United States Charity

Gen Wright asked:


This report presents a comprehensive picture of the contribution of small enterprises in Ireland. The report contains data on the contribution of small businesses in industry, services and construction, as well as statistics on the labor, the knowledge-based economy and workforce. It also includes international comparisons.

In the report, a small business is defined as an enterprise which employs fewer than 50 people. Statistics on medium (50-249 persons) and large enterprises (250 or more people) are included for comparison.

Highlights of the report are:

Industry: Production and employment dominated by medium and large enterprises

* In 2005, four of the five industrial companies (81%) were small businesses with fewer than 50 employees. This company employs 50,000 people, slightly more than one fifth of total industrial employment. * The larger companies (50 or more persons) employed 181,100 people in 2005 and generated 93% of the total turnover in the industry. * The vast majority of small industrial firms were Irish owned (95%). Nearly 42% of larger companies are foreign-owned.

Services: More than 380,000 employees of small businesses in the service sector

* In the service sector, almost all companies (98%) were small. There were 82,100 small businesses, employing over 380,000 people in the service sector in 2005. That was more than half of total employment in this sector. * Small businesses account for nearly half (49%) of total turnover in the services sector, and generates a turnover of nearly ? 81.6bn in 2005. * Nearly half of small businesses in the service sector are the property of the family (47%). The vast majority of these family businesses employed fewer than 10 people.

Construction: Small businesses occupied two thirds of all people who work in construction

* According to the Quarterly National Household Survey, there were 253,200 employed in construction in the fourth quarter of 2005. Of these, 211,000 have indicated that they worked in small businesses (fewer than 50 employees), while 24,500 have indicated that they worked in large enterprises (50 or more employees). A further 17,600 not specify the number of employees to their jobs.

* Among the 253,200 people employed in the construction industry, more than 65% worked for very small concerns employing less tha ten people.

Salaries and wages: 54% of private sector employees in small firms earned between ? 10 – ? 20 per hour in 2006

* The average hourly wage in small businesses were ? 15.22 in 2006 compared to ? 19.38 in companies with 50 or more workers in 2006.

* The average annual salary for employees in a small business amounted to ? 32,453 in 2006. The average wage in large enterprises was ? 44,794 per year.

Knowledge-based economy: the larger companies have shown higher levels of e-government activities

* Small businesses generally not more modern information and communication technology than larger companies.

* Almost all companies with 10 or more employees were connected to the Internet that two-thirds of businesses with fewer than 10 employees to use the Internet.

Size of work: almost 56% of employment in small workplaces

* In all areas, 56% of jobs in workplaces where fewer than 50 persons were employed in the second quarter of 2007. A total of 1175800 people worked in small workplaces. Of these, 839,300 were employees, 216,600 are self-employed and 107,900 are self-employed with employees. These figures include agriculture and the public sector and the economy.

* Among the 316,300 non-Irish nationals in employment in the second quarter of 2007, less than half (47%) worked in small workplaces.

EU comparison, the value added in small construction firms in Ireland was three times the EU average in 2005

* Almost three-quarters of production in Ireland turnover was generated by large companies, while the EU average was 60%.

* In 2005, Ireland is recorded but the gross value added per employee of ? 51,600 in the distribution of services. The EU average was ? 33,000 per employee. * The gross value added per employee in the construction industry in Ireland was significantly higher than the EU average for all types of employment dimension.

Gregg Blanchard asked:


1) Not Seeing the Future

Small business software can be tricky when it comes to buying different licenses. As your company grows, your software needs to be able to grow right along with it. Take a customer database for example. At first you have just a few clients, easily manageable with a small, free piece of software or even a spreadsheet. Suddenly, you have hundreds of clients with vital data to store regarding each one. Your software is overloaded and your spreadsheet looks like a bowl of Japanese alphabet soup. When you are choosing the software for your company, choose a software that is designed not just for small businesses, but mid sized businesses as well. Make sure that if it designed to hold employee data, that it can hold an unlimited number of employees without having to buy extra licenses. Also, if there are different levels of licenses available, don’t restrict yourself with a lower license just to save a few bucks, buy a license that will give you room to expand a little without breaking your budget.

2) No Support or Expensive Support

The software you will be using to run your small business will hold very important, time-sensitive information. Be it an invoice or payroll, the slightest computer glitch can cause your employees to be upset, customers to request refunds, and most importantly, money to be lost. When a server goes down the last thing you want to hear is your 20 year old tech guy say, “Sorry dude, looks like your data is pretty much toast.” Choose software that has a solid phone support system. Email support is affordable, but it usually takes 24 hours to get a reply. If your business is worth $200 an hour, how much is that really costing you? On the flip side, don’t pay an arm and a leg for phone support. Annual fees of $100-$200 are about average with per incident fees running about $50-$80 a pop. If someone wants to charge $200+ per incident or per hour for phone calls, be very weary. Their software better be perfection on a screen if it’s going to be worth it.

3) Not Trying it Before You Buy

What is the safest way to make sure you get the software you need with all the features your business demands? Download a demo BEFORE you buy! Nearly all software can be tried before you make a decision to purchase. If you don’t see a clear way to download a demo from their website, give them a call and request one. If they don’t offer one, ask them why and, unless they have a really good excuse, pick up the search again for your software. Demos are great for a lot of reasons. First, you can make sure that the data is compatible with your other programs (i.e. payroll with time tracking). Second, this gives you a chance to test it on your network and operating system to ensure full capability. Third, you can test their support when you encounter issues. If they are unwilling to help you get the demo running, this may be a sign of “monetary myopia” where they only help you once you have given them money. Not only does this show a sign a poor customer service but it shows a lack of confidence in their product.

Greg Heslin asked:


Small businesses can often be beaten out by larger competitors simply because they have better practices than small businesses. The good news is that there are a number of practices that can translate to small businesses. These strategies and tactics are some of the best-kept secrets and can make a business much more successful in the long run.

The act of borrowing ideas from other companies is called “best practice benchmarking” and can lead to vast improvements in business structure if done properly. Since most small businesses have a much smaller budget than big businesses, the practices learned can save money and be even more beneficial for them than for the big companies. If a small business emulates another business’s way of cutting costs, they will be able to do in a shorter period of time.

To begin borrowing practices from others, there needs to be a clear understanding of their methods. The best way to go about using successful practices is to do heavy research and ask questions to find out how others were able to achieve their goals. This step is important because if the practices are not studied well a small business will usually end up failing or wasting precious resources that they cannot afford to lose. A helpful tool for finding out better business practices is to send surveys to businesses that are successful in that job field.



Although emulating successful business practices is the goal, it is important for individuals to modify the practices to fit with their own business. Not everything will translate and there will be small, yet crucial modifications that need to be made.

Some of the most popular practices that small businesses borrow deal with communicating with others and saving money. One way business owners cut corners is by having a company meeting with their top employees to discuss strategies for conducting better business and the direction they want to see the company head. Individuals may also sponsor retreats or getaways for top executives, helping workers to bond and communicate better. This practice will also help get everyone on the same page as far as product development and business plans. Business owners can also poll and survey their employees, or the employees of other companies, in order to get their opinions on typical problems they face.

Many well-known businesses are now helping others research their successful practices in order to find the best methods for their companies. Some of these businesses are Home Depot, Wal-Mart, and Target. The research to be studied includes strategy models for how to run a successful partnership and real life examples of ways they saved money and cut costs. The research also includes access to popular certification programs and what those businesses learned from the courses. They also showcased the various rewards and recognition systems that they provided to their employees to encourage hard work and better communication.



The great thing about small business practices is that they rarely have to do the dirty work because big corporations have already done it. There are so many different business practices that translate from big corporations to small businesses, and small business owners can take advantage of the abundance of opportunities available to them. If small business owners can modify these popular practices in a way that will work with their company, they can save more money and have a more successful business with little effort.

Dr. Rami Schayek asked:


From the mid seventies we can note that scholars makes the distinction between small and large businesses in terms of needs, level of sophistication and range of strategic planning. Bracker and Pearson (1986), Rue and Ibrahim (1998), Perry (2001) and Wijewardena, Zoysa, Fonseka and Perera (2004) all formulate definitions of strategic planning which take the uniqueness of small businesses into account and allow for the fact that small businesses cannot draw on management and material resources in a manner similar to that of large organizations.

Empiric studies’ findings indicate at a correlation between strategic planning and performance. Nevertheless, the findings are mixed. A survey of twenty-six experimental studies enabled Miller and Cardinal (1994) to identify a significant positive connection between strategic planning and small business performance. Robinson (1982) found a significantly high level of profitability as well as an increase in sales and returns on sales and the number of full time employees in a group of small businesses that employed external consultants for the purpose of strategic planning. Compared with other businesses, Bracker and Pearson (1986) discovered a significant increase in income and remuneration per entrepreneur in businesses that prepared strategic plans (the highest of four designated levels of strategic planning). No significant increase was detected in the measure salary expenditure divided on the sum total of sales. A significant differentiation in the rate of sales increase was found by Rue and Ibrahim (1998) in small businesses that incorporated written planning (basic or sophisticated), as opposed to other businesses. Perry (2001) detected a significant differentiation in the degree to which planning was conducted in small businesses that did not applied for bankruptcy as opposed to those that did. Wijewardena et al. (2004) define three levels of planning: no written planning; basic planning; and detailed planning. The findings indicate that the level of planning stands in direct proportion to the level of increase in sales. Yusuf and Saffu (2005) classify three levels of planning: low; moderate; and high. A connection was found between increase in sales and the low level of planning. No correlation was found between strategic planning and increases in market share or in profitability.

Kevin Winters asked:


As an entrepreneur and owner of 3 companies (Payroll Associates, Sparkle Pool Service and CompanyMileage.com) I have invested in both my own businesses and the stock market.

The reality is those of us in small businesses are able to cut cost quickly..as my father taught me early on in business “you can’t control your revenue but you can control your costs”. In my 13 years of owning Payroll Associates we dealt only with small businesses and learned how they were able to adapt to changes in more ways than just layoffs. With my new venture, CompanyMileage.com we are selling a cost cutting services called MileageTracker to larger organizations, and there is a huge learning curve.

A great example is a division of a Fortune 1000 company that by utilizing our MileageTracker solution is going to save them over 1.5 million dollars a year..Great news for us right? Not really, the sales cycle to earn their business even during these trying times is over 6 months.

It is not the fault of the decision makers, it is the system. It is time for large organizations to act like small businesses, and cut all costs before layoffs vs. the other way around.

• Layoffs damage a company’s foundation and slow their ability to grow when the economy turns around (which it will).

• Layoffs create a disloyal environment

• Layoffs create a fear in the workplace

How to fix? Well let’s get big businesses to quickly react the way those of us in the small business community. My ideas are simple.

• Each team submits fast tract cost cutting measures with cost / benefit analysis

• Each division prioritizes these cost cutting measures

• Financial team prioritizes and implements

• Any cost cutting measures that are that are below a certain threshold can be implemented directly by a team

• Bonuses paid to creators and owners of the measures

• Set a short time frames

Though our service may only cut 1.5 million (its a lot to most of us, but a rounding error for large organizations)..What if there were 20 measures like this that all took a year to implement.

This company could cut 30 million in a year (or prevent 600 layoffs).

By the way at our pool company we (easily) cut over 50K in expenses and continue to be fully staffed and ready for the upcoming summer..In my 13 years at the payroll company we never once had a layoff.

Helpful links

CNNMoney.com – Layoffs aren’t the answerhttp://money.cnn.com/2009/01/27/markets/thebuzz/

NYTimes – More Companies Are Cutting Labor Costs Without Layoffs

http://www.nytimes.com/2008/12/22/business/22layoffs.html

Andrew Demmy asked:


Are you searching for ways to fix your server errors? Why not to get online technical support resources offering server support. They have got a complete taskforce of certified engineers and highly qualified technicians to manage your server resources, consultation needs, or requirements for the latest software patches and releases.

They provide you 24×7 supports through their centralized console. Everything is managed remotely over the secure Internet connection. It’s no less than having a full-fledged IT staff. These certified technicians help you fix technical problems efficiently in form of proactive support. The person owning the computer uses it as himself. The only thing that differs is that it is being controlled over the Web. Small businesses are seeing buying server support as an ideal option than paying heavy amounts to personal system administrators.

Furthermore, small business technical support technicians don’t make you go through the complicated process of unplugging all the wires, packing the system up in the car, dropping it off for several days, going back to pick up the PC and then set it all back up again. Online resources make it easy by handling everything directly through the Internet which allows them to handle their computer troubleshooting and repair needs. This makes it convenient for small businesses as well as individual computer users to get their problems fixed quickly.

You can expect rapid resolutions from these online technicians as they hold vast proficiency in handling and troubleshooting technical problems. With online technical support resources, you can avail a complete array of services for different server products to fulfill your server support requirements. Another advantage that is grabbing the attention of most small businesses towards remote server support services is the benefit of lower costs. You get all server support services at one price and availability of all things under one roof.

Moreover, server support solutions and online technical support resources deliver a full range of hardware and software support for advanced server platforms and associated technologies. You can also avail other support services such as computer support, technical support, exchange support, software support, etc. Online technical support resources always try to make it simple for customers to get their technical issues fixed fast.

Theodore D. Lanzaro, CPA asked:


Whenever advertising or articles regarding pension plans are mentioned, they are usually ignored by small business owners and the self-employed. Small businesses are often under the impression that pension plans are only for large corporations and do not apply to them. However, by ignoring these messages they are missing the opportunity to take advantage of the benefits that pension plans have to offer.

Businesses that offer this type of fringe benefit increase job satisfaction among their employees which can often result in a decrease in staff turnover. Another benefit pension plans can provide significant tax deductions for business owners and deferred earnings for employees.

Nowadays there are an abundance of plans and options to choose from. Many plans are very convenient to implement and require very little paperwork. So, there is no time like the present to implement a retirement plan for you and your employees.

In order to choose the plan that fits your company’s needs, you must begin with a sound understanding of what your options are. There are pros and cons to every plan so each should be carefully considered. To assist you in making the right decision for your company, below is an overview of the current and most common plans:

The 401(k) Plan

A 401(k) plan is a retirement plan sponsored by employers. With this type of plan, employees may choose to have a portion of their salary deferred to any of the 401(k) investment choices that have been selected by the employer. The employer may also contribute to the employee’s 401(k) by matching a portion of the investment. The benefit of a 401(k) is that employees are not taxed on the contributions they or their employers make until they withdraw from the plan. Another benefit is that accumulated earnings on the account are tax-deferred as well.

A 401 (k) can be more complicated to establish and maintain then other types of plans and there are annual IRS reporting requirements associated with it as well. Also, the law requires that if low compensated employees do not contribute enough by the end of the plan year, then the limit is changed for highly compensated employees.

There are individual 401 (k) plans that can be set up by a company (incorporated or unincorporated), in which the owner is the sole proprietor and/or only employee. The key advantage to plans such as these is that they permit larger contributions than other plans. The individual 401(k) also tends to be a little less complicated than the traditional 401(k).

Simplified Employee Pension (SEP) Plan

Often referred to as a SEP-IRA, this is essentially a retirement plan set up by a small business employer or by a self-employed person. This pension plan allows employers to contribute to SEP-IRA plans on behalf of their employees in an amount greater than traditional IRA limitations. The main advantages of the SEP-IRA to the employer is that the administrative burdens are few, the plan is simple to install, and it does not have the start-up and operating costs of conventional retirement plans.

Because you decide the amount to be contributed each year to SEPs, this plan can offer a great deal of flexibility. However, they can only be funded through employer contributions and annual contributions are limited to 25 percent of each employee’s pay. Another benefit of SEPs in contrast to other plans is that you can establish it up to the extended due date of your tax return.

Savings Incentive Match Plan for Employees (SIMPLE)

The SIMPLE plan gives small businesses an affordable way to offer retirement benefits through employee salary reductions and matching contributions similar to the SEP. A SIMPLE plan is available to yourself and eligible employees and is made up of individual retirement accounts (IRAs). A SIMPLE plan can also be set up as a 401(k) plan. Both of these types of SIMPLE plans can be established easily using a “model” plan document which is available from the IRS. With a SIMPLE plan, employers offer matching contributions equal to employee contributions or fixed contributions equal to a percent of employee wages.

Requirements and limitations for the SIMPLE plan dictate that employers must have fewer than 100 employees and must generally be established before October 1st of the calendar year. Employers that currently sponsor another retirement plan generally cannot sponsor a SIMPLE plan.

The Keogh (H.R. 10) Plan

A Keogh (or HR 10) plan is a tax-deferred retirement savings plan for self-employed individuals and their employees. Most self employed individuals who have earned income from self-employment are eligible under this plan.

Keogh plans have gained popularity in recent years thanks to tax legislation that has made it possible for contributions made to Keogh plans equal to that of plans held by large corporation. Outlined below are the two key types of Keoghs:

1. Defined contribution plans: These plans come in a few different forms such as target benefit plans, money purchase plans, and profit sharing plans. Each plan requires contributions that are based on either a percentage of an employee’s wages or percent of an owner’s profits. The amount the contributions have accumulated by retirement will dictate what benefits the participants will receive when they retire.

2. Defined benefit plans: Plans such as these have a set amount of retirement benefit that the plan will pay out upon retirement and contributions made are based upon the payout amount. Any benefit that a participant will receives upon retiring is limited by law and requires actuarial calculations to determine the amount of annual contribution needed.

One major drawback to all Keogh plans is that the reporting requirements are more complicated than the SEP and SIMPLE-IRA plans. Another disadvantage is that a business owner is required to make contributions for eligible employees and therefore cannot only cover themselves.

Contributions can be made to Keogh plans up to the company’s tax return due date (extensions included). However, they must be established no later than December 31st of the tax year that you will begin taking a deduction for contributions.

Business Local Listings asked:


In the midst of the global economic crisis, many small businesses are on the brink of closing down if not enough capital infusion is found. It is now even more difficult to get small business loans from banks, though. Ironically, the exact reasons why small businesses need such small business loans – the fact that business has slowed down and profitability has plummeted – are the same reasons why banks turn them down for loans.

Small businesses now have to be more resourceful in finding alternatives to small business loans.

Government Grants and Contracts Instead of Small Business Loans

The American Recovery and Reinvestment Act signed by President Obama in February 2009 caused the pumping of billions of dollars for the revitalization of the economy. Because of it, there are plenty of government grants and contracts available to small businesses. These can be alternatives to small business loans.

But how can small businesses avail of the stimulus program?

The Association of Procurement Technical Assistance Centers (APTAC) has the responsibility for helping small businesses obtain and perform federal, state and local government contracts. It has Procurement Technical Assistance Centers (PTAC) throughout the country, ready to help small business owners to get registered and find opportunities in the area of government grants and contracts. Counselors assist small businesses in filling out bids, proposals and quotations.

The PTAC holds seminars teaching small business owners all the ins and outs of government legalese, including acronyms and registries. A one-day seminar with PTAC covers what small business owners may take months to learn on their own.

The PTAC then helps small businesses with Central Contractor Registration (CCR), a requirement for doing business with the federal government. This registration can be so complicated that some companies take two days to do it when the PTAC counselor can help them get through it in 15 minutes.

Local PTACs will be of help in acquiring state and municipal contracts.

Other resources that small business owners should consult include the Small Business Administration (SBA) which also coordinates with the APTAC; the General Services Administration (GSA) which acts as the government’s purchasing department and provides information on becoming an approved vendor; the Federal Business Opportunities website (fbo.gov) where federal contract opportunities currently available are posted; and the Small Business Innovation Research website (sbir.gov) where grant and funded research opportunities for small businesses are listed.

Cash Advances from Credit Card Services Instead of Small Business Loans

Another alternative to small business loans are cash advances from credit card services. This option is much easier than winning government grants and contracts.

Most small businesses are already availing of credit card services that enable them to accept payments by credit cards or debit cards. This is practically a requirement to doing business these days, with people hardly paying cash for goods and services. Many small business owners do not know that they could avail of cash advances from these credit card services, though, and that such advances can actually equal small business loans.

The amount that a small business can borrow is based on its average monthly income from credit card sales. This is so because the cash advance does not require collateral and future sales receivables from credit cards stand as the collateral. Payment will also be done through automatic deductions from those future credit card sales. There will be no set monthly amortizations. Instead, a certain percentage of the sales will be allotted as payment. The small business owner, therefore, need not worry over where to find cash for loan payments.

Cash advances from credit card services are the best bet of small business owners as alternatives to small business loans.

Lee Smith asked:


Many small as well as medium sized companies are in need of IT support that includes everything from firewall to VPN installation as well as upgrades and also migration to other computer systems. Some small businesses also require complete network audits and for this a small business IT support provider should have the experience as well as expertise to provide necessary solutions.

A small business needs a range of computer support services and will thus look for unlimited onsite support services from a safe and reliable IT support company. With qualified engineers on hand, small business IT support providers would be able to provide the necessary level of experience in installing firewalls such as Checkpoint, Watchguard as well as Cisco that are ideally suited to small businesses. There may also be entry level firewalls that will ensure that the small business keeps its data safe and along with complete security audits, antivirus & anti spam services, should take care of all of the security requirements of the small business enterprise.

You should also look for disaster recovery of your data when a server fails as well as want upgrades and possibilities to migrate to other improved systems. In addition, small business IT support also means providing resilient backup services (even remotely) and with the help of existing broadband lines and automated services, there should be no need for any tapes being sent back and forth between the client and IT support companies.

There are many IT support service companies that are capable of providing a support service to small businesses and which has a high quality of service and engineers, to ensure that they can provide support to small business networks, complete with a fast response time. You should look for companies that provide a personal touch for your network support needs, and who are proactive and also have a complete range of support packages and systems and you also need a company who can work with existing suppliers to streamline your business.

You need to look at the number of years of experience that the small business IT support company has, particularly in areas such as IT networks, the Internet as well as Network Security and who will provide professional as well as efficient service. Often, small businesses are confronted with a certain amount of difficulty in sourcing a good IT support service provider that will justify not hiring a full-time internal IT support team. This means that in case of a requirement for occasional expert support services during upgrades of networks and installing major IT systems, or even in the case of needing desktop support, you will need to have on hand an IT support service provider that can tailor a service to match your requirements and also help you stay within your budget.

Thus, you should look for a service provider that provides email support, Microsoft Networks, Network Security, network infrastructure and a team of dedicated IT professionals with experience of multiple systems and technologies.

Mani Malarvannan asked:


The main two types of accounting process i.e. accounting payment and accounting receiving are always same. It doesn’t matter to the size of the company. Since this process deals with cash so it should be treated with extra care. Though in this generation there are lot of modern gadgets like online bill payments, which save the company’s employees from long tiresome paper work for making invoice but it could not remove it totally. “Still today 80% invoice is done on papers” says the Aberdeen Group research report. This count is more for small business.

Features of Account Data Capture Software

Account Data Capture Software developed by different companies like Kofax , ReadSoft , AnyDoc and Abbyy converts all the paper based invoices, checks, bills, and other documents into data to sent to the accounting or ERP systems. This software has really increased the efficiency of the accounts department of big companies. But small company cannot use this software because of its price and other problems which a large company can bear.

Reason for which small businesses are not using automatic account data capture software

Beside Software cost other factors are:

1. Software License fee (User based or CPU based access)

2. Hardware upgrade for proper interface

3. Employee training

4. Maintenance and support of Software

You should have proper interface to run the software. So you have to check your system by the vendor. Moreover if scanning is done from hand made documents on the scanned paper then error may occur. Vendors still embraced OCR and ICR technologies into their product to capture the account data accurately from the scanned images. Thus there is a long way to go to remove manual entry.

Remedy for Small business companies

These companies can outsource their data securely through Internet to different offshore vendors for different account process. For more details on read Cybelink Secure BPO

Main advantage is we can use existing infrastructure to do all this. Even these companies donot have to change their way of management. Only change is per scanned images will be converted to accounting software or ERP system

After receiving the scanned images, some typical tasks performed by the

offshore vendor which are listed below:

1. Using automated and manual process to extract all the data

2. Hardware upgrade to install the software

3. Insert this extracted data to small business accounts software

4. Perform other accounting operations like Invoice preparing, Bill payment

5. Export the work from the accounting software to a file.

6. Send the file to the small business to import it into their accounting software for verification.

Small business companies can import the finished files into their accounting or ERP systems for verification. Cost of the paper document reduces by 50% if offshore vendors are given for accounting process. Small businesses need to overcome issues like like offshore security and offshore outsourcing cultural issues . Thus by effective cost small companies can also get valuable services.