Where’s the help for small businesses?

Well, I took a few days off, but the country’s economic implosion didn’t. In my post-holiday look at the news, I’ve found that some other people are upset about the same thing that’s been infuriating me: Though the U.S. depends heavily on the jobs and commerce generated by small businesses, small-business entrepreneurs and owners get next-to-no help from anyone with money – not governments, not venture capitalists, not business-development organizations – not even in this age of bailouts. 

As Simona Covel of the Wall Street Journal wrote Friday:

 ”For many small businesses across the country, these are scary times. The dramatic pullback in consumer spending is only the latest blow threatening to push some strapped small businesses out of existence. Customers are paying their bills late, cutting off cash flow, the lifeblood of a small business. Even healthy companies are being choked by the lack of credit lines and bank loans. Others are still reeling from several years of high raw-materials prices.

“In a recent survey from the National Federation of Independent Business, more than a quarter of small business owners said the current economic downturn is threatening their ability to survive. Nearly half of respondents said slow or lost sales are their most immediate problem.

“In the months ahead, ‘we are going to see small businesses that were marginal go out of business,’ says William Dunkelberg, NFIB’s chief economist. ‘We’ve never seen sales trends as weak.’

“Small businesses are a driver of the U.S. economy. In the past decade, small businesses — those with fewer than 500 employees — have created 60% to 80% of the nation’s net new jobs each year, according to the Small Business Administration. More than half of Americans are employed by a small business, and these companies are responsible for more than half of the nation’s nonfarm private gross domestic product.”

I have to ask: Does it make sense to anybody that even in better economic times, community and state business resources go almost exclusively to luring and nurturing big technology ventures? And that since times have gotten really bad, all the help is going to the giant corporations that messed things up in the first pace?  

Where are the investments in the diversified array of smaller companies that every economy needs? Haven’t we learned anything from all the factory towns that have collapsed because the one big employer pulled out or went bankrupt? Why are our government development efforts and venture foundations and angel investors putting all their eggs in the tech-manufacturing basket? Even the greenest portfolio manager would recognize that as a dumb move.

Maybe it’s time we small-business owners demanded smarter and fairer investment strategies from our cities, states and nation.

As Covel’s story notes, ”Many are frustrated that Washington is bailing out some of the largest companies and banks. ‘Our members are angry that the federal government is giving taxpayer money to big companies that have been horribly irresponsible while small businesses are not getting the money they need to keep their doors open,’ Margot Dorfman, chief executive of the U.S. Women’s Chamber of Commerce, told the House Small Business Committee earlier this year. The government should set aside money specifically to assist small businesses, she said.”

The small-business community needs to speak up now – and not just owners, but anyone who works for or buys from a small business. We all need to remind our mayors and council members and state representatives and governors as well as our national leaders that small businesses are a big part of our nation’s economic survival and future.

Imagine how many small businesses and jobs that $150 billion AIG bailout would have supported. Now pick up the phone and call your elected leaders.

Angels, earn your wings

Why is reality never like the movies?

Specifically, why is it so for hard for an entrepreneur like me to get an angel when George Bailey didn’t even have to ask?  From what I remember of “It’s a Wonderful Life”, all George had to be was suicidally frustrated and hopeless and presto! He found a kindly silver-haired guy talking him off the bridge and making his life seem worthwhile again. 

I think could work myself down to that level of despair. Of course, I’d want my angel to show up with a big check made out to The Genius Group LLC, along with the usual store of life-affirming wisdom. 

Anyone?

Anyone?

I’m not hearing any bells.

I keep hoping that my state or local government will finally create a program that connects entrepreneurs like me with angel investors. There was even a story about angels in the online New York Times yesterday saying that a report by the National Governors’ Association Center for Best Practices finds that state officials are working to develop more ways to help entrepreneurs find private investors. I quote:

“Among other strategies, this includes creating seminars on private equity investment, connecting entrepreneurs with existing educational opportunities, forming statewide angel networks, and appointing angel investors to state economic advisory boards, the report said.” 

I got a excited for a nanosecond, until I saw the rest of the story:

“Angel investing in entrepreneurial ventures can range anywhere from $5,000 to $100,000, with investors typically backing new medical devices, software, biotechnology, business services, IT and energy initiatives.”

Rats. Rats and mice with cheese on top. That’s why I keep saying “an entrepreneur like me” – I’m not in new medical devices, software, biotechnology, business services, IT and energy initiatives. I’m in new media, wanting to inform the public about all those technological innovations and many other kinds of creative developments. And so my state officials in Ohio (oops, did I name the place?), along with the other set of 49, apparently couldn’t care less whether my business and other nonbiotech, non-IT companies fulfill their great potential or not.

Guess we’re going to have to keep trying to do it for ourselves, huh? Boo! Happy Halloween!

It’s scary out there. Will I ever find someone(s) with the imagination, vision and enthusiasm to materially join me in this great quest to change how the world perceives and practices creativity? To revolutionize human problem-solving and change our societies into peaceful, constructive cultures?

Does anybody here see what I see? (Let’s count how many shows I reference today. That was “1776.” Title, not tally.)  

Anybody? Nnnnnot yet, apparently.

Ok, so – Here’s a guide I found online to help those of us on whose lines of business the venture people and programs spit. There are probably more, but this is a start. And remember: There’s no money anywhere right now except for the eight hours every third day when stockholders have taken their puppy uppers. But we can be prepared with strategies for when the money comes back, Little Sheba. Or bahk. Or ba-a-a-ak.  We hope.

And for those of you who were counting, the correct answer is six.