United States Asian and Latin American Chamber of Commerce, Inc.
Nearly 1,736,000 Asian and 3,780,000 Latino businesses, which represent 19.7 percent of more than 28 million businesses in the United States, are facing different types of challenges that may undermine their growth, thus the addition of more jobs in the U.S. Economy. Among the most severe challenges are capital, regulation, skills and technology. Working together with small Asian and Latino businesses in the United States and helping them in facing and turning the most frightening challenges into their best opportunities is the main purpose of USALACC - United States Asian and Latin American Chamber of Commerce, Inc. Welcome!
regulation
Securing financing remains a major barrier to growth. The net result is that, across all sources, while the median funding request is $100,000, businesses typically secure just $40,500. Small business owners overwhelmingly rely on banks for funding, but banks face more stringent regulatory requirements that have restricted lending and made loans harder to obtain. Closing the gap between what businesses seek and receive would lead to more hiring, investment, and growth. It would also reduce the common practice of credit card borrowing, where high interest rates can lead to financial difficulties.
Every entrepreneur is unique and so is every business. Now the question is: what makes your business unique? If you can answer this question you are ready to unlock the unlimited possibilities to expand sales for your business, which will enable you to make use of one of the best business funding systems: funding through contracting and pre-sale. If you do not have an answer to that question, you are not alone. Recent surveys have shown that a high percentage of business owners simply do not know about funding through contracting and pre-sale.
Companies spend about 200 hours annually on compliance. Governments could lessen this burden without compromising consumer and environmental protections. Streamlining agencies’ approval processes, for instance, can help small businesses open their doors sooner and expand more rapidly. In addition, simplifying the tax code would be a boon to small businesses, allowing them to spend less time and money on compliance. Notwithstanding, there are ten regulations that give small business owners the worst headaches:
(1) The federal tax code;
(2) The Affordable Care Act
(3) Overtime rules - very soon workers who make up to $55,440 a year would be eligible for overtime pay under a final regulation proposed by the U.S. Department of Labor;
(4) Independent contractor test;
(5) The evolving joint employer standard;
(6) Reporting pay data by gender and race;
(7) EPA’s expansion of Clean Water Act jurisdiction;
(8) The fiduciary rule for investment advisers;
(9) Limits on carbon emissions by power plants; and
(10) State licensing requirements.
Small Businesses
technology
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skills
Overwhelmingly, a major hiring challenge was finding employees with the right skillsets — a challenge even greater than salary requirements and competition for candidates. Small businesses are increasingly looking for tech-savvy workers who also have the required licenses and certifications. The Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey identifies 5.8 million openings — the second-highest level on record — reflecting a mismatch between company needs and applicants’ skills.
More collaboration between state and local workforce development programs and the private sector can help address this skills gap, and community colleges have an important role to play, too. Programs and curriculum need to align with job needs in growing industries to ensure that graduates leave with the skills necessary to get hired. Some governments have begun subsidizing internships, recognizing there is no substitute for on-the-job training. Cooperative programs among small businesses in each industry can also share in the costs of professional development.
Challenges and Opportunities
Small businesses recognize technology as essential to productivity and success. But accessing modern technology is perceived as costly and requires skills that many businesses lack. Better technology is also urgently needed to protect against the increasing threat of cybercrime, which 40% of respondents are not prepared to handle. In fact, one in five have been victims of cybercrimes, part of a disturbing global trend in which businesses are becoming hackers' preferred target. Given advances in the affordability of technology, technological literacy can be improved through increased access to resources, enhanced training and clearer government cyber-security standards.
Small businesses face other challenges, but progress in these four areas would provide a significant boost to local hiring — and to national economic growth. More than six years into a sluggish recovery, we must do more to help small businesses drive a new generation of growth — and put the next generation of Americans to work.