Small Business As a Solution to the Job Problem

A Home Business Article Contributed by Elizabeth Fox-Wise

The American Economy Needs a Solution. is Small Business It?

Can small business be a solution to the recession in America today? Millions of people are hoping so; as their solution to job loss becomes small business ownership.

This most recent recession in America, which the current administration insisted was not a recession, but turned out to look surprisingly like a recession after all, cost millions of Americans their jobs.

In more recent years, the profile of the American worker has changed drastically. Almost all factory work has been moved out of the United States and into other countries where labor costs are lower. The American job market became filled with qualified, skilled and highly educated workers. The nineties was the time of large business management solutions adding a layer of "middle level management" to their business structure.

Therefore, this recent round of lay offs that occurred in America, was not like the lay offs of the past. Today's laid off workers are not factory workers who are going to sit around and wait for the factory to call them back. In most cases, they will not be called back to their jobs at all.

Many of these people are turning to small business ownership as their solution for generating an income the second half of their working lives.

An Increase in Small Business Ownership is a Partial Solution to Unemployment Rates

For every person that chooses to open a small business instead of going back into the work force, that is one job left open for another worker to take. In this sense, by not being part of the millions looking for work, by not making it millions and one, the person who opens a small business is helping toward America's unemployment solution. In this case, by not being "part of the problem" the small business owner has become part of the solution.

If the Small Business Grows to the Point of Needing Employees It Has Become a Larger Part of the Solution

As we have said, the small business owner is part of the solution, simply by not being part of the problem. By taking one person (himself) out of the job market he has, albeit it indirectly, provided an opportunity for another worker. One step towards a solution.

Now take than another step further. If the entrepreneur is successful with his small business and is able to grow it the point that it needs to hire employees, this small business has just become and even bigger part of America's solution. by providing jobs, even for a few people, the small business is doing a big part to contribute to America's job solution.

Even if the small business never hires anyone else, it's impact on America's job solution is much greater than the one business owner. Every small business conducts business with others that contributes to America's job solution. Say for example your small business sells a product which provides work for a shipping company. Your small business is working, along with other small business, to provide jobs through that shipping company who will have to hire more people as their business grows.

This is just one example. There are many ways that your small business has a ripple effect which helps towards America's job solution.