Why Small Business Isn't Hiring And Won't Be Hiring.(Harsh Reality Ahead)

Pundits and politicos promote a magical myth: a coming small business hiring boom. That fantasy is completely disconnected from the harsh realities of private enterprise.

www.infowars.com...

Everyone tends to agree that small business is the key to innovation and real job creation in America. The Talking Heads on every front have been yapping about how small business is set up to make a comeback in the 'new economy',if only people would start investing in new ideas and taking risks again. What? Did we all just take a 'stupid pill' or something?

According to the article,small business income is down 5%. How many times have you a seen a new store or restaurant open over the last fews only to see others turn right around and close? This appears to happen more frequently that it did when things were good.

Here's something else that's quite scary from the article:

Small business understands uncertainty is now permanent. That’s why 26% of all new private-sector hires are temporary–and if we subtract the bogus phantom jobs created by the BLS “birth-death model,” then the number is probably more like a third or even half.

Read the rest of the article for more details on this terrible situation that's not likely to get any better. I would like to point out also that even small to medium-sized businesses aren't immune to the temptations of simply moving their operations overseas. Take a look at yet another grim article below about how some businesses are dealing with the economy:

Solar Company That Received State Aid Moving To China.

Source: ://boston.cbslocal.com

So,there you have it. Any fledgling company that wants to hold onto it's investment and grow in the long-term is probably going to look outside of the U.S. or take a buyout from a larger company. Small to medium-sized businesses simply cannot compete on their own in the 'new economy' anymore without taking significant and unnecessary risk.

It's not looking good all the way around,folks. I don't see this trend reversing anytime soon.

Maybe the only hope for the poor old USA on the job front really is a significant collapse of the dollar. This would make labor abroad less attractive costwise and also impede the US's ability to import stuff. A fallen dollar could potentially lead to a US manufacturing renaissance, which in turn could lead to tertiary-sector growth. The chaos from a dollar crash has the potential to really louse things up before that happy outcome is reached, however, and there is also the whole issue of energy and oil.

I'm a business owner in the real estate industry and believe things will get better. I don't see it happening overnight but within 18-24 months hopefully it will turn around. The key is adding jobs every month.

Originally posted by silent thunder
Maybe the only hope for the poor old USA on the job front really is a significant collapse of the dollar. This would make labor abroad less attractive costwise and also impede the US's ability to import stuff. A fallen dollar could potentially lead to a US manufacturing renaissance, which in turn could lead to tertiary-sector growth. The chaos from a dollar crash has the potential to really louse things up before that happy outcome is reached, however, and there is also the whole issue of energy and oil.

Right. You hit the nail on the head. Oil and energy are two big flies in the ointment. Any significant increase and you can expect to see a major shock to the small to medium-sized business world. From what I've been reading,it appears many people,most somewhere above middle-class,are starting to flee the U.S. for places like New Zealand,Australia,Central America and Asia.

They are taking the money they might have otherwise invested in America and simply doing business elsewhere. Once a business gets itself settled in a particular country,it's difficult or impossible to move it to another country which why once a company leaves the U.S.,you can be pretty sure it's gone for good.

You don't need small business in a state run system. soon you won't even care!

Originally posted by mr20121221
You don't need small business in a state run system. soon you won't even care!

Unfortunately,you may be right on that one. There may come a time where everything is simply ran and dominated by government-backed mega-corporations. That may be the only way the system will be able to survive in some fashion or another.