The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Saturday, July 14, 2012

GOP.... small business guardians? Au contraire!

Typical GOP Image...Non-diverse

On Friday 13, 2012, CNN published a short listing of  information about the small business experience  in the United States.  The list is a great information and archive piece.  We are going to extract a few items from the list for point of reference as we consider the common and tired GOP mantra of  'job creators'. 

By Amy Roberts, CNN Library
updated 1:42 PM EDT, Fri July 13, 2012

Only 45% of new businesses established in 2004 were still around in 2009.


Small Business 

Three small business tax cut bills were rejected by Congress this week

$7 million is the largest amount of annual receipts a business can have and still be "small"

$87 billion is the potential amount added to the GDP by small business

(CNN) -- Senate Republicans on Thursday blocked a Democrat-backed bill that would have extended tax cuts to small businesses.

Both sides indicated the vote was political one -- Democrats said Republicans blocked the bill to cost President Barack Obama political points. Republicans said that the legislation was a campaign stunt and wasn't enough to have any impact on jump-starting the economy.

CNN Report highlights

* 3 - Small business tax cut bills that were rejected in the U.S. Congress this week.
499 - Highest number of employees a business can have to be considered a "small business." 
* 5,749,797 - Firms in the U.S. with fewer than 500 employees, as of 2009.
* 56,281,503 - Employees of small firms with fewer than 500 workers, in 2009.
79 - Percent of American businesses that are non-employee businesses, with no employees other than the proprietor.
* 2.4 million - Businesses owned by veterans, making up 9% of all businesses, as of 2007.
* 20 - Percent of income eligible for tax deduction by small businesses under the Small Business Tax Cut Act, proposed by House Majority Leader Eric Cantor.
* $73 billion - Amount of the projected total increase in personal incomes if the Democrats' Small Business Jobs and Tax Relief Act had passed in the Senate.
* With the provisions of health care reform ...990,592 - Estimated number of jobs that would have been created.
* 10% - Tax credit on new payroll, a hiring incentive for business owners under the Senate Small Business Jobs and Tax Relief Act.
2 - Percent of Americans with incomes higher than $250,000 annually, those who would be affected by the expiration of the Bush-era tax cuts, according to President Obama.

The first itemized reference that struck me was the number of  businesses with under 500 employees.  The second eye-catcher is the number of employees in those companies (less than 500 employee companies) 56,281,503.  On quick glance the math took me to a number very close to 10 employees per reported company.  A quick run through a calculator yielded: 9.788 per company under 500 employees.  WOW!  The number is strikingly underwhelming.  

As is the case with most OP-Ed writers and people who attempt to credibly scribe information, the need to seek other sources manifest.  Source located: Get Busy Media Dot Com, see below.

You will notice differences in the CNN report and the following information source.  The first stark difference is the report of 27 plus million small businesses compared to CNN's report of 57 (rounded) million.  Of course, 27 plus million certainly folds into the CNN figure, but one has to wonder why the differences in reporting and source data for both repeating entities.  The definition of a small business may have posed a problem for Brain Morris's source.  Not certain, but all data is relevant enough to make a point about job creators and GOP mantra.

May 2011, Brian Morris of Small Business Week published a comprehensive report on small business. His work span the globe, while providing much relevant information about the business of US 'job creators'.
 This week marks the 48th Annual National Small Business Week  (May 16-20) and with this post I hope to explore the state of Small Business in America through a few different mediums. Small businesses are considered the backbone of America and are what many financial analysts predict will be the vehicle to drive us out of this financial downturn. A few small business stats (according to the SBA) that stick out to me: 

-       There are 27+ Million Small Businesses in the US. 

-       Between 60% & 80% of all new jobs created in our country can be attributed to Small Business.
This infographic  takes a look at Small Businesses’ contributions to economic activity state-by-state:
Yes, you are correct somewhere between CNN and Morris's use of the Killer Infographics exhibit the numbers vary by a few million.  Both sources report Small Business  Establishments and Firms that appear close in number. 

The holy grail of each report in my opinion:

1.) Morris....Between 60% & 80% of all new jobs created in our country can be attributed to Small Business.

 CNN.....79 - Percent of American businesses that are non-employee businesses, with no employees other than the proprietor.

3.)  2 - Percent of Americans with incomes higher than $250,000 annually, those who would be affected by the expiration of the Bush-era tax cuts, according to President Obama.

Well, as is generally the case, data forces a look at additional related data.   Linked

Small Business Chron Dot Com 

A small business owner is an individual who manages his own organization. These entrepreneurs can be found within all industries, including retail, entertainment, financial services and law. A formal educational background is not required to become a successful small business owner. What is needed however is a good idea, a solid business plan anstartup capital. Due to the variety of organizations that make up this sector, the average income of small business owners varies widely, depending upon level of experience, location of employment and gender.

Average Income by Experience

According to compensation survey administrator PayScale in 2010, the average income of small business owners varies widely depending upon their level of experience. For example, small business owners with less than one year of experience in running an organization earn an annual salary ranging from $34,392 to $75,076. Those with more than 10 years experience, on the other hand, earn upwards of $105,757 per year.

Average Income by Gender

The average income of small business owners is also affected by gender. Males earn a median annual salary that far surpassed their female counterparts. Payscale’s report indicated that men who own small businesses earn a salary that ranges from $42,575 to $96,111. Women, on the other hand, only earn $31,380 to $71,140 every year.

One more data source Linked

eHow Money

Average Salary by Years of Experience and Gender

According to a 2009 PayScale survey, a female small-business owners' average annual salary is between $25,000 and $70,000. A male small-business owners' average salary falls between $50,000 and $100,000 per year. The average annual salary of an owner with one to four years' experience is $35,000; five to nine years' experience, $40,000; and 10 to 19 years' experience, $45,000. 
Average Salary by Employer Type

Employer types include self-employed owner companies, franchise owners and owners of private practice companies. Self-employed company owners, make a salary between $40,000 and $100,000 per year according to the 2009 PayScale survey. Franchise-owned companies' owners make and annual average salary between $50,000 and $120,000; and private practice owners are paid between $80,000 and $180,000 per year. 
Average Salary by City

Business owners in Houston have a median salary between $60,000 and $180,000 annually; owners in New York have the highest paying salary of between $60,000 and $200,000 per year. These are 2009 figures provided by PayScale
Average Salary by State

Per PayScale, Texas, Illinois and California have the highest paid average salaries for a business owners. Texas is between $60,000 and $120,000, Illinois is between $50,000 and $170,000, and California is between $50,000 and $160,000 per year. These salaries are throughout the market for all types of businesses in these states in 2009. 
Average Salary by Company Size

According to PayScale, the highest salary for a small-business owner at a company with between 200 and 599 employees was from $50,000 to $225,000 in 2009. 
Average Salary Based on Sales

If the company had annual sales of up $99,999 the salary was as low as $60,000 annually, according to the 2009 PayScale survey. If the sales were between $100,000 and $1,900,000 per year the lowest average salary was $80,000 annually.

All reviewed data absorbed, perspective supplemented and reinforced by the data, opinion either validated or refuted: GOP mantra is pure "Swift-Boat" Manure!

As I sat back completely reinforced in my previous disdain for 'job creator's mantra, an even more statistic looms. 
"CNN.....79 - Percent of American businesses that are non-employee businesses, with no employees other than the proprietor."

One last...piece of pure poignancy.....
  "2 - Percent of Americans with incomes higher than $250,000 annually, those who would be affected by the expiration of the Bush-era tax cuts, according to President Obama." 

Issues related to the Bush Tax cuts, the small business experience and GOP 'job creators' mantra are existential. They are out there, a reality and cannot be simply wished away. While, I am not economist, and have a bit of disdain for deep contemplation of numbers (as some may find deep review contradicts my post review opine), I simply do not find credence in the 'job creators' mantra as it relates to the Bush Tax Cuts.

If you still need evidence of GOP gifts to the wealthy, obstructionism and economy stifling strategies, how about this weeks Senate actions on Jobs and small business tax bills.

Whether you click the Huffington Post link below or not, my position is as it has been since mid-2009.  The GOP has no interest in small business as job creators. They use the mantra for purpose of swaying minds, as they have done so successfully in the past. They have been so adroit at such tactics when coupled with other voting issues in 2000, the nation 'believed itself' into a George w. Bush presidency.  A presidency that will influence the United States in some ways through the 21 century and possibly longer.   Over the course of the past three and one half years the words job creators has been drilled into the minds of believers.  

People who avoid the trappings of "GOP ism" listening to their arguments, but they perform a bit more than just folding the lies into their gray matter; they seek information.  Information for the GOP is a killer.   Ronald Reagan once said, "Facts are stubborn things". 

Consider visiting the Huffington Post link below for a detail analysis of three bills that died in the US Senate this past week.

Huffington Post - POLITICS reported on the Senate actions on the bills. 
Small Business Tax Cut Bills Die In Senate Political Feud

Posted:  Updated: 07/12/2012 5:50 pm 

WASHINGTON -- The Senate failed Thursday to advance competing small business tax cut bills, killing all three in the ongoing partisan struggle to claim the winning argument on taxes.

Read More linked above....

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