Micro Businesses Fly under the Radar

Posted by bestbizpractices under Startups
From http://bestbizpractices.org 5214 days ago
Made Hot by: Cathode Ray Dude on August 17, 2010 9:05 am

A recent report funded by the U.S. Small Business Administration and the Office of Advocacy, titled, “The Nonemployer Start-up Puzzle”, published in December, 2009 differentiates Nonemployer firms—businesses without employees—and Employer firms. Nonemployer firms represent a large percentage of businesses; however, little is known about their dynamics (entry and exit). The report seeks to illustrate basic statistics about the prevalence of entry and exit for Nonemployers and the local conditions that led to their entry.

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Comments

Written by ShawnHessinger
5214 days ago

Great post, Mike. I think it could be added that these nonemployer companies are great opportunities for startup. They essentially test the waters and can become a springboard for bootstrapping entrepreneurs to generate cash flow to reinvest into larger and more profitable ventures allowing, as you said, these nonemployer firms to grow into employing businesses. Whether the data supports this or not, my intuition tells me these extremely low investment startups have a higher chance of success because an entrepreneur is able to change direction quickly and evolve the business to find an effective business model before bringing on extra employees and overhead costs.

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