More than 1 million
self-employed are no longer in business some 4 years after the
downturn in late 2007. A growing recession is not an
economically advantageous business market as the self employed
experience more and more constraints as clients disappear.
The near 4 year recession that started in December 2007 initially
resulted in more self employed business start-ups. That self
employed number grew to 16.3 million in July 2008 from 15.7 million
at the end of 2007. The latest figures available from the Bureau of
Labor statistics show that number has declined even farther to 12.9
million.
Those figures represent self-employed business owners who have
thrown in the towel. Many now swell the ranks of the uncounted
unemployed. Still others found safer job opportunities in Corporate
America. New start-ups also declined sharply. These loss of
these necessity entrepreneurs also means increasingly fewer new jobs
are being created.
Small businesses have traditionally employed about 50% of the
private labor force. It is very difficult for the jobless rate
to improve when these small businesses are failing at such an
alarming rate and they are such an integral part of the overall
economic picture.
Another negative statistic the necessity entrepreneurs
contribute to is the growing number of Americans who have no
health insurance coverage in place.
Health insurance
is one of the first bills that goes unpaid as the struggling
entrepreneurs fight to stay solvent. Those with no
health insurance are forced to seek health care at taxpayer's
expense when they do become ill, further increasing the burden
on the nation's struggling health care system and driving
health insurance rates upward.
The self employed individuals
and small business owners who do opt in to
health insurance coverage typically prefer more affordable high deductible
health
insurance
plans
with no frills
