Capital Feed

Entrepreneurship is alive and well in the wake of the Great Recession, although the rate of new business creation dipped during 2011 and startup founders remained more likely to fly solo than employ others. That’s the big take away from the “Kauffman Index of Entrepreneurial Activity,” a leading indicator of new business creation in theUnited Statespublished annually and released today by the Ewing Marion Kauffman Foundation.

The Index shows that 0.32 percent of American adults created a business per month in 2011 – a 5.9 percent drop from 2010, but still among the highest levels of entrepreneurship over the past 16 years. The quarterly employer firm rate also remained essentially flat from 2010 to 2011 at 0.11 percent.

At least it is up over the last few years.  We need more.  To read more go to Kauffman.

A study released today by the Ewing Marion Kauffman Foundation shows that “user entrepreneurs” have founded more than 46 percent of innovative startups that have lasted five years or more, even though this group creates only 10.7 percent of U.S. startups overall.

“Who Are User Entrepreneurs?” is the first study to quantify the prevalence and characteristics of user entrepreneurs – those who have created innovative products or services for their own use, then subsequently founded firms to commercialize them – and identify how the firms they start compare to other U.S. startups in terms of revenue growth, job creation, R&D investment and intellectual property.

 Duh! Keep on reading this article at Ewing Marion Kauffman Foundation.

I have said it over and over again that when all is said and done – money is just money. It does not matter where it comes from as long as you (or your business) can use it as it needs to be used – to add additional value.

Money does not matter. What matters is what you can buy with that money – which is related to price, not money itself.

Thus, money is just money. Money is just another asset to a small, growing business; an asset that should be used to its greatest potential.

Having said that and the reason why has to do with, not money itself, but how you get it; how you get money and use it in your business.

Money can be expensive if you let it – meaning that you use it improperly or get it for the wrong things.

Keep on reading this article at Business Money Today.

Where and how do angel groups invest? We were interested, so in an effort to shed more light on the subject, we partnered with the Angel Resource Institute and CB Insights to develop the Halo Report.  

Banks pulling back but angels pushing forward – it is about who you know or where to look. Keep on reading at Silicon Valley Bank.

We’re always on the lookout for resources that can help your small business out. After all, you’re busy running your company and living your life. You don’t have time to scour the Interwebs for helpful mobile apps.

In that spirit, we’ve collected three of the finest mobile apps for your perusal right here.

These three apps—FinanceQuote, ITerminal and Evernote— will help you win customers, process payments and conduct business in a more efficient manner. All you need is a smartphone and a little time to get the hang of them, and your small business will reap the benefits.

 Sweet! To read more about these apps go to BizEngine.

Growthink has released a recommendation to entrepreneurs seeking capital: raise money from angel investors.

According to Dave Lavinsky, co-founder of Growthink and an authority on entrepreneurship, 2012 is a good time to be raising money from angel investors.

As Lavinsky explains, “Recently, the National Venture Capital Association announced that the amount of venture capital funding grew 22% from 2010 to 2011. However, when I dug deeper into the data, I found that the lion’s share of this funding went to later stage companies — companies who have already raise previous rounds of venture capital, have revenues, and are looking to grow further before being acquired or going public.”

“In fact, the NVCA’s numbers showed that in 2011, venture capital investments in seed companies or startups declined 48% versus 2010. To me, this means that venture capitalists are now less willing to bet on higher risk, earlier stage companies,” Lavinsky says.

Angels offer less interference and a longer investment horizon.  After all, money is just money. Keep on reading at PrWeb.

Prior to the advent of the internet and way before social media, when a business needed capital investment to grow, it (the owners) had to get out there and really hustle for that investment.

Business owners had to get out there and network. They had to get out there and build relationships. They had to get out there and learn what worked and what didn’t.

Why this matters is that many of these business owners brought those skills back into the business – they got out there and networked with customers, they got there and built relationships with customers and they got out there and learned what worked and what didn’t with their customers.

But, not today. Today, if you want something (as an individual) you can just get on your social media network and ask for it. Which works very well if you want a recommendation for a local restaurant.

But, when it comes to seeking investment in your start-up from an angel investor, it just does not work.

Where do you find business capital? To find out keep on reading this article at Business Money Today.

Young entrepreneurs often pursue funding first, product second. That’s a dangerous path–and it won’t do your company much good.

So often, young entrepreneurs think the viability of their fledgling company depends on their ability to intrigue investors and raise capital. But the truth is, raising capital is often a pipe dream.

Don’t get discouraged, though: Raising capital should be the least of your concerns.

The reality is, no bank will give you a loan. Their cash flow has dropped in recent years; as a result, they deny more than 90 percent of small business loan applications. And pitching your company to venture capitalists is about as effective as chasing clouds. With an ever-expanding pool of entrepreneurs to invest in, VC firms have become increasingly choosy in deciding which companies are worth cultivating.

You may want it but it never solves all problems.  In today’s economy, might be better to DIY. Keep on reading this article at Inc.

Taking a talent or hobby from the dorm room to a global brand a la Mark Zuckerberg  any entrepreneur’s dream. But knowing when and how to upgrade your hobby to the next step requires more thought and preparation than most consider.

With a lackluster economy and tight job market, the transition from hobby to business is happening in greater numbers than ever, according to Mark Steber, chief tax analyst at Jackson Hewitt.

“More people than ever are experiencing a variety of life changes,” Steber said. “Going into business is a result of these life and employment changes.”

Intent is what really determines if your basket weaving or jewelry making is a hobby or an actual business, he said. If you intend to make money on what you are doing, it’s no longer a hobby, Steber said.

“Whenever you cross that threshold, whatever point and time that is, you fall into the realm of taxes, requirements and business planning,” he said.

Turn that hobby into a business today, we need all the small businesses that we can get. Keep on reading this interesting article at Small Business.Fox Business.

For Roman Braverman, this weekend is all about having enough sandwich meat, onions and tomatoes.

Braverman’s lunch spot, Roman’s, is in the Vanderbilt Apartments building, right next door to the U.S. Cellular Center, which will be buzzing with basketball fans starting Friday. Thousands of fans will be on hand to cheer 23 men’s and women’s teams playing 21 games during the four-day Southern Conference Tournament. And Braverman’s planning to be prepared.

“We’re expecting the busiest weekend we’ve ever had,” Braverman said Wednesday.

“We don’t really know for sure what will happen, but we’re going to have two extra people on staff, from four people to six people,” he said. “We’ve been open for two years, and the only thing we have to compare it to is the Craft Fair of theSouthern Highlands. We have a line out the door for that.”

Business owners doing what they have to do to survive into day’s tough times. Keep reading at Citizen-Times.