Small business owners are in the trenches everyday creating businesses that change the world or their little corner of it. Starting a small business involves more than simply imagination or good leadership. It involves a wide variety of skills and wearing a wide variety of hats. But mainly being in the trenches of small business means improvising in the heat of action. From dealing with government policies to the basics of developing products and services and marketing them, small business owners do it all. Here are a few things to help along the way.

Policy

In defense of the small business bill?  SBA Administrator Karen Mills takes a swipe at critics who question a proposed Small Business Jobs Act aimed at increasing loan availability for small business…among other things. She doesn’t mention that the tax breaks also granted under the bill would be more helpful if accompanied by a broad-based tax reduction putting more disposable income in the hands of consumers to improve sales.  The White House Blog

The new small business health insurance credit.  The IRS has just released its draft guidelines for a new small business health insurance credit under the newly passed Patient Protection and Affordable Care Act. Despite claims that the credit should encourage small businesses that have not yet done so to invest in health insurance it seems unlikely the credit would make the cost of new benefits worthwhile.  Journal of Accountancy

Do you own a rural small business? Rural small business owner and advocate Becky McCray interviews USDA Rural Development Director for Iowa Bill Menner about the ways his agency can aid small businesses. USDA Rural Development resources include rotating loan programs accessed through your county and grants for agricultural producers. You should definitely seek out such programs for financing if applicable in your community. Watch the entire interview for more details.  Small Biz Survival

Startups

Want some tips for growing your company?  Here are six tips for growing your small business the author guarantees won’t drive you crazy. Amongst the most important points are: organize, automate and follow-up. There are plenty of ways to apply the advice in this article no matter what kind of small business you might be operating or what kind of products or services you might be offering customers.  Entrepreneur Corner

Using design concepts in your next product. Creators of the popular iPad Pulse app say they’re kind of on the practical-minded side but took a designer’s approach when it came to creating their product and their business. Here are some pointers from the design world that may help your next business venture.  Fast Company

Operations

Are your advisors a bunch of Bobbleheads?  In this entertaining look at the wrong kind of business relationships (and the right kind), executive management advisor Tony Johnston takes an old idea and gives it a great contemporary twist. You’ll love the bobbing bobblehead that greets you at the top of the column!  Biz Money Matters

The best people and the best tech. You might expect a forum member from a big technology company like Cisco Systems to come down on the side of tech in a debate like this when considering small business functionality. In fact, both people and technology are critical to your business endeavor. We couldn’t agree more.  Cisco Innovators Forum

Marketing

Marketing with a video event. It’s important to think outside the box even when you’re in the trenches of small business, and that’s precisely what Jessica Kim, founder of Babbaco, specializing in creative baby products, did when she decided to launch this new product with a streaming video happening for her company’s fans.  The Rise to the Top

Making the world a better place.  Bet you’ve never thought of marketing like this. Maybe you’ve never even thought of small business like this. But suppose, just suppose, you started to? There’s a huge untapped market out there and it’s worth millions even if those who make it up are amongst the poorest in the world.  Seth Godin’s Blog

Self-development

Taking on the impossible.  In part two of his post on “How to Fight Above Your Weight Class, S. Anthony Iannarino takes a serious look at an issue every small business must face. Taking on competitors bigger, stronger and more well-financed than you will be a way of life. Here are some basic resources to get you started.  The Sales Blog

From Small Business Trends

Small Business News: In The Trenches

Up for grabs is $350 in products and gift certificates from our wonderful sponsor Hewlett-Packard for the post receiving the most votes over at BizSugar. (Sign up for free to vote here.) But those participating before the contest deadline will also be eligible to win a second prize of $250 in products or gift certificates from Hewlett-Packard for the most compelling comment as determined by our judges left on BizSugar and Bloggertone.com.

Check out the video below:

Take a last look at all the submissions and vote or leave a comment to help determine the winners:

The Power of 3: Make Your Biz Simply Amazing
The Secrets to Writing Good Content for the Web
Start Relaxing To Make Your Biz Amazing
6 Free & Amazing Ways to Promote Your Business
Not In Competition
Be Ruthless To Be Your Best
The World of Sales Is a Stage
Beauty is in the Eye of the Beholder
There’s No Such Thing As Can’t?
How to be amazing: it’s the simple things that count
Switch On Your Amazing Power
So, You Want an Amazing Business?
How Can I Look Amazing On LinkedIn?
Back to Basics
What Is a “Real” Business Owner Part 2
Time to shine with an online makeover
A Way With Words
5 steps to making biz decisions
Make Your Biz Amazing Begins With Your People
Creating a successful Conference Call
The most boring topic ever?
The Silent Partners
Engaging with your future force
How to build PR for your business

BizSugar.com is a small business news and social media site dedicated to the small business community. Bloggertone is a business blogging community for contributors on a wide variety of business topics. Join the group here.

Best of luck to all the participants and thanks for taking part in the SugarTone Sweet Blogging Contest.

From Small Business Trends

Last Chance for the SugarTone Contest!

First, the good news: According to the SBA’s fourth annual small business Procurement Scorecard, small businesses got a record number of federal contracting dollars in 2009. Contracting to all five categories the government measures—small businesses, women-owned businesses, businesses owned by service-disabled veteran, businesses in HUBZones (historically underutilized business zones) and small “disadvantaged” businesses—rose compared to 2008 figures.

Now, the bad news: In every category except “small disadvantaged,” the federal government fell short of its annual small business contracting goals.

Some $97 billion or nearly 22 percent of prime federal contracts awarded between October 1, 2008 and September 30, 2009, went to small businesses. That’s an increase from $93 billion in 2008, but falls some $5 billion below the 23 percent goal that was legislated in 1997.

SBA Administrator Karen Mills says, “This represents real progress, but not enough. We must reaffirm our commitment to ensuring that the 23 percent goal is met and exceeded.” This is the fourth year the scorecard has been issued, but the first time that the SBA used a letter-grade system to rate federal agencies’ performance. The grading is part of efforts to make the data more transparent.

Sixteen agencies were graded A or B, which means they either met or exceeded their goals; four agencies were graded D or F. Goals were set individually for each agency by negotiating with the SBA and were based on past performance and the number of procurement opportunities that were realistically available for small firms.

Reporting on the data, the Wall Street Journal noted that many organizations, including the U.S. Government Accountability Office, have criticized the SBA for not tracking contracts accurately, and have contended that many contracts supposedly set aside for small firms actually go to large companies posing as small ones.

Joe Jordan, the SBA’s associate administrator for government contracting and business development, told the Journal the SBA has boosted efforts to prevent fraud and correct errors. However, the American Small Business League, which has long criticized the SBA’s data, contends the problems have not been resolved. “Generally speaking, we are finding fraud and abuse at the same rate,” Christopher Gunn of the ASBL told the Journal.

Some of the agencies that got poor grades argue that the grading system does not take subcontracts—which are more likely to go to small businesses—into account. The SBA has said it will do more to unbundle big contracts into separate, smaller ones that are easier to award to small companies.

Small businesses have profited from the American Recovery and Reinvestment Act’s stimulus spending, which started in early 2009. Many of the stimulus contracts are small, making them good fits for smaller businesses. As of early August (per the SBA) 30 percent of these contracts have gone to small firms.

You can find the full scorecard and an explanation of the methodology used for grading federal agencies at the SBA’s website.

From Small Business Trends

Small Businesses and Federal Contracting: Good and Bad News

Whether you operate a hot dog concession stand on the Jersey shore or run a B&B establishment on the ski slopes of Vermont, choosing to make the bulk of your profits during certain times of the year requires a particularly innovative and tenacious small business owner who knows how to ride the highs and optimize the lows of running a seasonal business.

Whether you are interested in starting, or already own a seasonal business, here are some tips for getting the most out of your business year-round.

1. Manage Cash Flow and Credit

Regardless of whether you keep your doors open, or close for the quiet season, it’s critical that you manage your cash flow and maintain good credit during off-season.  There are a number of strategies you can employ to help you achieve this:

• Manage Cash Flow – Managing accounts receivable and accounts payable can help you ensure that cash flow isn’t compromised at any time of year. Seek to secure a percentage of customer payments upfront as often as possible.   This will ensure you have cash-in-hand as soon as possible and also help mitigate the problem of slow-paying clients. To help manage the amount of cash that is going out, try to negotiate extended payment terms from suppliers so that you can spread out the amount owed on goods that you purchased before peak season and haven’t sold yet.  Get more tips on Understanding and Expanding Cash Flow from Business.gov.

• Consider a Seasonal Business Loan – Another option for addressing seasonal requirements for short-term and cyclical working-capital needs is to consider a government-backed business loan. The SBA offers a Seasonal Line short-term working capital loan program which provides advances against future inventory. The loan is offered under SBA’s CAPLine umbrella loan program. Read more about loan amounts and eligibility requirements here.

• Find Alternative Sources of Income – Many seasonal business owners are able to diversify their core offering to help them do business throughout the year. For example, landscaping companies often morph into snow clearing businesses in the winter. Alternatively, consider re-training and acquiring new skills.  For example, if your core business is building decks and patios, could you diversify in the winter by expanding your portfolio to include interior construction? However you choose to diversify, be sure to get the right licenses and permits. Business.gov’s Permit Me tool can point you to what licensing you may need based on your zip code and profession.

2. Get the Most out of your Seasonal Workforce

While hiring temporary employees can provide low-cost help during peak season, this labor model does have its down side in that hiring, training and retaining good employees can get resource intensive for a small business. One step you can take to help overcome this is to encourage employees to return next season. A quality work environment with incentives and soft benefits can make your business a place that seasonal workers will want to return. Continued outreach and incentives during quiet periods will also help you maintain relationships with your best workers even when they aren’t on pay roll. For more tips, read Get More from Your Team – 5 Employee Incentive Program Ideas that Pay Off.

3. Use Off-Peak Seasons Productively

Whether you “close shop for the season” or just engine along at a slower pace, use your off-season productively so that when your peak season comes round again your customers are there with you.

Take stock of your business plan; review your product line-up and market positioning; assess and develop a plan for dealing with any competitive threats, and so on. Use this perspective to start planning and executing your marketing activities and do whatever it takes to maximize the small seasonal window of opportunity that you have to realize the fruits of your labor. Even during quiet seasons there are still ways to stay in front of customers and help keep your business top of mind when it comes time for them to make their purchasing decisions.

Related Resources

• Small Business Loans and Grants Guide – Federal, state and local governments offer a wide range of financing programs to help small businesses start and grow their operations. This guide from Business.gov can help you understand your options and find the right financing for your needs.

Related Articles

• 7 Tips for Finding and Hiring the Right Employee – The First Time
• Need a Small Business Loan? Tips for Researching Lenders and Preparing a Winning Loan Proposal
• Taking Stock of the Business Year – How to Conduct a Year-End Review & Plan for the Year Ahead
• Five Holiday Marketing Tips to Help your Small Business Stay Profitable & Top of Mind this Year!
• Five Hot Small Business Summer Marketing Tips

From Small Business Trends

3 Tips for Running a Successful Seasonal Business – Year Round!

As a small business owner, how can you get customers to swoon? Here are 11 practical suggestions.

1. Monitor the social networks for people talking about your company. When they’re saying positive stuff, say thank you. When it’s negative, get more details and then say thank you. When they’re asking questions, answer them and say thank you. When you find people talking about your company, respond.

2. Show up places they wouldn’t expect. Your customers have certain places where they hang out on the Web, even outside of Twitter and Facebook. Find their local watering holes and be there when they need you. Don’t hijack their conversation or try to sell your services; just be part of their world and let them know you’re there.

3. Create a blog, write content designed to address customers’ problems. Check your site logs, customer e-mails and/or complaint section to identify your customers’ biggest issues/problems/concerns. Write content that will take these issues away. Solving someone’s problem and making them look good is the best way to make them fall in love with you. Women have known this for years.

4. Plant small surprises. Whether it’s a surprise Thanks For Commenting page for new commenters, a small gift included with their order or chocolate sent on their birthday, offer a small gesture that your customers wouldn’t expect. You’ll rock their world and tie that unexpected experience into their perception of your brand.

5. Start relevant conversations. Whether it’s on your blog, a social media site like Facebook, or in a competitor’s forums, start conversations with qualified experts about topics relevant to your customers. Don’t use these conversations to sell; just share your advice and act as a helpful member of society. If your customers want to know more about how you can help them, they’ll know how to get in touch with you.

6. Guest post on their favorite blogs. You love bacon. And you get really excited when you find other people who love bacon. Why? Because you feel an instant connection with them because you already have something in common. Guest post on your audience’s favorite blogs and show them you love their favorite blogs as much as they do. It will create an affinity that never existed before.

7. Admit you don’t know everything. Woo your customers by asking them questions. Hold polls. Ask for constant feedback. Invite customers in and make them part of your sales process.

8. Be responsive. When someone takes the time to e-mail you, leave a comment or write you a letter, respond. Timely. Always.

9. Write for your audience, not for the search engines. The search engines may bring you traffic, but they don’t bring you customers. To find customers, you need to solve their problems and give them something they can use. That’s what your content should focus on–not on what’s popular or what search the engines want you to write about.

10. Make your blog and website accessible and easy to navigate. Don’t make your customers feel stupid. They’ll leave.

11. Build your own network, but don’t lose sight of your core readers. Go out and build your small business. Grow your network, create relationships and network your way into powerful partnerships. But don’t lose sight of the people you’re trying to reach. They are your core and the people who, at the end of the day, matter most to your business.

Those are some ways I think businesses can woo customers and turn them loyal to your brand. What’s worked for your company? What programs do you have in place to attract and retain customers?

From Small Business Trends

11 Ways to Make Your Customers Swoon

Small business is not for the faint of heart. And, while we’re on the subject, it’s not for those who want a predictable existence where everything stays the same. Making your small business work and then grow will require sharp thinking and decisive action. But most importantly, it will require a competitive edge. For any small business, survival will depend on going head to head with larger companies that are, in many cases, better financed and more experienced than you and coming out on top time and time again.

Tips

Don’t like change? Tough. Todd’s video post is brief and to the point but also happens to be the “top pick” by BizSugar visitor’s today. He’s got a great quote on change and a message that applies to everyone in small business today. Todd Youngblood’s “SE” Blog

Reaching those crazy-busy customers. No matter if you’re part of the sales force or the sales manager of an small to medium sized business or the owner of a little company trying to make that first sale, Tibor’s advice is to get used to dealing with busy prospects who have no interest in your product and no time to listen to your pitch. The Pipeline

Success Stories

15 entrepreneurs tell their stories. It’s safe to say most big businesses start as small ones so what we can learn from entrepreneurs who’ve built big and successful companies can be very informative to anyone starting their own small business. In this series of interviews, David Siteman Garland talks with 15 entrepreneurs who have succeeded in building $1,000,000+ companies. The Rise to the Top

Self-development

When David meets Goliath. S. Anthony Iannarino’s post aptly includes a photo of a slingshot, an obvious reference to taking on the big guy, a common experience for any small business owner or employee working for a smaller firm. Competing against larger established companies is a fact of life for small businesses, particularly startups, and succeeding against the odds is a matter of survival. The Sales Blog

Your attitude is everything. Whether you’re the guy out with prospects, customers and clients selling your own product as the head of your small firm or have a small sales force to do it for you, setting the tone with a positive attitude is critical. This post looks at how to cure your attitude as a sales professional, but as a small business owner you’ll be the lead sales person whether you’re the one going door to door or not. Sales Blogcast

Tech

Small town business survival. Martin Lindeskog interviews Small Biz Survival blogger and rural small business expert Becky McCray in this podcast covering the technologies and techniques that help small town businesses survive and thrive in the era of the Internet and how geography need no longer be a boundary for any entrepreneur. Ego

Contests

Have you contributed to the SugarTone Sweet Business Blogging Contest? The submission portion of the contest has ended but members of BizSugar.com and Bloggertone.com still have until Thursday to vote for their favorite blog or leave a compelling comment. The winning blogger will receive $350 in prizes and the winning comment $250. BizSugar Blog

Book Shelf

Clutch: Why Some People Excel Under Pressure But Others Don’t. Pierre DeBois reviews a book that could be about your business…or not. One thing for certain is that all small business owners face some level of stress and the trick is how the best respond. Small Business Trends

Competitive Selling: Out-Plan, Out-Think, Out-Sell to Win Every Time. Real success in small business comes down to being able to out perform the competition. And for companies short on financing and resources, this comes down to sales and lots of them. Good then that we have this book from professional sales trainer Landy Chase about the key to getting it right reviewed by Ivana Taylor. Small Business Trends

Conclusion

Giving yourself time to recharge. For Barry J. Moltz this means getting off of the Internet or off “the grid” as he calls it. But whatever it is that helps you rest and regroup is an important part of keeping that competitive edge. Without it, burnout will overtake the most dedicated entrepreneur and where’s the competitive edge in that. Your Business Unstuck

From Small Business Trends

Small Business News: The Competitive Edge

Devil in The Details

Verizon released a survey late last month which found that larger-revenue small businesses are more likely to have Web sites than smaller- revenue firms — at least, within limits.

They found that 56 percent of firms with revenues between $250,000 and $750,000 have company Web sites, while a much more substantial 73 percent of firms earning between $750 and $2 million have company Web sites.

There were also a number of drop-dead-obvious findings, like the fact that having a Web site makes you better at estimating how much time it takes to maintain one, and some stuff that could make your eyes cross, like the fact that you’re less likely to know how to attract customers to your Web site if you don’t have one.

It would have been interesting to see how even lower-revenue firms (under $250,000) would have fared with this survey. I suspect that Verizon might have replicated other market research I’ve seen lately, which found that online microbusinesses are even more likely to have company Web sites.

Other small business market research released last month from pay-per-click search network operator LookSmart found that SMB advertisers rank ROI as their top priority in PPC campaigns (63 percent), followed somewhat closely by traffic quality (53 percent).

The LookSmart bright boys seemed a little surprised at another finding: the low priority given to customer service by SMBs — although it’s not too shocking, given that most of their customers use their self-service platform.

Development, Without the Bright Lights and Big Cities

Growing rural economies was a somewhat hot topic in research-land in August, thanks to a couple of papers that tackle the unique challenges of rural economic development in the 21st century global economy.

The International City/County Management Association (ICMA) released a paper highlighting “smart growth strategies that can help guide rural growth while preserving the unique rural character of existing communities.” Those strategies basically boil down to supporting the viability of traditional land uses (i.e., farming); helping communities to preserve existing, historically vested places; and building vibrant new places that will draw and hold population (especially young population).

The other paper gets into the nitty-gritty of rural development in the Midwest, where manufacturing had been the heart and soul of local economies. Those industrial concerns have faded fast, and Midwestern rural economies have faded too. Development authorities continue to compete in what they call “industrial recruitment” — smokestack chasing.

In this paper (Past Silos and Smokestacks: Transforming the Rural Economy in the Midwest), Mark Drabenstott, Director of the Center for Regional Competitiveness at the Rural Policy Research Institute, argues that 21st century economic strategies demand regional partnerships that leverage rural resources to compete globally.

“Only by combining their forces to create new businesses and good jobs at home will the towns and counties of the rural Midwest compete and thrive in a global economy where this kind of collaboration is fast becoming the norm,” writes Dr. Drabenstott.

While these two papers are very different in their orientation, they both say essentially the same thing: The way policymakers and development experts are thinking about rural development isn’t working. That means they need to do something else, ne?

I wouldn’t have thought you’d need a Ph.D. to figure that out, but what do I know?

Jobs Growth — or Not — in August

So, what about those jobs-jobs-jobs?

The consensus right now seems to be that the recovery has a case of the hiccups … or something. We’re expecting the August employment situation release from the Labor Department on Friday but, in the meantime, the August 2010 National Employment Report from ADP was just released.

The picture is not what I’d call encouraging.

For starters, the previous estimate of 42,000 new jobs from June to July was revised downward to 37,000 jobs. Even worse, August was a tough month, especially for small businesses.

After registering job growth for six straight months, ADP’s estimate for private  sector non-farm employment change declined by 10,000 jobs. Large firms saw a net job increase of 1,000, but both categories of small firms experienced net decreases.

Medium-sized firms (50-499 employees) had a net decline of 6,000 jobs and small firms (1-49 employees) had a net decline of 5,000.

In light of some other discouraging economic news, you have to wonder: wither away, recovery?

Late Summer Releases From the SBA Office of Advocacy

Are the self-employed changing? Are there real differences between generations of entrepreneurs?

The SBA Office of Advocacy released a report last month that took a look. What they found was a measurable difference between the generation born in 1960-62 and that born 20 years later, in 1980-82. The younger group had a higher probability of being self-employed by age 23.

The researchers attributed the difference to higher percentages of African-Americans, Hispanics and, to a lesser extent, women in the younger cohort of subjects. That may be true, but I think a big part of the difference may have had more to do with growing up in different times.

Overall, the research shows that those who reported self-employment in their early 20s (ages 20-22) are much more likely to remain self-employed through age 41. I guess it’s once an entrepreneur, always an entrepreneur.

Also worth noting from Advocacy was a report on gender and business dynamics, appropriately entitled Gender and Establishment Dynamics, 2002-2006.

The report “found” a lot of things that seem pretty obvious (e.g., larger firms are less likely to close, and tend to both create and destroy more jobs) but it’s most interesting finding was a confirmation of earlier Kauffman research: Real job growth comes from new firms.

Is anybody listening?

From Small Business Trends

Research Roundup: Big Picture, Little Picture

A few months ago Google began experimenting with Google Local Shopping, a service that lets customers find and buy products that are in stock nearby. Whether it’s a certain kind of Ben & Jerry’s ice cream or a special set of headphones, with one search customers can find the retailers in their area that sell exactly what they’re looking for. No more driving endlessly from store to store craving ice cream and hoping stores stay open late enough for you to find it. Huzzah! To encourage the feature, Google has made its help documentation requirements open to the public so that more local retailers can benefit and bring online shoppers directly into their retail stores.

There are a number of steps small business owners will have to go through if they want to get their products listed in Google Local Shopping. Here’s a quick breakdown:

1. Step 1: Create a Google Merchant Center account.
2. Step 2: Create an online product listing feed. [Here’s how.]
3. Step 3: Apply for a separate Google Merchant Center account for your local product listings. Once it’s confirmed that you qualify, Google will send you an invitation link within three days to a new Merchant Center account created for your Local Shopping data.
4. Step 4: Accept the new terms of service.
5. Step 5: Enable local shopping.

Not every retailer who applies will be accepted into Google’s Local Shopping program; however, there are some things you can do to give your business its best shot at acceptance. Google notes that Product Search quality is a prerequisite for participation, so small business owners will want to make sure they’re submitting an accurate and complete data feed, including unique product identifiers. You also need to have your stores listed on Google Places, so you’ll have to submit and verify your store listings, if you haven’t already done that.

It does seem like a small amount of work to get listed; however, anything you can do to make your products more available and searchable is a good thing. Since Google is requiring that stores have Google Place listings, it will also be interesting to see how products are eventually incorporated on Place pages. Perhaps business owners who have enabled the Local Shopping feature will be able to display their products directly on their Place page or make them searchable for users. We know Google is only going to increase the importance of these pages, so anything you can do to make yours stronger than those of your competitors is a good thing.

From Small Business Trends

Google Local Shopping Tells Customers You Have It In Stock

The real key to economic recovery isn’t in the form of a piece of legislation waiting for passage in Congress or on the President’s desk awaiting signature. In fact, the real key to economic recovery doesn’t lie in the hands of any legislature or government entity on the face of the Earth. The real key to economic recovery lies in the hands of people like you and me. Small business owners and entrepreneurs with the imagination and drive to innovate and change the world. We hope this roundup will inspire you. Our time is now!

Policy

$55 billion to help small businesses? The administration of U.S. President Barack Obama is again pushing for a new bill extending more loans to small business and introducing some tax cuts as a way of boosting the economy. But critics say it will add to the national debt thus hurting the economy instead of helping it. What’s the real answer? Entrepreneurs! CNN

Are our small businesses under assault? While the President stresses his administration’s support for small business, critics say current government policies including tax increases and increased regulations definitely aren’t helping small businesses or the economy. They’ve created this video and hope you share it and let your voice be heard. Gateway Pundit

Are we still being shortchanged on federal contracts? The U.S. Small Business Administration says there’s been an increase in the number of federal contracts going to small businesses this year, but they’re still way short of their goals or of giving small businesses their fair share of federal work and, with an ongoing recession and the emphasis on support for SMBs, the criticism is mounting. You’re the Boss

Trends

The lean and mean approach. In the absence of available financing, small business owners like Denise D’Amour of Capitol Hill Bikes has made some hard choices and cut back on costs to weather the storm. Way to go, Denise, and a good lesson for other entrepreneurs about self-reliance and the need to make the tough decisions. Political Ticker

Our entrepreneurial light may be fading fast. Though Jeff is talking here about the dangers of replacing a society based on self-reliance and innovation with one based on entitlement in the U.S., the message can be a global one on the dangers of creating a world in which the impulse for entrepreneurship would be extinguished. The Entrepreneurial Mind

Tools

10 social media books you’ve got to read. While it’s critical for small business owners to show self-reliance in these changing economic times, there are incredible tools that make it easier to leverage your marketing and other business functions like never before. A critical one of these tools is social media and here are 10 books about it that every small business owner must read to make your company better. Small Business Trends

Social media: What do businesses say? Before you jump on the social media bandwagon, better have a look at this long and informative stream in which business owners and social media advocates of many stripes discuss social media and how helpful it really is to your small business. You’ll hear opinions on both sides. Focus

Tactics

What’s your pitch? Probably one of the key elements that will set your business apart is the effectiveness of your pitch. What does this mean? When you explain your idea to investors, customers, partners etc. does it grab their interest. If not, refine you’re approach. This step could be key. The Entrepreneurial Mind

Search marketing for small business. (Part 1) If you’re marketing a small business in the digital age, chances are you have a Web presence. And if you’ve taken the time to create a Website or blog you probably would like it to at least be seen by the relevant customers who might conceivably use your product or service. Search engine marketing is an important place to start. SearchEngineWatch.com

Search marketing for small business. (Part 2) once realizing the importance of search marketing for your small business, you will immediately encounter terms like “SEO” and “PCC,” some of the tools and techniques aimed at improving your companies position online. But which tactics or tools are best and return the best results? SearchEngineWatch.com

From Small Business Trends

Small Business News: The Real Key To Economic Recovery

You might think that this question has been resolved. After all, the Ewing Marion Kauffman Foundation reports that more than 2,000 U.S. colleges and universities teach entrepreneurship. How could all those professors teach something that might not matter?

As surprising as it may sound, we don’t know the effect that entrepreneurship training has on start-up company success. Relatively little research has looked directly at the benefits provided by entrepreneurship education; and the results to date are far from conclusive.

Most of the studies on entrepreneurship training look at whether people who have received this education perform better as entrepreneurs than those who have not . Studies by researchers at the University of Arizona, New York University and other institutions have found that people who have received entrepreneurship education perform better at running their own businesses.

However, these studies don’t necessarily show that entrepreneurship education causes better start-up company performance. The same people who are good at running their own businesses might also be the most interested in studying entrepreneurship. As a result, receiving entrepreneurship training and start-up company performance are correlated, but the education doesn’t cause the performance.

The gold standard in research is a controlled experiment. If some people are randomly assigned entrepreneurial education and others are not, then we can see if the training causes the performance.

Researchers have conducted a few randomized experiments to look at the effect of entrepreneurial training. One study by Dean Karlan of Yale University and Martin Valdivia of Grupo de Análisis para el Desarrollo randomly assigned entrepreneurship classes to female micro-entrepreneurs in Peru participating in a micro-credit program.

The researchers found mixed results for the effects of training. The entrepreneurs who received training showed higher sales, but did not have higher profit margins or more employees. The trained entrepreneurs also scored higher on “keeping records of their withdrawals from their business, an index of business knowledge questions, the proportion that report using profits for business growth, and implementation of innovations in the business.” But they were scored no differently on “changes in tax formality, paid fixed salary to self, number of sales locations, level of diversification, allowing sales on credit, keeping records of payments to workers, started new business, proportion of clients who faced problems with business and proportion of clients who planned innovations in their businesses.”

Lars Oppedal Berge Kjetil Bjorvatn and Bertil Tungodden of the Norwegian School of Economics and Business Administration randomly assigned recipients of microcredit in Tanzania to entrepreneurship training. They also found mixed results. They observed no significant effect of training on sales or the number of employees, but found that training increased the entrepreneurs’ record keeping, tendency to use bonuses to incentivize employees, and willingness to change their product mix.

Xavier Gine and Ghazala Mansuri randomly assigned Pakistani microentrepreneurs to receive six hours of training, the chance to participate in a loan lottery, neither, or both. Gine and Mansuri found that, for men, receiving business training reduced business failure, but had no significant effect on sales, business assets, or number of employees. For women, receiving business training had no significant effect on any of the performance measures.

The three studies described above don’t show consistent evidence that entrepreneurship training improves the performance of micro-entrepreneurs. Moreover, experiments with random treatment of the type of entrepreneurship training provided by universities in industrialized countries have not been conducted.

In short, getting some entrepreneurship training might increase your performance as a business owner. Then again it might not.

From Small Business Trends

Does Entrepreneurship Education Make People Better Entrepreneurs?