The unfortunate truth is that few small business owners are, ever have, or ever will. The small business owner that some talk about “protecting from a tax increase” is not the owner-operated sub $5 million company that represents the vast majority of real small businesses. As is referenced in other posts in this blog, the term entrepreneur has been hijacked by venture capitalists whose predominate focus are high tech and health care. No electrical contractor, no plumber, no landscape company, no trophy company, no sub-contractor is going to be approached by a venture capitalist to be taken public and create millions of dollars of income. Not going to happen. That is why we have coined the term neopreneur. The Fremont Group is dedicated to helping the neopreneur; not the entrepreneur—between bankers and government they have plenty of help already.
You as a neopreneur have to run your business for a profit—the profit is your income. A generation ago a father started a business, worked hard, put the profit back into the company to build a business that would provide him an income and be passed on to his children. Today the children who start a business think that they are going to build up the sales volume and make their fortune by selling it. We have a generation that never learned how to make a profit. Our mission is the bring profit back as the focus in the real small businesses and to do so and thrive requires that the government help.
The next time you hear that we can’t raise taxes on the rich because it will hurt small business take a look at your past three tax returns. What will hurt you is not a tax on high incomes, rather what hurts you is the eroding middle class. For most small businesses the middle class is essential as a customer base. If they aren’t buying, you aren’t selling. Of course there are exceptions but as a general rule, you are the middle class, not the rich. We all aspire to be rich but as this recession has shown the first objective must be to survive. I urge you to reject the “we can’t afford to be a great country” approach and support the “we are a great country and we simply have to properly finance it” approach. To do otherwise will do nothing but prolong the lack of demand that you have seen over the past three years.
This is our opinion—your comments are welcome.