Welcome to the Small Business Run Down. Each day, we bring you stories and trends that impact small business owners and their workforce.
Happy Monday. Let’s dive right in to the economic impact of immigrant-owned businesses in the US, the importance of keeping your eyes open for talent everywhere you go, and the ins and outs of legally playing music at your business.
Immigrant-owned businesses responsible for contributing billions to the economy
Even if the issue of immigration isn’t at the top of the list of concerns for many SBOs, the topic still dominates headlines and has a tremendous impact on the US economy. Consider this: 1 out of every 5 entrepreneurs in the US is an immigrant and their businesses bring in over $400 billion in tax revenue each year. Furthermore, a recent study suggests that hiring refugee women could add $1.6 billion to the US’s GDP. That’s not too shabby.
The Number: 8 million. In the US, 8 million workers are employed at immigrant-owned businesses.
The Quote: “Outsiders face a tough struggle fitting into a new culture. They must figure out how to deal with, and overcome, frustration, loneliness and a steep learning curve. And that’s why immigrants make such great entrepreneurs—they’re once again outsiders facing many of the same kinds of obstacles. Been there, done that.”
Small biz owners engage in friendly poaching, and we don’t mean eggs …
Savvy small business owners know that talent can pop up when you’re least expecting it, including when you’re in line at the Starbucks drive through. By keeping their eyes peeled for talented, composed and skillful customer service representatives, SBOs report finding valuable new members of their workforce without going through the trouble and expense of posting a job, recruiting, screening and interviewing potential employees.
The Number: 3.5%. The unemployment rate in New Jersey is 3.5%, even lower than the national average of 3.7%, playing added pressure on business owners to get creative about recruiting talent
The Quote: “She ended up being a rock star,” says Sweeney, who sensed that the barista “could manage an environment where there’s a lot coming at you and be able to stay responsive and keep a good attitude.”
DOJ hitting pause on illegally playing music
For the first time since 1941, the Department of Justice is reviewing the consent decrees that govern the way that music is played and streamed in public places. The development of streaming services like Pandora and Spotify have changed the way that businesses play music in their establishments and this review seeks to address these shifts. Small business owners potentially face increased licensing fees and should be aware of their licensing responsibilities in order to avoid penalties.
The Number: 3750. Certain exemptions govern the rules for paying licensing fees, including if you establishment has fewer than 4 televisions or is smaller than 3750 square feet.
The Quote: “There have been many changes in the music industry during this time, and the needs of music creators and music users have continued to evolve. It is important for the Division to reassess periodically whether these decrees continue to serve the American consumer and whether they should be changed to achieve greater efficiency and enhance competition in light of innovations in the industry.”