Small businesses were able to have a collective celebration after the bipartisan jobs legislation was signed yesterday. This bill will help small businesses, making it easier to raise capital. The “Jump-start Our Business Start-ups” (JOBS) act he signed also will make it easier for business owners to go public with their companies by removing some of the SEC reporting rules, effectively reducing the hurdles and cost of going public.
Business owners may also take advantage of “crowd-funding” as a result of this bill, which is when the internet is used to pull together investment capital from a large number of smaller investors. This avenue for funding does require those companies seeking to raise money in this manner provide their financial status, business plans and other financial items.
There may be additional assistance for small business owners later this month, in the form of a tax cut that the House will vote on late in April. This Small Business Tax Cut is “a 20 percent tax cut that will provide real relief to more than 22 million small businesses in our country” House Minority Leader Eric Cantor stated. Sixty six percent of Ultra High Net Worth (UHNW) business owners are concerned about an increase in taxes, and 48 percent of them will be changing some of their investment strategies, according to a recent study by Millionaire Corner.
Entrepreneur/Business owners make up 15 percent of Ultra High Net Worth investors, according to the study, and according to those small business owners, investment decisions have played a large part in creating their wealth. Ninety one percent of business owners cite “Decisions made for me by financial advisors” as a factor in their wealth creation, compared to just 44 percent of the rest of the UHNW investors.
Small business owners also understand the basic concept that it takes money to make money, as only 58 percent of UHNW business owners list frugality as a factor in their wealth creation, compared to 75 percent of other UHNW investors. One other factor that they vary on compared to other UHNW investors is education, 81 percent of business owners identified education as a factor for their wealth, compared to 91 percent of other UHNW investors. They do value hard work, smart investing, luck and being in the right place at the right time similar to other UHNW investors.
This bill could be a “game-changer” for small business owners and entrepreneurs according to Obama, which he hopes will also aid with job creation. “When their ideas take root, we get inventions that can change the way we live, and when their businesses take off, more people become employed”. Now that is a wealth creation factor that anyone can get behind.