I read a news article today that New York State is in $300 billion dollars in debt. $300 BILLION! It’s an unfathomable amount, absolutely horrible. How on earth do you ever pay something like that off? Truly, you don’t. You just pass it along to the next generations. It’s a form of slavery.
I have been traveling throughout New York State recently, chatting with small business owners at the establishments we visit. The conversations are all very enlightening. Here in New York, it’s notoriously difficult to do business. Much of the business environment is heavily regulated, and tight-fisted lenders are loath to part with their cash for cash-strapped companies. For the past 60 years, larger corporation have been leaving the state for fairer opportunities, too. That leaves us with no manufacturers, no big corporations. The demographics of the prosperous 1950s has completely turned over. There are no more big companies who will hire a person for life and give them employment perks like pensions, investment opportunities, health care and the like.
So we adapt. We create our own small businesses, and we diversify. Many of the small business owners talked about the necessity of diversifying their businesses and talents. For example, a motor inn can no longer support itself with business from that motor inn alone. It must also run a restaurant, hire out for snow plowing, and even join the ranks of eBay sellers to sell extra equipment or home-made crafts.
On top of it all, the recent economic downturn was hardest on the small business. Banks refused to offer loans to what they deemed as frivolous or small ventures. But that’s the only way the small business can cope! With so many avenues closing, small business must turn to online lenders for their online ventures, such as Kabbage. You can read CrunchBase’s write-up of the company at the link. Very interesting.
I like to watch patterns and movements. There is a distinct change in the small business demographics as more and more owners are diversifying their talents and going online for their resources, and to reach a larger market.
How is the business environment in your area? I tend to think that many regions are starting to suffer the similar downward spiral that afflicted New York n the late 1990s. I hope they don’t sit on their hands like NY has done. I guess the politicians believe in magic, that somehow spending more and more billions will generate income… It’s not going to be the politicians who get us out of this mess, but — as always — the small business owner.