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"As campaigns for elected office intensify between now and November, it is important that the issues small business owners care about are included as part of the national debate," said Martin Mucci, Paychex[PAYX
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Only 3 percent of business owners surveyed by Pepperdine University and Dun & Bradstreet Credibility Corp., say the passage in March of a bill known as the JOBS Act increases the likelihood that companies will raise money through a practice known as crowdfunding.
Under crowdfunding, companies will be able to use websites that will link them with millions of investors and allow them to each raise up to $1 million a year. The sites won't begin operating until the Securities and Exchange Commission creates regulations to govern crowdfunding, and that's not expected to happen until the end of this year at the earliest.
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The first: The fundamental opportunity to grow a business asset value over time, as opposed to receiving a paycheck over time that cannot be sold.
Just as Warren Buffett views a stock purchase as the acquisition of an “equity bond” with an expanding coupon, a business owner can view the business as a compounding engine in which earnings can be reinvested at potential high rates of return resulting in expanded value over time.
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In an annual survey of startup CEOs in the software, hardware, life science and clean-tech sectors, the company leaders pointed to several federal policies they believe aid their growth.
Topping wish lists are increased intellectual property protections and getting health care costs under control.
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BACKGROUND: Winning more federal contracts has been an issue for small businesses for decades. Federal law calls for 23 percent of contract dollars to go to small businesses. Data for fiscal 2010, the most recent numbers available, showed that small businesses received 22.7 percent of those dollars, up from 21.9 percent in 2009.
A bill in Congress would raise that amount to 25 percent. One of the most important issues is what's known as bundling. That's the practice of awarding a contract to a large company with the expectation that that company will turn around and subcontract to small businesses. Critics of bundling say small businesses don't get as many of these subcontracts as they should because of burdensome paperwork, favoritism and fraud. The Romney campaign has pointed to requirements that union workers be used on large federal construction contracts and the rule that workers on construction projects costing more than $2,000 must be paid at least the same amount as workers on similar projects in the area. The wage requirement is mandated under the David-Bacon and Related Acts.
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The survey, of 1,300 small business owners, reveals that 42 percent of respondents are more confident in their local economy vs. 35 percent in the national economy. An even bigger percentage — 69 percent — say their local economy is important to the overall success of their business.
“Overall, we see an improvement of confidence among small business owners,” said Robb Hilson, Bank of America [BAC
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] small business executive, during a conference call on Thursday about the survey. “Arizona, the Inland Empire, Las Vegas — there are still concerns there. But in spite of the challenges, there is growing optimism among small business owners.”
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Licenses are intended to set standards in order to protect customers. But many state licensing laws can be erratic, illogical and burdensome — and stop some people from launching a small business, says the Institute for Justice, a public interest law firm. A recent IJ study looked at 102 lower- and moderate-income occupations that require licenses, including those in which practitioners can start their own businesses. Among them: manicurists, barbers, massage therapists and people who have construction skills like painting and masonry. » Read More
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CNBC wants to invite you to its Town Hall event on June 13 in Atlanta.
This dynamic and empowering event will feature well-known entrepreneurs and business people speaking on what it takes to create and sustain a small business in the 21st century.