The State of Small Business Borrowing

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A loan pre-approval offer for your business to expand, invest, or cover payroll may not be on the table any longer. Small businesses are dealing with a lot of rejection this time around when looking for a small business loan, and banks seem unwilling to go forth with loans that were pre approved only a few month ago. “The loan is no longer available to us because that was a special offer a few months back, and the bank is not offering it now.” A small business owner claimed. The companies that are struggling to pay past loans are high, and that can be an indication why banks are unwilling to acquire more debt int he form of loans made to small businesses.

For more about this and other topics, follow the links below.


U.S. small business borrowing falls, delinquencies rise

Borrowing by small U.S. firms slipped in September, and the percentage of firms late on repaying existing loans rose to its highest in nearly four years, data released on Tuesday showed.

The Thomson Reuters/PayNet Small Business Lending Index fell to 128.9 from a downwardly revised 132.8 in August. Measured from a year earlier, it was the fourth straight monthly decline, with the index at its lowest point since January.

Companies also struggled to pay back existing debts, PayNet data showed. Loans more than 30 days past due rose in September to 1.64 percent, the sixth straight monthly increase and the highest delinquency rate since December 2012.


Bank turned down your small business loan? Now it must offer an alternative

From today, the UK’s nine largest banks will be legally required to help entrepreneurs find funding elsewhere, thanks to the bank referral scheme

Katrin Herrling felt she had nowhere to go when, in the midst of the financial crisis, her bank suddenly changed its lending terms. She had inherited a dairy farm and needed support with her cash flow during the four months of the year the cows weren’t producing milk. “Nothing in our position had changed but the banks felt they had to rebuild their balance sheet,” she says. “I didn’t know where to turn … I [knew] that just going to another bank where I didn’t have an established relationship wasn’t going to solve the issue. Outside of banks, I had no idea.”

From today, entrepreneurs should not find themselves in Herrling’s position. As part of the Small Business Enterprise and Employment Act 2015, the UK’s nine major banks will be legally required to refer those SMEs they refuse to finance to an alternative provider, under the bank referral scheme.


Study: Women Small Business Owners Being Shut Out of Major Government Contracts

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Jane Campbell is the director of the National Development Council’s Washington office and president of WIPP.

When Komal Goyal started her IT company, 6e Technologies, in 2003, she knew she had what it takes to run a successful business. She’d made a name for herself in the IT services space and had a robust list of contacts in the commercial arena. What she didn’t have was a hefty government contract—something that could propel her business to new heights—so she set her sights on locking one down. Thirteen years later, she’s still trying to nab one of the large umbrella contracts with the federal government that could double the size of her business in just a few years.

The problem is that most of these super contracts—the kind many federal agencies favor because they create a pre-approved list of businesses that can supply unlimited goods or services during a specified period, of up to 10 years—have requirements to allow various socio-economic groups to compete, but not for women.“The contracting officers putting together a list of possible vendors must ensure certain groups have access to these contracts,” Goyal said. “If women-owned businesses aren’t one of those boxes to check off, we don’t even get the chance to compete.”


 

Competition, Profitability and Retirement; Are You Ready?

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“I find that the harder I work, the more luck I seem to have.”

— Thomas Jefferson

As a business owner, there are many that believe the above mention phrase and relish the opportunity to be their own boss, and profit from the hard work they do.

Online marketing has given many small businesses the opportunity to compete with bigger companies, and be successful with it.  Marketing a business is no longer for the big guys. Small businesses can have successful online marketing campaigns to attract customers, and to market their business and benefit from the results.  Now, the attraction and the challenge for every small and big business is the ability to compete in a  global market and come up on top.

For more about this and other topics concerning the small business owner, follow the links below.


How to Deal With Competition in Business

The way I see it, competitors are everywhere. Whether you’re a startup owner or veteran, you need to know how to deal with competitors in business.

After being a business owner for over 30 years, I’ve learned how to handle the competition. I know first hand how important it is to pay attention to businesses in your industry but also to not make them your priority.

You don’t want to be completely oblivious to your competition. You should put your energy into your own entrepreneurial tasks above all else.

Why you shouldn’t ignore the competition

Ever hear the saying, Never underestimate your opponent? The same holds true for business.

I have a general idea of where my competitors are, where they’re going, and how fast they’re going to get there. Other than that, I don’t lose sleep over them.


5 facts you didn’t know about retirement

Here are some important retirement-related facts about Social Security, long-term care, retirement savings balances, homeownership, and taxes.

If you want to have the best retirement possible, it’s important to take steps to prepare for the things that could affect you the most. Here’s a closer look at five retirement facts that could have a huge impact on your retirement plans, and there’s a good chance you may not even know about them.

Whether you’re a few years or still a few decades from retirement, these five facts are important. Let’s take a closer look at how they could affect you.

1. You’ll probably need long-term care (and have to pay for it)

According to the U.S. Department of Health and Human Services, 70% of people who live past 65 will need long-term care. If you’re married, there’s a 90% likelihood either you or your spouse will need long-term care. In other words, if you live to retirement age, the odds are good that you’ll end up needing some sort of long-term care.


How to Manage Your Profitability in Your Small Business

A profitable small business is rarely an accident; you have to constantly work for new revenue.

Projecting profits on a financial statement in a business plan can make you feel hopeful as an entrepreneur. But your business plan is simply your hypothesis of what you thing will happen in the marketplace of your business. However, the only way to ever realize the profits you want is to mentally, and physically, exert your leadership while executing your sales plan. The following are several important factors I would encourage you to consider as you work to focus on the profitability of your business.

Invest Wisely

You have a very narrow margin of error in a small business. Therefore, making wise investment decisions is critical to your profitability. Whether hiring a new employee or acquiring equipment or assets for your company, always assess the potential return on investment. Before buying a building, furniture, resale products or supplies, consider the direct or indirect impact the investment has on your bottom-line.


 

Branding Your BusinessThe Right Way

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As a small business owner, the branding of your business may not seem important enough for you to worry about it just yet.  Getting the business off  the ground seems to take all the time you have to worry about branding your business, or the social media aspect of it.  But, remember that having a brand that customers identify quickly, can be a great boost to your business.  Having your business logo, colors and fonts form a cohesive image that translates to social media can help customers identify your business online, and perhaps begin a relationship that can last for many years.

For more about branding, follow the links below.


Despite being a branding company, how we failed and sailed with our internal branding

We all know that a brand is an intangible asset. It’s a heavy word though. Branding is what makes or breaks a brand, isn’t it? Well, it’s certainly an exercise that can help you differentiate yourself from your competitors. For instance, with consistent advertising, and a decent product, you can create a brand image that is way above your competitors. It can help you make your brand aspirational. What’s more? It can influence people to associate with your brand. Even if that means they have to pay a premium to associate with your brand. So, the power of branding cannot be ignored.

Unfortunately, more often than not, we think that branding is all about external communication only. But to cut a good picture externally, companies tend to forget that branding is a lot about what’s done internally too. It’s only after burning our hands that we tend to really understand the power of internal branding.


Branding feelings: Why marketing leaders do it

A name. So you think that a brand is about remembering a name. A company, product, or service. True, but there is more. When you hear a name, how do you feel? Strong brands evoke strong feelings. Including the “I gotta have it” urge that propels buyers to the checkout counter. What about other feelings?

Trust. Trust is the foundation feeling. We bond with businesses, products, people, and places we trust.

“Great companies that build an enduring brand have an emotional relationship with customers that has no barrier. And that emotional relationship is the most important characteristic, which is trust.” – Howard Schultz, Starbucks CEO

Feeling dominoes

One good feeling leads to another. When we trust a brand, other feelings are added. Positive feelings about quality, special features, usability, service, and overall value.

Loyalty. That is the sticky feeling that keeps us coming back for more. The stronger our composite feelings about a brand, the more we are inclined to continue buying from that company and their products. Even when a competitor has strong offerings.


6 Ways Personal Branding Is Your SEO Secret Weapon

Search engine optimization (SEO) has a lot of potential angles and strategies associated with it. Though there are some universal best practices you’ll need if you want to rank higher (such as cleaning up your technical on-site SEO and building natural inbound links), there are variable approaches you can take to find success in your own niche.

For example, you may adopt a local SEO strategy to gain more traction against your larger competitors, or you could opt for niche, long-tail keyword targeting to get a faster rise for lower-volume queries.

But there’s one angle—my personal favorite—that can propel almost any SEO strategy forward, and I don’t see nearly enough companies and organizations using it to fuel their ongoing efforts. Personal branding is your secret weapon, and it’s time you integrated it into your campaign.


 

Small Business Challenges Facing the Small Business Owner

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Data security for the small business owner that deals with merchant accounts or other type of high sensitive information, is a very serious business.  Keeping the information secure is for many small and big businesses nothing short of miraculous.  Target, a big retail store had a security breach not long ago, and following that, had to settle a law suit because  of it.  For many small business owners, the idea of being in charge of their own data security is daunting.  The need to have a data security expert in your payroll may not be possible, but the need is real and many small business owners need to address the issue right away.

For more news about this, follow the links below.


5 Data Management Challenges Facing Small Business Owners

Small business owners must now where an additional hat – the data scientist hat.

As small business owners, we generally wear all the hats. And if we’ve grown to where we aren’t wearing all the hats at the same time, we at least rotate through them a few times a month.

One hat that is becoming increasingly important – and scary — to wear is the data scientist hat.

Although data scientists come in many forms, with varied skills, a small business data scientist is mostly responsible for parsing through and analyzing data to present key findings about a business. The goal is to use data and the findings to address challenges, find opportunities, and ultimately, help a business save time and money.

While most of us don’t have the luxury of hiring a bona fide data scientist to handle these figures, there are a few things you should know and consider as you run your business and aim to become as efficient as possible in your business functions.


7 ways to make your small business attractive to venture capital funding

In 2015, venture capitalists invested over $58.8 billion in businesses, yet African-Americans only received one percent of venture capital funding. While opportunities to grow small businesses have been scarce in the past, large investors are beginning to dedicate more attention and inclusion to minority commerce that fosters growth and success. This leaves new opportunities for African-Americans to obtain the money they need to reach more customers.

Before jumping into the big leagues of expanding your business and making a global impact, here are seven ways to attract the right venture capital players and stand out from the competition.

  1. Know Your Business

Investors are looking for companies who have studied their market, discovered loopholes and are creating a valuable solution to a problem. When presenting your plans,you must be very knowledgeable of your project and of the venture capitalist industry. Useful websites like A VCand Both Sides of the Table offer practical advice through the lense of very successful startup founders and investors. From the materials used to where investors distribute their money, build your confidence so that no investor will doubt the future of your company.


The SurePayroll Small Business Scorecard®: Most Still Struggle to Offer, See Value in 401(k)s

Less than a third of small business owners offer the retirement saving vehicle.

GLENVIEW, Ill.Sept. 7, 2016 /PRNewswire/ — The majority of small business owners (66%) do not offer a 401(k) plan and 42% of those not offering it don’t see the value in it, according to the August 2016 SurePayroll Small Business Scorecard®.

Thirty-five percent of those not offering a plan said the fees are too expensive, and 23% said they don’t know how to manage a 401(k).

The small business owners that do offer a 401(k) said they do so to build retirement savings for themselves and their employees, with just 5% saying they offer it to attract new employees and 6% saying they offer it for tax breaks.

In total, 28% are offering a plan and another 6% plan to add one soon, the Scorecard survey found.


 

Small Business Hiring And News

64002400Small business owners across the United States are being careful after the dismal reports of hiring across the country.  They are holding off any hiring they may do, and are still reticent to make any moves that will put their financials in jeopardy.  Economic growth seems to be inching forward a bit slowly, and some small business owners are still holding off till elections are over.

To read more about this and other stories follow the links below.


Dear Donald Trump: I’m a Small Business Owner, and I Want More Regulation

We love the election-year attention but the presidential candidates are focusing on the wrong things

In election years, I love calling myself a “small business owner.” It’s the one time when the act of selling falafel, building a website or otherwise trying to make a buck comes off as heroic. We’re the “backbone” of the economy, you know, and the “heart and soul of equal opportunity,” as Fran Tarkenton told the Republican convention.

It’s the season when politicians shower us with love and policy papers. Both Donald Trump and Hillary Clinton have put forward proposals to make our businesses great again, together. I prefer Clinton’s, but mostly I think the election-year pandering to small businesses misses what really matters.

 Trump, like most Republicans, focuses on tax relief. He proposes lowering the top rate for pass-through business income to 15%. This doesn’t move me. Why? My company doesn’t earn enough for the proposal to make much of a difference, as is true for most small business owners. The lion’s share of pass-through income is earned by a small percentage of businesses, which means wealthy individuals would catch a giant tax break while the majority of small business owners are unaffected.

Columbus, Ohio: A growing mecca for small business

In a prior life, Joe DeLoss worked as a banking analyst, but today, his day job couldn’t be more different. DeLoss owns the wildly popular Hot Chicken Takeover in Columbus, Ohio, serving up Nashville Hot Chicken, a spicy style of fried chicken.

 But it’s not the leap from banking to fast food that makes his story so interesting. It’s the fact that his two-year-old restaurant is staffed by a nearly 50-person workforce that has largely experienced incarceration. Some employees have criminal arrest records, while others have served time for everything from misdemeanors to felonies. DeLoss admits they might be overlooked by other employers, but he’s a firm believer in second chances. Make no mistake, though; it’s no charity.

“We created Hot Chicken Takeover to be a fair chance employer. A large part of our workforce has been affected by incarceration in the past, but it’s not what defines our future. We have a team that works harder, is more productive and more motivated than most people in our industry,” DeLoss said.


 State lawmakers OK parental leave for small-business workers

SACRAMENTO — California parents who work for small businesses would be eligible for six weeks of job-protected leave under a bill heading to Gov.Jerry Brown.

The bill was among the myriad of proposed laws sent Wednesday to Brown on the final day of the two-year legislative session. Brown has until Sept. 30 to act on the hundreds of bills on his desk.

With Wednesday’s adjournment, lawmakers concluded a year in which they raised the minimum wage, extended greenhouse gas reduction targets to 2030, added gun control measures and approved $2 billion in bond money for housing and treating mentally ill Californians who are homeless.

On a lighter note, lawmakers approved a bill Wednesday declaring denim as the state’s official fabric under AB501 by Assemblyman Marc Levine, D-San Rafael.

 


Business News For The Small Business Owner

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It is perhaps the ability of a small business owner to keep optimism at high levels to be able to do what they do every single day.  There is no other people telling you what to do, or what jobs require top priority.    As a small business owner, the credit and blame stop with them.  There is no employee that works in a small business, that is not the responsibility of the owner.  The successes and the failures mean something else for them as well.  To be a small business owner is to be different.  To have the courage to do what many others wish to do, but are afraid to take the first step.  Read more about business news by following the links below.


Abrams: Small businesses have already won the gold

Small-business owners: If you’ve been watching the Olympics, you may be getting the wrong message. I’m here to tell you that you’re winners, even if you never get the business equivalent of an Olympic gold medal.

For the past week, I’ve been mesmerized watching swimmer Katie Ledecky breaking world records with ease. Usain Bolt running faster than any man on Earth, and smiling as he does it. Those amazing, fearless gymnasts, led by Simone Biles, risking life and limb.

But one aspect of Olympic coverage that frustrates me is when someone asks a silver- or bronze-medal winner if they’re disappointed because they didn’t win the gold.

Most of these fantastic athletes react the way American swimmer Nathan Adrian did when asked whether he was upset that he “only” got a bronze. He looked surprised, then, with an endearing grin, he reminded the correspondent that hey, he was at the Olympics and he won a medal. How great is that?


The Truth About Hiring Friends in Your Small Business

Hiring friends must be done with care to be successful.

Small business ideas are often mulled over by friends long before you take the plunge and say, “I’ve made the decision. I’m starting my own business.” Friends’ reactions may range from encouragement to total negativity, but there’s a good chance at least one friend might be interested in working for you or with you.

While mixing business with friendship can work out, many people choose to keep business separate from friendships. Business relationships gone sour can ruin relationships, and some people avoid this risk by starting out with a “no hiring friends” policy. Most people fall between the two extremes of wanting to hire friends and refusing to do so. With strict boundaries, it’s possible to successfully hire friends for your business.

Hiring a Friend Will Be Fine, Right?

Maybe? After deciding to start your own business, it’s intuitive that many people want friends on board to help build the business. And since close friends tend to be vocal supporters of your ideas, and may be willing to work long hours with little or no pay it makes the choice a quick solution.


Aetna ditching 70% of its ObamaCare business

Insurance giant Aetna won’t be offering coverage under ObamaCare next year in 11 of the 15 states it now serves — an announcement that instantly became an issue in the presidential race.

Aetna’s decision led Donald Trump to charge that President Obama’s health care reform was “imploding.”

“Aetna’s decision to leave the Affordable Care Act’s public marketplaces is the latest blow to this broken law that is slowly imploding under its regulatory red tape,” said Trump campaign deputy national policy director Dan Kowalski.

“Millions of Americans have lost their health coverage under this disastrous policy, eliminating their ability to choose their doctors. Thousands of businesses have been forced to cut employment or shutter their doors in response to Obama’s signature achievement,” he added.

The company had previously warned that it expected to lose more than $300 million this year on the 900,000 patients it covers under the Affordable Care Act.

Aetna said it is pulling out of ObamaCare markets in Arizona, Florida, Georgia, Illinois, Kentucky, Missouri, North Carolina, Ohio, Pennsylvania, South Carolina and Texas.

 


 

Is Your Company Culture Positive?

54640451Although a company’s culture is not a visual entity, it is a palpable entity that most employees can tell you exist in their place of work without pinpointing the exactness of it.  For a large company to succeed or a small business to be able to generate the sales they need, a positive, transparent working environment is always a positive asset to have, without investing too much in other training programs elsewhere.  Lines of communication between departments and employees should be an important asset owners and managers alike should strive to exploit for the benefit of the business.


Tax-Free Weekend Lifts Sales for Small Businesses

STATEWIDE — Shoppers across Texas enjoyed a tax-free weekend on clothing and school supplies. While many flocked to large chain stores, some small businesses also saw a boost.

“Definitely it’s working,” said  David Marrs, owner of Vagabond Vintage Clothing in San Marcos. “I don’t think it can compare to the outlet mall, but I think I saw my sales double yesterday.”

While the San Marcos outlets are always a big draw, shoppers saved 8.25 cents on every dollars of eligible purchases during the weekend no matter where they shopped. For some, it was the reason for a shopping spree. For others, a pleasant coincidence.

“I forgot that it was tax-free weekend,” said Matt Counts, a shopper at Vagabond.

“Until we didn’t pay tax!” laughed his wife Mandy Counts.

Business leaders say shopping at locally-owned stores is a move consumers can feel good about.


Highlight Company Culture to Attract Candidates with Passion

Recruiting motivated, purpose-driven candidates and matching them up to a job and company culture that matters to them will improve employee engagement and retention, according to recent research from LinkedIn.

The global network’s 2016 Global Talent Trends survey of over 33,000 professionals on LinkedIn revealed that those who see themselves staying at their current company for three or more years were more likely than others to be primarily motivated by a sense of purpose.

Forty-one percent of respondents said they couldn’t imagine being at their current company two years in the future, while 37 percent see themselves staying for three or more years. Of those who envision a longer future at their current organization, the largest percentage (39 percent) said they are motivated most by personal fulfillment and purpose and that they tend to accept a job because of a company’s culture, vision and products.

“Their primary motivation is using their work to advance a greater good, a higher cause, a mission they deem worthy of working toward,” said Esther Lee Cruz, global marketing manager at LinkedIn and a co-author of the survey’s report. Of the remaining 61 percent of respondents who intend to stay for three or more years at their current job, 35 percent indicated they are primarily driven by career status and compensation. Twenty-six percent did not indicate a primary motivator.


3 Telltale Signs of Toxic Company Culture – and What to Do About It

What is company culture? Look around you – company culture encompasses everything from your office layout, to the way you collaborate with peers and managers, to the costume contest held every Halloween. In today’s workplace landscape, culture has quickly moved from a “nice-to-have” to a “must have”. However, a recent study by Deloitte University Press reported that HR leaders consider culture and engagement their number one challenge.

So, how can your organizations create a strong company culture and avoid toxicity? It starts at the top. Leadership must vigilantly watch for warning signs and take proactive measures to ensure culture is protected.

Here are three warning signs of toxic company culture:

1. Knowledge Hoarding

Shared knowledge increases efficiency, improves employee performance, and fosters innovation. However, some individuals develop a “figure it out yourself” attitude instead of sharing tacit knowledge openly and willingly. They become territorial and lack the willingness to share their hard-earned skills and experience with colleagues. Some hoard information because they feed off of power and control. Others hoard knowledge because they believe sharing their knowledge with others will only make them disposable.


 

The State of Small Business Today

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Many small businesses where the minimum wage has increased, are dealing with issues that they believed are detrimental to the growth of their companies.  Federal law regulation about overtime pay went into effect December 1, 2015, making this another issue to overcome.  As a small business owner, is 2016 a better or worse year for you?

To read more about this and other news, follow the links below.


What You Need to Know About the New Federal Overtime Rules 

Scheduled to go into effect Dec. 1, 2016, the new rule changes overtime regulations under the Fair Labor Standards Act’s minimum wage and overtime protections. Previously, employees were excluded if they were salaried, earned at least $455 per week ($23,660 per year) or were in positions considered executive, administrative or professional. Now, those exemptions will be lifted and the pay threshold for overtime protections will be raised to $913 per week, or an annual salary of $47,476. That pay threshold will be updated once every three years, indexed to wage growth over time.A rule change announced May 18 by the U.S. Department of Labor (U.S. DOL) would expand overtime protections to an estimated 4.2 million workers, extending the rule to cover those making less than $47,476 per year and removing long-standing exemptions in the law. Business News Daily dug into the specifics of the new regulation and spoke with labor policy experts and human resources professionals about the anticipated effects of the change, for both employers and workers.


Paychex Sees Small Business Job Growth Dip in May

The pace of small business job growth dropped slightly in May after a strong start earlier in the year, according to a new report from the payroll giant Paychex.

The Paychex | IHS Small Business Jobs Index, which the company compiles with the research firm IHS, declined 0.18 percent in May, from 100.77 to 100.59. Nevertheless, the pace of small business employment growth has increased 0.22 percent since the beginning of 2016.

“It’s roughly flat compared to a year ago, but the pace of small business job growth slowed a bit in May after a pretty hot start in ’16,” said Paychex president and CEO Martin Mucci. “We had a good start, but it’s dropped off a little bit. We’ll see if it’s a trend or not, but at this point we still feel like we’ve got pretty good job growth in small business, despite a little slowdown in May.”


Instagram targets small business ad revenue

SAN FRANCISCO — In a major bid to ramp up advertising revenue, Instagram is rolling out new features for small- and medium-sized businesses including the ability to buy an ad within the mobile app.

“This is really the first time you can advertise like this within the app,” James Quarles, Instagram’s global head of business and brand development, told USA TODAY.

“We have millions of businesses, great community members, and today we want to help them to have the capability to be a business on Instagram, not just be an account,” he said.


 

Ohio Small Business News

Last Oct. 2015 the Unemployment rate for the state of Ohio was a 4.7%, and since then it has been increasing slowly, but surely to a 5.1% as of last month. A small increase to be sure, but it does make you wonder whether there are better times to come for the state, or things are going to progressively get worse.  Small businesses in Ohio are not as optimistic as they were last year, and some are still wondering wether the minimum wage increase will have other ramifications for their businesses.  For more news bout Ohio, follow the links below.


Ohio’s economy has had its ups and downs over the years, experiencing decline long before the rest of the nation felt the effects of the financial crisis. In the years preceding the recession, Ohio’s manufacturing sector was hollowed out, contributing to a drop in per capita income and a drastic slowdown in growth. And while the unemployment rate has plummeted, the labor force has shed nearly 300,000 workers since its peak in late 2007, according to the U.S. Bureau of Labor Statistics. And as employment rises, so does the demand for skilled or experienced labor, and business owners find it progressively harder to hire the employees they need at the cost they want.

However, in 2008 — amid the recession — Ohio’s per capita income started to gain compared to the national average, and the U.S.’ seventh-largest economy has seen some bright spots. Despite a difficult decade — between 2004 and 2014, the compound annual growth rate of Ohio’s GDP was an anemic 0.3 percent, according to the U.S. Bureau of Economic Analysis (BEA) — entrepreneurs in Ohio are seeing promise again. For small business owners in the Buckeye State, the sentiment is tepid optimism that a fledgling startup community and the return of manufacturing in the form of tech-focused companies will propel the economy forward in the years to come.


While small business owners acknowledge that there are some downsides to increasing wages for their entry-level workers, many of these business owners also find positives in doing so, new research finds.

Nearly 60 percent of small business owners said they favor raising the minimum wage, and the same percentage said they would likely vote for a state or national candidate who supports a minimum-wage increase, according to a study from Manta, a provider of products, services and educational resources for small businesses.

The results were released as both California and New York recently approved measures to gradually increase their minimum wages to $15 per hour.

The majority of small businesses surveyed are already paying their employees above what’s required. The research revealed that 40 percent of small business owners pay entry-level employees “far above” the required minimum wages in their areas of operation, while 38 percent pay “slightly above” the minimum wage. Just 14 percent are paying the state or local minimums, and only 9 percent are paying the federal minimum wage of $7.25 per hour.


Small Business Confidence Hits New Two-Year Low

Small business confidence fell to a fresh two-year low in March amid persistent worries about sales and profits, the latest indication that economic growth braked sharply in the first quarter.

The National Federation of Independent Business (NFIB) said on Tuesday its small business optimism index dipped 0.3 point to a reading of 92.6 last month, the lowest since February 2014.

It has declined from a reading of 100 in December 2014 and has pushed further off its 42-year average of 98.

“A ‘chartist’ looking at the data historically might conclude that the index has clearly hit a top and is flashing a recession signal. The April survey will decide whether or not the alarm should be rung,” the NFIB said in statement.

The soft reading fits in with recent economic data on consumer and business spending as well as wholesale inventory investment that have suggested economic growth slowed sharply from the fourth quarter’s 1.4 percent annualized rate.


 

Cybercrime; Is Your Business Vulnerable?

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Big and small business are vulnerable to cybercrime.  Many small businesses frequently do not have the budget necessary to protect their data from a cyber attack, thus making them more vulnerable. For many small businesses the financial hardship they endure due to this crime leaves them unable to recover for many years, setting back their business and profits for the near future.

For more about this topic, follow the links below.


 Hacked! Business bank accounts vulnerable to cybercriminals

It’s a chilling moment when a small business owner discovers hackers have stolen thousands of dollars from the company checking account.

Cybercriminals took an average of $32,000 from small business accounts, according to a December survey of owners by the advocacy group National Small Business Association. And businesses don’t have the same legal protection from bank account fraud consumers have.

The Electronic Funds Transfer Act, passed in 1978, states that it’s intended to protect individual consumers from bank account theft, but makes no mention of businesses. Whether a business is protected depends on the agreement it signs with a bank, says Doug Johnson, a senior vice president with the American Bankers Association, an industry group. If the business hasn’t complied with any security measures required by the agreement, it could be liable for the stolen money, he says.


Businesses fail to prepare as cybercrime surges globally

Cybercrime is now the second most reported economic crime and has affected at least a third of organizations in the past 24 months, yet many businesses are still underprepared, a PWC report has found.

According to the Global Economic Crime Survey, cybercrime has jumped from being the 4th to 2nd most reported kind of economic crime, behind only asset misappropriation. Meanwhile, the losses associated with cybercrime are huge and growing, but an alarming number of businesses don’t have a plan in place.

The report finds that only 37% of organizations have a cyber incident response plan, despite the fact that 61% of CEOs said they were concerned about cybersecurity. This backs up the findings from last week’s RSA Conference report, which found just one in seven security chiefs report directly to their CEO, despite rising concern within their businesses.

Around 50 respondents to the PWC survey said they had lost in excess of $5 million, while a third of these said the figure was greater than $100 million. According to the Wall Street Journal, the percentage of companies reporting losses of more than $1 million as a result of cybercrime attacks doubled since 2014.


 Chris McCarty: Protect big, little data against cybercrime

You probably know about the big breaches. JP Morgan Chase. Home Depot. Target. Maybe you even read a few of those juicy emails between Sony executives bashing Angelina Jolie and Will Smith. I can imagine your reaction: “That’s crazy, but what’re the chances it happens to me or my little company?”

The chances are much greater than you think. In November, during a data breach and privacy law program in Chicago, I attended a session presented by Wesley Hsu, the executive assistant U.S. attorney who headed up the Sony investigation. Here a few statistics provided by Mr. Hsu that should open the eyes of anyone in business:

Every day, there are twice as many cybercrime victims as newborn babies;

There are 50,000 new victims each hour, 820 new victims each minute and 14 new victims each second;

The total number of estimated cybercrime victims over the past year is greater than the combined populations of the United States and Canada.