The Governor’s legislation provides tax credits for businesses that create new jobs, eases healthcare and unemployment insurance costs for employers and creates a new organization dedicated to providing businesses with the financial capital and resources they need to grow.

“Small businesses account for 85 percent of Massachusetts businesses, and for them this is an economic emergency,” said Governor Patrick at an address this morning to the Greater Boston Chamber of Commerce. “If we want new jobs, we need to focus special attention to meeting the needs of small businesses. That means addressing their need for access to working capital and credit, helping deal with escalating health care costs in the short term, simplifying necessary and eliminating unnecessary regulation, fixing the unemployment insurance system and helping to train ready workers.”

The Governor’s plan builds on the job creation efforts undertaken over the last three years, and delivers on many of the initiatives outlined at the Patrick-Murray Administration’s Economic Summit held last October.

Small Business Job Creation Tax Credit

A central piece of the Governor’s proposal is a tax credit for small businesses that will help create thousands of new jobs this year. Small businesses that create and retain new full-time equivalent (FTE) jobs this year will be awarded a $2,500 tax credit for each net new job they create.

Lowering Health Care Costs for Small Businesses

Under existing authority, the Governor is directing the Commissioner of Insurance to immediately file an emergency regulation requiring health insurance companies to file proposed changes in small business premiums with the Division of Insurance in advance of their taking effect so the Commissioner can review and disapprove rates that are excessive or unreasonable in relation to the benefit provided. His plan also includes legislation that would trigger a presumptive disapproval of health insurer rates that are significantly above the Consumer Price Index for Medical Services.

Unemployment Insurance Reform and Rate Freeze
The Governor’s proposal provides relief to employers by freezing the unemployment insurance (UI) rate increase schedule for 2010, minimizing cost increases on businesses. The rate freeze at Schedule E would save employers on average $158 per employee, or $391 million in total.

Additionally, the Governor’s bill makes the Workforce Training Fund a Trust Fund in order to protect employer contributions and ensure that the money in the fund is used to fulfill its intended purpose. The Governor’s bill also strengthens the Division of Unemployment Assistance’s anti-fraud measures and includes protections for workers, reducing unfair barriers to eligibility.

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So what is green business? It is a business run with responsibility to the world we live in. So if you already have or are planning to start a small business in San Francisco you might want to consider ecology as one of the basic values for your new company. Surely your company’s value is more than just the financial bottom line?

Many US entrepreneurs accepted the green concept of working, sometimes using this side of business in their marketing. Ecological products remind people of health-there is much less (or none) chemistry, less impact of technology and, generally, economy is very present.

There are two ways of practicing green business, depending on the type of your work and conditions that you work in.

First way would be to adjust your materials, machines and products to ecology. For example, if you own a dry cleaning business you should consider using eco-friendly cleaning products, or if you own a store with products for home or personal hygiene try to get natural products. Also for American customers lately it is more and more important to know what they eat, so you should consider working with fruits and vegetables clean of the pesticides or equipment for planting which would help people to grow food in their own home gardens (many ecologists believe that this is the only way to eat healthy and know exactly what we eat, so could it be a new trend?). If your company is connected with engine or sources of energy it is a good idea and a challenge to try working with solar and other sources of energy. With costs of traditional energy going up – making green business ideas related to saving energy and cutting energy costs also is a safe bet.

The other ecology business approach is very easy to apply. It is based on simple, well known green postulates such as recycle, using only the material which is necessary, and saving the electricity. Turn off your office equipment when you’re not using it and save electricity. Reduce paper waste, saving documents in your computer, encouraging communication by e-mail (instead of fax machine), find a supply of paper with maximum available recycled content etc. It is also a good idea that before deciding whether you need to purchase new office furniture, see if your existing office furniture can be refurbished. It’s less expensive than buying new and better for the environment.

Operating a green business could not only be good for the environment but could also improve your business because conserving resources and cutting down on waste saves money. And don’t forget that using eco-friendly products in your business could give you a competitive edge, so there’s no reason not to give your company a green shade.

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The state of California is known to be a national leader in environmental goal, ecology and green business movements. Now we are going one more step ahead with Electric Vehicles International (EVI) opening their new worldwide headquarters and primary U.S. manufacturing facility in Stockton. EVI will design and assemble zero-emissions, all-electric, medium-duty delivery vehicles and light-duty vehicles using EVI electric motors and controllers manufactured at this facility. This way the EVI company will provide 150 direct green jobs.

EVI is a leading manufacturer of electric vehicles for multiple applications, covering a diverse range of transportation options. It was formerly headquartered in Toluca, Mexico. They produce delivery light trucks for high-traffic urban routes, ergonomically designed electric tourist vehicles and custom-designed vehicles for private facilities, ports and airports. It is estimated that their changing of location will bring not only 150 direct jobs in California by mid 2010, but also over 450 jobs including local vendors and other indirect employments. So this is a major news for regional ecology and for regional economy as well.

“California is the perfect location for electric vehicle manufacturing,” said EVI-USA Chief Executive Officer Ricky Hanna. “As the world’s leading location for adopting green technology and promoting sustainable transportation, California is where our customers are and where we need to be. Stockton is centrally-located to serve all our key markets and has exceptional infrastructure and an excellent labor force.”

This week Governor Arnold Schwarzenegger have joined officials from Electric Vehicles International to announce the opening of their new worldwide headquarters.

“In California, we are creating a new economic foundation for the 21st Century built on clean fuel, clean energy and clean cars that is turning us into the green capital of the nation and the world,” said Governor Schwarzenegger. “EVI could have relocated anywhere in the world but they chose to come here to California because we have created the right environment for clean-tech and green-tech companies. I look forward to continuing to welcome these kinds of smart, groundbreaking businesses that are not only helping us meet our aggressive environmental goals but are spurring our economy and creating jobs when we need them the most.”

Since the Governor of California is quite interested in clean environment, green business and clean energy, during the last couple of years the state got some very useful ecological laws and programs such as Global Warming Solutions Act of 2006 (AB 32), Low Carbon Fuel Standard (LCFS), Automobile Emissions Standards, Million Solar Roofs Initiative, Sales Tax Exemption for Zero Emission Vehicle Equipment, Alternative and Renewable Fuels Vehicle Technology Program and Renewable Portfolio Standard (RPS).

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In contemporary San Francisco market small businesses need to concentrate on characteristics that set them apart from others in order to create a competitive edge. The uniqueness of a product/service is what will help them gain the firm position in the market place. Once you find out what makes you stand out from your competitors, you need to evaluate the relevance that has to your customers’ needs and wants. It is important to find out who your most profitable customers are and to learn how to effectively promote a business to the targeted customers.

Target marketing concentrates on customers’ needs and therefore builds loyalty. With better understanding of the needs of different customer groups, the marketing opportunities grow. Market can be targeted based on age, gender, location, geographic factors, demographic characteristics and other factors. The goal is that a business aims at target markets that will provide a good customer base. When you divide a market into a smaller markets then it is crucial to focus your marketing efforts on the differences that are important to customers. That can be best achieved through analysis of the targeted markets and finding out where the customers differ.

Bizcloud provides a comprehensive demographic view of San Francisco free of charge. Simply look up your business to view the demographics data to use for market segmentation.

It is also important to investigate your competition, their size, location and how best to use their weaknesses. Current economic conditions and advertising efforts are just some of the factors that influence sales volume. Marketing strategies must be reviewed regularly to determine if the customers’ needs are being met. Focusing your marketing strategy on retaining your customers is a guarantee for a long term success of your business. You can segment markets by product/service benefit your customers are looking for such as quality, low price, convenience, etc. When you identify the benefits your customers are searching you can create your offering to meet their needs. Target marketing based on customer needs and wants can increase profits. It identifies customer groups, the reasons they purchase and helps a business be more responsive to customer needs.

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It is held in Wendel Rosen Conference Center, 1111 Broadway, 19th Floor, Oakland, CA.

Green Chamber of Commerce is a San Francisco-based business network of over 160 Bay Area businesses from various industry sectors including architecture & design, media, finance, legal, renewable energy and health. The Green Chamber future plans are to expand nationwide, spreading the consciences of health, ecology and nature among people and business companies.

Recently, many major businesses such as Nike, PG&E and Apple have withdrawn from the U.S. Chamber of Commerce in opposition to its stance on climate change. More and more businesses are looking to alternative organizations which could represent their values. This is what the Green Chamber of Commerce is offering and present on its celebrations and events. This institution offers promotional, educational opportunities, gives a strong voice in favor of environmental policies such as AB32, California’s Global Warming Solutions Act.

Various industries whose leaders are committed to supporting and doing business with companies and organizations that share the vision of a sustainable and thriving economy, are members of Green Chamber of Commerce.

According to Green Chamber’s president, Phoebe Higgs,

“The Green Chamber of Commerce is built on the passion of companies and leaders who know going green is both better for the planet and good for business. To succeed in today’s environment, business must act with the greatest integrity, produce best-in-class products and clearly differentiate themselves in the marketplace. Companies must beat the competition on all fronts AND be green.”

Many American businesses – big and small – have begun to make the case for the economic opportunities posed by a comprehensive federal climate policy. Proponents of this type of policy are now standing behind a Senate bill called the Clean Energy Jobs and American Power Act. This policy could bring to our country good jobs, technological innovation and more holistic national security strategy.

As one of the globe’s largest economies, California’s strong environmental policies have clearly had a positive impact on both consumers and business. With California’s expertise and history of energy efficiency and clean energy policies, electricity bills have been lower per capita while energy costs increased across the country.

Then, there is job creation – the state’s efforts to cut global warming pollution will create hundreds of thousands of new jobs.

People are more likely to trust a business that supports the environment and more likely to buy its products, consumers are more supportive of the companies that care for the climate change and ecology issues. This is a message that has been heard by businesses in California who want to compete in a global market, lower their cost of doing business, and also do right by the planet.

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Seminar series has been created by six federal agencies to show how local businesses can use government export assistance to expand sales of U.S. goods and services in foreign markets and increase their profitability. The eight-city “Exports Live: Real Deals, Real Profits” seminar is a unique trade event where participants will learn about the government products and services available to help their businesses compete in the global market. The half-day seminar will include a series of interactive panel discussions with federal government partners.

At the end of the presentations, participants will have an opportunity to meet with representatives of each of the federal government agencies to discuss their needs and challenges in exporting goods and services. They will also have a chance for networking with trade finance leaders, export credit insurance brokers, and other successful U.S. exporters.

Leading these seminars will be: Chairman and President of Ex-Im Bank Fred Hochberg; Secretary of Commerce Gary Locke; Ambassador Ron Kirk, U.S. Trade Representative; Small Business Administration Administrator Karen Mills; Leocadia Zak, acting director, U.S. Trade and Development Agency; and Dr Lawrence Spinelli, acting president, Overseas Private Investment Corporation.

For more information and to register visit  http://www.export.gov/exports_live/chicago/

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Because of their importance in creating jobs, small businesses merit close attention in the formulation of economic development policies. In order to identify the needs and development of small firms, the Federal Reserve Bank of New York and the Citizens Budget Commission recently made a survey among the small business owners in New York City and Northern New Jersey and the answers they got from presidents or CEO of these small companies are very good way to inform and learn more about the state of the small business in New York, but also about the challenges and strategies in running a business.

One of the most outstanding findings is, surely, the fact that most important factors for the success running a small business in New York City region are:

• the overall cost of doing business

• proximity to markets and clients

• access to a skilled labor force.

It’s good to hear that most of the small business leaders are relatively satisfied with the current location of their business, meaning also their proximity to markets and clients, which also gives them access to skilled labor force. However, they are unsatisfied with the overall cost of doing business on that location. Over 10 % of them would relocate for the cost savings of less than 10 %, while for the cost saving of over 20 %, nearly half of small business leaders would change the location of their firm.

So we can conclude that two of three listed important factors for running a small company are satisfied and the location is a top priority factor. Good location provides access and proximity of clients, markets and skilled labor force, but it also costs a lot.

Speaking of a potential changing of location more than two thirds of firms would stay in the city region, and those who would consider moving have on mind Los Angeles or Miami as a new places to run business in.

Financing and access to capital are always a problem for small businesses, but, fortunately, in New York City this problem is limited, comparing to the situation in other cities in America. Great majority of city’s small companies obtain a bank line of credit and less than 3 % of them is turned down.

In order to obtain financing, most of the small business leaders that have obtained credit had to pledge some collateral (67 %).

There are other types of financing as well. For example, about 20 % of small companies start the business with the money given by relatives or friends (so called “angel financing”), 10 % of them have receive a government-backed loan and small number of New York small business owners get venture capital financing.

Of course if you are running your own small business you certainly need someone to consult about your finances. In New York City, most of the small business leaders have an accountant for financial advices, but you can also consult your bank officers or attorney.

The greatest problem with running a small business in New York City are costs of doing business in the region. Public policy regarding taxes, fees, zoning rules, and utility regulations adversely affect business costs. The state and local policy initiatives, clearly, can not control all costs, but they should pay much more attention on those that can be put under control through government actions.

It is very important for the city to have a favorable business culture and public policies that encourage enterprising individuals to start businesses in the city of New York, the city that has a huge potential, since there is such a large concentration of small businesses in the city.

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The U.S. is the leading manufacturer in the world, but in the past years manufacturing jobs are being exported to overseas markets due to the cheaper labor and operating costs which means that U.S. manufacturers have to apply all the available methods to operate with maximum efficiency in order stay competitive. It is noted that many companies that are employing lean manufacturing principles manage to survive in tough economic climate.

Lean manufacturing is grounded on eliminating wastes, or anything that does not add value, in the production process. Lean manufacturing is a lasting improvement process with the main goal of delivering products in the quickest, most efficient, and cost effective manner. It focuses on identifying seven forms of wastes: waiting, overproduction, over processing, work in progress, transportation, motion and defects.

Principles of lean manufacturing are based on the Toyota Production System (TPS) developed in the 1940s. TPS showed that even though processes differ between factories, common wastes and inefficiencies could be found in all types of production environments. TPS turned Toyota into a world recognized brand. Besides manufacturing, number of other industries applied TPS principles over the years including information services and health care.

Lean manufacturing has a great potential for cost reduction, but implementing lean practices to small businesses can be challenging and time consuming, and is often viewed as too expensive as most of these small operations cannot afford to employ a lean manufacturing expert to oversee the process. For small businesses, “going lean” begins with learning everything about lean philosophy, tools and techniques. Today there are many free resources and low-cost workshops that business owners can use to educate themselves about the process of transforming their business into lean manufacturing. One very useful resource is the U.S. government site business.gov. For additional information on how to become lean follow the link  http://www.business.gov/industries/manufacturing/lean-manufacturing.html

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“New York City’s small businesses are the backbone of our economy, and it’s our job to make doing business in this city as easy as possible for them – especially in today’s economic climate,” said Mayor Bloomberg. “Smaller contractors often have a tough time securing the bonds necessary to back City contracts, but we’re taking aggressive steps to change that. Our companies will now be able to benefit from the federal program that’s designed to help them secure the bonds and get the jobs. Not only will it mean hundreds of millions of dollars in new contract opportunities for New York City’s small businesses, it will also mean reduced construction costs for the City as the pool of bidders will increase significantly.”

The U.S. Small Business Administration (SBA) has approved the measures, which will allow the City’s small businesses to participate in the Federal Surety Bond Guarantee Program that helps companies secure bonds required to do business with the City. These changes will open up contract opportunities for small businesses of up to $500 million per year.

The new bond form will be used for all prime contracts that do not exceed $5 million, and the City is encouraging prime contractors on larger projects to permit their subcontractors to use the SBA bond form for qualifying subcontracts. The contracts include projects from the City’s departments of Environmental Protection, Parks and Recreation, and Design and Construction.

New York City requires companies which work with the city to obtain performance bonds for all construction projects greater than $500 000, but smaller contractors often have difficulties to secure themselves. The recent tightening of the credit markets made it very difficult for smaller contractors, especially recent start-ups, to secure bonds.

Historically, the program wasn’t available to bidders on New York City capital projects because of the terms of the City’s performance bond form. This reform will allow the participation of small businesses in the SBA Surety Bond Guarantee Program and this will help companies secure the bonds.

The bonding policy reforms have roots in last year convention of the Capital Cost Containment Task Force, led by Deputy Mayor for Operations Edward Skyler and Deputy Mayor for Economic Development Robert C. Lieber. Their aim and task was to identify opportunities to reduce construction costs, evaluate the City’s bonding requirements (which are intended to protect the City against the risk of contractor default) and to ensure that the City was appropriately balancing the need for this kind of protection against the potential loss of some qualified competitors. The final result of this labor is a comprehensive review, conducted by the Mayors’s Office of Contract Services, the City’s Law Department and the Departments of Design and Construction and Small Business Services. The “final product” are the bonding policy reforms.

SBA’s Surety Bond Guarantee Program provides greater access to contracting opportunities, giving bonding agents an incentive to provide bonding for eligible contractors. A surety guarantee – an agreement between a bonding agent and SBA – provides that SBA will assume a predetermined percentage of loss in the event the contractor should default on its contract with the City and not satisfy its obligations. Under the new policy, SBA will assume the risk of 80 percent of the losses in such an event.

The American Recovery and Reinvestment Act (ARRA) recently increased the limit of the SBA’s bond guarantee program from $2 million to $5 million.

The initiatives that the City has launched will put New York City on a path to economic recovery and growth. The Bloomberg Administration’s Five Borough Economic Opportunity Plan is a comprehensive strategy to bring New York City through the current economic downturn as fast as possible. It focuses on three major areas:

* creating jobs for New Yorkers  (a plan to create and retain 400 000 jobs over next six years),

* implementing a long-term vision for growing the city’s economy,

* building affordable, attractive neighborhoods in every borough.

“This new bonding policy removes barriers for many of our small businesses,” said Department of Small Business Services Commissioner Robert W. Walsh. “Our goal is to encourage more participation in City contracting and create more opportunities for these businesses that are crucial to our city’s economic growth.”

To learn more about the plan, visit nyc.gov.

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CIT seriously pulled back on its lending to businesses as most recent earnings report shows that the company originated just $4.4 billion worth of new business in the first half of 2009 compared to $11.3 billion in the first 6 months of 2008. CIT said Sunday that none of its operating units, including Utah-based CIT Bank, were included in the filing, and are planing to continue lending. CIT has filed a number of motions to allow it to continue operations, including requests to keep paying salaries and other employee benefits and to pay its vendors in full. But still thousands of small businesses are feeling unease about the CIT’s process.

CIT lends to a million small and medium businesses, and filing for bankruptcy will put many of those businesses, especially retailers, in a difficult position of having to look for a new source of funding. The company provides financing to about 2,000 vendors supplying 300,000 U.S. retailers that are relying on CTI to cover various costs including paying for orders and making payroll. Somewhere around 60% of the apparel industry is depending on CIT for financing, and retail groups and analysts are expressing their concern that the lender’s bankruptcy will probably add to the uncertainty in the retail sector. For retailers it is critical to have a lender they can rely on, especially during and after the holiday season when they will need to renew the supplies of merchandise.  The retail industry has been preparing to switch to alternative source of financing since the last July when CIT’s financial difficulties drastically intensified, but finding that alternative at rival companies has not been easy since the credit market is still not loosening up for the small and medium companies.

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