Page 204 - 1-Entrepreneurship and Local Economic Development by Norman Walzer (z-lib.org)

Understanding and Growing a Community’s Microbusiness Segment 193

Table 10.1. Major Issues or Business Problems Identified by Microbusinesses

ers of microbusinesses noted that finding affordable health insurance
and/or liability insurance was their most difficult problem, which is similar
to what has been reported by owners of other small businesses (table 10.2).
Cash flow and earnings were slightly larger issues for businesses with fewer
than five employees, but all microbusiness owners reported that energy
costs, space costs, and taxes (both state, federal, and property) contributed
to the cash flow issue.
The same study by Phillips (2004) reported the issues considered least im-
portant, and they included exporting product or services, competition from
government or nonprofit organizations, competition from Internet busi-
nesses, increased national security procedures, and cost/frequency of lawsuits.
Baines and Wheelock (1998) reported that government regulations were
less of a problem to microbusinesses, and firm size was related to how
much of a problem it was to find, train, and retain good employees. This is-
sue was not nearly as troublesome for firms with fewer than five employees
as for larger businesses, perhaps reflecting that smaller firms rely more on
family members as workers thus eliminating some recruitment and reten-
tion difficulties.