• Micro-Business Owners Fare Well in 2005, Optimistic about 2006
• Women’s Business Organization Hopes for Millions
• Senate Finance Chair: No Option for Stand Alone HSA Tax Break Expansion This Year
• Member Poll: A Taxing Time for Micro-Businesses

Micro-Business Owners Fare Well in 2005, Optimistic about 2006

As a sign of the recovering economy, many micro-business owners reported improved gross revenues over the past year, and expect further gains in 2006. According to a recent online member poll by the NASE, nearly half of micro-business owner respondents saw an increase in gross sales revenue last year as compared with 2004. Another 15 percent stayed steady while only 13 percent saw a decrease. When asked about concerns for the coming year, the cost of health coverage topped the list of important issues facing micro-business owners. “The NASE continues to fight for affordable health care coverage for micro-business owners so that they can invest money to grow their businesses,” said NASE president Robert Hughes. “With the guarded economic growth of the past year, we are glad to see that micro-businesses continue to thrive and remain the backbone of this country’s economy.” Respondents think their improvements of the past year will continue. While 20 percent grossed less than $25,000 in 2005, only 7 percent anticipate similar earnings in 2006. The number of respondents grossing more than $100,000 is expected to jump from 51 percent to 63 percent. NASE Members also identified their top issues of concern for 2006 in the survey. These included: Cost of health care coverage (27 percent) Increased energy costs (13 percent) Tax equity and complexity and access to capital (12 percent) Retirement security and ability to hire skilled, qualified workers (9 percent) 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 January and February. Over 200 NASE Members opted-in to the non-scientific survey and members were prohibited from taking it more than once. Women’s Business Organization Hopes for Millions Last week, Count Me In, in conjunction with OPEN from American Express and QVC, launched its movement to inspire one million women-owned businesses to gross $1 million annually by 2010. The program, Make Mine a $Million Business, provides money, mentoring and marketing opportunities to assist female entrepreneurs to grow their businesses to the million dollar mark. “Make Mine a $Million Business is inviting women entrepreneurs across America to declare their intention to grow their businesses to $1 million to transform their lives and transform the U.S. economy,” said Nell Merlino, president of Count Me In. In addition to declaring the intent of growing one’s business to $1 million dollars annually, female business owners are invited to apply for a year-long program that will provide important tools for business growth. The 2006 Make Mine a $Million Business program will select 40 women entrepreneurs from around the U.S. to receive: Hillary Clinton a year of mentoring from a team of business advisors up to $45,000 in financing from Count Me In exposure to marketing opportunities to increase visibility access to a network of successful business women on both a local and national level Currently, only 2.6 percent of women-owned businesses gross $1 million annually. NASE Member Julie Weeks presented the economic impact that one million women-owned businesses making $1 million would have on the nation. By expanding to this number, the U.S. would see $700 billion in increased revenues and 4.7 million jobs. “It is long believed that the next frontier of women business development is to focus on growth,” said Weeks, CEO of Womenable, a research firm in Michigan. “Our estimates are just the tip of the iceberg.” Julie Weeks “Women entrepreneurs who want to grow their businesses too often face barriers to accessing the financing and technical assistance they need,” said Senator Hillary Clinton (D-NY). “Giving women entrepreneurs the tools to expand is not just good for business. It's good for our communities, and it will help grow our economy.” Count Me In, an online microlender, uses a unique women-friendly credit scoring system to make loans of $500 to $10,000 available to women across the United States who have nowhere to turn for that all-important first business loan. The Make Mine a $Million Business declaration and application can be found at www.makemineamillion.org. For more information on Count Me In, visit http://www.countmein.org/. Additional tools for women entrepreneurs can be found at http://women.NASE.org. Senate Finance Chair: No Option for Stand Alone HSA Tax Break Expansion This Year Senate Finance Committee Chairman Charles Grassley (R-IA) said it is unlikely that his committee will mark-up proposed changes to expand tax breaks for Health Savings Accounts (HSAs) used in conjunction high-deductible health plans this year. Not enough Senators support HSA tax breaks to prevent a filibuster, Grassley said last week at a committee hearing. Grassley thinks the HSA provisions could only pass if included in the budget reconciliation process because then only a simple majority would be necessary to pass it. However, he is not optimistic. “We’re not going to have tax reconciliation in the budget,” Grassley said. “If you don’t have tax reconciliation in the budget, I don’t know how you move things like this.” “Health savings accounts with high deductible health insurance plans provide an alternative way to finance health insurance, something no one should go without in this country,” said Kristie Darien, executive director of the NASE legislative office. “While this news is a setback, we will continue to push for various options to make health care more affordable for micro-business owners and their employees.” For more information on the NASE’s legislative priorities, visit the NASE Legislative Action Center at http://advocacy.NASE.org. Member Poll: A Taxing Time for Micro-Businesses Taxes are a source of frustration for the self-employed. The NASE has long supported tax simplification and tax fairness for micro-businesses. Please take this short member survey regarding your opinions on federal tax reform. 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 March.