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#access to capital for small businesses
#wages
*If firms have to pay more for inputs, we will have to reduce cost of capital
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==Minimum wage criteria==
[[Image:Screen Shot 2016-02-08 at 3.15.27 PM.png|400px|thumb|left]]
===General===
The following information taken from [http://www.dol.gov/whd/minwage/q-a.htm (USDL)]
*'''Very small businesses''': Only applies to employees of enterprises that have annual gross volume of sales or business done of at least $500,000 and haven't done business across state lines.
===Increase minimum Minimum wage?debate===[[Image:Screen Shot 2016-02-08 at 3.21.42 PM.png|175px|thumb|right]]
*Nonpartisan Congressional Budget Office compares trade-offs:
**Compared raising the minimum wage to $10.10 and to $9.00. Under the '''$10.10 scenario, there would likely be a reduction of about 500,000 workers across the labor market, as businesses shed jobs, but about 16.5 million low-wage workers would see substantial gains in their earnings in an average week.''' Under the '''$9.00 scenario, the labor force would see a reduction of 100,000 jobs, but an estimated 7.6 million low-wage workers would see a boost in their weekly earnings'''. [http://www.cbo.gov/sites/default/files/cbofiles/attachments/44995-MinimumWage.pdf (CBO)]
*Critics assert that the real effects of minimum-wage increases are negative: they hurt businesses, raise prices and ultimately are counterproductive for the working poor, as they can lead to unemployment. [http://journalistsresource.org/studies/economics/inequality/the-effects-of-raising-the-minimum-wage#sthash.q3Hy8Xk1.dpuf (JR)]
*At the macro level, a substantial increase in the federal minimum wage is likely to have broad effects, with some studies predicting that it could “ripple” across the economy, boosting the wages of nearly 30% of the American workforce. [http://journalistsresource.org/studies/economics/inequality/the-effects-of-raising-the-minimum-wage#sthash.q3Hy8Xk1.dpuf (JR)]
*Many conflicting ideas on overall minimum wage increase. Perhaps eliminating the tipped worker minimum of $2.13 would be beneficial to worker. Ultimately, raising or keeping minimum wage has trade-offs with no clear winners or losersthat must be weighed.
==Healthcare's impact on business==
*Some experts say that '''looking to lower health-care costs significantly isn't realistic for many firms''' and that slowing increases is more realistic. [http://www.cnbc.com/2015/01/08/5-smart-ways-small-firms-can-slash-health-care-costs.html (CNBC)]
**"Reducing your cost over time from one year to the next is probably an unrealistic standard. A company that is keeping its benefits costs in line with its compensation costs is probably doing exactly right." -Alan Cohen, chief strategy officer and co-founder of Liazon
[[Image:Screen Shot 2016-02-08 at 3.33.04 PM.png|700px|thumb|left]]
===Ways small businesses can save on healthcare===
Following information from [http://www.cnbc.com/2015/01/08/5-smart-ways-small-firms-can-slash-health-care-costs.html (CNBC)] unless otherwise noted.
====Negotiate private plans====
*Some private insurance premiums are negotiable, especially in the 50-99 employee range.
*A systematic review of 56 published studies of worksite health programs showed that well-implemented workplace health programs can lead to 25% savings each on absenteeism, health care costs, and workers’ compensation and disability management claims costs.
==Changing nature of raising Raising capital; Debt and small business==Following information from [[Image:Screen Shot 2016-02-08 at 3.25.48 PM.png|500px|thumb|left|[http://newsroom.bankofamerica.com/sites/bankofamerica.newshq.businesswire.com/files/press_kit/additional/Fall_2014_Bank_of_America_Small_Business_Owner_Report.pdf (Bank of America)survey] on funding sources for small businesses]] unless otherwise noted.*Only 29 percent of small business owners said they’ve applied for a business loan over the last two years. [http://newsroom.bankofamerica.com/sites/bankofamerica.newshq.businesswire.com/files/press_kit/additional/Fall_2014_Bank_of_America_Small_Business_Owner_Report.pdf (Bank of America)]
**90% of those who applied were approved
*More than half (58%) of Millennial small business owners applied for a business loan within the last two years, nearly twice that of Gen-Xers (30%). '''Friends and family are an important source of funding for Millennial small business owners''', with 30% saying they’ve received a loan from their loved ones in the past. Millennial small business owners are nearly five times as likely as Gen-Xers to have received past funding from a peer-to-peer network, while Boomers (25 %) were more than twice as likely as Millennials (10 %) to have received funding from a home equity loan/other personal debt.[http://newsroom.bankofamerica.com/sites/bankofamerica.newshq.businesswire.com/files/press_kit/additional/Fall_2014_Bank_of_America_Small_Business_Owner_Report.pdf (Bank of America)]*'''Negative correlation between student debt and country wide entrepreneurship rates among millennials''' [http://www.kauffman.org/blogs/growthology/2015/05/3-ways-student-debt-can-affect-millennial-entrepreneurs (Kauffman)]**"Saddled with student loan debt, millennials can't afford to be entrepreneurs," according to 2015 state of entrepreneurship report from the Kauffman Foundation, a nonprofit devoted to studying entrepreneurship.**Entrepreneurs need equity to invest on their businesses, and loans can affect a budding entrepreneur’s net worth in the short and long term. [http://www.pewsocialtrends.org/2014/05/14/young-adults-student-debt-and-economic-well-being/ (PEW Research Center)]*Student loans have been demonstrated to push people away lower-paying public service jobs – and it is not a leap to think that it would also push people to away from risky entrepreneurial ventures. [http://www.kauffman.org/blogs/growthology/2015/05/3-ways-student-debt-can-affect-millennial-entrepreneurs (Kauffman)]*The share of new entrepreneurs in the 20 to 34-year old age group has gone down dramatically, from 34.8% in 1996 to 22.7% in 2013. [http://www.kauffman.org/blogs/growthology/2015/05/3-ways-student-debt-can-affect-millennial-entrepreneurs (Kauffman)]*Given shifts among younger workers, the concern now is whether entrepreneurship rates in total (including older workers) will continue to recover from the recession lows or plateau to a kind of "new normal" of lower entrepreneurship activity. [http://www.cnbc.com/2015/02/11/a-new-normal-for-us-start-up-activity.html (CNBC)]
