Last week, President Obama addressed the Nation after one year in office. He made it clear that the focus of effort will now shift from mega bailouts to encouraging small business.
This is a very strategic move, and completely in sync with demographic trends. Supporting the start up and growth of small businesses will help the economy but more importantly, will play a key role in job creation by having a direct impact on the unemployed either through incentives to start a small business or providing funds to grow small businesses and allowing them to hire new employees.
In addition, such a focus spreads the wealth much more than the large bailouts, so more Americans will actually benefit from the incentives, and consequently, there will be a significant amount of public support for these types of economic measures. But most important of all, Obama’s new jobs bill is a sign of the times – don’t count on the large corporations for your security.
Ten years ago, Robert Kiyosaki published the book, the Cashflow Quadrant in which he describes the four types of money management profiles. He explains that we are misled into believing we are secure by getting a steady job with benefits, paying off our mortgage, and buying mutual funds.
Kiyosaki built his entire Rich Dad brand on the mission of financial education where he explains that we should be striving to get out of the rat race and become business owners and investors if we want true financial security.
Time magazine has recently reported that by 2019, up to forty percent of the American workforce will be independent contractors. This trend is already manifesting itself as the Global Entrepreneurial Movement gains momentum. Technology convergence, and the internet is making it much simpler to get into business than ever before.
These winning conditions make it an ideal time for someone to decide they should start their own business. In addition, there are limitless opportunities to exploit but one has to be careful not to fall for the abundance of scams that pollute the web. A bit of education, a field of interest, some motivation, and access to the internet are all one really needs to get started.
So while Obama and Kiyosaki are in line with Time magazine’s prediction, the question will soon become how do we ensure that all these small businesses survive longer than their first year? To do so, business owners will need a solid foundation of basic business skills and a solid plan. Without these two elements, the money spent on the jobs bill, may not have any long term benefit at all.