Why aren't there more entrepreneurs? (regular, Obama, how much, insurance)

[veezybell]

It seems that there aren't enough people willing to break the mold and make their own way. If you ask the majority of people what their life plan is, it goes something like, "go to school, get good grades, get a good job". However, it doesn't take into account the crazy student loans, the instability of most jobs, etc. Is it the fear of failure? Laziness?

[Wannabeliber]

Shawn is correct
You don't understand the hurdles until you try it

Start with eBay and Craigslist
Small, low risk

Then try to create your own platform
But be secretive, not too open about it
The government will come after you for "imagined earnings"
Will demand paperwork

Who handles your paperwork?
Yes, that's required

Oh, you're a one-man show?
Time to register your business with the IRS if you have ever touched money someone handed you

How much am I being taxed?
Depends
Here's a big stack of papers that somewhere contains information pertaining to you
But if that seems like a big waste of time, perhaps a representative can be sent to audit your work and get to the bottom of things

Don't want random visits? Don't want scripted allegations from a tax-rep's employee training manual?
Pay someone to handle your paperwork
You don't need to understand it

[Pennies4Penny]

Starting your own business is very risky these days. You have to invest a lot of money just to get it going and keep your fingers crossed that it works out (unfortunately most businesses don't last). With so many options for shopping and services today, it is really hard to stand out, so it takes more than hard work to be successful; it also takes luck.

[Glokta]

Whats the statistic? Something like 2 out of 3 new businesses fail in the first couple of years leaving the previous owners in various degrees of financial trouble.

[mrviking]

Federal, State and Local regulations are soul crushing. Much easier to throw your money out the window and then stick a needle in your eye. Same results when all is said and done. If you by some miracle make it out the gate and open your doors. This Great Economy we have been living in for the last 7 years will crush you.

[cb at sea]

We started our own business 25 years ago....realized that we could make the money for ourselves that we were making for our employer....we got lucky , tho...not everyone can start something from scratch! And, we had a learning curve...managing the business is different from "owning" the business.

Yes...regulations are a PIA...fees and taxes are a HUGE expense. still...we get to do it FOR US!

[petch751]

I started a business in 2006. I took on huge debt (credit cards), worked nightshift at my regular job, came home and worked at my business during the day, running on very little sleep. It was damn scary and exhausting. The paperwork required by the government is crazy. As I became more successful but still had lots of debt, instead of reducing debt I had to pay huge taxes. That was disheartening, then I wanted to hire more people but Obama raised taxes, that squelched those hiring plans, instead I opted to relax more instead.

Now, although my company has a lot of growth potential, but I would need to invest more money, I will need to hire people, taking on more paperwork, more responsibility it's come to the point it's not a good investment after the taxation. People invest to make a profit and take that motive away it doesn't make sense. After all, they say I've made enough so ok.

[Cape Cod Todd]

My wife and I started our own real estate company in 2006 and it has been tough going but we have kept our heads above water even through the recession. Yes we could work for another big company and probably make the same money, maybe more without the overhanging headaches but we are stubborn and a bit prideful that we do it on our own.

We could use more advertising which is really expensive but as far as service to our clients the internet is the great leveling field and we are able to work more closely with clients due to our "boutique" experience. I like to say "yours is not just another listing but a priority"

As they say in the Shark Tank TV show there are many Wantrepreneurs but not many actual entrepreneurs.

It is a tough business to be in business for yourself.

[GregW]

I tried it a long time ago and made enough to pay for the house and food but not much else. Then the business rules changed and I had no more clients. End of business so I went back to work for others. Fortunately the others were governments and I was in a Union. The pay wasn't great but the security made up for than and the post retirement health insurance is great.

If I were starting now I would consider getting, keeping and retiring from a Federal professional job to be a very successful form of entrepreneurialism.

[victimofGM]

The local, state, and federal government are the biggest hurdles that must be crossed to start your own business. Property taxes (land, building, expensive equipment) must be paid up front and every year after. Need permits (another form of taxes) for just about every stage of developing, opening, and operating a business. Some businesses must deal with regular state or federal inspectors to meet regulations that change every year. Contract services like trash, sewage, cooking oil waste, etc must be met to operate the business. Is the building in a flood zone, earthquake area, tornado country, or hurricane country? Better have insurance for any natural disaster in your area. Better have other insurance to cover accidents that injure or kill an employee or customer. Tax laws change regularly. May need to outsource your payroll accounting. Might want to keep a law firm on hand for your own protection. Put cash aside to grease the palms of corrupt health inspectors, cops, and politicians who'll shut down your business if they don't get a little on the side. There's a lot more involved depending on the nature of the business. Does it require a state license for the type of work to be performed? Does it involve hazardous chemicals?