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Companies owned by young entrepreneurs becoming more popular

The stock industry is dropping. Big companies are firing employees. Financial news is not exactly good. One often-ignored bright spot, however, is the 40 percent of Americans in their 20s to 40s starting their own companies. These small businesses are hugely essential in getting the economy back on track. The proof is here: Gen Y entrepreneurs approaching economic downturn as opportunity

The trend of Gen Y business owners

There are about 77 million “Gen Y” individuals in the U.S., according to estimates. Most Gen Y people were born in a certain time frame. It contains those between the mid-1970s and mid-1990s that were born. When compared to individuals over 30, there are twice as many individuals in this group that are unemployed. The unemployment statistics show this to be very clear. Some reports put the number of Gen Y business owners at 20 percent. Some researchers say that up to 40 percent of the generation want to or are preparing to start up their own businesses. The reasons are varied, but experts point to everything from a distrust of Wall Street and large companies to life experiences, such as watching parents be laid off during an economic downturn.

Slowly starting up companies

The age of business owns isn't tracked by the Small business administration which means it is hard to figure out what the ages of the typical small company owner is. Young business owners can join the “Our Time” organization. It believes that about 7,000 careers were created with 125 of its member businesses. This difference is specifically marked in rural areas and inner cities, where small businesses account for between 66 percent and 80 percent of all new careers created.

Getting all the cash figured out

There are not a lot of challenges in getting a small company started up for many young business owners. When it comes to beginning up, several people have a lot of reasons. The most common reasons involve student loans and start-up costs. The average start-up costs for business vary according to industry, but the average in 2006 was $10,000. Start-up costs can be done themselves for most small-business owners. Savings can be used to do this. Some entrepreneurship groups are lobbying congress to help young entrepreneurs by doing every little thing from forgiving student loans to helping with startup costs. Some entrepreneurs, however, aren't waiting and are instead turning to option funding sources such as Kickstarter to start their businesses.

Articles cited

CNN Money http://money.cnn.com/2006/08/17/smbusiness/wells_fargo_study/index.htm

NSBA http://www.nsba.biz/vote/70_MAV_Factsheet.pdf (PDF)

Small Business Administration http://www.sba.gov/advocacy/7495/8420

USA Today http://www.usatoday.com/money/smallbusiness/columnist/strauss/2011-08-08...

Our Time http://www.ourtime.org/

Cutting corners but not when it comes to technology

Technology is the one thing Americans will not be willing to give up to save money in the recession, according to a brand new survey. Cell phones and Internet services appear to be the new necessities in our modern age. Individuals will get out personal installment loans to keep these essentials.

Saving money is only so significant

 The National Foundation for Credit Counseling (NFCC) hosts a monthly Financial Literacy Opinion Index study on its site. The June survey question was: "In order to save money, the last thing I would give up is..." The categories participants were given to pick from were mobile phones, cable Television, designer coffee, eating out, catalog buying (including online buying) and home Internet services. There were many responses. In fact, there were 3,148 individuals that answered.

Study answers

The luxuries of catalog shopping and fancy designer coffees were selected by only 1 percent of those who answered the poll. Eating out was essential to four percent. There were a few for cable TV. This was about 8 percent. There were several that could not live without internet. That made up about 32 percent. And cell phones were considered indispensable by a full 53 percent.

Pay for what you need

"People have chosen technology over eating, drinking and shopping, the preferred pastimes of just a few short years ago. Staying connected is apparently considered the new must-have," said Gail Cunningham, spokeswoman for NFCC. "However, they may still have the opportunity to save cash in those areas by examining their current cell phone and Internet plans. People often have plans with bells and whistles they seldom use, and discontinuing such services can save a significant amount of money."

Keep anything essential

Cunningham said she was encouraged that individuals were thinking through their economic decisions by holding on to the items that have probably the most impact on their lives. The frivolous purchasing has got to stop. That is the first thing people think of when trying to save. Coffee and food can be prepared at home, and the Internet offers many entertainment choices to rival cable Television. Staying connected these days is top priority for most Individuals. Nowadays people use the Internet to communicate, stay informed, and get entertainment, look for work and so much more. As several individuals are simply getting rid of land lines altogether now, cell phones are standard.

'A more stable financial future'

"This level of awareness will not only help people ride out the difficult economic times they're currently experiencing but result in a more stable financial future," Cunningham concluded.  

Information from  

 

Daily Finance

dailyfinance.com/2011/07/12/what-americans-will-give-up-to-save-money-and-what-they-wont/

 

Financial Education Blog

financialeducation.nfcc.org/2011/07/05/consumers-committed-to-retaining-technology/

 

National Foundation for Credit Counseling

debtadvice.org/floi/index.cfm

Cutting corners but not when it comes to technology

Technology is the one thing Americans will not be willing to give up to save money in the recession, according to a brand new survey. Cell phones and Internet services appear to be the new necessities in our modern age. Individuals will get out personal installment loans to keep these essentials.Saving money is only so significantThe National Foundation for Credit Counseling (NFCC) hosts a monthly Financial Literacy Opinion Index study on its site. The June survey question was: "In order to save money, the last thing I would give up is..." The categories participants were given to pick from were mobile phones, cable Television, designer coffee, eating out, catalog buying (including online buying) and home Internet services. There were many responses. In fact, there were 3,148 individuals that answered.Study answersThe luxuries of catalog shopping and fancy designer coffees were selected by only 1 percent of those who answered the poll. Eating out was essential to four percent. There were a few for cable TV. This was about 8 percent. There were several that could not live without internet. That made up about 32 percent. And cell phones were considered indispensable by a full 53 percent.Pay for what you need"People have chosen technology over eating, drinking and shopping, the preferred pastimes of just a few short years ago. Staying connected is apparently considered the new must-have," said Gail Cunningham, spokeswoman for NFCC. "However, they may still have the opportunity to save cash in those areas by examining their current cell phone and Internet plans. People often have plans with bells and whistles they seldom use, and discontinuing such services can save a significant amount of money."Keep anything essentialCunningham said she was encouraged that individuals were thinking through their economic decisions by holding on to the items that have probably the most impact on their lives.The frivolous purchasing has got to stop. That is the first thing people think of when trying to save. Coffee and food can be prepared at home, and the Internet offers many entertainment choices to rival cable Television. Staying connected these days is top priority for most Individuals. Nowadays people use the Internet to communicate, stay informed, and get entertainment, look for work and so much more. As several individuals are simply getting rid of land lines altogether now, cell phones are standard.'A more stable financial future'"This level of awareness will not only help people ride out the difficult economic times they're currently experiencing but result in a more stable financial future," Cunningham concluded. 

Information from 

Daily Finance

dailyfinance.com/2011/07/12/what-americans-will-give-up-to-save-money-and-what-they-wont/Financial Education Blogfinancialeducation.nfcc.org/2011/07/05/consumers-committed-to-retaining-technology/National Foundation for Credit Counselingdebtadvice.org/floi/index.cfm

Medicare and Social Security at risk if debt ceiling not increased

There is a fight going on in the nation's capital. Congress and the White House are fighting over whether or not to raise the national debt ceiling. It appears to be yet another partisan argument, but the outcomes could consist of Social Security and other payments could be defaulted on if the debt ceiling isn't elevated. With a rise, the government will be able to take out even more personel loans

 

Congress to give up Fourth of July break to work on debt issue 

 

The national debt ceiling, or the credit limit of the U.S. federal government, is one of the biggest issues being considered right now. There is no way for the government to exceed $14.3 trillion right now. That number was reached in May, as reported by Reuters. Yet the government has been making expenses on it through last-minute measures. 

Increasing the debt limit is something the Congressional Republicans don't want to do. They want the fiscal policies to change first. To be able to keep working on the debt ceiling, the traditional week-long recess after the Fourth of July will not be taken by the Senate, Senate Majority leader Harry Reid Leader told CBS. Before August 4, it has to be elevated. That is the deadline. 

 

Warnings issued against default 

 

There have been warnings about what will take place without the debt ceiling being elevated although there's a month to get an agreement put in place still. Standard & Poor's has cautioned the maturing U.S. Treasury bonds would get a "D" rating if the bonds aren't paid by August 4 on top of the issues the global financial market would face. About $30 billion in interest payments will be due through Treasury bond sales for the U.S. Sheila Bair is a Federal Deposit Insurance Corporation Chairman. She said surely it is a "dangerous game" Congress is playing, according to NASDAQ.

 

Potential fallout in suit of default 

 

The American federal government is presently borrowing 40 cents of every dollar it spends, and in August of 2011 alone, the federal government is slated to spend $134 billion more than it will take in, according to USA Today. The government may not be able to make all of its expenses. It could miss up to 44 percent of them. Probably the most vulnerable citizens could possibly be hit hard very soon with the expenses even though it seems like a faraway issue to a few. Social Security expenses to retirees, disability benefits, Medicare and Medicaid benefits and other forms of social aid such as welfare and food stamps may go unfunded. Federal employees may also be furloughed and contractors, including defense contractors, may go unpaid or have their contracts cancelled. 

On August 3, the $23 billion payment for SSDI, or SSDI, and Social Security will not be paid. Social Security represents 50 percent or more of all income for 53 percent of all couples aged 65 or older and 73 percent of all individuals over the age of 65.

 

Articles cited 

Reuters 

reuters.com/article/2011/06/30/us-usa-debt-sandp-idUSTRE75S5GV20110630 

CBS News 

cbsnews.com/8301-503544_162-20075723-503544.html?tag=cbsnewsSectionContent.5 

NASDAQ 

nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201106301552dowjonesdjonline000613&title=fdics-bairwarns-against-getting-too-close-to-debt-ceiling-deadline 

USA Today 

usatoday.com/money/perfi/retirement/2011-06-28-debt-limit-impasse-Congress-Obama-Social-Security_n.htm 

Social Security Administration 

ssa.gov/pressoffice/basicfact.htm

Regulation prohibits weed sale to people from other countries in Dutch java shops

Amsterdam is an area that depends upon the flow of vacationers into such places as the local coffee shops, several of which sell weed. However, the java shop marijuana trade will soon come to an end, states the LA Times. The right-wing party of the Dutch government has instituted a new law that will ban the sale of cannabis to foreign visitors and severely limit residential access to the "soft" drug. Source of article - Law bans marijuana sale to foreigners in Dutch coffee shops by Newsytype.com. 

 

Banning sale of weed to visitors 'tourism suicide,' say critics 

 

The policies on cannabis in the Netherlands makes several want to visit. The young and curious go just for that reason. The Netherlands decriminalized "soft drugs" in the 1970s. This is when java shops for instance Mellow Yellow started to appear everywhere. There are 750 espresso stores, 220 that are in the capital city of Amsterdam, in the country. 

 

The Daily Mail reports that now members of java stores have to get one-year "dope passes" if they want weed still. Each espresso shop is only allowed to have 1,500 members. 

 

There are many individuals upset about the new regulation. There will be millions in marijuana revenue lost from the new law. More than likely, Dutch residents will sell weed underground for additional to vacationers, which is a huge concern. 

 

Selling illegal narcotics will be stopped 

 

While the weed business at Dutch coffee stores has been legal for a while, the Dutch Ministry of Security and Justice recognize that marijuana isn't really the only drug changing hands. Authorities are hoping the new law will curtail the sale of "hard drugs" that are illegal including GHB. 

 

A public statement was made by the ministry. This addressed the lost revenue concerns:  

                    "We attract other types of tourists apart from drugs tourists." 

 

Starting at the end of the year 

 

Currently, Dutch border towns like Maastricht and Terneuzen already restrict the sale of cannabis. By the end of the year, the new policy will go into impact for the southern provinces of Limburg, Noord Brabant and Zeeland. Next year, the ban will blanket all of The Netherlands.

 

Coffee shop culture in Amsterdam (Warning: Adult language, drug references) 

http://www.youtube.com/watch?v=qEpg5xFIu1g 

 

Citations 

Daily Mail 

dailymail.co.uk/travel/article-1392364/Holland-bans-foreigners-cannabis-coffee-shops.html 

Dutch Ministry of Security and Justice 

bit.ly/l5SJNs 

Los Angeles Times 

latimes.com/travel/deals/la-trb-dutch-coffeeshops-drugs-20110601,0,588802.story 

Reuters 

af.reuters.com/article/worldNews/idAFTRE74Q66A20110527

Economic downturn leads to uptick in haggling

Learning how to negotiate for better offers has become a necessity for Americans coming out of the economic downturn. However, tough economic times have an effect on sellers also as buyers. Companies in home repair, vehicle repair and even health care will give up a few dollars to get your business. Source for this article - Negotiating for better deals a talent learned from the recession by MoneyBlogNewz.Bargaining medical billsWhen it comes to negotiating healthcare bills, doctors and hospitals do it all the time with insurance corporations. It has become more common for patients to bargain bills since people have lost their insurance and have been forced to have less coverage. A procedure often has different rates based on whether Medicare, Medicaid or private insurance pays for it. Dealing with patients is much better than dealing with bill collectors. This is how all doctors and hospitals feel. The doctor is who you need to go to, to negotiate a much better deal. Offer to pay quick money up front. Make a counteroffer to any quote given by the hospital. It's easy to find the going rate for healthcare procedures in different regions of the country online.Pay less for car maintenanceCar dealerships are used to having deals negotiated with customers. Auto mechanics aren’t that different. Why not try it? Take a look at the auto repair estimate and ask if aftermarket parts can be substituted for original equipment. You do not have to do what the mechanic claims. Auto mechanics carte blanche does not have to be followed. Some of the items on the estimate might be eliminated outright. Asking question like “do I need a tune up” can be bad. This is because it makes you sound uncertain. Shop around for a better bargain if your automobile repair isn’t an emergency. Find a car repair estimate database online. Before you drop off your auto, make sure you know what work will be done.Home maintenance done with negotiationContractors in the home are well known for inflating the original estimate with costly change orders. Get the home repair contract signed before you pay anything. Make sure bids and references are all checked. Consist of a spending budget for contingencies and unpredicted problems. Each payment in the contract ought to rest upon a particular degree of progress made on the project. Until all work is made, 15 percent of the total repair contract shouldn’t be paid as a final payment.Information fromNew York Timesnytimes.com/2009/03/14/health/14patient.htmlSupermechanics.comsupermechanics.com/learn/negotiate-auto-repair-estimatesSuite 101suite101.com/content/how-to-save-money-on-home-repairs-pt-2-a122548 

$14 billion social security bill voted down in House

A Social Security bill that could have sent Social Security individuals a $250 payment was defeated Wed within the House. The bill is a response to the absence of a Social Security cost-of-living boost (COLA) in 2011. The reasoning was that a one-time $250 repayment would somehow make up the difference. Republicans contended that the $14 billion in deficit investing needed was out of the question. Instead, those on Social Security eventually find themselves looking for a payday loan when in-need of unexpected money.Insufficient COLA boosts prompts legislationAbout 58 million individuals on Social Security would have gotten $250 checks if the democratic bill went through. This was written to make up for the COLA not occurring for the second straight year, or the cost of living increase. The Social Security bill was submitted to a vote under "fast-track" procedure. Bills that are fast-tracked within the House require a two-thirds vote to pass. The tally fell short at 254-153. Twenty-six Republicans said "aye.". Twelve Democrats said "nay.". The onetime repayment was something that the Obama administration supported. They said the COLA having absolutely no increase would make it hard for many getting Social Security.Exactly why there is no COLA for Social SecuritySocial Security COLAs are designed to rise automatically with inflation. Because of gas prices going over $4 a gallon in 2008, the Social Security had a COLA boost in 2009. It was the largest COLA boost that occurred in three years with 5.8 percent. Law says that COLAs do not kick in unless consumer prices rise above what they were the year before. There has been absolutely no change in consumer prices in the last two years. That means that there have been absolutely no Social Security COLAs without any change in consumer prices. About $1,072 is collected by Social Security recipients each and every month.Many question the effectiveness of COLAsThe needs of seniors, veterans and the disabled cannot be met with Social Security benefits, COLA is going to be linked to consumer prices. A greater portion of their incomes goes toward expenditures for instance medications, which are rising in cost at a much higher rate than inflation. Republicans figured that seniors got a big enough Social Security COLA increase in 2009 to tide them over for a few years. A spokesman for Rep. David Camp, R-Mich., who becomes the chairman of the House Ways and Means Committee in January, said "There is a responsible way to protect seniors without increasing the debt." He did not say how.Data fromBloombergbloomberg.com/news/2010-12-08/house-bill-to-give-seniors-250-is-defeated.htmlNASDAQnasdaq.com/aspx/stock-market-news-story.aspx?storyid=201012081443dowjonesdjonline000477&title=house-defeats-attempted-250-payment-to-seniorsveteransCNN Moneymoney.cnn.com/2010/12/08/retirement/social_security_payment/index.htm 

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