small entrepreneur being challenged now
Literally, over the past 6 months, I have heard of 6 different small entrepreneur being challenged to exist anymore...after 20+ years of existing. I know these people personally and I come from a small community. I wonder how widespread the issues they face is.1. A small online reseller, in business nearly 20 years (19), the avenue in which they sell on line, the host has now increased their fees by 5%. In addition to that, states are now charging sales tax across state lines. He relied on buying online and selling online, with these new fees...he is now forced to shut down.
2. Small farms around here, after the tariffs were put in place have been struggling financially. I have heard of several of them in my areas filing for bankruptcy. I now see large farm equipment along the roads up for sale. In addition, the people who pick up milk don't want to travel to small farms just to pick up small quantities of milk.
3. The scrap iron industry is getting hit hard. Two people here locally have stopped buying/hauling scrap after the tariffs. They have been doing this business for well over 20 years. They say to me, in all the years they have been in business, the prices for scrap iron today is the lowest it has ever been.
4. There is a gentleman that has been installing ceramic tiles in excess of 20 years. He says he is still in business, but he says, that he is forced to charge his customers over 10% higher to do the same job he did before the tariffs were put in place. Because of this, he is getting fewer jobs. If this trend continues, he might be out of business sometime in the near future.
5. I just heard lately about a small bakery owner. She has been in business for over 20 years and she has been making it. As of the new year, she is now forced to comply with a new set of complex taxing rules. If she sells something at room temperature, no tax charge...above room temperature...tax collect. A person buys something and leaves, no tax. If they stay and eat at a table, no tax. If they stay and eat at a table and use a napking...collect tax. This is just a short example of the complexity of the new tax rule just put in place. It looks like she might have to go out and buy some new customized for bakery tax accounting software.
She says her profits are so thin in the first place...and questions if it is worth it.6. The same here as with number 5. This guy has been selling used cars for as long as I can remember...20+ years. Just in the past month, he says he is done. He says it is no longer worth it. The new paperwork he is being forced to do with the new laws and the profit margin he was making, is no longer making it worthwhile to stay in business.
Now, if these people were huge businesses, I am sure they could afford making changes in accordance to the new laws and economic environments they have presented to work within. But, they are just small entrepreneurs...and that is what this blog is about.
Comments (10)
Have seen this year over the Christmas season that I sold mainly biscuits and sweets. Very few of my more expensive stuff sold. My sales were more or less the same as last year but there is a lot less profit on edible stuff....so I made less money in the end.
I bet she is tired of explaining, huh ?
hmm...napkings with Donald's name on it ? "The art of the Deal" ?
Maybe, when I was being told this, I thought it was a joke...laughable. But, I guess it is not.
The problem with hard times on the financial mid-class and more people struggling financially is that it soon catches up to the next higher financial tier, then the next and the next. Until it has affected all. Like a disease, if left unattended, it spreads.
I’ve seen people moving to supposedly less popular and less populated states, cities, due to affordability, regardless of weather conditions being to their liking or not.
If inflation continues on its path, and people’s financial hardships continue to rise, it will all fall apart at some point.
While the media tells us the job market and business is plenty, they don’t tell us that the wages for most jobs, and the profits for small business are less than sufficient for today’s economic needs.
Thank you for the education about the trickle up effect.
I was just watching a documentary where they say that if a person likes somebody.....especially when they have announced their commitment to others about a certain person....you change show them undeniable evidence they are not good....and they will maintain their favorable stance about them.
I am assuming, it is all for protecting their ego.
I don't know how to put what I want to say. May be I try later.
Jmo