Creating jobs in America has to begin with job creators.
Has anyone asked why people like me – business owners, especially owners of micro-enterprise and middle-market businesses – are unwilling to put permanent employees on our platform?
Simple. Today, when people become your employees they become your burden.
Risk comes with taking on responsibility for the financial stability of people and families. When we hire people, we’re instantly responsible for their families as well as our own. It becomes our job to figure out how to keep a roof over the heads of 10 families or 100 families or more. And business owners don’t have other people’s money when payroll time comes around. Nor do have printing presses. We have to earn cash flow every week, with margins that are eroding everywhere we turn. When we can’t sustain, we have a level of financial exposure that no sane person wants on his or her shoulders.
Micro-enterprise owners already carry a lot of risk in today’s economy. That’s why we aren’t hiring and no tax cut or hiring incentive will solve that problem.
Answer: Reduce our risk. That incents us to hire.
(Fourth in a series of open memos to the President of the United States)
(Illustration courtesy of JSCreationzs)