Business Information for Entrepreneurs by an Entrepreneur

There is no shortage of criminals looking to take advantage of anyone. Small businesses are especially vulnerable to fraudulent acts and scams that are designed carefully. With advances in technology, criminals are also become more advanced and more creative. Telephone, email and other computer applications are now at the center of scams involving small businesses.

Telephone Scams. Criminals like to use the telephone to collect pertinent information about small businesses. One such scam involves a representative (criminal) who calls and asks a small business to "update" their information for an online directory, such as the yellow pages. The representative will use careful language that is actually designed to rope the small business into an agreement for an online listing service. The business will then be charged a fee for the "service." To not fall victim to this scam, avoid giving out business information or dealing with suspicious individuals over the phone. If you are unsure of the "company" or the "representative," chances are that it is a telephone scam.

Email Scams. Since email has become the preferred method of communication, it has also become the preferred method of working for con artists and criminals. There are a variety of different ways that scammers will try to collect personal and business information via email. An email scam that has a goal of obtaining personal information is known as phishing, and there are many creative ways to accomplish this scam. For example, you might receive an email from what looks like your business credit card company, informing you of some changes to your account. If the scam is well-developed, it might even look like the email was sent from a major financial institution like Bank of America or Chase. The email will ask you to provide pertinent information, such as addresses, account numbers or passwords. This is a total scam, as your financial institution would never ask for such information via email. If you have any doubts, call your bank or financial institution directly.

IRS Scams. Tax season is especially stressful for small business owners. Criminals take advantage of the added stress and pressure by developing scams that are specifically related to the IRS and taxes. This is typically done through phone or email contact by individuals claiming to be the IRS. Sometimes the scams come complete with documents bearing the official IRS logo. IRS scams are typically designed to steal identities. Stay updated by visiting the real IRS' website that provides information on the most recent scams.

Criminals will continue to get smarter and more creative; therefore, it's important to exercise caution and awareness at all times. Protect your personal and business information. If you are suspicious, don't be afraid to do some investigating on your own. Chances are that a few questions will lead you to the right answer and reveal fraudulent activity.

Vistage, the world's largest CEO group (mostly small and mid-size business CEOs), takes quarterly surveys of its members to get a sense of what they feel about the economic climate.  Since small and mid-size businesses employ 75% of the country's work force, this is a good indicator of how the nation's employers see things.

Good news!  Confidence is on the rise for the second quarter in a row.  It is now almost back to 2008 Q2 levels.

While this does not mean that the economy is out of hot water, it does suggest that businesses feel things are improving.  Some more data points:

Download the complete CEO Confidence Index (2 page PDF file)

Small business is at the crux of the American economy. That is why the White House is looking for creative ways to help small business owners make it through these difficult financial times. President Obama and his administration have developed several different methods to try and provide assistance to small businesses that are struggling. While government officials don't necessarily agree with all of these plans, the suggestions are evidence that someone has heard the outcry from small businesses that are struggling to stay afloat:

Government-Backed Loans. One of the most popular suggestions by the Obama administration is that the government should underwrite loans that could be used to fund small businesses. This would make more cash readily available to small business owners who need to cover the costs of overhead or make investments in their companies. This is a risky idea for both the government and taxpayers who would face repercussions if small business owners find themselves unable to repay the loans.

Extend Lines of Credit. Another suggestion is to allot part of the money that has been provided to the financial sector to extend lines of credit to small business owners. The government provided just over $700 billion to bail banks and other members of the financial sector out of an economic crisis. Because banks are the primary source of funding for small businesses that open lines of credit, there is a belief that some of these funds should be targeted right back into small business.

Stimulus Funding. Some stimulus dollars have already been invested in the area of small business. In conjunction with the Small Business Association, about $730 million has been committed to lending guarantees. This stimulus money is packaged into loans that small business owners can apply for at competitive interest rates, and deferred payments are also available. The funding is already being provided by the Small Business Administration, but it is a small dent in a much larger problem.

With each of these different suggestions and strategies by the Obama administration, the key is finding an effective solution that is also efficient and affordable. Taxpayers cannot be expected to assume responsibility for the financial problems of all small businesses across the nation. It will take a combination of strategies like these, as well as tactful financial planning, in order to promote recovery in the small business sector. There is not a magic solution to the complex problems created by the ongoing economic recession. The key is implementing a variety of creative strategies to combat the problem as a whole.