By SueCanyon | July 28, 2007
Welcome to the new Sue Canyon Blog. Here you will find experiences that I have had with small business owners, bankers, vendors, customers, employees, and other interested parties over my long career in business repair.
We’re migrating here from blog.suecanyon.com, and will be doing so for a few weeks. Please have patience as not everything is working at the publication of this entry. Also, you may find entries both here and at the old site. Once we’ve moved all the entries, I will begin again writing more incredible articles for you, the courageous entrepreneur.
Below, you’ll find the first article I published nearly a year ago. I hope you enjoy the series.
Not long ago, there was a press release that announced a joint study by Harvard Business School and The Kauffman Foundation about an error in the government’s new formula for calculating small business bankruptcies. The study stated that the number of bankruptcies is understated by a very high percentage. It said that all companies that are sole-proprietors or S-Corps that fail are tied to personal bankruptcies in the government’s new formula rather than to business statistics.
This is not surprising. But what caught me off guard was the conclusion made by these formidable gentlemen about the new bankruptcy laws. As you may be aware, the new law makes provisions for bankruptcies to be eventually paid off by the debtor.
The study recommends that we should allow businesses to continue to invest their hard-earned livings and fail, that the economy needs the savings of the entrepreneur to be sucked up in business failure.
What a shame, these educators do not understand that the problem is not that the owner will fail because of factors “out of his control”, it’s that our education system has failed to educate our entrepreneurs, that a successful entrepreneur is much more valuable to the economy than a failed business, and that the difference is most often in the efficiency of the business.
Inefficiency accounts for the twenty percent of profit that business owners give up because they don’t know how to recognize it, nor what to do about it when they when they do see it.
© Business is Booming! llc
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