Let's connect some dots. An article on USA Today's September 18 front page says that the entrepreneurial spirit is suffering and that for the first time in fifty years start-ups and small businesses are not leading the U.S. out of recession. Self-employment fell to 6.2%…a dramatic downwards shift. Several reasons for this downfall were cited including high health care costs. Many would be entrepreneurs say they cannot afford to start a company because employer health insurance costs have jumped so high (12.7% in just the last year). Financing problems are stated as another reason. Normally many small businesses start up using credit card financing, but consumers have piled debts so high they have no credit ceiling left for a business.
Then another article told how Europe's entrepreneurs were suffering because of untold government intervention, especially labor laws that made it impossible to shed staff. Who wants to start a new business when they can't fire their workers if the business does not succeed?
It is not without reason that two of our five areas of focus at this site are on health secrets and how to have your own small business where you can make hundreds of thousands of dollars a year without employees and where your business pays all your health costs!
The old British saying “Where there is muck there is brass”, could not be more true now. The lack of new entrepreneurs in the U.S. and Europe does not mean that the need for entrepreneurs is gone. Those of us who are left to fill this void are more in demand and will gain richer rewards.
This means that there is more opportunity for those who can get into business!
Paul Zane Pilzer's book, The Wellness Revolution, points out that recent legislation in 2001 allows self employed individuals to deduct 60% of their health premiums for themselves, their spouses and children. This figure rises to 70% this year and rises to 100% in 2003.
Even better, self employed people can cash in on wellness programs which can be 100% tax deductible. This is going to become a leading industry over the next decade and I will cover how Merri and I have used this type of program now for over 10 years at our upcoming International Investment and Business and course November 15-19 in Orlando.
Now may I connect one more dot? During these reversionary times, the future may seem filled with gloom. It is not. Conditions could not be brighter!
First, recessions are part of a natural cycle. We should only be worried if economics were not getting cleaned up. Second, demographics for the U.S. are better than ever before. The special report in the August 25 issue of the Economist entitled “Half a Billion Americans” explains that America's census in 2000 contained a shock. This census showed that a gap is opening in the fertility rate between the U.S. and Europe. America's population will soon be getting younger. By 2040 or even sooner, the U.S. population will overtake Europe's. In 1950 Europe had twice the population of the U.S. Fertility rates in both the U.S. and Europe were falling. Then suddenly in the 1980s the U.S. rate picked back up. It is projected that the U.S. would have 275 million people by 2000. Instead the number was 281 million, well beyond expectations.
This growing population is the (and about the only) answer to the baby boom problem. More workers matched with new technology that brings even greater productivity paying tax can generate sufficient sums to pay off debt created now and during the boomers' retirement days.
This wave of new Americans will create more opportunity of every kind, health, housing, pollution control, waste management, environmental control, etc.
This is also why one of our areas of focus at this site (great places to be) is focusing now on Small Town USA now.
And here we are set for growth, at a time when everyone else thinks things are down. Never before has the time been so ripe to have a business for yourself!
I hope that whatever you do, until next message, your business will be good!