Government Support For Small Businesses

Government Support For Small Businesses – Wellesley, MA – April 15: Taylor’s True Value Rental Store in Wellesley, MA thanks its customers for their patronage on April 14, 2020. (Photo by Boston Globe via David L. Ryan/Getty Images)

Part of what drives me and other founders to create new businesses is the excitement of the unknown and the unexpected in business. While entrepreneurs have previously been forced to deal with global financial crises such as the 2008 recession, the coronavirus pandemic has created a new level of financial uncertainty in every industry. Small business owners, business founders and other entrepreneurs have to make risky decisions in order to try to protect their companies.

Government Support For Small Businesses

So far, the public sector approach has been shockingly inadequate. U.S. of Small Business The government’s relief program quickly ran out of money and was never made available to start-ups with private capital. And there’s not much optimism about how far the new wave of federal relief is going. Meanwhile, NGOs have not been able to provide assistance in the same way. Venture capital, the traditional way to raise capital for an organization, is drying up and still out of reach.

How The Nsw Government Can Support Small Businesses

These organizations have failed to start and businesses need public support to survive. There are encouraging signs: The community is coming together to support local businesses, such as buying gift certificates to help small businesses, ordering from local establishments like bookstores, and donating jars of tips for restaurant workers. Many people schedule real-time appointments for personal service providers such as personal trainers and therapists. Additionally, small businesses have raised money through crowdfunding platforms where their loyal customers can support them online. Despite the negative market forecasts, this is a promising time for entrepreneurs and a time of great innovation.

An interesting parallel can be drawn by examining recent history. After the recession of 2008, crowdfunding platforms like Indiegogo and Kickstarter emerged to fill the funding gap for entrepreneurs. During that time, crowdfunding became a popular way for businesses to raise money. These platforms can still donate to their owners, but now many fundraising campaigns are unable to gain traction due to many campaigns focusing on immediate support. -once.

Equity crowdfunding is an emerging solution that will become more popular when businesses need access to capital quickly. With equity crowdfunding, potential investors are encouraged to back businesses because they can buy equity in businesses they believe in and care about, getting first-hand access. I have a long-term interest in equity crowdfunding, and earlier this month, I decided to join StartEngine, the largest equity crowdfunding platform in the US.

Historically, due to securities laws passed in the 1930s, only accredited investors were able to invest in private companies – barring about 97% of citizens to participate. In 2012, President Obama signed the Jumpstart Our Business Startups (JOBS) Act, which loosened Securities and Exchange Commission (SEC) regulations and made it easier to get more capital for small businesses and startups. After the law was passed, equity crowdfunding became a new asset class for potential investors. Even beginner investors have the opportunity to invest in early stage companies and small businesses easily online.

The Paycheck Protection Program Has Run Dry, And Voter Support For Government Aid To Many Industries Is Fading

Companies want more than an immediate infusion of capital to ensure long-term success. Unlike institutional investors or quick fixes like emergency cash programs or loans, equity crowdfunding investors build direct relationships with business owners and become loyal customers of those products and services. who invest in them. These relationships can have a domino effect on becoming an investor. Brand ambassadors, attracting potential investors.

Investors like me are eager to help entrepreneurs fill the gap left by government and corporate investors, but government agencies should think about developing new programs instead of giving with temporary relief packages.

Another idea is to create a program that gives every adult in the U.S. with a fixed amount to purchase an equity investment in a pre-selected local business. Encouraging people to become smart investors and create stakes in the companies they love will have a lasting impact on our economy, allowing companies to retain current employees and hire new employees, allowing the growth of this nationwide recession. With Americans staying in their homes for the foreseeable future, this is the perfect time to encourage a new community of potential investors.

This period of economic uncertainty is more of a catalyst for innovation than a doomsday event. All entrepreneurs can use this online investor community that is ready to support businesses in this time of need. With tools like equity crowdfunding, more and more businesses can reposition themselves and enter new levels of growth despite the challenges ahead.

Government Support For Small Businesses

Kevin O’Leary is a well-known entrepreneur and investor and the Chairman of O’Shares ETFs. He is a personality in several shows including Discovery

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How the US should invest in public health before reopening the economy – To reopen the economy, there are 5 guidelines we must follow. They create many social activities, encourage innovation, and shape the character of our society. Unlike many national retail chains, they adapt their products and services to meet the needs of their community. And a significant portion of the dollars spent at local businesses — as opposed to retail sales — stays in the community, generating economic activity that supports schools, parks, first responders and other essential community services. the community.

Many small businesses do not have the credit and capital to deal with the coronavirus outbreak. And the average small business only has enough money to stay open for 27 days. For restaurants, it’s only 16 days; for retail stores, only 19. Closures of weeks or months due to the COVID-19 pandemic have been devastating to hundreds of thousands of small businesses. Governments, foundations and nonprofits are scrambling to help small businesses survive this crisis, but everyone can help. Here are some things you can do.

Small Business Government Support Packages

Buy from local, independent businesses. You can help your favorite small businesses stay in business by purchasing their products and services. In fact, many small businesses now operate online and over the phone. And shopping locally means you’re not only supporting community businesses, but you’ll get your products faster than if you order from a megastore. So give them a call!

Buy gift cards. You can use them after the business reopens. In the meantime, you are essentially providing the business with income.

Buy something extra. When you buy a gift card, you can also get it as a birthday gift for a friend.

Order management. Restaurants across the country have moved quickly to make it easier for customers to order food and pick it up curbside or have it delivered. Many other small businesses also offer pickup separately.

Supporting Small Business

Be flexible. Many small businesses are trying new ways to meet their customers’ needs and stay afloat. Whether it’s an online class at your favorite yoga studio or a mobile video store at your favorite bookstore, give them a try.

Submit your ticket. If you have tickets to a show canceled due to the pandemic, donate to an arts organization instead of asking for a refund.

Leave the review. Now is a great time to leave positive reviews about your favorite local businesses on Yelp, Google, Facebook and social media. This will help drive traffic to these businesses, but business owners and employees will probably appreciate the emotional support now.

Don’t forget the farmers. Farmers’ markets across the country are closed due to the outbreak – but farmers still have crops and food products. Check your local farmers market website for information on how to support farmers and buy their produce until the market reopens.

Survey: Majority Of Small Businesses Negatively Affected By Pandemic, Want More Governmental Programs

Many store and restaurant workers are paid to be paid. Being out of work for just a week or two can put them at great financial risk.

Better advice than you usually do. If you support a service industry business whose employees rely on tips, give a larger tip than usual.

Get involved in charities and community organizations that support workers. Industrial unions have quickly come together to help workers who are struggling to make ends meet during this crisis. For example, the Restaurant Workers Community Foundation has created a relief fund for restaurant workers, many of whom rely on tips and have been hit hard by the coronavirus pandemic. In addition, a growing number of local and state organizations are putting together relief funds for specific types of workers, such as the Boston Center for the Arts’ COVID-19 Artist Relief Fund.

Support your local or regional agency or

Helping Businesses Recover

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