Excellent article by Stephanie Flanders

HAMISH_MCTAVISH

DervProf wrote: »

Zero, and very little.

So then I would propose that you don't actually run a small business.

You bought a job.... You're self employed.

Now there's nothing wrong with that, but I'm not sure that the self employed are counted in the small business failure stats? It would seem probable that the failure rate of self employed tradesman would be lower than say, new restaurants.

Many, if not most, tradesmen are self employed but unless they expand and take on more employees and vehicles would they be a small business or self employed? I'd say the latter.

Both segments are important to the economy. But only one directly creates jobs.

And to get slightly more back towards the previous topic of conversation, the self-employed tend not to be competing directly with the corporate world in most areas of business.

Open a retail shop in anything other than the most niche of products, or a pub, or a restaurant, and you're up against national chains that are probably better at what they do than you are, and certainly better resourced to ride out the inevitable slow times.

Hence why most small businesses fail, and most small business people work longer hours and earn less than they would working for someone else.

HAMISH_MCTAVISH

kabayiri wrote: »

The poor in society will tell you.....

The rich in society will point to....

Perhaps both extremes are a rational response to an irrational society where aspiration is penalised and wealth is redistributed through taxation for political gain.

I don't resent the rich using legal loopholes to minimise their tax payments.

I don't resent the poor working odd jobs for cash in hand to supplement their income and not declaring it for tax purposes.

What we need is a lower tax economy so that fewer people feel the need to behave in this way to begin with.

Generali

HAMISH_MCTAVISH wrote: »

Perhaps both extremes are a rational response to an irrational society where aspiration is penalised and wealth is redistributed through taxation for political gain.

I don't resent the rich using legal loopholes to minimise their tax payments.

I don't resent the poor working odd jobs for cash in hand to supplement their income and not declaring it for tax purposes.

What we need is a lower tax economy so that fewer people feel the need to behave in this way to begin with.

Part of the problem with the UK political system IMO is that the focus is on the very rich and the very poor. There are a vanishing small number of very rich people and not that many people that are genuinely poor.

Perhaps it would be better to focus attention on what would be called in Aus the 'Battlers': those people that work hard, stay out of gaol, pay (most of) their taxes and just try to get along as best they can in life.

DervProf

HAMISH_MCTAVISH wrote: »

Now there's nothing wrong with that, but I'm not sure that the self employed are counted in the small business failure stats? It would seem probable that the failure rate of self employed tradesman would be lower than say, new restaurants.

Fair point.

I've always thought that it pays to be a very small business (like myself, a one man band) or very large, like a chain of restaurants or retail outlets. The bit in the middle seems to be the "dangerous territory". A chain of pubs can probably absorb one or two of it's outlets performing badly. A single independently owned pub won't survive if it's only outlet doesn't do well.

Percy1983

I will say in opening my own business I did reasearch the gap I was aiming at.

In my case I am not going for the professional (and expensive) companies, I looked at who would like to use said companies but can't afford them and setup what is a 'budget' service using lessor equipment etc.

The results is an affordable service which is a above the average amatuers but below the professionals.

With that I have no overheads so my business can't fail and make a loss, just fail to generate more income.

I currently run it in my spare time as an income boost, I will say if I reach full capacity thats when it might get more interesting and dangerous.