Small Biz Watch

Small Biz Tech Council Honors Sen. Snowe With Award

2010-09-29T17:54:00.000-07:00

Sen. Olympia Snowe, a Maine Republican, has received the Small Business Technology Council’s Milton Stewart Award. It's an annual award presented annually to individuals who have made big contributions to American small business technology companies.

“I am honored to receive this distinguished award from SBTC, whose dedication to promoting and defending the Small Business Innovation Research and Small Business Technology Transfer programs has been nothing short of remarkable. These critical programs are more important than ever to helping spur national job creation and enhancing our global competitiveness," said Snowe.

According to the Small Business Administration, the SBIR program awarded over $2.1 billion to businesses in fiscal 2008, while STTR added $239 million.

"The impact of this funding on small business development, high-tech innovation, and commercialization of groundbreaking technology is incredibly significant and I remain committed to reauthorizing SBIR and STTR in a manner that ensures they remain, to their core, small business programs,” said Snowe.

The Small Business Technology Council is a nonprofit organization representing small, technology-based companies. SBTC is a big fan of the SBIR program.

Stamps.com Offers Webinar for Small Business, E-commerce retailers

2010-09-20T19:00:00.000-07:00

Stamps.com, a top provider of online postage and shipping software for the U.S. Postal Service, is offering a free webinar for small businesses and e-commerce retailers that's designed to help make shipping processes more efficient in preparation for the upcoming holiday season.

The webinar is Sept. 22 at 2 p.m. ET and registration is at: https://www2.gotomeeting.com/register/189058627

Stamps.com shipping gurus plan to discuss how to:

Add a sense of urgency to increase early sales.
Provide a hassle-free shopping experience.
Package merchandise to minimize damage and returns.
Test pricing and free shipping offers.
Streamline shipping with batch processing.

Senate Passes Small Biz Jobs and Credit Act

2010-09-16T10:28:00.000-07:00

The Senate on Thursday passed the Small Business Jobs and Credit Act, helping some small businesses that qualify for certain tax breaks or new loans.

Rep. Nydia Velázquez, D-N.Y., the chairwoman of the House Committee on Small Business, commented today on Senate passage of H.R. 5297: "Today's Senate vote is another important step toward helping small businesses access capital they need to fuel our economic recovery. The House-passed legislation included strong safeguards to ensure that banks boost their small business lending. I look forward to working with my Senate colleagues to ensure any final package achieves that goal."

The National Federation of Independent Business applauded the measure's passage, but lamented that a repeal of the Form 1099 requirements was not included.

Small Biz Ticked Off About Form 1099 Reporting Requirements

2010-09-16T09:08:00.000-07:00

The small business community is in general consensus that lawmakers are failing to support them in its effort to get rid of language in the new health care reform bill that requires expanded Form 1099 reporting requirements.

Congress is back in session this week and failed to pass two amendments on addressing those new requirements set to take effect in 2012.

The measure doesn’t have anything to do with health care, but Section 9006 of the Patient Protection and Affordable Care Act mandates that small business owners file a 1099-MISC with the IRS for payments made to vendors totaling $600 or more in a tax year.

A small business would have to file a 1099 with office supply store Staples, for example, if the business owner purchased at least $600 worth of office supplies from it in one year.

An amendment from Sen. Mike Johanns, R-Neb., would repeal the provision and lower the standard required for the individual mandate to purchase health coverage.

Sen. Bill Nelson, D-Fla., would alter the new 1099 requirement by exempting businesses with fewer than 25 employees from having to comply with it. His measure also would raise the reporting threshold from $600 to $5,000 worth of goods and services. Nelson also favors creating a list of companies, such as utilities, that small business owners would not be required to give forms 1099.

“There is bipartisan agreement in the House and Senate that this provision should be fully repealed,” said a statement from the National Federation of Independent Business. “No ‘alternative’ meant to provide political cover ends this paperwork nightmare that should have never been included in the healthcare law. That’s why NFIB – and hundreds in the business community – made it clear that full repeal of the 1099 provision was the only acceptable option for our nation’s job creators.”

Sen. Mary Landrieu, D-La., who chairs her chamber’s small business committee, said she would introduce separate legislation dealing with the issue in the near future.

A survey from the National Association for the Self-Employed shows that these businesses will face an over 1,250 percent paperwork increase under the current regulation set to begin in 2012.

The NASE also signed on to a letter by the Coalition for Fairness in Tax Compliance supporting the amendment by Sen. Johanns. The National Small Business Association, the National Federation of Independent Business, the National Association of Manufacturers and the Small Business and Entrepreneurship Council are among the signatories.

NoVa Black Chamber of Commerce Hosts Candidates Night

2010-09-15T18:09:00.000-07:00

Fifteen politicians from four parties are confirmed to attend an event hosted by the Northern Virginia Black Chamber of Commerce dubbed "Candidates Night 2010" on Wednesday, Sept. 22, 5:30-8 p.m. at the Courtyard By Marriott Tysons Corner.

The nonpartisan NVBCC Candidates’ Night Mixer gives candidates and elected officials the opportunity to meet constituents face-to-face, and allows members of the Black Community the chance to express their concerns about the future of Northern Virginia.

Candidates and elected officials from the Democratic, Green, Libertarian and Republican political parties have been confirmed. “We want to ensure that all candidates have an opportunity to listen to our concerns and solicit our votes,” said Randy Philip, NVBCC chair.

The event is held just after the Congressional Black Caucus Foundation’s Annual Legislative Conference.

IRS Holds Taxpayer Open House Sept. 25

2010-09-15T07:41:00.000-07:00

The IRS will host a special nationwide open house on Saturday, Sept. 25, to help taxpayers –– especially veterans and people with disabilities –– solve tax problems and respond to IRS notices.

One hundred offices, at least one in every state, will be open from 9 a.m. to 2 p.m. local time. IRS staff will be available on-site or by telephone to help taxpayers work through issues.

In many locations, the IRS will partner with organizations that serve veterans and the disabled to offer additional help and information to people in these communities, according to the agency. Partner organizations include the National Disability Institute, Vets First, Department of Veterans Affairs, National Council on Independent Living and the American Legion.

IRS Offers Guidance on Calculating Small Biz Health Care Tax Credit

2010-09-08T05:05:00.000-07:00

The Internal Revenue Service has released a draft version of the form that small businesses and tax-exempt organizations will use to calculate the small business health care tax credit when they file income tax returns next year.

The agency also announced how eligible tax-exempt organizations, which do not generally file income tax returns, will claim the credit during the 2011 filing season.

The IRS has posted a draft of Form 8941 (pdf) on the web site IRS.gov. Small businesses and tax-exempt organizations will use this form to calculate the credit. A small business will then include the amount of the credit as part of the general business credit on its income tax return, according to the IRS.

Tax-exempt organizations will claim the small business health care tax credit on a revised Form 990-T. The Form 990-T is currently used by tax-exempt organizations to report and pay the tax on unrelated business income. Form 990-T will be revised for the 2011 filing season to enable eligible tax-exempt organizations –– even those that owe no tax on unrelated business income –– also to claim the small business health care tax credit.

The final version of Form 8941 and its instructions is expected to be available later this year.

The small business health care tax credit was included in the Affordable Care Act signed by President Obama in March and effective this year. The IRS explains the credit as being designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.

In 2010, the credit is generally available to small employers that contribute an amount equivalent to at least half the cost of single coverage toward buying health insurance for their employees. The credit is designed to help small businesses and tax-exempt organizations that primarily employ moderate- and lower-income workers, according to the IRS.

For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. Beginning in 2014, the maximum tax credit will go up to 50 percent of premiums paid by eligible small business employers and 35 percent of premiums paid by eligible, tax-exempt organizations for two years. The maximum credit goes to smaller employers, which the agency is defining as those with 10 or fewer full-time equivalent employees, paying annual average wages of $25,000 or less.

The credit is phased out for employers that have 25 full-time employees or more or that pay average wages of $50,000 per year or more. Because the eligibility rules are based in part on the number of FTEs, and not simply the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals.

SBA Hosts Job Symposium on Capitol Hill

2010-09-08T04:56:00.000-07:00

The Small Business Administration’s Office of Advocacy is hosting a job symposium Oct. 14 on Capitol Hill.

SBA Administrator Karen Mills is scheduled to speak along with Advocacy Chief Counsel Winslow Sargeant, among others.

The event is expected to review the kinds of growth that have been creating jobs, the importance of innovation and incentives, financing high-impact firms and other issues.

View the prospective agenda and register online at

http://www.sba.gov/advo/sym_entrepreneurship.html

Report: Business Are Paying Their Bills More Slowly

2010-08-31T05:26:00.000-07:00

Simmer down that talk of any kind of rapid economic recovery. Businesses paid their bills more slowly in July, according to a new report out this morning.

The national average number of days that businesses paid their bills beyond contracted terms increased by 2 percent in July when compared with June, according to Experian’s Business Benchmark Report.

The July report also showed that the national average dollars delinquent and dollars severely delinquent (91 or more days) are up (6 percent and 13 percent, respectively) when compared with six months ago.

Graphic provided by Experian

Businesses with no employees, or “nonemployer” firms, along with the largest businesses, showed the greatest increase in paying their bills beyond their due date. They increased in paying “days beyond terms” or DBT, by 5.6 percent and 4 percent, respectively, when compared with six months ago. Midsize businesses (with 50 to 499 employees) showed the biggest improvement, reducing DBT by as much as 6.1 percent over the same period.

However, month over month, the largest increase seen in DBTwas in the nonemployer category, which increased by 2 percent to 5.7 days. The biggest improvement in average DBT was seen in the large business category (those with 500 to 999 employees), where DBT improved by 1.6 percent to 8.6 days.

Other report highlights:

· The average commercial risk score for July was 58.3, up 0.5 percent over June’s average score of 58. For firms with one to four employees, the risk score is 56.7, up 1.3 percent from six months ago.

Graphic provided by Experian

· In July, very large businesses, which have more than 1,000 employees, showed an almost 6 percent drop in their risk scores compared with June, going from 41.6 to 39.3. However, these businesses continue to demonstrate the greatest overall improvement in risk scores when compared with six months ago, when the average score was 38.2.

· In July, public administration showed the biggest improvement in risk scores over the past six months, improving by 1.6 percent. Conversely, the financial sector showed the greatest decline in risk scores over the same six-month period, decreasing by 1.5 percent.

· Pennsylvania (61.4), Massachusetts (61.2) and Illinois (58.9) were the only states with the largest metropolitan areas that had risk scores better than the national average in July.

Average Days Beyond Terms (DBT):

· All industry groups have shown an increase in DBT in July compared with June. Manufacturing and Utilities had the biggest increases, rising by 2.5 percent and 2.4 percent, respectively.

Graphic provided by Experian

· New York (4.2 DBT), Massachusetts (5.1 DBT), Pennsylvania (5.3 DBT), California (5.4 DBT) and Texas (5.8 DBT) were the only states with the largest metropolitan areas that stayed well below the national average DBT in July.

DC Group Hosts Event to Help Small Firms Navigate How to Do Business in D.C.

2010-08-29T17:00:00.000-07:00

The Washington DC Economic Partnership, a group that helps small businesses get business in the D.C. metro area, is hosting "Doing Business 2.0."

The event is the live version of its "Doing Business in DC" publication providing a step-by-step guide for entrepreneurs who want to start or expand a business in D.C.

The group has set up a panel discussion focused on each of the 10 chapters in its book. Topics range from starting up to business financing and speakers include academics, business executives, venture capitalists and others.

The event will be held Wednesday, Sept. 8 from 9 a.m. to 10:30 a.m. at Venable, 575 7th St., NW, Capitol Room, 8th Floor, Washington, 20004. Only a few spaces remain.

Charitable Groups Outpace Others in Use of Social Media

2010-08-23T19:21:00.000-07:00

New research shows that charitable organizations are still outpacing the business world and academia in their use of social media.

The latest study looking at 2009 data (pdf) by The University of Massachusetts Dartmouth Center for Marketing Research revealed that 97 percent of charitable organizations are using some form of social media including blogs, podcasts, message boards, social networking, video blogging, wikis and Twitter.

The analysis is based on detailed interviews with executives from 76 of 200 charities that responded to the researchers' requests. They were working off a list of 200 of the nation's largest charities as identified by Forbes magazine.

The charities that participated in the study are diverse in mission, average gifts and total revenue. They include some of the best-known charities in the country such as the Salvation Army, American Heart Association, Catholic Relief Services, Dana-Farber Cancer Institute and American Lung Association.

The participating non-profits are geographically diverse with headquarters in most major U.S. cities including New York, Washington, Chicago, Boston, Atlanta and San Francisco.

The researchers issued their first study on this subject and showed that these large non-profits were leading large and small businesses as well as universities in their familiarity with, usage of, monitoring of and attitude towards social media. That trend continued in 2008 and 2009.

IRS Aims to Boost Electronic Transactions

2010-08-23T19:07:00.000-07:00

The IRS has just issued proposed regulations to significantly increase the number of electronic transactions between taxpayers and the federal government.

The proposed regulations (REG 153340-09) would eliminate the rules for making federal tax deposits by paper coupon because the paper coupon system will no longer be maintained by the Treasury Department after Dec. 31, 2010.

The proposed regulations maintain existing rules for depositing federal taxes through the Electronic Federal Tax Payment System.

The IRS says that using EFTPS to make federal tax deposits provides substantial benefits to both taxpayers and the government, i.e., EFTPS users can make tax payments 24 hours a day, seven days a week from home or the office.

The system also allows taxpayers to schedule dates to make payments even when they are out of town or on vacation when a payment is due.

Information on EFTPS, including how to enroll, can be found at www.eftps.gov or by calling EFTPS Customer Service at (800) 555-4477.

When Disaster Strikes

2010-08-19T05:15:00.000-07:00

I recently drove through 80 mile an hour winds with a six year old in the car. We pulled over, and then drove some more as trees started falling around us, lightening stunning our vision. Our car lifted off the ground, set down again. Power lines were loose and flying everywhere.

Luckily, the storm ceased and we were fine. Our neighborhood was without power for three days, others went without longer. I can live without air conditioning, but it was difficult to have no refrigeration and frankly I wish I could have done laundry. As a freelancer, I also have a home office, highlighting for me the importance of good storage and the need to find backup places to go to get work done.

I felt so lucky compared to the home owners of some of the houses we drove by when the storm was over. Trees had snapped houses in two. Huge trees were uprooted everywhere. We saw one hanging upside down from the telephone wires. A friend’s house was condemned after two trees fell on it. She had to move her family, including her four kids to a rental. These disasters are nothing compared to what’s going on in Pakistan and elsewhere, but it’s home.

Another neighbor complained that with our unusual blizzards last winter, freak tornadoes this summer, “Bring on the zombies! At this point, I’m definitely ready for zombies!” Don’t speak too soon – Halloween is around the corner.

I started thinking about my experience last week, sawing and hauling trees when I read a government report today about federal funds needed after hurricanes Katrina and Rita. Today many small businesses in the Gulf Coast still face recovery challenges from those tragedies – and now they’re reeling from the oil spill.

The Small Business Administration provided about $1.4 billion in loans after those hurricanes, in addition to monies provided by Louisiana and Mississippi. The GAO recently interviewed some of those small business loan recipients and found that some of the business owners had problems applying for SBA loans because the hurricanes destroyed needed financial records. I hope most small firms are getting on board with cloud computing so they’re not storing their best data on site. If you don't know what that is, there's probably someone at your local chamber of commerce who does. At the very least, get a fire and water proof box.

“Other owners face higher expenses, especially the cost of commercial insurance and added debt from these loan programs, which has made recovering difficult,” the GAO found.

Meanwhile, Gulf Coast small businesses received almost $2.9 billion in federal contracts awarded in response to the hurricanes. The GAO also found that two of the agencies awarding the most in federal contracts for hurricane recovery couldn’t demonstrate they were monitoring subcontracting accomplishment data for 13 of 43 construction contracts. Trust me, people want things built well.

The report also found that populations and the number of small businesses in heavily damaged areas increased, but both are still below prehurricane levels.

“The impact of the recent oil spill in the Gulf of Mexico on small businesses is uncertain,” the report cautioned.

New Health Care Bill Befuddles Micro Business Owners

2010-08-18T11:24:00.000-07:00

When it comes to the health bill, small business owners are wondering if they should take two aspirin – but who the heck to call in the morning?

Micro-businesses, which have fewer than 10 employees, are confused whether their health plans meet certain requirements outlined in the Affordable Care Act, according to a new study.

The bill offers entrepreneurs the choice to keep the plan they currently provide – if it meets certain requirements – but most entrepreneurs are uncertain how their plan will meet these new rules and if their monthly premiums will be affected, according to a survey by the National Association for the Self-Employed. Some study highlights:

· 65 percent of micro-businesses say they only somewhat or slightly understand the new "grandfathered" plan requirements and how it may impact their ability to keep their plans.

· Of those aware of the requirements to maintain "grandfathered" status of a health plan, 43 percent believe they can keep their plan. Fifty-seven percent were either unsure or knew that they would not be unable to keep their current plan.

· 92 percent believe the self-employed and small business owners should receive a notice from their insurer or from the federal government about whether their plan qualifies as a “grandfathered” plan

With close to 50 percent of micro-business respondents wishing to keep their current coverage, a clear understanding of the “grandfathered” status regulations will be essential to a small-business owner’s ability to maintain their existing coverage, says NASE.

“The self-employed and micro-businesses are always looking at how to get the best deal and health coverage is no exception,” said Kristie Arslan, executive director of NASE’s legislative offices. “Our concern with the current 'grandfathered' status regulations is that it leaves business owners with little wiggle room to make key adjustments to their existing health plan to maintain its affordability for the business owner and employees. Ultimately, micro-businesses will be forced to drop their plan they were hoping to keep and be pushed into the new insurance market which is likely to offer more robust, but also more expensive health plans.”

NASE’s survey found that approximately 67 percent of respondents have changed insurance carriers since the inception of their business, with 55 percent indicating that the primary driver for the change corresponded with the desire to find a better deal or lower costs. Many who made adjustments to their existing health plan to address costs did so by adjusting their deductibles – a move that, under proposed rules, would force them to lose their “grandfathered” status.

Kauffman Unveils Tool to Help Simplify Business Plan Contests

2010-08-16T11:05:00.000-07:00

The Kauffman Foundation is offering a tool designed to help universities and non-profits simplify and power up business plan competitions.

According to the foundation, more than 50 U.S. universities conduct business plan competitions annually, awarding upwards of $10 million in prizes and in-kind services. "While business plan competitions are an important part of entrepreneurial education, the time and complexity required to administer competitions can limit the size of competitions or prevent organizations from holding a competition," the group said in an announcement unveiling its new initiative.

The group says that the tool, iStart, aims to bring standardization and efficiency to these competitions, as well as transparency and access to the business plans themselves; increasing the number of new firms formed.

The iStart platform will help users learn more about the entrepreneurial ecosystem surrounding university entrepreneurship. It also provides users with access to both the plans that are created as a part of these competitions and the information that is created in the normal course of a competition. Universities and platform-users will be able to mine the data collected from business plan competitions across organizations, gain insight and educate entrepreneurs.

Cups Full of Hope

2010-08-13T05:08:00.000-07:00

Cups Full of Hope is a little different than your traditional mix-and-mingle. It’s a fundraising event to beat breast cancer.

Take an everyday, 36C bra and transform it into a work of art. Register your bra on the Success in the City site and mail your masterpiece, along with a short story about what inspired you, by Aug. 27 .

Success in the City, a local networking group for women, offers:

FIVE REASONS TO ATTEND CUPS FULL OF HOPE

5. Hang out with the girls

4. Let your creativity run wild

3. Help local women who are living with breast cancer

2. Exclaim "BRAllelujah!" if you win the $500 top prize

1. Make new connections that could lead to more business

ATTEND

On Sept. 15, join the fun as SITC holds a silent auction for the best bras-of-art. Proceeds will benefit the Tigerlily Foundation, a local non-profit that helps support women in the area living with breast cancer.

WIN

Grand Prize $500: a luxury gift basket provided by The Full Cup

Second Prize $300: stunning jewelry ensemble provided by the Carlin Group

Third Prize $200: gift certificates provided by various sponsors

People's Choice: $150 cash provided by Helios HR

Best Inspirational Story $100: Purse from Biejo Bags provided by Access National Bank

Public-Private Partnership Unveils Nation's First Program to Aid Minority Construction Industry

2010-08-10T08:15:00.000-07:00

The Minority Business Development Agency, the International Trade Association and other groups announced an initiative Tuesday designed to globalize the U.S. minority-owned construction industry by providing education, tutoring, mentoring and procurement opportunities.

Firms that complete the program will have the opportunity to compete for a minimum of $1 billion in contracts from Tutor Perini, a corporation that is also participating in this new program.

“This program could not be more relevant in today’s economy, where global competition is tougher than ever before,” said U.S. Commerce Deputy Secretary Dennis Hightower.

The Global Construction Program will prepare 150 high capacity, minority-owned and operated general contractors, subcontractors and suppliers to compete for construction opportunities worldwide. Participating firms will receive training, education and mentoring, as well as a new, broader source of contracting opportunities. Tutor Perini is one of the nation’s largest global construction conglomerates.

“The Global Construction Program is designed to provide minority-owned firms with access to relationships, technical training, and skills to compete in the construction industry worldwide,” MBDA National Director David Hinson said. “This is the first time in history that minority businesses will have access to global construction opportunities...This program is the first of a series of programs designed to increase employment and capacity in the minority business sector.”

Included in the program are comprehensive quantitative and qualitative needs assessment, classroom training and distance learning including webinars and online self-study through the University of Southern California, field and on-the-job training provided through Tutor Perini, and training on federal certifications that will allow participants to work on

U.S.

government-supported construction projects internationally.

“This partnership between USC, private business and the federal government will create thousands of new jobs within minority-owned construction companies by providing instruction, access and opportunity,” said Tom Sayles, USC’s vice president of government and community relations. “This program will create a path to compete for an estimated $1 billion in contracts all over the world in the next four years.”

In addition, Next Level Diversity, LLC will provide the administration of this program, Ralph G. Moore & Associates will conduct the needs assessments and the International Trade Administration will provide training on its global services and the global construction industry.

The program is specifically tailored for minority general contractors, subcontractors and suppliers. Federal sector global contracts traditionally have an entry point eluding even the best minority-owned firms, according to coordinators of this new program. The cost of the program is $10,000 for general contractors and $7,500 for subcontractors and suppliers. The first class is scheduled to begin Oct. 3.

To apply, minority-owned firms should send an e-mail to Prequalification@periniwest.com with Global Construction program in the subject line.

Kaplan, Kauffman Partner on Grad Certificates for Entrepreneurs

2010-08-02T09:09:00.000-07:00

Kaplan University has partnered with Kauffman FastTrac, a provider of learning curricula for entrepreneurs, to offer two new online graduate certificates designed to prepare students for careers as business people.

“This partnership provides a unique opportunity to combine the innovation of Kaplan University’s online platform with the stellar curriculum that the Kauffman Foundation has developed over the years,” said Kaplan President Wade Dyke. “These certificate programs are a great complement to the university’s online business curriculum. Promoting entrepreneurship through education is central to both of our missions.”

According to the Kauffman Index of Entrepreneurial Activity, a leading indicator of new business creation in the United States, the number of new businesses created during the current recession increased. In 2009, business startups reached their highest level in 14 years – even exceeding the number of startups during the peak 1999-2000 technology boom.

The Graduate Certificate in Entrepreneurship for New Ventures uses the FastTrac NewVenture framework to help students learn the process of starting and building a successful business. The certificate provides instruction in key business areas, including creating business plans, developing financial and operation plans, and creating feasibility studies.

The Graduate Certificate in Entrepreneurship for Growth Ventures uses the FastTrac GrowthVenture framework to help students learn how to manage an expanding business and to strategically align all aspects of the business for growth. The certificate provides instruction in business areas, including creating marketing plans, identifying leadership strategies, creating growth business plans and conducting internal assessments.

”Nearly all net job growth in our country comes from companies less than five years old. So, today more than ever, we need more people starting companies, and we need current business owners to be more successful in growing their firms,” said Carl Schramm, president and CEO of the Kauffman Foundation, which created the FastTrac program.

Women's Small Biz Contracting Program Readies for Launch

2010-08-01T16:22:00.000-07:00

The women’s small business contracting program should be ready to launch by the end of this year, Small Business Administration chief Karen Mills told the House Small Business Committee last week.

The SBA in March released a proposed rule identifying 83 industries in which women-owned small businesses were underrepresented when it came to winning government contracts.

That finding placated a group of upset lawmakers, women’s advocacy groups and others who were livid when the Bush administration in 2008 released a plan identifying only four such industries.

Last year the SBA decided to draft a new rule and more than 1,000 businesses, trade groups and others offered comments on it through the May deadline.

In 2000, President Clinton signed the Equity in Contracting for Women Act, allowing the government to set aside contracts for women-owned small firms in industries where females were historically underrepresented.

Virginia's Annual Sales Tax Holiday Begins Aug. 6

2010-07-31T05:47:00.000-07:00

Virginia will hold its annual school supplies and clothing tax holiday from Aug. 6 through Aug. 8.

During this three-day period, purchases of qualifying school supplies selling for $20 or less per item, and purchases of qualifying clothing and footwear selling for $100 or less per item will be exempt from sales tax.

Retailers may also choose to absorb the tax on other items during the holiday period, but they are responsible for paying the tax on those items to the Department of Taxation, according to Virginia's web site.

Small Biz Group Launches Campaign to Stop 1099 Mandate

2010-07-30T11:09:00.000-07:00

The Small Business & Entrepreneurship Council has launched a petition and action center devoted to repealing what it calls "a nightmarish paperwork mandate" that expands 1099-Misc reporting.

SBE Council President & CEO Karen Kerrigan said small business owners are outraged by the provision, and want to know everything they can do stop it from taking effect in 2012. The group has launched www.stop1099.org.

"This expanded 1099 reporting mandate has really gotten under the skin of small business owners, and rightly so," said Kerrigan. "The burden of the new mandate will be tedious, time-consuming, and costly. Business owners across the country are furious that Congress slid the measure in a massive health care bill without understanding its deep impact."

A provision (Section 9006) in the "Patient Protection and Affordable Care Act" signed by President Barack Obama in March mandates that all businesses issue a 1099 form for all vendor payments totaling $600 or more on an annual basis. This new mandate vastly expands current requirements, and is scheduled to begin in 2012.

The provision was included in the health care bill as a revenue raiser ($17 billion), but there has been no analysis completed to demonstrate how effective the measure will be at closing the "tax gap," Kerrigan said.

"I really don't know if Congress thought about the unintended consequences of the mandate, whether the IRS has the capacity to deal with hundreds of millions of new forms from 30 million businesses, the cost impact it will have on small business owners, and the economy-wide effect of this extensive paperwork burden," she said.

Low and High Income Earners Less Likely to See Salary Changes

2010-07-30T10:07:00.000-07:00

Earn a lot? Earn a little? Then you’re less likely to move up and down the income ladder than workers in the middle of income distribution, according to a new report (pdf) from the Small Business Administration.

The SBA’s Office of Advocacy said workers in the top and bottom ranks of earnings distribution are less likely, or about 45 to 50 percent, to see significant changes in salary than middle-income workers, who are about 75 to 82 percent likely to move up and down the salary scale.

Some other interesting highlights:

*Income mobility among female workers at 73.2 percent was much higher than male workers at 69.8 percent in the 1990s;

*Female workers also experienced higher exit rates, or about 75 to 85 percent from the lowest ranks of income than their male counterparts;

*Self-employed individuals are more mobile, that is they have bigger salary fluctuations, than paid employees. The self-employed “experience more year-to-year changes and volatility in income than payroll workers.”;

*Whites are more likely to experience self-employment than minorities; and

*Workers in small firms have less formal education than their counterparts.

Next Year, Maybe the SBA Will Remember the Alamo

2010-07-28T18:43:00.000-07:00

The Small Business Administration oversees the HUBZone Program designed to aid Historically Underutilized Businesses, and once again a government watchdog group has found the program rife with fraud (pdf).

The program has been staggering under charges for years that businesses are fraudulently or inaccurately representing themselves to get into the program. The Government Accountability Office did a test to see if the SBA has improved any of these perennial problems by creating four bogus businesses, one whose main address was listed as the national historic landmark the Alamo.

The GAO found that the SBA could have easily done online searches to determine the validity of these fake firms and while it's improved its process slightly for entering the program, it's still shamefully behind.

The SBA took about seven months to process each of these bogus applications and lost documentation, according to the GAO report.

Government Ruling Invites Everyone to Make an iPhone App

2010-07-27T12:08:00.000-07:00

Anyone and everyone can now develop applications not approved by iPhone maker Apple, thanks to a government ruling this week.

The Monday ruling by the U.S. Copyright Office exempts iPhone application developers and others from being sued for breaking the encryption on the iPhone’s operating system in order to run third party applications not approved by Apple.

“The evidence supports the contention that a technological measure is adversely affecting adding applications to the iPhone,” wrote Marybeth Peters, the copyright office's top lawyer, in her recommendations (pdf).

The ruling lays out that consumers can now break into "computer programs that enable wireless telephone handsets to execute software applications, where circumvention is accomplished for the sole purpose of enabling interoperability of such applications, when they have been lawfully obtained, with computer programs on the telephone handset."

The iPhone has spawned a cottage industry of application developers and small businesses. Some small firms sprouted up to help other small businesses develop their own iPhone app. I wrote a story about it for MainStreet.com.

The 1998 Digital Millennium Copyright Act says it's illegal to break the digital locks protecting copyright owners’ content unless it’s for a non-infringing use, which is something the Copyright Office and Librarian of Congress define every three years.

The Copyright Office said in its remarks that the record indicates that the total number of "jailbroken" iPhones constitutes up to 10 percent of all iPhones sold.

Members of wireless industry firms are cautioning users who jailbreak their mobile devices, saying tinkering around with the system could invite security breaches, malware and system instability.

SBA Looking for Proposals for Regional Clusters Initiative

2010-07-26T10:58:00.000-07:00

The Small Business Administration recently announced its Regional Clusters Initiative, which aims to accelerate small business opportunities in existing business clusters by offering technical assistance, business training, counseling and other services.

The SBA is looking to work with 10 to 15 existing regional clusters nationwide in fiscal 2010. These clusters will create and follow roadmaps that enhance their region's ability to compete on a national and global scale, attract further business investments, and create sustainable job growth.

SBA will accept proposals from local and regional cluster initiatives for funding of up to $600,000 per cluster. SBA is launching two programs within the initiative: Regional Innovation Clusters and Advanced Defense Technologies.

SBA support will be targeted toward the needs of entrepreneurs and small businesses. To access the agency's request for proposals to participate, frequently asked questions about the initiative and more information, go to www.sba.gov/clusters/index.html. More info on the RIC and ADT clusters is also available at www.fedbizopps.gov.

Beanetics. It's Cool Beans.

2010-07-23T19:16:00.000-07:00

I took a drive out to the dog groomer last week. It's a fair distance to go to get a dog groomed, but one-third the cost of the going rate for the same services in my neighborhood as I talked about in an earlier post.

While my daughter and I were waiting, we thought we'd go explore the neighborhood and stumbled upon Beanetics, a coffee shop in Annandale. It's an espresso-sized little place with a few local artist photographs on the walls and when we paid a visit, two people were surfing away at their laptops thanks to free wi-fi. It's in a subdued strip mall, which like many similar malls in the United States, have hidden gems.

Beanetics is actually a little cramped, although we had a good time. What intrigued us the most was the enormous bright-red coffee roaster and scale that take up a significant portion of the shop's space - and what intrigued me the most was the excellent coffee.

I'm not an avid coffee drinker by any stretch of the imagination, but I spend a lot of time in coffee shops to file stories and meet contacts and usually try out a cup where ever I happen to be. People often suggest to meet at Starbucks because it's so widely known and prevalent. (In fact, there's so many, I've several times been in situations where someone I was supposed to meet has been sitting in a Starbucks half a block away because we weren't specific enough to say the exact address, only the neighborhood.)

Beanetics bills itself as Annandale's only independently owned micro-roasting facility, and it sells 15 different kinds of fresh-roasted coffee daily.

The company has a colorful brochure, which advertises that "customers can watch as we use a computer-controlled roaster in our glass-enclosed roasting room." That sounds a bit fancy, but it's true.

After we finished our snacks, which they brought to us, I asked the barista (who is also the roaster) if he could give us a "tour" of the roasting room. He took myself and my six year old into the room, explained how the massive, shiny machine worked and let her take home a few pre-roasted greenish-gray coffee beans. When we showed them to her younger brother, he was greenish-gray with envy.

I enjoyed our experience and applaud the employees for taking the time out to show us how things worked. It's also an experience we couldn't have had at Starbucks.

IRS Releases Proposed Regs to Charge Fee for Tax Preparers

2010-07-23T07:07:00.000-07:00

The Internal Revenue Service has released proposed regulations that would establish a fee for individuals who apply for a preparer tax identification number, or PTIN.

Proposed regulations that were issued in March would require some tax return preparers to obtain a PTIN. The IRS is working to finalize those proposed regulations, which are the first of a series of steps planned to increase oversight of federal tax return preparation.

The proposed regulations (REG-139343-08) would establish a fee of $50, payable to the IRS, to cover technology costs, as well as compliance and outreach efforts associated with the new PTIN program.

The proposed regulations also ask for an additional fee that the IRS says is expected to be substantially lower than $50 to be charged by the third-party vendor chosen to operate the new online system. That fee amount is expected to be announced soon, as well as additional details about the launch of a new online application system, according to the tax agency. These fees could change in future years as program costs are reevaluated.

Agencies are directed by the Office of Management and Budget to charge user fees to recover the cost of services that convey special benefits beyond those available to the general public, such as the authority to prepare federal tax returns for compensation.

Tax professionals and others have until Aug. 23, 2010, to submit comments regarding the proposed regulations. The official publication date of these proposed regulations is July 23.

In January, IRS Commissioner Doug Shulman announced the results of a comprehensive six-month study of the tax return preparer industry, which proposed new registration, testing, and continuing education of tax return preparers.

"With more than 80 percent of American households using a tax preparer or tax software to help them prepare and file their taxes, higher standards for the tax return preparer community will significantly enhance protections and service for taxpayers, increase confidence in the tax system and result in greater compliance with tax laws over the long term," according to the IRS.

We're Happy When Busy, But Want to be Lazy

2010-07-22T07:49:00.000-07:00

We're happier when we're busy, but our instinct is to be lazy, according to researchers whose data was published in the British Psychological Society's Research Digest blog.

When given a choice between executing a task for 15 minutes or waiting quietly for 15 minutes, most people chose inertia. But the students who worked on their task reported that they were subsequently much happier than those who chose inactivity.

Researcher Christopher Hsee did a couple of studies, including one asking students to evaluate a bracelet and then were given the option of either spending 15 minutes lolling around or 15 minutes disassembling and rebuilding the bracelet. Those given the option to reassemble the bracelet into a new design tended to take up the challenge over those who just had to rebuild the same thing. Those who took up the challenge reported feeling happier than those who sat idle.

Hsee's team say there is a case for encouraging "futile busyness" or "busyness serving no purpose other than to prevent idleness. Such activity is more realistic than constructive busyness and less evil than destructive busyness."

In most small businesses, there is not a lot of opportunity for lazing around. It's more of a mentality addressing "how many of these tasks can I realistically get done on my to-do list today while addressing multiple unexpected situations."

But I think it is food for thought. While most of us crave "down time," in reality we feel good when we are asked to offer new ways to create things (like rebuilding a bracelet into a new design) and are busy. I think it's also an indicator that it can help to include all levels of employees in some of the decision-making process that goes on at a company. It's empowering and allows growth.

By the way, according to the study, airports have tapped into this "futile busyness" concept. Some airports have deliberately increased the walk to the luggage carousel so as to reduce the time passengers spend waiting around for luggage to arrive.

SBA Seeks Your Input on Its Web Site Redesign

2010-07-21T12:18:00.000-07:00

As a journalist covering small business issues, I visit the web site of the Small Business Administration quite often. If you're a small business owner, I hope you visit it too. It's got a lot of great information on how to grow your business, loan types and many other topics. The problem is that this awesome information is often hard to navigate.

But the SBA now plans to overhaul it's web site. The agency recently launched The NEXT SBA.gov, a transition site dedicated to sharing its redesign progress with employees, small business owners, agency partners and other agency stakeholders.

The site is www.sba.gov/NEXT and includes a link to Frequently Asked Questions about the redesign.

It's also accepting comments and suggestions using the "What Do You Think?" box at the bottom of the site. I heartily urge you to participate in helping upgrade this resource.

Sports Stars Become Attainable for the Smallest of Firms

2010-07-18T05:37:00.000-07:00

Celebrity endorsements help sell products, but let’s face it, most celebrities don’t team up with the smallest of businesses that have the shallowest of pockets.

I was intrigued to see that Brand Affinity Technologies, a California start-up pointed out by news service Springwise, is offering advertisers of all sizes the ability to launch endorsement campaigns using its own “endorsement platform.”

I got my first whiff of sports and money when I was in kindergarten. My school was having a reading contest in which the winner of reading the most books in a month would get to go to lunch with a Washington Redskins football player. Each student asked neighbors and others to contribute money for each book that he or she read. I won the contest. I read the most books. But I didn’t get to go to the lunch. That honor was bestowed upon a fellow kindergartner who had collected the most money. I was catching on.

Sports endorsements are powerful. Most Americans follow some kind of sports team closely. BAT’s database includes more than 3,300 contract athletes. Advertisers can browse talent based on geography, branding and targeting considerations; included in the platform are detailed talent profiles with photos, videos and personal information — such as the type of cell phone they use or proprietary metrics that help compare talent by region, sport and status.

Obviously a sports endorsement isn’t for every business. But if it works for yours, BAT might be worth checking out.

Endorsement offerings include digital, radio, outdoor, print and TV advertising along with appearances and virtual memorabilia that advertisers can provide to consumers as incentives and rewards. Pricing is on a pay-for-what-you-use, CPM or flat-rate basis.

Separately, if your business is in an area that plans to host an upcoming Super Bowl - like North Texas or New Orleans, check out this story I wrote on a small business contracting program with the National Football League.

U.S. Exports Increase 18% in First Five Months of 2010

2010-07-14T14:43:00.000-07:00

U.S. exports of goods and services increased 17.7 percent during the first five months of 2010, according to data released by the Census Bureau and the Bureau of Economic Analysis.

"This data reinforces the strong growth to date in U.S. exports in 2010," said Export-Import Bank Chairman and President Fred Hochberg. "Ex-Im Bank financing has supported an estimated 150,000 U.S. jobs in the fiscal year to date. The bank will continue to use all of its resources to support the president's goal by reaching out to even more U.S. businesses, especially small businesses, to help them export and, in the process, create more American jobs."

Data highlights include:

U.S. exports totaled $739.5 billion during the January-through-May period of 2010, up 17.7 percent from the same period of 2009;

The May export figure is the strongest year-to-date, as well as the strongest monthly performance since September 2008;

Among the major export markets, the largest percentage increases in goods exports occurred in Taiwan (68 percent), Korea (56 percent), Malaysia (51 percent), Singapore (45 percent), Philippines (45 percent), Czech Republic (44 percent), Indonesia (42 percent), Thailand (41 percent), China (39 percent) and Colombia (38 percent);

Ex-Im Bank, an independent, self-sustaining federal-government agency, provides export financing that helps strengthen U.S. exports. The bank provides financing mechanisms, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services.

In fiscal year 2009, overall Ex-Im Bank financing totaled $21 billion, and authorizations supporting small-business exports reached a historic high of $4.4 billion, nearly 21 percent of total authorizations.

Number of Minority-Owned Firms Jumps 46% Between 2002 and 2007

2010-07-13T16:55:00.000-07:00

The Minority Business Development Agency and the Census Bureau today announced that the number of minority-owned firms increased by 46 percent to 5.8 million between 2002 and 2007, according to data from a Census survey.

“It is encouraging that the minority business community is growing and making progress relative to all U.S. firms, but economic parity remains elusive,” MBDA National Director David Hinson said. “While the number of minority-owned businesses continues to grow, they are still smaller in size and scale compared to non-minority-owned firms.”

In 2007, average gross receipts for minority-owned firms increased to $179,000 from $167,000 in 2002, but that's still well below gross receipts for non-minority-owned firms, which had average gross receipts of $490,000.

“We must continue to close this gap,” Hinson said. “It is unacceptable, particularly during an economic crisis that disproportionately affects the minority business community, to have this ongoing disparity.”

Study highlights:

Between 2002 and 2007, the number of minority firms grew by 46 percent, compared to 18 percent for all U.S. firms, and compared to 13.7 percent growth for the minority population age 18 and older, during the same period;

Minority-owned firms employed approximately 5.9 million people in 2007, up from 4.7 million in 2002;

Asian-owned firms grew 41 percent to 1.6 million from 2002. Asian-owned firms continue to generate the highest annual gross receipts at $510.1 billion in 2007, increasing 56 percent from 2002;

Hispanic-owned businesses totaled 2.3 million in 2007, up 44 percent from 2002. Receipts for Hispanic firms increased 55 percent to $343.3 billion;

Black, or African-American-owned businesses grew to 1.9 million firms in 2007, up 61 percent from 2002 - the largest increase among all minority-owned companies; and generated $135.6 billion in gross receipts, up 53 percent from 2002;

There were 237,203 American Indian and Alaska Native-owned businesses in 2007, up 18 percent from 2002, generating $34.2 billion in gross receipts, an increase of 27 percent;

Native Hawaiian- and Other Pacific Islander-owned businesses totaled 38,854 in 2007, up 34 percent from 2002. While these firms’ reported the largest increase in receipts among all minority-owned firms in 2002 (63 percent), the total amount reached only $7 billion; and

Minority-owned firms employed approximately 5.9 million people in 2007, up from 4.6 million in 2002.

IRS Taking Public Comments on New 1099 Regulations

2010-07-08T18:59:00.000-07:00

Here's an update to my post earlier today about new 1099 requirements for goods and not just services, like those provided by independent contractors. The IRS is taking public comments "on how to most effectively carry out" that law change that takes effect in 2012.

The IRS said in a statement that these comments will help the agency "issue guidance that implements this provision in a manner that minimizes burden and avoids duplicate reporting."

Under a proposed regulation, many business purchases made with credit or debit cards would be exempt from the new reporting requirement because they are already reported by banks and other payment processors. The IRS wants your thoughts on additional circumstances in which duplicate reporting might otherwise occur and on rules that would prevent duplicate reporting.

There are three ways to submit comments.

E-mail to: Notice.Comments@irscounsel.treas.gov. Include “Notice 2010-51" in the subject line.

Mail to: Internal Revenue Service, CC:PA:LPD:PR ( Notice 2010-51), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044

Hand deliver to: CC:PA:LPD:PR ( Notice 2010-51), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC, between 8 a.m. and 4 p.m., Monday through Friday.

Health Care Bill Requires 1099 for Goods, Not Just Services

2010-07-08T07:57:00.000-07:00

A provision in the health care reform law could significantly increase tax recordkeeping requirements and costs for the self-employed, small businesses and charities, the IRS' national taxpayer advocate said Wednesday in her annual report.

The report expresses concern that a new reporting requirement in the Patient Protection and Affordable Care says that beginning in 2012, all businesses, tax-exempt organizations and federal, state and local government entities will be required to issue Forms 1099 to vendors from whom they purchase goods totaling $600 or more during a calendar year.

To meet this requirement, these businesses and entities will have to keep track of all purchases they make by vendor. For example, if a self-employed individual makes numerous small purchases from an office supply store during a calendar year that total at least $600, the individual must issue a Form 1099 to the vendor and the IRS showing the exact amount of total purchases.

Businesses currently are required to provide Form 1099s for services, such as payments to independent contractors, but not for goods.

According to an analysis of 2009 IRS data, about 40 million businesses and other entities will be subject to the new requirement, including roughly 26 million non-farm sole proprietorships, 4 million S corporations, 2 million C corporations, 3 million partnerships, 2 million farming businesses, one million charities and other tax-exempt organizations, and more than 100,000 government entities.

Are Start-Ups the True Job Generators?

2010-07-07T13:58:00.000-07:00

I think a lot about jobs. Since I was a kid I've liked to help people find jobs and to talk about what they like to do at work. Maybe that's why I enjoy my own job so much as a journalist, which allows me to learn about new perspectives and different careers from business owners and entrepreneurs.

Lately I've been talking to a lot of start-ups and so found it fascinating that a new study by the Kauffman Foundation reveals that established firms are on a track of losing 1 million jobs annually while in their first year, new firms add an average of 3 million jobs. Of course, let's just hope those new firms stick around.

The study shows that during recessionary years, job creation at startups remains stable, while net job losses at existing firms are highly sensitive to the business cycle.

On average, one-year-old firms together create nearly one million jobs, while 10-year-old firms generate 300,000. I recently interviewed the CEO of Groupon, a 20-month-old global company that is now worth $1.35 billion and employs more than 1,000 people. Yes, I see where this study is coming from.

“These findings imply that America should be thinking differently about the standard employment policy paradigm,” said Robert Litan, vice president of research and policy at Kauffman. “Policymakers tend to focus on changes in the national or state unemployment rate, or on layoffs by existing companies, when, in fact, policy has little effect on net employment growth. Instead, job growth best would be influenced by focusing greater attention on policy that supports startup firms.”

Because startups that develop organically are almost solely the drivers of job growth, job-creation policies aimed at luring larger, established employers will inevitably fail, said study author Tim Kane, a Kauffman senior fellow. Such city and state policies are doomed not only because they are zero-sum, but because they are based in unrealistic employment growth models, he added.

Everybody Loves a Parade, and Small Businesses Should Too

2010-07-06T09:36:00.000-07:00

I hope you had a good July 4th celebration. I've loved fireworks since I was a kid, and don't tell the police but I lit a few sparklers (non-commercial fireworks are illegal in Virginia.)

Living in the D.C. area, I'm used to the fanciest of parades. The kind that attract participants from around the globe, but I've got to admit the small neighborhood parade is just something special.

I went to one on Sunday morning. Neighbors were handing out red, white and blue balloons. Kids had decorated their bikes with streamers around the spokes and handlebars, Some people had gone all patriotic with their strollers. One golden retriever came dressed as a dalmation (white T-shirt with magic marker black spots.)

The parade of several hundred people started. There were really no onlookers because, well, the neighborhood was the parade. It began. Kids fell off their bikes because they had to pedal too slow at its crowded start. Dogs barked. Babies cried. It was sweltering hot. I got beamed in the forehead with a gumball. Somehow it was really fun.

A couple of old Model Ts drove by, although the last in line was a Toyota Scion whose driver insisted he was a Model A. The best disguise ever!

I've been to many of these parades which range from tens of people to thousands. It's a great time for small businesses to participate with their community - and even join the parade. The smaller ones are somewhat free-for-all and don't require much to participate.

1. It's the original social marketing. Remind your neighbors you have a small business;
2. You're in front of a captivated crowd;
3. Cost is low;
4. Offer some freebies;
5. Offer to donate some food for the parade-end picnic; and
4. You might be going anyway.

Get out the company car, bike or running shoes and stick your logo on the side. Throw some candy out the window, hand out some coupons, put your logo on water bottles. These are your shoppers. These are the people that want to know about you. I'll save a space for you next year. (Just jump in line right next to the dancing journalist who's wearing a placard that says "Reporter for Hire.")

I'm gearing up for my next favorite parade on Halloween. I've made some pretty hokey costumes, but they had heart. I hope you will too.

Sen. Snowe to Offer SBA Loan Bill

2010-07-02T10:00:00.000-07:00

Sen. Olympia Snowe, the top Republican on the Committee on Small Business and Entrepreneurship, plans to offer an amendment to the Senate’s version of small business jobs legislation that would pay for the temporary fee reduction and increased guarantee rates associated with Small Business Administration 7(a) and 504 loans.

These provisions originally were part of the American Recovery and Reinvestment Act, and were credited with boosting SBA lending by 90 percent from passage of that law through the expiration of the fee reductions on May 30. The Senate’s current version of the bill includes language to reinstate and continue these provisions through Dec. 31.

“Given the critical role SBA lending has played in bolstering affordable credit to our nation’s small businesses, we must reinstate these provisions as part of the small business jobs legislation the Senate will again take up after the July 4 recess,” said Snowe of Maine. “It is essential that we pay for these provisions so that we are not risking future economic growth by increasing the deficit.”

Chase to Lower Loan Interest Rates for Some Small Biz

2010-06-30T17:58:00.000-07:00

Chase bank said Wednesday it will lower the interest rate on a new Chase Business line of credit by 0.5 percentage points for up to three new hires made by a qualifying small business borrower.

“We encourage businesses to take advantage of the lowest interest rates in years and to create more jobs for the economy,” said Jamie Dimon, chairman and CEO of J.P. Morgan Chase. “We know how important it is to help small businesses because they are core to the U.S. economy.”

The company estimated that including the discount for a new business checking account, a small-business owner could save about $4,000 over three years on an outstanding balance of about $65,000.

The offer is available to business owners who are approved for a new Chase Business Line of Credit up to $250,000 or existing business customers who increase their line of credit by $10,000 or more. Chase business checking customers will receive an additional half percent discount on their loan rate.

Chase last year announced plans to increase small-business lending by $4 billion in 2010 to $10 billion.

WomenOnBusiness Offers Free Press Release Feature

2010-06-30T08:11:00.000-07:00

WomenOnBusiness.com has launched a new featuring allowing any woman working in the business world to submit a press release publicizing news about her business.

It's a free feature and registration is not required to submit a press release at http://www.womenonbusiness.com/submit-a-press-release/.

Press releases submitted to WomenOnBusiness.com are published in the new Business Women News section of the site: http://www.womenonbusiness.com/category/press-releases/.

“The new Business Women News Press Release Submission feature on WomenOnBusiness.com enables women to share the amazing work that they’re doing across the social Web,” said Susan Gunelius, owner of the WomenOnBusiness.com blog. “It’s a free feature that is offered for the sole purpose of helping women establish their roles as thought leaders and contributing members of the business world.”

Is Your Business Ready for International E-commerce?

2010-06-28T05:44:00.000-07:00

The Federal Trade Commission offers a handy checklist for business owners to review when considering if they are "consumer-friendly" for international electronic commerce:

Do You Clearly Disclose on Your Web Site

About You
What kind of business you operate
Your physical business address

About the Sale
What you are selling
A list of total costs you'll collect from the customer and the currency used
Restrictions or limitations on the sale
Warranties or guaranties associated with the sale
Estimation of when the buyer should receive the order
Details about convenient and safe payment options

About Consumer Protections
Your return policy
Where a customer should call, write or e-mail with complaints or problems
The opportunity for a customer to keep a record of the transaction
Your policies on sending unsolicited e-mail solicitations to customers, including an option for consumers to decline these offers
Information about dispute resolution programs your company participates in

Do You Use Fair Business, Advertising and Marketing Practices
Do you provide truthful, accurate and clear information on your web site
Can you back up the claims you make about goods and services
Do you disclose who is sponsoring an ad if it's not otherwise clear to consumers
Do you respect consumers' choices not to receive e-mail solicitations
Do you take special care when advertising to children

Do You Use Fair Information Practices Including
Notice to consumers about information collection practices, such as personally identifiable information
Choices about how personally identifiable information is used and whether it is shared
Procedures to ensure accuracy
Security measures appropriate to the transactions on your web site

DC Goodwill Accepts Old Computers in Partnership With Dell

2010-06-25T12:01:00.000-07:00

For any of my D.C.-area friends, Goodwill of Greater Washington has entered into a partnership with Dell, allowing Goodwill to accept any brand of computer and computer equipment.

The computers and parts are then sold to Dell, which recycles them and so keeps the electronics out of landfills.

All proceeds from the sale of these computers to Dell will support Goodwill job training. The donations are usually tax deductible. More info is at www.dcgoodwill.org.

List of Small Business Contacts at Government Agencies

2010-06-24T17:56:00.000-07:00

If you're a small business looking to get into government contracting, it helps to know where to start and who to call.

Government agencies must put together a list of federal agency contacts acting as a liaison between the agency and small businesses, thanks to the Small Business Paperwork Relief Act of 2002.

The law also requires the Office of Management and Budget to coordinate with the Small Business Administration to publish on the Internet a list of compliance assistance resources available at federal agencies for small businesses. That list (click on the link above) is a super and up-to-date resource that is posted on the Business.gov web site.

My Phone - It Takes a Lickin' But Keeps on Tickin' (But Not for Much Longer)

2010-06-24T12:26:00.000-07:00

I know it's time to upgrade my phone. I have been pushing it off for a while but recently had a conversation that went something like this while we were driving in the car with my family:

Me: Yes, I did get that lollipop at the bank but you can't have it now. I'll get you another lollipop when we get home.

Hubby: She can have the lollipop, although it looks a little melted.

Me: But I need it.

Hubby: What? What for? I know you race around a lot from interview to event to home again, but how about a granola bar. That lollipop has seen better days.

Me: I'm using it for my phone. (I get the look from my nuclear engineer husband that I know so well. It's the look that says probably about now, yes now, the space ship will come and take her back to Planet Venus because seriously, what the hell is she talking about? Why didn't I marry someone normal like a chemical engineer?)

Me: Um, yes, I lost my stylus for my phone and that lollipop works like a charm, but I can't break off the candy part because then the stick might get stuck in my phone. I need to get a new phone anyway since it's really old and doesn't work so well. I didn't want to get a new stylus.

OK, my husband and kids are silent. The kids are still angling for the lollipop, but my husband is quiet. Thank goodness he knows how to pick his battles.

Hubby: That's really...innovative. Maybe we should have named one of our kids "Invention" and change your name to "Necessity." (Yeah I get it. Necessity is the mother of invention.) And maybe this isn't the time to bring this up, but don't you report a lot about telecom and tech?

So now I have to upgrade my phone. I liked Wired magazine's one-page graph in its July issue, page 32, that aims to answer the question in something of a tongue-in-cheek kind of way "What kind of smartphone should I buy?" If I follow the chart, it tells me to get an iPhone.

I'm not sure. That means major money, changing providers and a contract cancellation fee.
I'll keep you posted as I go on my new phone journey. It's a big purchase for me - as a reporter I'm on the phone all day, all over town.

P.S. Listen up Real Simple editors, sure I thought you were smart when you told me that I could dry a sweater in a salad spinner, but I bet I'm the first one to come up with a new technological use for a lollipop.

Saving on Energy Costs a Big Priority for Small Biz Owners

2010-06-23T13:17:00.000-07:00

Saving on energy costs is a big priority for small business owners, shows a new study from the National Association for the Self-Employed.

50 percent of micro-business owners have made efforts to reduce their energy costs by implementing energy-saving measures in their home and business, according to the data.

40 percent of respondents indicated they had implemented energy-saving measures in their home only, while only nine percent of respondents indicated they had not undergone any energy-saving changes in their home or business.

49 percent of survey respondents indicated they were willing to undergo and pay for the implementation of energy-saving measures in their home and/or business. Of those that were unsure or unwilling to implement these measures, 46 percent indicated that this was due to cost.

59 percent of small business owners believe that policymakers should prioritize a national energy policy.

80 percent of survey respondents favored tax credits to individuals who implement specific energy-saving measures in their homes

76 percent favored grants and tax credits to small businesses to help them afford implementation of energy-saving measures in their business.

60 percent favored increasing the use of nuclear power and the creation of new power plants

61 percent favored tax subsidies to energy companies to encourage the expansion of alternative energy sources.

58 percent of respondents opposed the creation of a cap-and-trade system that would limit emissions of greenhouse gases.

Lawmakers Unveil Swipe-Fee Compromise

2010-06-23T10:58:00.000-07:00

Lawmakers have unveiled a compromise over how to address swipe fees, the charges assessed by large banks and credit card companies on merchants that accept debit and credit card payments from their customers.

Swipe fees have long been a problem for many small businesses.

The National Small Business Association says that although the compromise doesn’t go as far as NSBA would prefer, it does offer some relief for small businesses.

“The conference committee’s swipe-fee compromise is not ideal,” said NSBA President Todd McCracken, “But at the end of the day, we’d rather take some steps forward than watch the anti-competitive interests of large banks win out over small business yet again.”

Swipe fees have been a sweet spot for major financial institutions, even in the downturned economy, as just 10 credit and debit card issuers raked in more than 80 percent of the $48 billion earned by the industry in swipe fees for 2008 alone, according to the NSBA.

NSBA said it's pleased that the compromise still includes language directing the Federal Reserve to ensure that swipe fees charged for debit card transactions are “reasonable and proportional” to the actual costs incurred to process the transaction. Another NSBA-supported provision that made the final cut will allow merchants to offer discounts for a particular form of payment, i.e. cash or check. Additionally, the compromise language still allows merchants to set a minimum transaction amount—$10—for payment by credit card.

The compromise would not allow merchants to offer discounts to customers using lower-fee credit and credit cards.

Senate Confirms New SBA Deputy Administrator

2010-06-22T11:19:00.000-07:00

The Senate today confirmed Marie Collins Johns to be deputy administrator of the Small Business Administration.

Sen. Mary Landrieu, D-La., chair of the Senate Committee on Small Business and Entrepreneurship, made the following comment on the confirmation:

“Marie Johns comes to the SBA with an impeccable record of leadership and public service. At a time when this agency is undergoing enormous transformations, Marie will be an invaluable asset to Administrator Mills and her team as they continue to put small businesses at the forefront of our economic recovery. I look forward to working with Deputy Administrator Johns in her new capacity, and am glad to have her working on behalf of small businesses across the country.”

Last month, the small business committee held a confirmation hearing for the deputy administrator. To view more information from the hearing and testimony from Marie Johns, click here and you will go to the small business committee web site.

House Passes Bill to Aid Small Firms in Securing Capital

2010-06-21T16:46:00.000-07:00

The House this week passed legislation designed to aid small businesses in securing capital through new community bank incentives, support for state lending initiatives and by opening venture capital markets.

The Small Business Lending Fund Act, H.R. 5297, was approved by a vote of 241-182.

"As our most prolific job creators, small businesses will be central to the recovery of the U.S. economy," said Rep. Nydia Velázquez, chairwoman of the House Committee on Small Business. "However, for entrepreneurs to expand and create jobs, they need access to financing. The measure we approved today will make both credit and equity capital available for small firms."

The legislation would establish a new $30 billion lending fund for community banks, which proponents say would provide $300 billion in lending to entrepreneurs.

Rep. Glenn Nye, D-Va., added language during debate on the bill requiring banks to boost their small business lending to qualify for funds. Rep. Kurt Schrader, D-Ore., added an amendment that would establish a new borrower assistance program, providing additional funds to small businesses who take out loans. The funds can be used at the entrepreneur's discretion to reduce their interest rates, defer their loan or cover monthly payments.

The legislation contains provisions aimed at reinvigorating investment in small startups. By establishing a new "Small Business Early Stage Investment program," funds from the Small Business Administration will be paired with private capital to invest in small startups.

"In a world where revolutionary new products are conceived in dorm rooms and companies are born in garages, we need new ways of meeting businesses' capital needs," said Velázquez. "The Small Business Early Stage Investment program recognizes this fundamental shift, taking steps to meet the capital needs of new businesses and helping them create jobs."

Here Comes the Sun-Tan Tax

2010-06-13T08:17:00.000-07:00

I love the sun and think modern sunscreen is just about one of the most fabulous inventions of the last 20 years. I'm a high SPF kind of girl who loves the outdoors but wears a hat and couldn't really get tan if I tried.

I've never tried a tanning salon, but those services are provided by thousands of small businesses across the United States. Unfortunately for them and their fans, their getting hit with a sizable tax.

To help fund the recent $940 billion health care reform plan, a 10 percent tax on individuals receiving indoor tanning services was included in the bill. The initiative is expected to generate $2.7 billion over 10 years.

The IRS last week issued regulations outlining the administration of the 10 percent tax on indoor tanning services that becomes effective July 1.

The agency says providers of indoor tanning services will collect the tax when the purchaser pays for the tanning services.

The tanning salon is expected to pay over these amount to the government quarterly, along with IRS form 720, known as the Quarterly Federal Excise Tax Return.

The tanning tax will apply to electronic products designed for tanning that use one or more ultraviolet lamps with wavelengths between 200 and 400 nanometers. Spray tans and tanning lotions will not be taxed.

"This is going to close tanning salons," Joseph Levy, vice president of the International Smart Tan Network, which has 3,000 member salons, told CNN Money. "You can't just pass on a tax like this to customers and not have it hurt your bottom line."

The tax does not apply to phototherapy services performed by a licensed medical professional on his or her premises, says the IRS. Those kind of services are often used by dermatologists for various skin conditions. The agency added that the regulations also provide an exception for certain physical fitness facilities that offer tanning as an incidental service to members without a separately identifiable fee.

The IRS and Treasury Department invite comments.

Digital Tools Help Neighbors and Businesses Stay Engaged in Community Happenings

2010-06-10T17:30:00.000-07:00

Anyone who has ever faced the prospect of a school snow day - and we had a lot of those in the nation's capital last winter - know how important it is to be informed. A great way to do it is by signing up for local e-mail alerts. I use them all the
time for our local school system. I also find out about local business happenings through a neighborhood list serve.

It's also a great reporting tool for me, and in turn could be a great resource for small businesses that need to know what their community is talking about or want to promote a special event. I wasn't too miffed to get a notice in a list serve recently announcing free ice cream samples for a week at my local candy cafe.

I recently wrote a profile of a new community pharmacy for a local business magazine. I posted a message on the local parents list serve to ask if any of the pharmacy's customers would be willing to talk about their experiences there. I was inundated with responses from supporters of the business.

A new study from Pew shows that Americans use a range of approaches to stay informed about the goings-on in their communities, and internet tools are gaining ground.

Face-to-face encounters and phone calls remain the most frequent methods of interaction with neighbors, the report found, but it also shows some important emerging trends.

22% of all adults (representing 28% of internet users) signed up to receive alerts about local issues (such as traffic, school events, weather warnings or crime alerts) via email or text messaging;
20% of all adults (27% of internet users) used digital tools to talk to their neighbors and keep informed about community issues;
46% of Americans talked face-to-face with neighbors about community issues;
21% discussed community issues over the telephone;
11% read a blog dealing with community issues;
9% exchanged emails with neighbors about community issues and 5% say they belong to a community e-mail listserv;
4% communicated with neighbors by text messaging on cell phones;
4% joined a social network site group connected to community issues; and
2% followed neighbors using Twitter.

Additionally, 22% of adult Americans have signed up to receive alerts about community issues via text or e-mail. This includes anyone who has signed up for alerts about one or more of the following issues:

School events, such as school closings (13% of all adults have signed up for such alerts)
Warnings about bad weather (11%)
Crime in one’s neighborhood (5%)
Traffic congestion or road closings (4%)

Senators Offer Bill to Improve Small Business Government Contracting Program

2010-06-08T18:24:00.000-07:00

Two senators this week who are members of the Committee on Small Business and Entrepreneurship introduced a bill that seeks to improve access to federal contracts for socially and economically disadvantaged small businesses by improving the Small Business Administration's much-beleaguered 8(a) contracting program.

Sens. Benjamin Cardin (D-Md.) and Mary Landrieu (D-La.), who chairs the committee, offered up S. 3458, the Section 8(a) Improvements Act, which is the third in a series of steps that the committee is taking "to address the disparities and inequalities that currently exist in the federal procurement process."

“As a nation, we need to create jobs and the way to create jobs is to help small businesses,” said Cardin. “Ensuring that small businesses have access to government contracts is one of the most effective ways to expand opportunities and create jobs. But many small firms have been locked out of competing for valuable federal contracts. Our legislation continues our efforts to level the playing field for small businesses so they can more fully participate in our economic recovery.”

According to the Federal Procurement Data System, the feds missed their 23 percent goal by .992 percent in fiscal year 2007 and 1.51 percent in fiscal year 2008. That represents more than $3.74 billion and 93,500 for 2007 and more than $6.51 billion and 162,700 jobs in 2008 lost for small businesses.

“The reality is that small businesses need all the help they can get when it comes to accessing federal contracts,” said Landrieu. “Despite the fact that the federal agencies have a statutory goal to spend 23 percent of their contract dollars on contracts to small firms, in recent years the government has fallen short. By increasing contracts to small businesses by just 1 percent, we can create more than 100,000 new jobs.”

I'll Read Your Blog - A Cautionary Tale

2010-06-06T19:04:00.000-07:00

As a journalist, I do research before heading out on a scheduled interview. Yes, it's true! I may read a company's financial statements if it's relevant, I may research previous businesses an entrepreneur has started, I may find out other people they've worked with.

When I profile a small business or entrepreneur, one of the first things I do is read the company blog, which is often written by the company's owner. It gives me a good feel of how the small business leader communicates and what is on his or her mind.

Recently, I interviewed a firm for a business magazine for a profile piece and had done my prep work. I was all set to talk to the owner in-depth about it's first government contract it had scored with an agency of the Defense Department. The company owner had blogged several times about the firm's excitement in scoring its first role as a subcontractor.

We had a great interview - until I asked about its government contract. The two firm executives had exuded confidence, talked graciously, eloquently and with passion about their firm - until my question about its entrance into the field of government contracting. (I wrote a primer for the New York Times on how small firms can get into the game, if you're interested.)

Suddenly, the interviewees looked panicked, they exchanged glances, they lost their air of cool.

They said they couldn't talk about that. Their client didn't want them to. They weren't ready. They pleaded with me not to mention it. The contract was not the focus of my piece and ultimately I decided not to call it out in the profile.

But if the company owner is going to blab in a blog about scoring a contract, that's public info. However, I didn't want to be a jerk, per their request, and I respect the fragility of a nascent firm.

They are not alone. A year ago I was prepped to interview two company founders of what I thought was a really innovative, altruistic firm. I read the owners' blogs. One of them wrote at length of how he felt he was "descending into hell," among other things because of all the difficulties of starting the firm. That's probably something any entrepreneur has felt in some degree at some time or another.

During our interview, I asked him if he had any concerns or difficulties about getting the firm off the ground. "None whatsoever," he said. "It was go go go all the way."

I asked him the same question a couple of different ways, but he stuck with the optimistic attitude - one of my favorite traits of entrepreneurs.

Finally I said: "On one of your first blog entries you said you felt like you were descending into the "7th level of hell" because it was so hard to get the company going.

Silence.

Finally, he opened up and talked a little bit about his challenges. There's nothing wrong with challenges; I actually think talking about them is very helpful to fellow entrepreneurs and can be very helpful as lessons learned. Just be sure you want other people to know about them or don't put them on a web diary.

Pay attention to what you put in your blog. It's public material. As a blogger myself, I take that to heart too.

Book Review: Who Killed Change?

2010-06-05T13:58:00.000-07:00

Who Killed Change?

A body lies dead on the floor with no apparent injury. Agent McNally races to the scene of the crime, the ACME organization. It was his third homicide case of the month all with the same last name – Change.

In a book written in the style of a Detective Colombo-style whodunit, motivational speaker and uber management author Ken Blanchard addresses the different factors in an organization that can maim or kill change.

Nearly 70 percent of all change initiatives within a business fail, according to Blanchard, who co-authored the book “Who Killed Change?” with leadership consultant John Britt. Some die quickly while others die protracted, painful deaths that can dry up a company’s morale and resources.

With so many businesses trying to navigate their way through this topsy-turvy economy, it’s a timely book.

It’s a quick read and probably not your style if you like meaty, analytical business management books. But if a fun read in a clever fashion suit you, the book does a good job of outlining how to effectively lead people through change without disenfranchising them.

The book opens with the death of Change and follows with McNally’s interviews of characters such as the myopic Victoria Vision, perennially late manager Ernest Urgency and Clair Communications, who is stricken with laryngitis.

Bailey Budget tells Agent McNally that she’s a firm believer that the amount of money invested in a given Change should be directly proportional to the investment of effort and quality of work being done by members of the team such as Spence Sponsorship, Perry Plan and Carolina Culture.

“If these characters aren’t doing what’s necessary to enable Change, there is no reason for me to commit any funds to a Change that’s destined to fail,” she tells McNally.

After the mystery is solved, the 143-page book offers a helpful chapter exploring the best practices and related questions identifying where a given change is set up to succeed and where it might fail.

For example, when looking at the issue of “sponsorship” related to change, it defines a sponsor as “a senior leader who has the formal authority to deploy resources toward the initiation, implementation and sustainability of a change initiative. It then recommends how to strengthen sponsorship of change by taking action like making sure that sponsors are modeling the behavior expected of others. There are accompanying questions on the issue. For example, if your sponsors are not using the behaviors listed above, do they know they are expected to use those behaviors?

It’s a fun, lighthearted book that puts a new spin on a timely topic – solving the mystery of leading people through change.

Convenience Is Key, but Price Matters

2010-06-03T18:37:00.000-07:00

It was time. The family dog couldn't take it any more and was experiencing the dog days of summer in May thanks to his scruffy coat. Magellan (Gelly) is a lhasa apso. It's awesome that he doesn't shed but his fur grows as fast or faster than human hair. He's been a great dog - a stray many years ago who now puts up with a lot as you can see.

I tried to be his groomer but the little guy just won't sit still for me. We both ended up the worse for wear. There are probably eight to 10 groomers within three miles of my house. They all charge more than a woman's haircut in the area - and they all appear to be busy.

It's what the market will bear. However, not my bank account. I drive about 12 miles to go to a groomer that is one-third the cost of those in my neighborhood. A lot less than the gas I spend to get there. I do all kinds of things to support my neighborhood economy - farmer's market, coffee shop, gym, restaurants, volunteer work - but some things just have to give.

My kids and I make it an outing on "Gelly day" by going out to lunch while waiting for the "hair" cut. I was chatting with a neighbor this morning who also gets her dog groomed and found out she drives about 15 miles or so to get a lower price for a groomer. (This is far when you live in an urban area right outside of D.C.)

Since I've lived in my neighborhood it's gone from being an up-and-coming area to a well-heeled it's-arrived area. It's a super place and loves it's small businesses and I love that.

But what happens when a neighborhood gets something of a split personality - high incomes versus low incomes? Are businesses in tune with that? I hope some small firms ask themselves if it always makes sense to go for the gold or to try to be more inclusive.

I'm glad I'm helping out another region's economy but I wish I didn't get priced out of my own neighborhood.

Bank of America Pledges to Buy $10B in Small Biz Products and Services

2010-06-03T11:36:00.000-07:00

Bank of America today announced it will increase its spending with small, medium-sized and diverse businesses by pledging to purchase $10 billion in products and services from those companies over five years, with the spending amount expected to grow by an average of more than 5 percent each year.

“What businesses of all sizes are telling us they need most right now is more business,” said Bank of America President and CEO Brian Moynihan. “In addition to extending credit and providing technical assistance and a full range of banking services to our clients, we want to increase our support by purchasing more of their products and services, particularly from small, medium-sized and diverse businesses – coast to coast and across a wide range of industries. We hope other large companies will do the same.”

Small, medium-sized and diverse businesses provide the bank with a broad range of valuable services and products, including advertising, furniture, cleaning, courier service, home inspections, legal services, landscaping, maintenance, photography, security and software, according to a statement from Bank of America.

Souvenirs - A Remembrance of Things Past

2010-06-02T19:02:00.000-07:00

I recently enjoyed a trip to the Bahamas and one of my least favorite, yet quite memorable moments was when my 3 1/2-year-old son stormed into a very small hotel gift shop, threw a fabulous tantrum, flung a tacky looking canoe-shaped magnet on the floor and broke it. (He then proceeded to throw all of the pillows off the hotels sofas and chairs onto the floor, but I digress.)

I paid the nice price of $5.95 for this canoe thingy (tax included!) which is now glued back together and silently sails through our Frigidaire art gallery in all its glory.

If only I had been in the southern Italian town of Rivello, perhaps I'd be singing a different tune.

The town is rebelling against generic, not-made-here products, according to a report in the Springwise newsletter. The town hopes to attract 149 artists to come visit and reshape the souvenir concept.

As artists in residence they will be charged an accommodation fee of about 90 euros a week for a minimum stay of one week in July or August.

The organizers of the Unconventional Holiday Market hope that the visiting artists will frequent the beaches before they visit town to exhibit alternatives to what the marketplace managers call "trivial, mass-produced objects, quite often camouflaged as fake local handicrafts."

Kudos to Rivello for thinking outside the box.

I do have a favorite souvenir from my family vacation - a conch shell that my daughter picked up while snorkeling. My now much-calmer son said to me recently: "Did you know you can hear the ocean in there?"

Fancy that.

NFIB Free Webinars Address Business Growth, Partnerships and Harassment in the Workplace

2010-06-02T18:46:00.000-07:00

Small business association the National Federation of Independent Business released its June schedule of free webinars for small business owners:

“Harassment Prevention for Small Business Owners: What You Don’t Know or Aren’t Doing Can Hurt You,” June 16 at noon Eastern time. James Howe and Robin Rapino of Vubiz will outline the steps employers should take to prevent harassment in the workplace. The presenters will discuss the various types of discrimination prohibited by the laws enforced by the Equal Employment Opportunity Commission. They also will cover policy guidance, best practices and review important questions and answers for employers about employer liability for harassment.

“Operating Your Business at Its Full Potential by Eliminating Your Blind Spots,” June 23 at noon Eastern. David Riveness, author of “The Secret Life of the Corporate Jester: A Fresh Perspective on Organizational Leadership, Culture and Behavior,” will discuss the concept of a corporate jester and how it’s used by organizations such as Pfizer, JetBlue Airways and the BBC to increase results, enhance collaboration and sustain a culture of effective decision making. He will illustrate how the concept can be applied to small business leadership.

“How to Get Customers Through Business Partnerships,” June 30 at noon Eastern. Ron Kunitzky, founder of Geyser Marketing, will discuss how to find the right marketing partners to drive customer acquisition and distribution, as well as leverage partner marketing programs to increase the social and commercial capital of a brand. This session will feature case studies and tools for prospecting, pitching and negotiating your marketing partnerships. Kunitsky will also provide insight on partner marketing models that work.

Global Internet Traffic Expected to Quadruple by 2014

2010-06-02T18:14:00.000-07:00

Internet communications firm Cisco Systems is predicting that global internet traffic will more than quadruple by 2014, thanks to a surge in use of video online.

The company, based in San Jose, Calif., said video likely will surpass 91 percent of global communications in consumer internet traffic by 2014. The jump in internet traffic is being fueled by Improvements in bandwidth capacity and internet speeds and the popularity of high-definition television.

Cisco said the almost 64 exabytes of global, monthly internet traffic forecast for 2014 is equivalent to 16 billion DVDs, 21 trillion MP3s or 399 quadrillion text messages.

The highest IP-traffic generating areas will be North America (19.0 exabytes per month), Asia Pacific (17.4 exabytes per month), Western Europe (16.2 exabytes per month) and Japan (4.3 exabytes per month).

The fastest growing IP-traffic regions are Latin America (51 percent compound annual growth rate), the Middle East and Africa and Central Europe.

The company also expects that global Internet video traffic will surpass global peer-to-peer traffic by the end of 2010.

Intuit Index Shows Uptick in Small Business Employment

2010-05-28T18:07:00.000-07:00

Small business employment grew by 0.1 percent in May, equating to a 1.6 percent annual growth rate, according to a new Intuit Small Business Employment Index.

This translates to approximately 25,000 new jobs in May and a revised estimate of 240,000 total new jobs since October 2009. Intuit released the monthly report based on figures from about 50,000 U.S. small businesses that use Intuit Online Payroll.

The data also shows an increase in compensation per worker, which continues to show signs that a recovery is underway, according to the data. Compensation grew by 0.3 percent in May and is now $2,566 per month, compared to a revised estimate of $2,559 per month in April.

Monthly hours worked declined by 0.1 percent in May to 101.6 hours compared to a revised estimate of 101.7 hours in April. This translates to wages of about $30,800 per year for all employees and a 23.5-hour week for hourly employees

"Hours worked for hourly employees dropped slightly this month after rising a little last month, but the drop was enough to pull the trend down,” said economist Susan Woodward. “The good news though is that hours per worker are falling at a slower rate.”

Small Firms Can Use Claims Against BP Oil as Collateral

2010-05-28T12:38:00.000-07:00

Sen. Mary Landrieu, the Louisiana Democrat who chairs her chamber's small business committee, held a hearing this week on the BP oil spill's impact on small firms.

It was revealed during the hearing that small businesses have the ability to use claims against BP as collateral for small business loans under authority at the Small Business Administration. However, BP says it prefers claimants to file directly with the company instead of with the SBA.

AT&T Focuses on Mobile Platforms for Small Businesses

2010-05-27T17:16:00.000-07:00

AT&T hosted a small business event in downtown D.C. this week in celebration of National Small Business Week.

At a packed event at its Chinatown store, a group of about 40 or so entrepreneurs debated the pros and cons of Blackberries and iPhones.

The crowd included the owner of a swimming pool service firm, a night club owner, an online magazine developer and many more. It was a nice mix of suits, dreadlocks, tattoos, the flamboyant and the understated. No one was shy – but then again we’re talking entrepreneurs.

Entrepreneur Mario Armstrong moderated the event and helped answer audience questions like “how do I make my Web site more mobile friendly?”

He mentioned he uses WordPress, which offers tons of plug-ins to make content more mobile friendly. It’s also a good idea to ask yourself whether you want to make your Web site more accessible on a mobile device or do you want to make your own mobile app?

Some of the audience members groused a little about the iPhone having less robust apps than the BlackBerry, but AT&T Vice President Walt Rivenbark, who also fielded questions, basically said just sit back and relax – the BlackBerry has been around since about ’98 and the iPhone is “just getting its footing.”

Armstrong reiterated that a blog should be the center of any business owner’s social media strategy with other social media like Twitter as the spokes.

Rivenbark said he’s seen a big uptick in iPhone app use by service industries like pool firms, plumbers, auto glass repairs and HVAC repair firms.

Cathy Martine, AT&T executive vice president of small business solutions, also was on hand to discuss the company's newly announced Tech Support 360 Backup and Go, an unlimited storage online data backup service designed for small businesses and tailored for mobile devices.

New Bill Would Change Salon Tax Rules

2010-05-27T16:53:00.000-07:00

Small business committee Sens. Mary Landrieu (D-La.) and Olympia Snowe (R-Maine) have introduced a bill that would enable the salon industry to have the same tax rules on tips paid to employees as is allowed in the restaurant industry.

“Salons are quintessential small businesses on Main Streets across America, and by extending the tip tax credit to salon owners we would be allowing them to reinvest in their businesses and employees and create new jobs,” said Snowe. “Furthermore, since 84 percent of the workforce in the salon industry is female, this issue has special relevance for women. Our legislation would increase compliance with payroll tax obligations and will make sure that the women who work in the salon industry earn all the Social Security retirement and disability benefits that should available to them.”

The tax credit contained in the Snowe-Landrieu bill is designed for employers to offset the matching Social Security and Medicare taxes that the salon pays on the tips that employees receive from customers. The lawmakers say the bill would help to balance IRS enforcement of laws on payroll and income taxes.

The Small Business Tax Equalization and Compliance Act, S. 3430, is supported by the Professional Beauty Association, the largest association in the professional beauty industry.

New 1099 Regulations Will Hit Small Firms Hard

2010-05-26T15:38:00.000-07:00

As a freelancer, I'm all too familiar with Form 1099, a tax form generally used by firms to pay independent contractors.

According to a new law set to go into effect in 2012, business owners will be required to submit a Form 1099 for every payment made via check or credit card to vendors for services, inventory or property over $600 annually.

A National Association for the Self-Employed survey found that the self-employed and firms with fewer than 10 employees are expecting this new regulatory burden to greatly or somewhat increase the amount they spend on tax preparation.

According to NASE’s survey, micro-businesses reportedly received an average of four 1099s from clients or customers and issued an average of two Form 1099s to contractors in the most recent tax year.

Small-business owners have estimated that they will have to issue roughly 27 Form 1099s, mostly to large corporations, thanks to the new regulations. This is a 1250 percent increase in the amount of paperwork that will be required of small-business owners come 2012.

“To the mom and pop shop, time is money, and this new regulation is going to require plenty of both,” said Kristie Arslan, NASE executive director of legislative offices. “The bottom line is that the Form 1099 expanded reporting requirement affects companies small and large, increasing the number of forms issued and received many times over.”

As part of the new expanded Form 1099 reporting requirement, businesses will be required to obtain accurate Taxpayer Identification Numbers from all qualifying vendors. Should the business owner be unable to do so, they would be required to withhold a portion of that vendor payment and send it to the IRS. With over 40 percent of survey respondents still preparing their taxes on their own, this added administrative workload will significantly increase the time business owners spend on paperwork and/or force them to hire an accountant, adding to the cost of doing business in this difficult economic time, according to the NASE.

Dell Preps to Sell iPad Competitor Called the 'Streak'

2010-05-25T17:44:00.000-07:00

Small businesses have been racing to make apps for Apple's iPad but soon there will a new game in town. Texas computer maker Dell plans to start selling the Streak, a tablet computer.

The new tablet will use Google's Android operating system.

Dell plans to sell the first of its tablets in the United Kingdom next month. Later in the summer, the tablets will be for sale in the United States.

Senators Request Information on SBA Microloan Program

2010-05-25T17:34:00.000-07:00

Senators Mary Landrieu (D-La.) and Olympia Snowe of Maine, who are the chair and ranking Republican of the Senate Committee on Small Business and Entrepreneurship, today sent a letter to Small Business Administration chief Karen Mills requesting information on the SBA’s microloan program.

They requested information regarding funding that was provided through the American Recovery and Reinvestment Act.

With the ARRA funds only available through Sept. 30, Sens. Landrieu and Snowe requested answers to the following questions:

When did the SBA first obligate these funds?
How much money to date has obligated?
When will the remaining funds be obligated?
How many requests did the SBA receive for funding?

In FY2010, President Obama appropriated $25 million to the microloan program. However, fiscal 2011 only requests $13.8 million, a drop of $11.2 million. But the SBA plans to bring approximately 30 new lending intermediaries into the program.

“In light of this reduction, we are interested in learning how the SBA plans to sustain its support of these additional intermediaries following the expiration of ARRA funding on September 30, 2010,” the senators wrote.

Borrow Her Husband? What a Great Idea!

2010-05-25T16:18:00.000-07:00

I stopped by the Community Business Partnership's award luncheon for the best business plan for a new small business.

Julia Scrivens accepted first prize in the business plan contest for her new firm BorrowMyHusband.net.

Her business, which she started with her husband Anthony Scrivens, focuses on property owners, single parents and others who might need a handyman to fix a range of services such as garbage disposal replacement, ceiling fan repair, drywall or plumbing.

The concept for BorrowMyHusband started when a friend complained that her husband wasn’t getting to the fix-it tasks around the house and Julia Scrivens said “Borrow my husband!”

The partnership, a non-profit based in Springfield, Va., provides classes, technical and other assistance to small business owners with a focus on low-moderate income and disadvantaged individuals, including minorities, women and the disabled.

Zappos Online Pricing Goof Shows E-commerce Gone Awry

2010-05-25T05:21:00.000-07:00

Amazon.com unit Zappos, which sells shoes, clothes and other items online, made a big costly error recently that goes to show why paying attention to technology and e-commerce is important for a business of every size.

In a blog post, Zappos said a pricing engine mistake at its web site allowed all items on the site to be no more expensive than $49.95 for six hours early Friday morning. That tech glitch cost the firm about $1.6 million.

No need for customers to worry. Zappos said it would honor all purchases made during the online pricing goof.

Business Startups Reach Highest Level in 14 Years

2010-05-23T10:43:00.000-07:00

I like the entrepreneurial attitude, and it's shown to its fullest in new data from the Kauffman Foundation. The group released a new study showing that last year business startups reached their highest level in 14 years. That exceeds the number of startups during the peak 1999 to 2000 tech boom.

Entrepreneurship rates by race show that African-Americans experienced the largest increase in entrepreneurial activity between 2008 and 2009, according to the Kauffman Index of Entrepreneurial Activity. Rising from 0.22 percent in 2008 to 0.27 percent in 2009, the rate was the highest over the 14 years of reported data but remains below other racial groups. Latinos and Asians experienced declines in entrepreneurial activity rates.

Entrepreneurship growth was highest among 35 to 44 year olds, rising from 0.35 in 2008 to 0.40 in 2009. The oldest age group in the study (55-64 years) also experienced a large increase in business-creation rates from 2008 to 2009, contributing to a two-year upward trend to 0.40.

The number of new U.S. businesses created during the 2007–2009 recession years increased steadily year to year. In 2009, the 340 out of 100,000 adults who started businesses each month represent a 4 percent increase from 2008.

In 2009, 558,000 new businesses were created each month (0.34 in 2009). The index increased for the second straight year, from 0.30 percent in 2007 to 0.32 percent in 2008.

Welcome to Small Biz Watch

2010-05-22T05:09:00.001-07:00

Hi. Thanks for taking a look at my blog. I've been a journalist for about 20 years, covering a wide range of issues. I particularly like to write about small businesses, technology, new media and how all of those things tie together.

I'm currently a freelancer writing for a large media firms like CNNMoney.com, The New York Times, washingtonpost.com and TheStreet.com, but I also enjoy writing for smaller, more specialized publications covering issues like intellectual property and broadband.

I hope to use this blog as a more informal place to highlight the many small business owners and entrepreneurs I meet on a daily basis, along with the scads of reports and studies I read that often reveal the pulse of the community and focus on important issues. I also read many business and technology magazines and books and I like to try out new gadgets and services. I hope to let you know how they work for me and how they might work for others.

Prior to my work as a freelancer I was the small business blogger for washingtonpost.com where I wrote company profiles and "how do I..." pieces, covered the House and Senate small business committees, the Small Business Administration, conferences and more. I also worked for eight years as an editor for National Journal covering politics and policy issues of interest to the high-tech community.

As a freelancer, I run my own small business so I truly enjoy understanding and learning from other entrepreneurs. I love the optimistic attitude - often in the face of adversity - and the dedication.

If you're interested in seeing some of my writing samples, small business profiles and other work, please see my web site at www.sharonmcloone.com. I also am on Twitter @smallbizwatch.