I love how politicians only champion "small businesses." "Big business" is bad, but "small businesses" are good.
Never mind that big businesses account for the majority of employment.
And never mind small businesses,when successful, become big.
Nope, small business = good.
Big business = bad.
Just one problem.
The vast, and I mean like 93% vast, majority of small business owners are dumber than hell.
They are incompetent. They have no business acumen. And they consequently fail the vast majority of the time.
The reasons are many.
Most small business owners are naive and start things they think will be "fun." There was no limit to the number of sports bars, trinket shops, horse hobby farms, music studios, and restaurants I had to deal with working as a credit analyst. NONE of them were profitable. NONE of them were feasible. It was just some moron who foolishly cashed in their 401k to "pursue a dream" and start a company they thought would be fun. Of course "fun" things are usually oversupplied to the market and the profit margins just aren't there.
Another reason for the spectacular failure of small businesses is their owners truly and honestly believe accounting is optional. THat's the "hard stuff" and they literally have no idea how much they're making or losing. All one has to do is watch Restaurant IMpossible where the host invariably asks the bloated sows about their "P&L" and they don't even know what that is. Again, these are lazy, dumb people who started the business for "fun." Not profit. And since accounting isn't "fun" they don't do it.
Finally, a disproportionate number of "small businesses" are really just contractors who claim theyr'e running a business. You know, the guy with the truck who bought a magnet to put on it "Joe's Master Paving" but couldn't tell you what "LLC" stands for or where the secretary of state is to register such a thing. They are basically playing make-believe-businessman. They get cards, they get signs, they get everything that is glamorous and ritzy, but not the basic things like setting up a company or getting insurance.
Normally I would like to submit a solution. Like "hey, if you're a dumbass, don't start a restaurant." Or "hey, if you're a politician, the LAST group of people you should be championing for saving the US economy is small business owners." But I don't care anymore. Not because I'm enjoying the decline, but because the entire small business world, even the entire US economy, is more focused on feeling good and avoiding real work than working hard and making a profit. And no amount of logic, reasoning, lecturing or facts from me are going to wake these people up out of their trance.
The only thing will be when the Chinese and Japanese turn off the credit line and there's no more money to be lent out to sports bars, hair salon, or horse hobby farms.
Enjoy the decline!