Business News

Find a penny, pick it up…then next week you'll have more luck sending mail.  Starting Monday, May 12, the U.S. Postal Service will increase a First-Class Mail, 1-ounce letter from 42 cents to 43 cents, matching the average inflation rate. Prices for postcards, standard mail and parcels will also change.  For businesses that rely heavily on sending flyers or newsletters to customers, count on tacking on an additional penny per letter. 

Additional changes include Express Mail's new zone-based pricing system, which means business owners could end up paying less to ship products locally. Postage printing websites such as DYMO Stamps or Endicia will automatically adjust to price changes.

Here's an SBA initiative that's sure to take the food crisis and economic slump head on. The SBA is launching their new initiative, the Emerging 200, geared toward inner-city businesses that show a high potential for success. By learning to sustain themselves, these 200 selected businesses can increase their outreach and impact, generating new jobs, and attracting more investors to bring up the local economy.

The SBA is also working to improve small businesses' credit access in rural areas. The program offers inner-city businesses the opportunity to be mentored by peers and experts and to attend workshops and develop expansion strategies, all in hopes of assisting areas challenged by low-income and high unemployment rates.

The SBA and its partners are currently selecting participants, and the program is expected to last from May to December. Cities that have been selected for this initiative include Boston, Baltimore, Chicago, Los Angeles, New Orleans and Philadelphia. For a list of the rest of the cities, and to read more on the initiative's goals, click here.--Jessica Chen

According to the Baltimore Business Journal , new legislation qualified businesses majority-owned by VC firms as eligible for the Small Business Innovation Research award. However, debate continues as non-VC-owned small businesses fear the SBIR grants will focus funding to a few, big companies.

In other Washington, DC news, a recent release from the U.S. Senate Committee on small businesses and entrepreneurship called for action to help small businesses feeling squeezed by the credit crunch. According to the Fed's quarterly survey, American banks have been stricter when it comes to lending to small businesses. Senator John Kerry proposed more legislation to help keep small businesses running with hopes that they will help boost the ailing economy.--Whitney Chen

Yes, according to research done by the National Federation of Independent Business (NFIB). "Our research shows that small firms are twice as innovative per employee as larger firms, and the companies who entered demonstrate that fact," said NFIB president and CEO Todd Stottlemyer. The companies that Stottlemyer's referring to are the 10 finalists for the fifth annual Dell/NFIB Small Business Excellence Award. To find out who made the cut, go to the award website.

The finalists will now compete for the national award, to be announced June 9 at the National Small Business Summit in Washington, DC.

The next time you're creating a travel budget for your next out-of-state conference or meeting, you may want to pad it more than usual. As of today, five of the six major U.S. airlines are charging an extra $25 to check in a second bag ($20 on JetBlue). American Airlines, the last holdout, is said to be following suit next week, and several other carries, including Alaska Airlines and Air Canada, are expected to do the same in the coming months.

As this MSNBC.com article states, it's the first of many changes that will drive up the cost of flying. "From snacks to seat selection, we're about to enter the next great age of unbundled airfares." However, according to the article, the fees only apply to domestic coach passengers who purchase lower-cost, non-refundable fares.

For business travelers, the new standards could become costly. Should you need to check a third bag for your upcoming trade show exhibit, for example, expect another $200 charge round-trip.

The April 2008 SurePayroll Small Business Scorecard, an economic indicator that tracks the health of U.S. small businesses, indicates that small business hiring increased last month and salaries decreased slightly.

Year to date, small business hiring has increased 1.0 percent and salaries are down 0.1 percent. The current average small business salary in the United States now stands at $32,567.

"Hiring was up last month but the pace of growth was very low compared to prior months," noted Michael Alter, President of SurePayroll. "Entrepreneurs are incredibly resilient, but it does appear that the economy is taking a toll on small business growth."

SurePayroll's analysis is based on payroll records of over 18,000 companies who use SurePayroll's payroll service. For more details on the SurePayroll Small Business Scorecard, visit SurePayroll's website.

Today, four days earlier than announced previously, the United States Treasury Department will start depositing stimulus payments into Americans' bank accounts--roughly 8 million by the end of the week, they estimate. Treasury Secretary Henry M. Paulson says that these stimulus checks and investment incentives will create more than half a million jobs by the end of the year. President Bush also hopes these checks will provide a much-needed boost to our economy.

"Al's Morning Meeting" of Poynter Online briefly encapsulates how retailers and stimulus check receivers' are responding--and it's across the board. Retailers, of course, hope the checks will boost customer spending. But, that may not be the case. A Los Angeles Times/Bloomberg poll stated that only 18 percent planned to actually spend the money while a combined 65 percent will either save it or use it to pay bills.

To learn more about how average Americans plan to use their stimulus checks, look at this CNN slideshow.--Whitney Chen

The SBA lauded two business owners, a mayor, and a volunteer yesterday at National Small Business Week in Washington, DC who rose in the face of Hurricane Katrina and other natural disasters. The Phoenix Awards for Small Business Disaster Recovery and Outstanding Contributions to Disaster Recovery went to Henry L. Coaxum Jr., owner of Coaxam Enterprises, Inc., Scott Smith, president and CEO of Cellect, LLC, Mayor Kenneth Boswell of Enterprise, Ala., and Melinda Bygate of Summerfield, FL. for displaying exceptional courage, resourcefulness, and tenacity.

From managing employees to taking millions of dollars worth of loans for relief efforts, they truly embodied the entrepreneurial spirit of hard work and creating solutions to aid their businesses and communities.

President Bush, in his speech at National Small Business Week, put it simply: "Do you have the perseverance to endure the bad times, and the humility to handle the good times?" Bush acknowledged that our economy is, indeed, in a bad time. Though he says thanks to many small businesses continuing to be innovative and resilient, we will come out of these times stronger.

According to recent data from the OPEN from American Express Small Business Monitor, small-business optimism is at its lowest point in the survey's six-year history. Some of the main concerns cited by small-business owners include cash flow, the costs of doing business and rising energy costs.

The economy is also affecting how entrepreneurs will vote come November. According to the survey, four in 10 small-business owners say the economy is the issue that will most sway their decision in the upcoming presidential election.

The survey discovered that business owners in the retail industry have the most negative outlook on the economy. In addition, about 20 percent of small-business owners in the North Central states report that their companies risk going out of business due to the economy.

Despite these dismal statistics, the OPEN from American Express Small Business Monitor found that growth is still a priority for entrepreneurs, reporting that seven in 10 business owners plan to grow their business over the next six months, with 31 percent planning to hire.

A lawyer-turned-entrepreneur was the recipient of the title National Small Business of the Year at the U.S. Small Business Administration's National Small Business Week 2008. Shawn Boyer, the award recipient, started SnagAJob.com in 2000 after a friend asked for help finding a summer internship online. When Boyer noticed the absence of websites geared toward internships or hourly jobs, he researched the business, left his job as a lawyer, found venture capital and started the company.

Eight years later, Boyer's business has grown from just two employees to 110 full-time employees.  The company grossed sales of $11 million in 2007.

To read about the runners-up and to follow the events of National Small Business Week, check out the National Small Business Week website.

The SBA's National Small Business Week kicks off today in Washington, D.C. and runs through Friday, April 25. If you can't attend in person, the SBA is offering live webcasts for all award events (excluding the opening reception) and forums. Simply go to the National Small Business Week website on the day and time of the event. Speakers and forums will focus on healthcare, procurement, trade and energy.

You can also view a free web seminar on leadership communications hosted by Liminal Group on Thursday, April 24 from 11:00 a.m. to noon (EST). Granville Toogood, a well-respected executive communications consultant, will share insight on how to speak effectively and confidently before a large audience, with employees and with customers.---Whitney Chen

Customers are taking the upper hand as prices for products and services become more negotiable, the Los Angeles Times and The New York Times report. Many small businesses are no strangers to negotiating deals. But as haggling hits larger businesses, small businesses may need to lower their prices, or customers will likely find better deals at larger stores like eBay, Amazon, and NexTag.

Feeling the squeeze of a slowing economy, both business owners and consumers search for ways to move forward. Included along with the Los Angeles Times article is a tip sheet for wannabe hagglers. One such tip: "Loyalty counts." This suggests to small businesses that rewarding loyal customers with lower prices may win them and their business over. And it's just one way business owners can survive through this temporary downswing.--Whitney Chen

Last October, we told you about the microlending site, Kiva.org. Now, the site--which helps developing-world entrepreneurs achieve their business dreams--has partnered up with Advanta to up the ante. It's called KivaB4B, and through it, customers can make small loans to Kiva entrepreneurs using Advanta business credit cards. Once a grant has been issued by an Advanta small-business customer, Advanta will match each grant dollar for dollar, capping at $200 per month, per account.

Advanta currently has 1.3 million billion small-business customers. The program estimates that if only 1 percent of those customers made a one-time grant for $50 through Kiva, developing-world entrepreneurs would receive $1.3 million.

The entrepreneur has a lot to do in a day: finance the business, develop the product and plans, hire talented and motivated employees and--occasionally--sleep. Sitting down and enjoying news or articles in print or online isn't always an option.

Enter Brijit.com. Editors read The New York Times, The Economist, ESPN Magazine, and even some episodes of "This American Life," (to name a few) and summarize articles in a bite-sized 100 words or fewer. This is great for the person (or entrepreneur) who, instead of a newspaper or magazine, carries a PDA or laptop and doesn't have time to search bookmarked sites. A rating system also saves time by letting you know which full articles (linked to the abstracts) are worth the time to read.

There's certainly nothing wrong with staying current, tucking a few "hey, did you know that's" under your belt for a casual conversation and being entertained--especially if it only takes a couple minutes.--Whitney Chen

According to the RBC Cash Index, consumer confidence sunk to deeper lows this month--the deepest we've seen since 2002. Right now, consumer confidence is at a mark of 29.5, compared to 33.1 in March, and 89.5 in April 2007. Economists and strategists point their fingers at high gas prices, an injured housing market and a sharp influx of unemployment.

Yet, there continue to be some glimmers of hope--small businesses made 55,000 new jobs recently and there were actually fewer unemployment claims this past week. Also, President Bush met with owners of small and mid-size businesses to encourage them to take advantage of incentives and to make capital investments in hopes of restoring consumer confidence.--Whitney Chen