"A Free Market Call to Arms" by Brian D. Aitken, Financial Sense Editorial
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http://www.financialsense.com/fsu/editorials/2009/0812.html
Want to save the economy?It’s not easy, but it starts with entrepreneurs and executives like me and you. The biggest problem is, as much as we think the government helps small businesses and start-ups, the government actually harm entrepreneurs’ long-term objectives. Ever wonder why, with all the money provided through loans and grants, most startups fail within their first 5 years?
Lots of these failed startups can be attributed to inexperienced entrepreneurs entering into an already competitive marketplace. Some of these entrepreneurs lack management skills, others didn’t take the time to formulate a thorough business plan, analyze the market and competition, or bring enough capital to the table. Many entrepreneurs actually bring too much “capital” to the table; but they do so in the form of loans which they ultimately cannot pay back (this is where I reiterate the importance of a thorough business plan). Outside lack of planning the single biggest threat to a small businesses success is the government.
I know, I know. Grants, government-backed loans, the Small Business Administration--all of these things are meant to help entrepreneurs; not bankrupt them. But what about government subsidies and bailouts to failing companies? These policies hurt entrepreneurs more than the government programs in place to help them.
Government subsidies are killing America. Subsidies, by definition, support a failing business with tax payer money. This immediately removes any incentive of the failing business to rethink their strategy or develop new revenue streams. Think about it: if the government paid you to fail, would you change your business strategy? Of course not.
READ THE REST OF THE ARTICLE HERE: http://www.financialsense.com/fsu/editorials/2009/0812.html
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