Keating Talks Economy and Small Business

SBE Council chief economist Ray Keating was a guest on Jim Blasingame's Small Business Advocate syndicated radio show on February 9.

Keating and Blasingame discussed some of the latest economic numbers, and the impact of federal policies on small business and the economy.

Listen to the most recent show, along with previous guest spots with Ray here.

Ray Keating Spoke about the Economy, New Book and Wall Street Protests on Small Business Advocate Radio Show

Listen to Parts 1, 2 and 3 of SBE Council chief economist Ray Keating's recent interview with Jim Blasingame on the Small Business Advocate Radio Show. The focus was on the economy, Keating's new book "'Chuck' vs. the Business World," and the Wall Street protests.

Listen to the three parts here.

SBE Council Member Mike "the manufacturer" Fredrich on Fox Business

SBE Council member Mike Fredrich, president of MCM Composites in Manitowoc, WI, recently appeared on Neil Cavuto's Fox Business show. Mike talked about how government is getting in the way of the private sector, and why the solution is "so simple" to getting our economy back on a prosperous path. Mike also addressed President Obama's proposed tax hikes on business, how they target firms like his, and why these increases continue to be a really bad idea. Mike's manufacturing business competes with firms on a global basis, and against larger enterprises.



Great job Mike!

Karen Kerrigan, President & CEO, SBE Council

Need Some Small Business Love?

The economy is tough. But there are some glimmers of love being shown for small businesses.

Bloomberg BusinessWeek ran a story on June 11 titled "America's Love Affair With Small Business." Beyond some anecdotes, the story noted the following:

In a survey released last month by WebVisible, an online marketing services provider that works primarily with small and midsize companies, 4 out of 5 respondents said they regularly patronize small, independent businesses over larger chains. Their top three motivations: to support their communities, for travel convenience, and for the personalized service, says Kirsten Mangers, WebVisible's chief executive officer.

Just 17 percent of survey respondents said they don't choose small businesses over larger chains. "We automatically assume that if shoppers are going into a national-brand chain store, it's because they get economies of scale" and lower prices, Mangers says. "But we're finding the perception is that by transacting with a local merchant, you'll save time and money at the end of the day."

Raymond J. Keating

Chief Economist

Small Business & Entrepreneurship Council

Small Business Pay in a Down Economy

Think it’s easy to run a small business – especially in a tough economy? Think again.

Consider an April 24 Wall Street Journal report titled “Entrepreneurs Cut Own Pay to Stay Afloat.” Two key points:

• “A number of small-business owners have stopped paying themselves as they struggle to keep their companies afloat. It's impossible to know just how many owners are affected. But in a sign of the breadth of the trend, 30% of 727 small-business owners and managers surveyed by American Express Co.'s small-business services division said recently that they were no longer taking a salary. That's a troubling sign for small businesses, which have created a significant share of the new U.S. jobs in recent years.”

• “It's not uncommon for owners to give up salaries from time to time to give their companies a temporary lifeline, but business advisers and owners say the prevalence of salary cuts now is unusual even for a recession.”

Being a small business owners often is about sacrifice in order to keep paying employees, or just to keep the business going.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council

Small Business Challenges and Opportunities

Given the current, widespread uncertainty in our economy, both challenges and opportunities exist for U.S. small businesses.

Chad Moutray, chief economist and director of research for the Office of Advocacy of the U.S. Small Business Administration (SBA), does a good job of highlighting some of the key challenges and opportunities in a new paper titled “Looking Ahead: Opportunities & Challenges for Entrepreneurship and Small Business Owners.”

Among the challenges Moutray notes are strengthening the economy, tax and regulatory costs, health care costs, and attracting and keeping good workers. Opportunities include investments in technology and innovation, pursuing new markets overseas, and education and training.

Moutray concludes: “Americans will head to the polls in a matter of weeks. Many of us will be looking to our leaders for solutions to the challenges confronting small businesses across the country. Putting in place policies that promote economic growth and stability will allow entrepreneurs to more easily exploit the opportunities that confront them.”

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council