ARE SO BAD THAN YOUR SURVEY.THIS IS TRUE FACT WHICH YOU WILL SEE VERY SOON.
SMALL BUSINESS NEDD HELP FROM EVERY GOVERMENT DEPT.WE NEDD HELP FROM LANLORD TO REDUCE OUR RENT.MANY BUSINESS CAN’T AFFORD TO PAY RENT.
THERE IS JUST NO SPARE MONEY FOR ANY FAMILY TO SPEND.
TRUST ME AND BE READY FOR THE WORST TIME IS YET TO COME.
BE SAFE.
Business is still very good. We planned ahead, it’s called management. Pay taxes and keep expenses down in good times and bad times. Avoid debt and loans and keep a reserve. Don’t be greedy or look for big hits. Provide the best you are capable of always. My business is Architcture.
I have a small BBQ buisness, with ony 2 part time helpers. Being in a rural area, the higher fuel prices have virtually wiped me out. I have gone from being open 5 days a week, and busy all five, to being only open Thurs. – Sat., with several dead times. I am thinking about closing shop.
THE STIMULUS CHECK IS SUPPOSED TO HELP US ALL IN THIS ECONOMY. BUT WHAT ABOUT WHAT IT WILL COST US DOWN THE ROAD BECAUSE IT WASN’T OUR MONEY TO START WITH. OH AND THOSE WHO BLEW THE MONEY ON MATERIAL THINGS MAY HAVE HELPED THE ECONOMY, BUT IN THE LONG RUN WE ALL ARE STILL IN THE SAME PLACE WITH OR WITHOUT THIS LITTLE MONEY. LIKE HANGING A STEAK OUT OF THE REACH OF A DOG.
I HAVE BEEN IN BUSINESS FOR 17 YEARS AND IT TOOK ALMOST 10 FOR THESE BIG BANKS TO START GIVING ME CREDIT. NOW WITH MY INVESTMENTS IN FLORIDA WORTH NOTHING AND MY RETIREMENT NOW GONE. I SEE THE GOV. HELPING THE PEOPLE WHO HAVE ALWAYS HAD THE MONEY. NOW US SMALL BUSINESS OWNERS RECEIVE NO HELP AND HAVE TO PULL OURSELVES OUT ON OUR OWN. WE NEED TO THINK ABOUT THE SMALL BUSINESS OWNERS WHO ARE GOING OUT OF BUSINESS WITH NO HELP FROM THE GOV.
I think that this economic downturn has been in the making for several years and is only going to get worse. The value of the US Dollar has eroded the purchasing power of all Americans. The unemployment rate is still good at slightly over 5%, but it takes a large salary to live comfortably, and the average American does not make a large salary. Our goods, food items included bring more money in foreign currencies overseas.
How about the fact that minimum wage increases have forced some “small buisnesses” to curtail growth and even cut back. Thus leaving the owners of the business taking on more of the work and putting in more hours. But we will not factor in that minimum wages go against market forces… What a lame story.
Small business owners: Wrong Place, Wrong Time
The gov’t is focused on large banks and institutions. If these all fall, there will be no economy left for your small business to even exist. You need to understand this. Running your own business carries much risk. If you don’t like it, retire!
It is possible that the 5 million unclaimed stimulus checks that are still sitting in the treasury just might have shown a positive result.
Why are they sitting there unclaimed?
Must submit to IRS’s wallet examination first.
5 million just like me said “NO”….
Case closed.
Bob
The economy is working the way a free market economy should. People complain about the money going to the Chinese, Saudis whoever, but they don’t complain about the UTILITY that money provides. When people exchanged their stimulus for gas or durable goods/non durable goods; whatever, they got something in return. Maybe the Chinese or Saudis should complain that they aren’t charging MORE.
Bob Graham is correct: We are a nation of whinners. The “slowdown” is largely mental. People who complain about the money going to other countries really want to STEAL. Because after all, they got something in return for the exchange of the stimulus check, right?
Sure the stimulus checks helped…the saudis. Mine went in my gas tank.
I used my stimulus check to pay my quarterly estimated taxes. And, no the stimulus checks did not help my small, retail business at all. Regards, Gladys
I feel Mr. Engberg is probably right about the stimulus money ending up in China. A great many young people bought consumer electronics with the stimulus money.
Why has no one ever addressed the preditory lending done by the credit card companies?
It takes a lot for people in this country to connect the dots….in my town, all the small businesses, especially the unique retailers and restaurants, are all going under…leading to homogenization…walmart, HD, lowes, and now all fast food has invaded this former touristy town….it is absolutely horrible, your community loses jobs, dollars, identity, by going to big boxes…they have no vested interest in your community, they are a giant vacuum cleaner…..sucking up the town’s resources…and worst of all, cities still subsidized these monstrosities, they are leading us to third world status and the reason most are getting poorer and wages are stagnant, and yes, the small business owner is getting screwed big time….
Cash is King..Maybe people are starting to realize that they have been living beyond their means for too long. We all will suffer because this correction is long over due. It is just bad that it took these kind of ecnomic conditions to wake up the overspent American consumer.
I also wanted to say that in case anyone hasn’t realized, real wages have not kept up with inflation for years thus removing cash and spending power from the consumers. It’s great we have a global market but American busineses better get used to selling less or finding customers overseas. The big money of old days in Americans pockets has been religated to the select few who own large corporations. There is no sharing the wealth anymore and unions are dead, no way for negotiations to increase wages.
I Work for a small business owner and the business we are in is tough. I know from experence that this gov does not care if american operated business owners crash and become something you read about in history books.we get no help on tax breaks as the indian owned business get the local chamber set up with welcome join us in the past 10 years has never visted us to say thanks invited us to a meeting to lunch or said can we help with a promotion to help you grow your business so more jobs can be created.i been around the block a few times in this life span if somebody does not soon address the plight we are facing the only photos left will be those seen in a norman rockwell picture
umm…Mike from Palmdale….isn’t that what got us into this mess? Lenders making mortgage loans easier to qualify? Get a grip on reality!
Dear Editor;
Anyone following the machinations of the Small Business Administration
(SBA website to see who is on the board) knows that it has no interest in
small business and Free enterprize whatsoever. It is run of, by and for
monopolistic corporatist interests. The UPS guy is now running SBA, hardly a
small businessman or businesswoman. Hundreds of billions are siphoned off
from SBA directly into the trouser pockets of monopolists. Like almost
everything moving inside the beltway, it is another sham. Thanx and keep up
the good work. Financial Times ftalphaville blog is the blog you should have
your readers link to. Thunar
I think the Bush tax rebate stimulus effect went largely to the Chinese.
I’ve been a small business owner (Videography) for over 22 years and have noticed only increased business in the past several months. Roosevelt said “The only thing we have to fear, is fear itself.” All this expressed fear and anxiety is not good for business, but only stimulates more and more consumer anxiety. Shut up and work harder is my advice.
Our problems are nothing compared to past times. Even the ’80s and ’70s were much worse. Let’s not scare ourselves, and our consumers into really hard times.
As a mortgage broker I see the horror daily. As lenders continue make it harder and harder for buyers to qualify for mortgage loans the home prices continue to fall. This cycle will not end until lenders begin making mortgage loans easier to qualify. Until that happens our house centered economy is going down.
I ran a small business in Denver for 5 years and gave up on it last October. I’m glad I did. Between the gas and increased food cost, I’d have had to raise my prices nearly 50% to survive.
And in this economy, most of my customers would have discontinued using my company.
I don’t see things changing any time soon. $5 gas is on its way within 12 months and food prices aren’t going down either. My advice: Go find a job working for corporate America knowing that they sold you and your small business out!
As a small business owner, I have little optimism about the outlook for small business. My trust and confidence in the government and the financial services sector has been eroded by their endless self-serving actions. They both pay nothing but lip service to aiding the small business community and their actions are seemingly counter to the rhetoric. With any economic recovery likely to be prolonged and anemic, the risks are simply without incentive, other than the prospect of bankruptcy. By the end of 2008, I expect to either sell or liquidate, thereby relegating my staff into the ranks of the unemployed.
Hyperinflation has destroyed the business model for most of the businessesin our economy. The wealthy now have only predatory lending as a last resort to make money, and because people are struggling so much, the wealthy continue to squeeze every penny out of the dying middle class. The robber barrons have won!
Unfortunately, we are a very stupid society. The stimulus checks made no positive impact on American small business due to the fact that they were all spent at big box stores purchasing the latest in Chinese imported junk. And then we wonder and whine about being unemployed and wring our hands over the loss of the American manufacturing base when it is our own fault for not purchasing American made products from those American small businesses. We really are a stupid society that just doesn’t get it.
I finished filing my sales tax and checked the little block saying I was giving up my Tax ID number. I can no longer call on customers and most customers arn’t spending as they are in the same position as I am in.
I think I might have an answer to where most of the economic stimulus money went. The IRS. While I do owe some back taxes(less than 10,000),and do make monthly payments, I was under the impression that these checks were to be used to buy material goods. To stimulate the economy. I distinctly remeber Pres. Bush telling the American people NOT TO PAY BILLS with this money. So instead of my $1200 going into the economy, it went back where it came from… The government. How did that help the economy? How many other people’s check went back to the government coffers? Why hasn’t the economy been stimulated? Hmmm…
(Please keep this anonymous as I don’t need the IRS coming for me.)
Small business owners are the MOST optimistic people in the country. When that group starts to loose their optimism, then you can bet it has hit the fan.
As a small business owner I can honestly say that goverment in all forms is biteing the hands that feed them. Our goverment has exploded with spending while slowly taxing small business to death. Add the additional inflationary pressures, tight credit, and a fuel situation that is nothing less than criminal and small business is dying a slow death. My question is: Where are all of the goverment employees going to collect thier checks when there is no one left to support them?
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With no other options, I will be closing my business shortly, increasing the unemployement rate in Illinois. It is frustrating that their is no help for the small business owner.