Stick Around.

Posted by: John Tozzi on December 24, 2008

We launched this blog six months ago to the day. One of our goals was to build connections among small business owners — a broad gaggle of folks that encompasses everyone from the mom-and-pop restaurant to the Silicon Valley tech wizard to the professional consultant working out of her home.

Some of the ideas we’ve gotten from your comments and emails have been great. You’ve given us leads to stories and reports from the ground. This kind of interaction is useful for all journalists, but it’s essential for small business reporters, because the community of people and companies we write about is so wide. Unlike most reporters at BusinessWeek, we’re not following particular companies or industries or markets or economic indicators. So we depend on you for ideas, leads, comments, and criticism. We’re reporters, not small business owners, and no one can tell us better about what’s happening to entrepreneurs today than you.

So in an effort to sustain and expand our community, you can now find us on Twitter at twitter.com/newentrepreneur, where we look forward to following some of you. You can also get the New Entrepreneur by RSS, subscribe to small biz stories in RSS or sign up for the weekly small biz email newsletter. (If you don’t use an RSS reader, it’s a simple way to track the many sites you read regularly. Here’s a good quick introduction.)

Anyway, aside from promoting our new home on twitter, we wanted to thank you for reading and participating. With the world the way it is today, there will be plenty of interesting small business stories to hear and tell in the year ahead. Hope you’ll join us.

Reader Comments

Prof. Samuel D. Bornstein

December 27, 2008 12:19 AM


RE: The Housing Market, Foreclosures, and Job Loss:

On December 14, 2008, CBS’s 60 Minutes had a segment on the 2nd Wave of Foreclosures. They indicated that experts were expecting another wave of mortgage defaults on ALT-A and Option ARMs mortgages which will dwarf the Subprime Mortgage Crisis.

Many fail to realize that there are millions of self-employed smaller businesses, who employ from 1-10 employees, that are holding the mortgages that are going to reset in 2009 through 2012. These borrowers are Prime and Near-Prime borrowers who hold ALT-A, Option ARMs, Interest-Only mortgages. There are $1 Trillion ALT-As, and $500-600 Billion Option ARMs.

So, here we have a major problem… Not only will these small business owners lose their homes, but there will be the resulting JOB LOSSES on their business failure.

Although President-Elect Obama is stressing the need to create 3 million new jobs, we must understand that “JOB RETENTION IS AS IMPORTANT AS JOB CREATION”.

The NASE survey is at http://www.nase.org . See the NASE News for the Survey on Toxic Mortgages.

According to this survey, it is estimated that 3,709,800 small business owners hold Alt-A and other toxic mortgages, and 1,279,800 are already delinquent as they have missed one to three or more monthly mortgage payments at mid-November, before the expected Resets that are scheduled to begin in 4th Quarter 2008 through 2012.

The solution lies in the hands of Congress as they meet in January to structure an economic stimulus package. Congress should take note of this survey and be “proactive” in addressing the situation, rather than “reactive” as the case has been in the Subprime Mortgage Crisis.

We can’t afford another shock to our economic system at this time. This 2nd Wave of Foreclosures which will be caused by the ALT-A and Option ARMs will not only result in Foreclosures, but also Job Loss.

I enclose attachments which may be of interest to you. Here is an article by Randal Forsyth Editor of Barrons.com entitled, "Betting the House".

http://online.barrons.com/article/SB122882017811791223.html?mod=9_0002_b_online_exclusives_weekday_r1

Best Regards,

Samuel D. Bornstein
Professor of Accounting & Taxation
Kean University, School of Business, Union, NJ
Tel: (732) 493 - 4799
Email: bornsteinsong@aol.com

Sarah Smith

December 27, 2008 9:26 AM

Thanks for all your hard work. I’ll be looking for you on twitter. Sarah
www.work-from-home-job.com

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About

What's it like to run your own company today? Entrepreneurs face multiple hurdles new and old, from raising capital and managing employees to keeping up with technology and competing in a global marketplace. In this blog, the Small Business channel's John Tozzi and Nick Leiber discuss the news, trends, and ideas that matter to small business owners. Follow them on Twitter @newentrepreneur.

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