The 5 billion “Stimulus Package” seems to be moving even more quickly than the Homeland Security Bill did after 9/11.
So what does the massive spending bill offer entrepreneurs, who make up over half of the economy they seek to “stimulate”?
The NFIB, who got co-opted into the drive toward socializing healthcare, is concerned. Dan Danner, NFIB executive vice president, made the following comments on the “Stimulus” bill:
“America’s small businesses created 60-80 percent of the net new jobs over the last decade, yet they see almost no relief in this massive spending bill.
“NFIB fears this legislation will do very little to help small business owners and their employees. We continue to advocate for a six-month payroll tax holiday to be included in the stimulus bill. A payroll tax holiday would immediately put money back into the hands of both employers and employees – providing real relief to consumers and employers during these difficult economic times.”
James Pethokoukis of US News digs into the economics behind the bill and finds little evidence of any “stimulus” effect. “When you look at the economic evidence, it sure seems like an economic recovery package that’s heavy on government spending and light on tax cuts is just the opposite of what we should be doing right now.” Pethokoukis offers links to a variety to support his concern. Read this stuff – it is eye opening, to say the least.
So what are we to do?
First, let’s all make a promise to each other to stop watching the 24 hour news outlets all day long. Turn your attention to what you can do.
If you are already an entrepreneur, put your head down and focus on what you can control. Be prudent, for cash is king, but find your place in this new economic reality. There is opportunity out there, but it may require changing your business model. Remember, successful entrepreneurs learn to dance with the market.
My friend Chad Moutray predicts that you will soon have more company in the entrepreneurial community:
Looking forward, though, we would expect for there to be more entrepreneurship taking place as a result of this economic downturn. Much of that will be out of necessity; the talent pool of those who are being laid off is such that they are capable of selling those talents as their own boss, if they so choose. Moreover, many of these individuals might have contemplated becoming self-employed for some time, but they were not willing to strike out on their own and forego the benefits of their existing jobs. Unemployment changes that, providing an opportunity to pursue those dreams. Looking back at past recessions, it is definitely true that smaller businesses were able to recover sooner than their larger counterparts.
My intrepid grad assistant Joe found an article with some great advice for all of you new, “accidental” entrepreneurs from the Eastside Business:
How does someone get over the fears and perceived barriers to self employment? To find your passion you must first begin with developing your primary aim by clarify your goals, needs and expectations. There are some great workshops and on line programs designed to help with this. Secondly, you must create the mindset of already being an entrepreneur – you have financial assets and management skills – you just have not discovered how to apply these valuable resources to your own benefit. Certainly consider a coach to help you over the bumps and barriers.
Next is to get your husband, wife, partner or significant other to support your efforts. There is nothing sadder than a spouse pouring cold water over your dream. Engagement and exploring options together is often times the key to being able to accomplish your first entrepreneurial venture.
Stop your worrying about the mad dash in Washington toward socialism. We can’t stop this freight train. It is time to get back to business, back to pursuing opportunity. That is what we can control. That is what will truly stimulate the economy.
Let me close this post with what I like to call the Entrepreneurs’ Prayer (a.k.a. the Serenity Prayer):
GOD, GRANT ME THE SERENITY
TO ACCEPT THOSE I CANNOT CHANGE,
THE COURAGE TO CHANGE THE THINGS I CAN,
AND THE WISDOM TO KNOW THE DIFFERENCE