Now that the elections are coming closer, the editors at Mybizuniverse.com have decided to dedicate the "things you should know" blog to discussing how politics effects local entrepreneurs.  This bolg will present both the Republican point of view and the Democratic point of view.

Don't get me wrong, I welcome the additional opinion and editorial, it is just that most people involved in politics are full of hot air and treat the reader like they are idiots!  They all quote facts and surveys that are done by their parties or companies that are tied into the party they slant the results to.  In addition, most of these surveys are made of such small numbers that they get a big YAWN from real people.

That being said, let me tell you about what I am hearing by rambling around Broward and speaking with real Entrepreneurs.  The beauty of my informal findings is that you and the other entrepreneurs don't even know you are participating in a survey, all you know is that someone you just met or have known for a long time is asking you what you think and how your feel.

Here is what I am finding out there:

• biggest issue facing the local entrepreneur - the downturn in the housing market and how it is effecting their business.  Just a few months ago it was health care and now it is the economy.  Most of you don't see the lower dollar as helping your business and most of the businesses off of the strip are not seeing lots of value from tourism (no matter what our politicians tell us).
• the stimulus program -we are all looking forward to the money, however they don't see it helping their business for more than a few months.  Everyone is commenting that it is funny how the money will arrive around the election time!!!  Most of you feel the benefit, if any will be short term and it is a sign of how bad it really is.
• the candidates - most people are going with the party they are registered with.    Most Republicans feel that the Democrats will destroy the world and the Democrats feel that the Republicans have already ruined the world.
• the housing market - it is amazing that almost everyone I speak to feels that the housing market is in the dumps, except for their house!  There are a few realists, however most believe that the housing market will turn around within the next 6-12 months.  It is something that most entrepreneurs feel that the housing market will go back to double digit growth within 12 months.  Of course the hordes of real estate agents are still telling the unsuspecting that the commercial real estate is o.k. and rentals are strong...what hog wash!
• Inflation - every entrepreneur is seeing a large increase in their costs and the costs of running their business.  Everything from plastic bags to cars and of course gas have gone up dramatically.  They have not been able to pass along the increased costs to their customers since their appears to be an increase in competition.  This will change in the near future (3-6 months) with entrepreneurs raising their prices and hoping their customers understand.
• awareness of the financial markets - this one was the most surprising.  less than 10% of the entrepreneurs I met with are aware of how interest rates are effected by the bond auctions or the Libor.  Their was little knowledge of how financial devices like SIV's, CDO's, short selling effected their businesses.  There is also a move amongst entrepreneurs that investing in gold is the way to survive the downturn, forgetting that when there is a frenzy it may be at the top (ie the real estate market).

It is amazing that entrepreneurs still want to have life the way it has been, lots of vacations, time at home and time to workout and play golf.  This downturn will be long and hard and it is time to make changes now.

Let me know what you and your friends are experiencing by responding to this blog.

Ramblin Rose

 

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