The old saying is “every cloud has a silver lining.” Basically it means think positively about every situation you experience. Why am I saying this? Well, because we all know the economy has had some definite challenges and unemployment continues to hover between 10 and 12 percent.
In Indiana, we are actually fortunate regarding unemployment, as Nevada has one of the country’s highest unemployment rates.
In 2012 not as many people are starting businesses and employing people. The number of U.S. companies that have started since the early 1980s continues to decline.
The Kauffman Foundation-Census Bureau produced a study on entrepreneurship and business owners, entitled “Where Have All the Young Firms Gone?” The study is actually quite interesting. Although the number of startup companies has declined fairly significantly, the number of businesses staying in business long term has increased. Here is the silver lining: Businesses are learning to run more efficiently.
During the 1980s, new businesses amounted to 13 percent. A little more than 30 years later, and the percentage decreases to 8. Of course this is an area of concern since new businesses have been a traditional source of job creation.
But now, business owners must look at how to stay in business and retain valuable employees. Bottom line? Owners must become more operational minded in order to retain qualified employees and reduce unnecessary expenses while simultaneously maintaining a strong culture, product or service and bottom line.
So why are fewer companies starting? First, new companies are not starting because current needs are already met in the marketplace.
Existing companies have a vast amount of knowledge they have gained from experience along the way, which has permitted them to operate more efficiently. With business owners performing better, there is less opportunity in the marketplace.
Research shows that in 2010, 2.1 percent of private sector workers were employed by new businesses versus 5.9 percent in 1977.
What is odd is that the decline experienced by new businesses did not impact the private sector otherwise. Actually, American industry increased by 6 percent of the population.
The decline in hiring by new businesses was countered by hiring in existing businesses.
In conclusion, it seems existing businesses are holding their ground. They have increased from a little more than 19 employees in 1977 to a little more than 22 employees in 2010, on average that is. One thought to ponder is: How we can help current business owners to stay in business longer, operate more efficiently, increase market share and thereby hire more employees to provide long term, mutually beneficial jobs.
Heather Strohm is the regional director for Indiana State University’s Indiana Small Business Development Center.
Business
BUSINESS CENTS: The decline of startups and discovering the silver lining
- Business
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Business Cents: Customers and companies: Sugar goes further than vinegar
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Upcoming meetings
The Terre Haute Chamber of Commerce is hosting a health care reform seminar for businesses from 2 to 3:30 p.m. on Tuesday at Old National Insurance at 925 Wabash Ave., suite 200.
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Indiana ranked best place to do business in Midwest
Indiana was ranked as the best place to do business in the Midwest and the fifth best nationwide in a survey of more than 500 chief executives by Chief Executive magazine.
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First Farmers rated among top 100 community banks
First Farmers Bank & Trust of Converse was named one of the 100 top-performing community banks for 2012 by SNL Financial.
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Newsmakers: May 12, 2013
Employer Support of the Guard and Reserve has recognized John Thompson, president of Thompson Thrift Construction, and Paul Thrift, president of Thompson Thrift Development, as “Patriotic Employers.”
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On the Move: May 12, 2013
Stacey Joseph, a realtor in Terre Haute, has earned the Certified Residential Specialist designation by the Council of Residential Specialists, the largest not-for-profit affiliate of the National Association of Realtors.
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Chamber lauds four with Business Recognition Awards
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ISU students provide detailed grocery analysis
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Construction firm holding grand opening in Marshall on Friday
Construction, H&H LLC is holding a grand opening and Marshall Chamber of Commerce ribbon cutting ceremony on Friday at 812 N. Second St. in Marshall, Ill.
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AP Source: Subaru to expand Indiana plant
Subaru plans to expand its Indiana factory and add workers to build the Impreza small car in 2016, a person briefed on the matter says.
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Transit proposals can prove to be game changers
After baseball, my favorite TV watching is the government channel. Here I can see the local government in action or local government inaction.
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On the Move: May 5, 2013
Melissa Schollaert, RDH, HHP, has been added as a counselor of holistic health and nutrition at The Maple Center for Integrative Health.
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ISU set to offer financial planning program in 2014
When Indiana State University junior Jennifer Groth began scheduling classes last semester, she planned them out by thinking of an academic program the university does not yet offer. Groth will be one of the inaugural students in the financial planning program that ISU will begin to offer in spring 2014.
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Newsmaker: May 5, 2013
Gov. Mike Pence announced the appointment of Jessica Robertson to commissioner of the Indiana Department of Administration, a role she will begin on Wednesday.
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U.S. Postal Service opens village office in Worthington
The U.S. Postal Service officially opened the 40th Village Post Office in the Greater Indiana District on Monday in Worthington.
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How consistent is your business?
There are six areas in which consistency is critical in the majority of companies. Too often, business owners feel as they are “chasing down” rather than “leading it along.” If you can get a high level of consistency with your standards and practices, then your company will benefit.
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Good time to try Spanish online service
Cinco de Mayo is May 5 — a time to celebrate Mexican heritage and pride. Why not join the celebration by visiting Social Security’s Spanish website, where you’ll find a number of useful services and a wealth of information in Spanish.
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First Financial’s net income up 3 percent
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Curtain goes up on new theater owner
The Indiana Theatre in downtown Terre Haute is under new ownership with a new purpose.
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Indiana Theatre SOLD!
The Indiana Theatre at 683 Ohio St. is sold.
Rob Lundstrom, who owns the Copper Bar and Louise’s, took possession of the historic downtown theatre on April 25. -
Higher education completion rates questioned
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Vectren Corp. awards $2.3 million in grants
Vectren Corp. has announced that it awarded more than $2.3 million in 2012 through the Vectren Foundation and corporate contributions.
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Hard work, good attitude produces success
Like clockwork, Indiana State University graduate Joe Evelo regularly provides monthly updates to the first client he signed up when he started his financial investment career more than 35 years ago.
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On the move: April 28, 2013
Old National Bank has promoted Howard Mills to vice president, mortgage loan originator.
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Newsmakers: April 28, 2013
Lenise Kohlway of Spencer was presented with the WorkOne Achievement Award last week for overcoming several employment barriers and pursuing a better life for herself.
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Ivy Tech offers free business counseling
The Ivy Tech Business and Entrepreneurial Services Center and the Terre Haute chapter of SCORE are offering free, confidential business counseling and low-cost high-impact training workshops to aspiring entrepreneurs and existing small business owners.
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Social Security: Try this word puzzle challenge
In 1938 — only a couple of years after Social Security was signed into law — a depression-era, unemployed architect named Alfred Mosher Butts studied the front page of The New York Times to figure out how often each of the 26 letters was used. The result was a game he called Criss Cross Words, renamed 10 years later as Scrabble. In honor of Scrabble’s 75th anniversary, we’d like to challenge you to a word puzzle.
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