Setting up shop in the U.S.? Remember Obamacare: Will President Obama’s new health care law, which comes into effect next year, be good or bad news for SMEs? Despite warnings from business groups, the legislation may prove to be a benefit for smaller entrepreneurial firms, as University of Chicago economist Casey Mulligan recently noted on the New York Times’ Economix blog,
“[T]he Affordable Care Act simultaneously rewards employees at small companies by heavily subsidizing their purchases of health insurance on the exchanges created by the law. Because employees cannot take the subsidies with them if they switch to a large company offering health insurance, the subsidies are, in effect, subsidies to the small businesses themselves, helping them compete more cheaply in the market for employees.”
Crowdfunding insights: Many Canadians received a crash-course in crowdfunding this spring when Gawker journalist John Cook turned to indiegogo.com to raise $200,000 to buy an allegedly incriminating video of Toronto’s scandal plagued mayor. For all the attention, however, Canadian SMEs must still go off-shore to access this kind of funding. Yet, Forbes warns that not all crowdsourcing sites are created equally and offers some useful tips when determining which ones to tap for best results.
“While the term quality’ can mean many different things, in the context of crowdfunding platforms it should come down to this: the more transparently that a platform brings together investors and entrepreneurs with the tools needed to make informed decisions which allow for mutual benefit, whether financial or psychological, the higher the quality of that crowdfunding site.”
SMEs find mass audiences through Facebook: If you’re thinking about building an international profile, advertise in a global medium, right? That’s what a growing number of small businesses, especially in the U.S., are doing. Media reports say that much of the projected growth in advertising on Facebook—you know, the promotions that drive your teenagers nuts—is coming from SMEs. The social networking giant has been making much of the fact that it now has more than a million small and local advertisers, according to Digital Journal.
“Forbes says all this suggests that small and medium-sized businesses could account for the bulk of revenue growth this year, citing Pivotal Research Group analyst Brian Wieser. ‘While some observers might read this data as implying weakness in growth from other segments of advertisers, we view this very positively, as it speaks to the predictability and durability of the company’s revenue growth,’ he wrote.”