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APRIL 2, 2001
In Box
Counter Culture
How many small businesses are there? Depends who's counting. Here's the tally so far: The Small Business Administration finds 25.5 million. The SBA's Office of Advocacy counts 18 million. The National Federation of Independent Business says there are 12 million. Dun & Bradstreet Corp. has 11.4 million small companies in its database, a number it believes is "very close" to the actual total.
What gives? The SBA counts each business tax return as a full-fledged business, even though a third are filed by part-timers. Its advocacy office combines 12 million self-employed with 5.75 million employer firms. The NFIB uses census data to estimate the number of full-time business owners. To get into the D&B database, a spokesman says a business has to be "commercially active and competitive." So, pick a number, any number.
A Not-So-Modest Proposal
It's hardly a page-turner. But if you're gunning for government contracts, consider Robert S. Frey's Successful Proposal Strategies for Small Businesses (Artech House, $79). Frey knows proposal-writing is tough and recommends a full-time staffer dedicated to the job. He offers plenty of help in finding leads, navigating government agencies, and pitching for business.
Cash & Carrion
It looks like venture capitalism is giving way to vulture capitalism. Circling overhead: Michael Oken, owner of Network Systems Technologies, an 11-person computer networking company in Atlanta. Last month, Oken picked up $47,000 in used computer equipment when now-bankrupt "urban culture portal" Urban Box Office ($33.5 million in venture backing) auctioned off its effects. "My clients don't always need bleeding-edge equipment," says Oken. "We go out and buy from bleeding-edge companies that have bled to death." Oken says he scooped up a Cisco Systems router for $2,500 that sells for $11,000 new. Within a few days, Oken says, he had sold the router for $6,500. Urban Box Office's investors can only wish they had seen that kind of return.
Instant Expert
President Bush wants the private sector to tackle social problems. But some entrepreneurs already know that charitable giving can be good business.
CASE IN POINT
Neutral Posture Ergonomics Inc. (NTRL
), a Bryan (Tex.) producer of ergonomic chairs, offers its 95 employees matching funds and extra vacation time to support 60 local charities. Why take the trouble? Charitable endeavors make both employees and customers feel better about the company, says CEO Rebecca E. Boenigk, fostering a sense of teamwork.
RESOURCES
GuideStar (guidestar.org) offers information on 700,000 nonprofits and news about philanthropy. Helping.org lets you search for volunteering opportunities by Zip Code. The National Charities Information Bureau (www.give.org) offers a "wise-giving guide." For advice on tax benefits, consult the taxes section of Quicken.com. From the bookshelf: Don't Just Give it Away: How to Make the Most of Your Charitable Giving, by Renata J. Rafferty (Chandler House Press, $17.95) tells you what really happens to your charitable dollars.
By Naween A. Mangi
Bankers Turn Cold to Hot New Ideas
If your banker seems skeptical about your new business idea, it's not just your imagination. The percentage of lenders rating "startups/new ventures" as their least-preferred borrowers jumped to 67%, up from 44% three months ago, say turnaround specialists Phoenix Management Services Inc. Now bankers want more of the old-fashioned stuff--collateral, guarantees, and higher fees. But then, they never did take stock options.
She's On Her Own
Are women more self-reliant? A study of fast-growth business owners finds:
43% of women had an entrepreneur as a role model, vs. 59% of men
39% of women have commercial bank loans, vs. 52% of men
28% of women share equity in their company, vs. 49% of men
Data: National Foundation for Women Business Owners
One Iota
PETTY CONCERNS
Percentage of successful businesses launched with less than $5,000 in capital: 26
Data: National Commission on Entrepreneurship
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Copyright 2001, Bloomberg L.P.
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