• Micro-Business Owners Have Few Funding Options
• National Women’s Business Council: Access to Capital Conference Call Next Week
• Just the Facts on Health Care
• Gulf Opportunity Zone Update
• Member Poll: Looking Back at 2005

Micro-Business Owners Have Few Funding Options

A majority of micro-business owners (57 percent) initially fund their businesses using personal savings and many (40 percent) continue to use personal savings for ongoing financing, according to a recent online member poll by the National Association for the Self-Employed (NASE). Only 11 percent of respondents felt that there are adequate funding resources available for micro-businesses, while three-quarters believe that funding opportunities are inadequate. “It is no surprise that micro-business owners put their own savings on the line in hopes of building a successful business,” said NASE president Robert Hughes. “Americans today are saving less than ever, and yet, personal savings are necessary for unexpected emergencies, future planning, and retirement. Micro-business owners need better and easier ways to access capital to start and maintain the businesses that are so important to this economy.” Of the NASE Members who opted into in the survey: Nearly 12 percent started their business utilizing credit cards, while only two percent had government funds or loans. Nearly 20 percent use credit cards as a primary source of ongoing financing of their business. Only four percent secured loans from a traditional lending institution to start their business while about nine percent use those loans to maintain their business. Respondents pointed to credit rating (31 percent), bank regulations and paperwork (21 percent), and lack of collateral (18 percent) as the largest obstacle in gaining access to capital. Over two-thirds of respondents said they would be likely to apply for grants or loans from associations and nonprofit organizations if they were available. To see the full results of the survey, visit http://advocacy.nase.org/membersurvey/default.asp. Methodology: Posted in the members-only portal on the NASE Web site, the survey was available for members to take through the months of November and December. About 350 NASE Members opted-in to the non-scientific survey and members were prohibited from taking it more than once. National Women’s Business Council: Access to Capital Conference Call Next Week Speaking of access to capital, the National Women’s Business Council’s January conference call is titled “Growing Your Business: It Takes Money to Make Money,” and addresses issues in access to capital specifically for women entrepreneurs. Speakers include the NWBC executive director, Margaret Barton, director of the University Office of Entrepreneurship and Liberal Arts at Wake Forest University, Dr. Elizabeth Gatewood, and president and CEO of Count Me In, Nell Merlino. To listen to this call on Tuesday, January 24, 2006 at 3 PM (EST), call toll-free 1-877-326-2337 and enter code 3687613#. If you have any questions, contact Chris Andrews at the NWBC at christina.andrews@sba.gov or visit www.nwbc.gov. Just the Facts on Health Care Health care continues to be a critical issue in Washington, D.C. Recent studies have found the following: The U.S. spends 16 percent of its gross domestic product on health care, up from 13.8 percent in 1993 and 9.1 percent in 1980, according to the journal Health Affairs. Increasing the hours nurses spend with patients could reduce deaths, shorten hospital visits, and prevent complications to save money overall in the health care system, according to another Health Affairs report. The study found that the most effective change, adding nurses and increasing hours with patients, would raise costs by about one and half percent but could greatly improve the system. Eighty percent of states earned mediocre or failing grades for emergency medical care, according to the American College of Emergency Physicians, in a report card on the state of emergency medicine. The NASE continues to closely monitor the state of health care in the U.S. Let your Members of Congress know what you think about rising health care costs by visiting the online NASE Legislative Action Center at http://advocacy.NASE.org. Gulf Opportunity Zone Update Before closing the last session of Congress, both chambers passed the Gulf Opportunity Zone Act of 2005, creating the new “opportunity zone” in parts of Alabama, Louisiana, and Mississippi affected by hurricane Katrina. Entrepreneurs in these regions will be eligible for certain tax incentives and benefits including: Fifty-percent bonus depreciation for new business property investments. A doubling (from $100,000 to $200,000) of eligible Section 179 expensing. Small businesses will be allowed to deduct up to $200,000 for new business investments. New Markets Tax Credit: Up to $1 billion of credits for investments in Community Development entities involved in rebuilding. To learn more about the Gulf Opportunity Zone program, visit http://www.whitehouse.gov/news/releases/2005/12/20051221-10.html Member Poll: Looking Back at 2005 With a new year ahead, many business owners take the time to evaluate the previous year and determine their business strategy for the year ahead. Tell the NASE how your business fared in 2005 in this month’s online poll. Let the NASE know your opinions by visiting the MyNASE Web site at http://my.NASE.org/. Log in to your free MyNASE Web Account. If you have not set up an account, you can do so at http://my.NASE.org/ with your member number. Let your voice be heard in the association by taking this survey during the month of January.