Entrepreneurs Must Turn Back – Economy

Bobbi Reed transferred from Denver to Sydney in 2000.  For one month, he managed a VIP hospitality suite during the Summer Olympics in Sydney.  After two years, he was busy at the Winter Olympics in Salt Lake City.  Her small venture composed of a tight team handled the food, housing and transportation needs of more than a thousand telecommunication workers.

A Business Turned Sour

Ms. Reed owned a small event organizing and planning firm.  She was able to work, albeit behind the scenes, at four high impact Olympic Games.  Her company attended to athletes and meetings.

Ms. Reed said she felt very lucky at that time as she witnessed international solidarity and camaraderie.  The hectic schedules of the Olympics also provided good business for her event planning firm.

The Beijing Olympics however is not a lucky event for Bobbi Reed.  She watched the Games from her TV, lying at her couch at home.  Ms. Reed has lost her business.

Her event organizing firm slowly disintegrated and disappeared one at a time.  A client of her company, the Kiwanis Club of Colorado usually hired her for event organizing services.  Then Kiwanis decided to do the organizing themselves to save money.  Another client also disappeared after it was absorbed by another big company.

Then Ms. Reed finally decided to close shop or sell.  She took a job when it was offered to her and quickly closed her business.  She works now as director of stadium operations in Glendale Colorado.  

Ms. Reed said she will not get rich from her salary but it is comforting to have a company pay for her retirement account.  

Dilemma of Small Business Owners

The current economic grind has put many small business owners on a dilemma.  They have to make choice if taking a corporate job is safer.  For Ms. Reed the answer is yes.

Based on latest research, the outlook of sales and employment of small business is bleaker than those being experienced by larger companies.  According to David B. Audretsch of Indiana University, small businesses experience windfall during economic boom.  But when the economy turned sour, small business will be hit hardest.

Economists said small businesses involved in construction, manufacturing, finance, retailing, and travel, suffer the most.  Small businesses also suffer in areas that were hardest hit by the current housing slump.

According to the National Federation of Independent Business, small business owners are constantly hounded by rising energy costs, high prices of supplies, and health insurance.

Small businesses will also suffer a lot if their clients delay their payments thus sending them into further financial difficulties.  Staying afloat is a big problem especially when big companies stop ordering from small companies.  This drives small businesses to bankruptcy.