Economic Recession Leads to Increased Entrepreneurship, MU Study Finds (small business, transaction, paycheck)

[Brian.Pearson]

COLUMBIA, Mo. — The recent economic recession has caused many changes in the business landscape across the country, including high unemployment rates. Due to these high rates and the struggling economy, University of Missouri researchers have found that in recent years the number of Americans engaging in entrepreneurship has risen significantly. Maria Figueroa-Armijos, a doctoral candidate in the University of Missouri Truman School of Public Affairs, says that this trend could be positive for the future.

[MrRational]

Originally Posted by Brian.Pearson

COLUMBIA, Mo. — The recent economic recession has caused many changes in the business landscape across the country, including high unemployment rates. Due to these high rates and the struggling economy, University of Missouri researchers have found that in recent years the number of Americans engaging in entrepreneurship has risen significantly. Maria Figueroa-Armijos, a doctoral candidate in the University of Missouri Truman School of Public Affairs, says that this trend could be positive for the future.

Missouri must have a lot more rich uncles to hit up for cash than we have around here.

[Brian.Pearson]

Originally Posted by MrRational

Missouri must have a lot more rich uncles to hit up for cash than we have around here.

LOL, well you start smaller and gradually build it up. I was going to do the nanotech stuff for glass, marble, granite, and so forth, but at first, I thought it would be too expensive. It was not until later that it occurred to me I could start smaller. I won't do this until I quite my job, anyway.

I'd start with the higher-end houses. Plus, I'd find the finest sprayer I can get in order to avoid waste.

[pvande55]

That is what you'd expect. Lose your job, try to go into business for yourself. I would be afraid if there weren't an increase. It would mean workers have given up on working at all.

[Brian.Pearson]

Originally Posted by pvande55

That is what you'd expect. Lose your job, try to go into business for yourself. I would be afraid if there weren't an increase. It would mean workers have given up on working at all.

There are a lot of people out of jobs that have given up and don't show up on stats. I wouldn't lose my job, or if I did, I could find one here. But I'd start small and show'em what I can do with these rich people. Word would spread and I might have to get help. That's my thinking, anyway.

[Skydive Outlaw]

There are some good consequences from something like this, if the Americans that are able to suceed doing it are able to handle them.

The first would be a larger segment of the population that will own small businesses and not be able to rely on just putting money into a 401k out of their paychecks every week or two while blindly just assuming that the money is being managed right. It will definetely result in a growth of the use of SEP retirement accounts and an increase in people watching their retirement money closer and partially due to having less of it (without an employer match). There will also be future scrutiny by many self employed Americans at the way county, state and federal government pensions are payed out - which at this point in most states after 20 years, it's like winning the lottery with those types of pension paying out for two to three decades past the point the government parasite stopped working.

It will also result in the increase of private capital formation, with individual business owners / self employed putting additional money that they have into their businesses through investments rather than randomly dumping it into mutual funds or stocks and hoping to get a return on it over the course of a decade or more.

And it will force the average entrepreneurer / business owner that is no longer an employee of a company with a paycheck to more closely examine just how the IRS tax code works when they start paying more in taxes (including self employment taxes which is basically social security and medicare times two on Schedule SE). I can also see an increase in IRS tax enforcement in the years to come too, since someone running a business versus being an employee has inherently more windows in which to shelter income through - either with legal tax avoidance and/or illegal tax evasion.

The audit rate per capita for small business owners is vastly greater than a person that gets a W-2 every year, so a new and profound understanding of just how tyrannical the federal government is with it's social engineering (as maintained by the IRS) will occur.

Simple increases in the amount of small business owners and/or the self employed alone will not get the US out of this recession/depression since if the overall psychological climate involving money, class structure and the proper role of the government in terms of taxation and spending does not change - the entire country could hypothetically be self employed and the current economic conditions will still get worse.

[MrRational]

Originally Posted by Skydive Outlaw

There are (could/might be) some good consequences from something like this, IF the Americans that are able to suceed doing it are able to handle them.

Lets set the "Americans that are able to suceed doing it" aside for the moment...
what about the consequences for other 98% or so of those who attempt this?

http://www.entrepreneur.com/article/217843

1. Do serial entrepreneurs succeed more than first time entrepreneurs?
Answer: Yes.
If you're a first time entrepreneur, outlook not so good.

[Brian.Pearson]

Originally Posted by Skydive Outlaw

There are some good consequences from something like this, if the Americans that are able to suceed doing it are able to handle them.

The first would be a larger segment of the population that will own small businesses and not be able to rely on just putting money into a 401k out of their paychecks every week or two while blindly just assuming that the money is being managed right. It will definetely result in a growth of the use of SEP retirement accounts and an increase in people watching their retirement money closer and partially due to having less of it (without an employer match). There will also be future scrutiny by many self employed Americans at the way county, state and federal government pensions are payed out - which at this point in most states after 20 years, it's like winning the lottery with those types of pension paying out for two to three decades past the point the government parasite stopped working.

It will also result in the increase of private capital formation, with individual business owners / self employed putting additional money that they have into their businesses through investments rather than randomly dumping it into mutual funds or stocks and hoping to get a return on it over the course of a decade or more.

And it will force the average entrepreneurer / business owner that is no longer an employee of a company with a paycheck to more closely examine just how the IRS tax code works when they start paying more in taxes (including self employment taxes which is basically social security and medicare times two on Schedule SE). I can also see an increase in IRS tax enforcement in the years to come too, since someone running a business versus being an employee has inherently more windows in which to shelter income through - either with legal tax avoidance and/or illegal tax evasion.

The audit rate per capita for small business owners is vastly greater than a person that gets a W-2 every year, so a new and profound understanding of just how tyrannical the federal government is with it's social engineering (as maintained by the IRS) will occur.

Simple increases in the amount of small business owners and/or the self employed alone will not get the US out of this recession/depression since if the overall psychological climate involving money, class structure and the proper role of the government in terms of taxation and spending does not change - the entire country could hypothetically be self employed and the current economic conditions will still get worse.

Suppose a guy were to have a lawn mowing "company" where he gets all his money in cash. Suppose further that he has another venture doing something else where most of the money coming in will be reinvested in the business. Insofar as the lawn mowing business goes (under the table) it would be a cash basis. As far as I know, nobody pays any attention to it unless he suddenly starts buying cars, doing lots of house improvements and so forth? Then, he would be subject to attention.

[Skydive Outlaw]

Originally Posted by Brian.Pearson

Suppose a guy were to have a lawn mowing "company" where he gets all his money in cash. Suppose further that he has another venture doing something else where most of the money coming in will be reinvested in the business. Insofar as the lawn mowing business goes (under the table) it would be a cash basis. As far as I know, nobody pays any attention to it unless he suddenly starts buying cars, doing lots of house improvements and so forth? Then, he would be subject to attention.

I thought we were referring to legitimate businesses and entrepreneurers. The only people that I know that get "all their money in cash" are drug dealers, strippers and illegal aliens that mow lawns for cash.

Cash transactions when running a business still need to be declared as income as far as the IRS is concerned, so any guy that has a lawn mowing company "venture" and does not report the income is committing tax fraud and evasion.

[lifelongMOgal]

Originally Posted by Brian.Pearson

COLUMBIA, Mo. — The recent economic recession has caused many changes in the business landscape across the country, including high unemployment rates. Due to these high rates and the struggling economy, University of Missouri researchers have found that in recent years the number of Americans engaging in entrepreneurship has risen significantly. Maria Figueroa-Armijos, a doctoral candidate in the University of Missouri Truman School of Public Affairs, says that this trend could be positive for the future.

Necessity is the mother of invention when people don't sit on their arses and wait for Uncle Sam to bail them out.