New Ventures Society
Capital for the Small Businessman
Initial $100 million
Expansion $200,000 million
Upgrade $600,000 million
Small businesses provide over half the jobs in America. But recently we have experienced a 75% drop in the number of new people owning an interest in small businesses. Whereas before we had a steady 8% of the population participating in small businesses, the youngsters of the Millennial Generation only come in at 2% in spite of surveys that over 60% want to be entrepreneurs. If we do not correct this imbalance the future will be bleak for our many unemployed workers.
Why are our future employers shirking their prospects.
1. Banks are no longer granting loans to start new businesses like they used to do when the local banker ran the funding.
2. Millennials are drowning in debt, student loans are now bigger than housing or auto debts.
3. Government regulations discourage people from striking out. The lemonade stands of childhood, paper routes, and teens mowing your lawn are a thing of the past.
4. Nanny state regulations and helicopter moms have created a generation afraid to take chances.
We can handle the financial problems by having a venture capital company that invests in local down to earth companies rather than pie in the sky startups that existing VC firms fund. So we back the barbers, plumbers, electricians, used car salesmen, and other small businessmen and allow them to get started.
So an individual with ambition but no money can come to us and we would help him out. Form the company, provide legal, accounting, and other bureaucratic necessities and give him a job. Minimum wage to be sure, but with a big profit sharing plan so that hard work is rewarded. Then once he wants to go it alone we can sell him the firm using special tax provisions like an ESOP (Employee Stock Ownership Plan) that allows the employees to buy the business using tax dollars.
Another possibility is the small town with a single major employer who has closed the factory and moved to Mexico. This will effectively kill the town.
We would work with the town leaders to reestablish an industry thus giving them a future.