Small Business: It Ain’t Easy Being the Little Guy or Gal

Small business is essential to the economy (I realize that many reading this will think I’m preaching to the choir, but bear with me) but it certainly isn’t for the faint of heart. A report published last year by the Small Business Association (SBA) shows that 1/3 of new small businesses don’t survive more than two years (and this data is before our latest economic woes). And, small businesses are expensive to maintain (kind of like Paris Hilton).

A more recent SBA report shows that employer-sponsored health insurance has increased 119% since 1999. Yikes. Check out the SBA info and pat yourself on the back if you’ve toughed it out as a small business.

We here at Panda understand these increases. I, the lady in the blue cape, turn into one of those crazed rabies-ridden bears every October during insurance review time. I like to remind our Insurance Agent that Panda received a 24% increase in rates this year, while just a couple of years ago United Health Group CEO William McGuire was raking in $128.4 million. McGuire held a fortune in shady backdated stock options that didn’t exactly please the SEC.

Check out this archived story from 2006 about CEO salaries. In hindsight it's even more fascinating. Presidents of small businesses don’t get $100 million bonuses. No, the big stat about small business is that it employs roughly half of all private sector workers and is responsible for between 40% and 60% of new hires. Here's to small business! It can manage without ridiculous compensation and too much dinero.

Did I say dinero? How appropriate.

This just in... more jobs go to Mexico. Yep, Whirlpool of Evansville, Indiana is calling it quits. Mexico seems to be able to do the job better and cheaper, probably because they offer universal health care. Check out this story about the loss of 1,100 jobs.

This is after they have had three layoffs prior, they now will shutter an American plant. Yep, and the reasons? Lower wages and government paid healthcare. Whirlpool can deliver higher profits to their shareholders.

I encourage you to get involved and learn about how to strengthen manufacturing here in the US. Visit the Alliance for American Manufacturing website to learn about how a strategy is required to save jobs, build incentives to keep jobs at home and build a strong working middle class.

http://www.americanmanufacturing.org/newscenter/news/

If our industry is to survive we all need to get involved to help change policy to keep workers working and to keep jobs in the United States. If not, soon there may be no one able to afford those Whirlpool dishwashers, and refrigerators and ice machines being made south of the border.