The economics of small business

[@paulsanderson8656]

One of your best videos. Everyone should have to watch it.

[@stephenearly8064]

Absolutely right. I run a small independent pub company, currently with three pubs. Our employers NI bill is going up next year by around 65%. The increase in employers NI is larger than the profit we made last year. Add in the decrease in business rates support for pubs, and the increase in the minimum wage, and we are going to have to raise prices across the board by around 6% (so, 30p on a pint) just to avoid making a loss.

[@glynnwright1699]

The best constructed description of small businesses that I have ever heard. Small business owners are at the point that they are not making a living wage and they are being suffocated by bureaucracy. They are far more nimble and responsive than Government and value their freedom to operate above everything else. They will find ways of continuing what they enjoy, even if that means reducing the number of employees or moving their businesses to another jurisdiction. I have been running small businesses with shareholders for many years. Most of our employees are post doctoral level, they simply will not work for companies who expect them to abide by petty HR policies, even though they would be paid more. It also gives us more freedom to consider civil responsibility alongside the interests of investors. We work hard to employ and provide life skills to young STEM graduates and we provide a richer and happier working environment for everyone by doing so.

[@leehumphries7696]

As someone who runs a small business - absolutely spot on. Can't afford to pay myself a wage (so got a part time job), as constantly treading water hoping one day (being far too optimistic), our MPs will come to their senses and reverse austerity so that people have more money in their pockets and they in turn spend more in the communities they live in - lifting many out of poverty and thus allowing the UK to have a thriving economy rather that the obsession with how will the City of London is doing.. Seems the Keep Britian Poor mantra of the last 40 years other than the top 10% is the norm and here to stay.

[@davidmcculloch8490]

You insight also gives the path to growth and national prosperity. Government is in the pocket of corporate interests.

[@advocate1563]

The top 5% pay 50% of direct taxation. How much more do you want them to pay? I ask as a member of the bottom 90%.

[@leehumphries7696]

@@advocate1563 Do me a favour and show your tax return to prove you are paying 50% of your income in tax?

[@WarrenPeaceOG]

@@advocate1563 The top 5% should be left alone. The top 1% should face tax increases. And the 1% of the 1% should be taxed as high as 90% in a Keynesian mixed economy. (1% of the 1% = 0.01%)

[@greasybumpkin1661]

​@@advocate1563 it was 90% in the 1950s and the wealthy seemed to be doing just fine back then, so let's go to 90.

[@RobNelson-vu8nr]

Nobody in Govt has ever run a business. That’s the main problem, they are just professional politicians who expect to get re-elected everytime

[@InquisitiveBaldMan]

They haven't even worked in a business.

[@graemeshort1928]

I would suggest the poor use of professional, should have been "amature or nieve" or even CLOWN😁

[@glynnwright1699]

Your comments about a neurotypical workforce are well observed. I worked in Silicon Valley in the 80s and 90s when I was seconded from the UK office. My very first encounter with their management style was when I was despatched to assist with a particularly urgent engineering problem. I turned up at the office 9am, sharp, and was told that the engineer I would be working with would be along directly after his ballet classes. At first I was completely wrong-footed by what seemed lack of discipline, but soon learnt that their creativeness and ability to design innovative products came from their readiness to embrace the non-neurotypical.

[@fylbike]

Times change, I know, but in the 80s, our family owned and ran a small hotel, and we made 'a profit', but, after analysis, we were earning £1 an hour. But as you said, we did it because we preferred that to working for someone else.

[@Grandude77]

Made £1ph. OK, at the time there were no wage laws so some people were being paid piecemeal but OK. You drew a £1ph salary each while paying for a valuable asset. I imagine you're doing quite well.

[@fylbike]

@Grandude77 I don't know anyone in the 80's on £1 hr. Oh, and Thatcher increased vat for 8 to 15% and we were paying 20% interest on our loans. Yeah, doing very well!!

[@physiocrat7143]

Richard Murphy gets better and better

[@neilhaughey6869]

The other important thing many don't understand about small businesses is cash flow is king. Many went pop in the past when the banks called in their overdraft around the monthly pay round. This leads to the other thing many don't understand, the costs are incurred often well ahead of payment so healthy banking arrangements are crucial to survival. The massive increases in energy costs, insurance and rates took many out and left many more hanging by a thread.

[@skyblazeeterno]

Having worked in accounting aspect for a few small businesses they often get away with so much unpaid stuff its incredible. The last place I worked for didnt even bother paying a fire safety bill. IMO a LOT of small businesses are well intentioned but not viable

[@RichardBergson]

Now retired, I spent much of my life running small businesses both on my own and with employees. I am not suggesting that I was a great businessman but was intelligent enough to manage the complexities of the employment and tax processes. Costs are the most critical factor as output is necessarily limited by the working hours available and in a competitive market returns are similarly limited. Costs have no such limit. There appears to be a law (it needs a name!) that at the start up of a business conditions are relatively favourable and a decent wage possible (not that this materialises as the fully fledge business takes some time to fly) but over time costs increase disproportionately to market prices (commercial rents were my bete noir) and your own wage stagnates or even reduces as you attempt to keep the business going. NI increases back then would have sunk me.

[@fylbike]

Totally agree with all this

[@donosawaru759]

Best and most accurate analysis of most small businesses in the UK. Thank you, Richard Murphy.

[@shaunmiller7370]

Richard’s got it right again. I did a tree surgery business. I didn’t like to be there by somebody else’s clock. My clock was even longer hours but that’s because I wanted to be there. I had clients to see. I love that speaking to people advising people, but I did it because I wanted to

[@tonywright497]

Absolutely on the money yet again Richard. I tried working away from home in permanent employment. Wasn't worth it, with the cost of travel, accomodation etc. Thankfully some contracts in Engineering are now outside of IR35 and I am happily working, further away from home for myself and making a small profit. The biggest bonus is I can employ my partner to do the books for me👍. Who whilst in a constant battle of living with fybromyalgia, is unemployable in the normal workplace. She can help me when she feels upto doing so. Modern politicians have no real life experience and live in the Westmonster bubble, it doesn't matter which coloured flag they wave. They are all clueless as to how this country actually works. Thanks again Richard for explaining to people the nuance of self employment/small Ltd company work in the UK👍

[@nuttall47]

Couldn't agree more, as an ex Chartered Accountant.

[@stuartmc18]

Brilliant video. I run a small business and I can vouch for everything he said.

[@orcharddweller1109]

Absolutely true.

[@Paterleano]

Absolutely true, because of rises in Electricity, Interest rates & inflation in general, it made it unviable for me to run my business, I ended up subsidising the customers, you can't do that for long. Sensing that things will never get better, only worse with the Uni-Party always in charge, I shuttered up. People were gutted, they refused to believe that I ran the businesses for a wage far less than what I could have earned had I stayed in my suffocating corporate job.

[@frankcooper6118]

All true, been self employed (athough effectively retired now) for more than 25 years, never earned more than 20k a year in the entire time and some months, usually around Christmas, only brought in £40. I left employment where I was earning more than 36k and never regretted my decision. One thing I will point out though is that profit may be made from a business that only pays it's owner a wage, but this is likely for most to come from selling it at the point of retirement, when buildings, plant, good will, etc are sold.

[@rational_thinker00]

One of the best videos I've seen from you. I agree with everything you said. There is as you say something wrong in the lack of understanding of the microeconomics and lack of experience of how people strive to build up capital to have a comfortable home, build up capital to live off in retirement and have some nest egg to help themselves and their children with difficult times or be allowed to pass on anything to their children without serious taxation. Since the government has multiple takes at the same money earned and wealth retained, adding new taxes and raising rates (or fiscal drag) makes everything harder. Not only does Business A have higher taxes, the energy they buy has higher taxes and costs and Net Zero price inflation thereby costing more, the Business B supplying goods puts its costs more due to taxes and their energy costs... etc so down the supply chain the costs aggregate. A 2% tax hike here and 1% there might seem nothing to the Chancellor or treasury but it adds up. These taxes will be inflationary in general, will put many out of business, will drag on productivity and slow the economy, thereby also cancelling out much of the additional tax take. Only along the way a lot of people will be poorer in worse living conditions, and key care services will be even more expensive and hard to come by. As for attacking people like farmers who have notional wealth in what their land could sell for, destroying generations old family businesses with more taxes at a time they have more and more emissions regulations, higher fertilisers and fuel costs (net zero and unnecessary conflict with Russia) means our food security and home production will soon be devastated, and these people will be robbed of their land, their business and livelihoods. Similarly someone who has say earned at the boundary of higher rate income tax for 30 years and paid into a private pension should be applauded for not wanting to be a burden on the state in old age, nor for their family don't steal it in taxes. They are and have been hard working people. Small incidental landlords are also not to be considered ripe for fleecing and into forcing them to sell up to then take all their savings at a higher rate of tax. Extreme socialism / communism always destroys the livelihoods of the everyday people. It drags everyone down into the mud. This is what Rachel Reeves is doing. And we've got four more years unless a Polltax style people's revolt can get them to quit.

[@johnmichaelcule8423]

One of the joys of being self-employed is not having to deal with HR. Mind you, as an actor I had the bane of casting directors to deal with.

[@AndiWard]

Indeed, I make an income and It's usually below average wage. Thankfully I don't employ anyone, tried that in the past, and it increased my stress without increasing my income.

[@chillitotes]

I'm neurodivergent and self employed. I needed flexibility to manage my health.

[@frankhayes1135]

Perfectly correct - well said.

[@antonyjh1234]

I didn't want somebody else's decisions to ruin my life, so I did it myself and got paid wayyyy less.

[@johnrubber1144]

A very clear explanation of small businesses. I don't always understand or agree with your videos but this was spot on.

[@Freesurfer688]

Many thanks for mentioning this. We've seen many high street brands go under in recent years. Lockdowns have also had an impact on many businesses as well as internet shopping. It's small businesses that bear the brunt of economic changes. Big corporation's don't mind employing people, but now I can see possible lay off's because of the budget. I'm not sure how this budget helps working people or provides growth? Perhaps someone could point it out for me.

[@advocate1563]

It doesn't - the OBR agree with ykur puzzlement. Big taxes, no growth, apartheid between public and private (many SME) folk. New class wqr emerging. Watch the 54% in the private sector go for thoae gold plated public sector pensions. Should be fun.

[@inguzwulf]

I wish I could press the thumbs up 'like' button multiple times to show how spot on this video is.👏👏👏👍👍👍 I've worked for small businesses for a greater part of my working life (and put more effort and time into them, as well as not earn't as much as i'd of liked because of the many financial constraints placed upon my bosses - in most cases..one or two could of paid better and earnt a little less themselves but these were rarer than most people imagine) because i've often been the square peg that didn't fit the corporate round, triangular, star, whatever shaped hole they happened to have wanted me to fit. That part of this vid works both ways. For a large number of years I have believed that Tory policies only favour the largest employers or City of London style financial businesses, and for a number of years I have questioned why these companies continually get government support when they are financially able to stand on their own feet without 'our' money but small companies rarely get anything (which would enable them to grow - which I thought was every neo-liberal politician's stated aim?). Surely government should have an earnings/size/etc cut-off point below which businesses are financially - and/or otherwise - supported and which once 'stepped' over is reduced until it is unnecessary to do so anymore? But then I'm not a Neo-Liberal so not of that corrupt club. I believe that strategic industry - health, energy, water, defence, etc - should not be in private hands and should not be run for a profit. Mr Murphy, once more I applaud you and thank you for your time.

[@AmandaNicole__0]

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[@GreenwoodWhitsett]

Oh my goodness, I’m so happy to hear that! Melissa is amazing. I was skeptical at first, but her approach to crypto and stock investments is next level. I started small, but now my portfolio is way better than I ever imagined. She’s really professional and has been verified by major agencies like the Financial Conduct Authority (FCA) and the U.S. Securities and Exchange Commission (SEC). Honestly, I wouldn’t have believed it if I hadn’t experienced it myself.

[@MatthewDaniel3]

Same here! I heard about her from a colleague at work, and I’m from the UK, by the way. Melissa is incredibly skilled, and what I love is that she’s honest and transparent. It’s not some quick schemes you see everywhere, she really educates you along the way. I’m seeing consistent returns every month. I’m so grateful!

[@MatthewDaniel3]

I started working with her six months ago, and now I’ve seen a 60% return on my investments. The FINRA has also confirmed her credentials.

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[@ChristopherThomasMedia]

Wow, what a coincidence, I’ve been hearing about her from different people. Who exactly is this Melissa Jonas Richard?

[@Simon-d3n]

First rate! It's great to hear someone who understands about small businesses!

[@prematureoptimism7125]

BINGO ! Spot on again 👍🏽

[@mattwright2964]

Useful video.

[@michaelmayo3127]

Spot on, small business have very special concept background. And as a once multi-tasking small business - keeper - I can nod acknowledging, to your so true comments. Rachel Reeves has got a clue!!

[@davidjacobs6344]

Yes Richard , spot on … I run a small consultancy for those reasons … to make a living doing something enjoyable , worthwhile that helps others . Maybe Reeves could have imposed 1.9% ni hike on businesses larger than say 100k t/o or over 50 employees or both?? Regds

[@graemeshort1928]

Another informative and incitful lesson for all your fans it is a real shame "our RR" did not study under yourself. Another thumbs down on her iliterate budget ?

[@JonDingle]

The budget is net zero growth and high tax. I am self employed and own a new start limited company. I haven't borrowed money to kick start the limited company, it has to grow organically. Whilst there is so much tax and punishment of business, l will not allow the company to grow fast or big enough to employ people, it will keep me well looked after and only subcontract in self employed labour as required.

[@duncandisorderly822]

For once, a video I wholeheartedly agree with. Another point to bear in mind is that the failure rate of new small businesses is actually very high. My experience is that some confuse turnover with profit but the reality is that most, taking into account the long hours actually worked, barely provide more than a living wage. Unfortunately, the NI hike will lead to more small business failures. This is not a recipe for growth.

[@thealohamu808]

Cost of freedom for some is found in small business ownership.

[@marcusmoonstein242]

My experience was the exact opposite when I used to be a tradesman doing TV and satellite systems. The main reason I started my own business was because I could more than double my income by working for myself compared to working for a boss. "Profit" as you call it was a big motivator to me. Having said that, I personally know small business owners who barely survive while working long hours with a lot of stress. It infuriates me that politicians (and often the public) assume the business owners are always swimming in cash.

[@skyblazeeterno]

some ARE swimming in cash though and some ARE doing very very little work

[@Jenks1]

Very good information

[@stevo728822]

Same is true of many charities. The charity raises £50k, founder takes out a salary of £30k. The founder couldn't get a job earning £30k.

[@keithdavo]

great video

[@andymoore9977]

I got made redundant at 42. I started an accountancy practice although not fully qualified and was really a management/project accountant by experience. I loved being in control of my own destiny and running a business from marketing to sub contracting. We sold 13 years later with over 375 clients. On balance I think with tax breaks, proceeds of the sale etc. I did better than if I had stayed in industry as a management/project accountant. But mostly it was fun!

[@hotrodchris805]

Spot on. The establishment have no comprehension of profit when it comes to small businesses.

[@Harry-TramAnh]

I watch this bloke BECAUSE I don't agree with him, but this video he is spot on, apart from the part about minimum wage......

[@DewiSant-o3y]

He's ultimately correct though once the technology is there Most people don't want to live in a dystopic feudalistic techno future in which a few companies own everything and all the robots. You might think you will be owning all the robots yourself. But Life doesn't always pan out as you think

[@kaz4845]

​​@@DewiSant-o3y the bit I don't understand is, what are they going to do with all that stuff as no one is employed that can buy anything? The rebots are making stuff for who?

[@Harry-TramAnh]

@DewiSant-o3y I don't believe what you're talking about will ever happen, though. That's what history tells me anyway.

[@ranar1036]

Mr Murphy, great video so far, but, you left out the costs and bureaucracy in forming a company. Politicians who want this country to run economically have shot it in the foot with the enormous rise in prices and entangled bureaucracy.

[@SkyEcho7]

As you said, 200 employees isn't really most people's idea of 'SMALL business', it's closer to a 'MEDIUM business'. Up to 50 is probably more realistic for being categoriesed as SMALL. Were there not exemptions from some employment regulations/requirements for businesses employing 25 or less in days gone by?🤔 I don't recall what they were or know if they still apply but perhaps they could/should separate these businesses from the SMEs & exempt or reduce the burden

[@janeknight3597]

David Blunkett said in a recent interview with The Times podcast that until he had moved to the Upper House and had to pay his own staff he had no idea how employment worked. So who is employing all these Office staff that Lord AllI is subsidising????

[@battybibliophile-Clare]

My local chippy on the promenade employs 60 part timers in summer and 35 in winter. She is going to close because she says she is going to have to pay an extra £750 per employee, so will close. I don't think she'll be the only one. This will damage our local community, it's economy and will not be forgiven nor forgotten. He stupid mistake damages others lives.

[@clifforddowler5765]

I took early retirement from teaching and spent15 years doing private tuition. Stepping outside the institution was like crossing a style from the footpsth and walking across an open field. Neurotypical indeed!

[@jeremyfrost9697]

I don’t always agree with this Chanel, but this presentation represents a very good analysis as to just how deluded the Treasury is on the decision making of the small business community.

[@Bedtimechums]

No disagreement with the video. Ran a business for 10+ years for the challenge, freedom, to help my community, and definitely not for the profit levels. In my case, my biz was too dependent upon me and couldn't really be sold for a profit, but some do. When you say you didn't make a profit, Richard, surely you either sold your share of your business, still retain ownership of some of the business, or receive an income from it that allows you to do other things, like teach and youtube? It's also qualified you to earn potentially greater income, including any residual earnings, so that could be interpreted as profit above what you previously would have earned in an equivalent job.

[@hotrodchris805]

I computed yesterday that following the budget the cost of employing a full time person on minimum wage has increased by slightly over 10%!!!!! That's roughly £1500 of pay ( attracting tax and nic) and £1000 or employers nic. I've not seen any commentators expressing the increase in those terms yet. It's a frightening burden, most likely unaffordable. By contrast, the cost of employing someone on £50k ( but no payrise), has increased by 2%.

[@kirstymctear5030]

Of course for government, dealing with a small number of big businesses is easier than a myriad of small ones. Don’t underestimate the impulse to make life easy for themselves.

[@zefriend3]

Absolutely correct. After two years of running my own business my wage has dropped by 7 grand on my last position. I work in planning and built environment and am being hit by the state's utter meltdown on the back end, and the increased corruption and fraud in contracting. I'd love to take someone on to even the workload between strategy and production, but I can't because how can you teach 12 years of experience in practice? Universities don't produce useful graduates, but I'll end up spending 15k on some snot to come work for six months then be poached by the competition. Luckily though they kept the corporation tax threshold exemption so no 25% as of yet. It's a loose loose but I wouldn't go back to corporate, as you say, neurodivergency is a poison chalice.

[@zefriend3]

Instead I'm in part ditching the white colour to go back to contracting. I'm second generation graduate, third generation professional in my family and it's back to the coal face for us. The 20th century was wild, man.

[@skyblazeeterno]

"... I'll end up spending 15k on some snot to come work..." wow such a bad attitude

[@zefriend3]

@@skyblazeeterno Have you tried to employ and apprentice/trainee in the last three years? Do you object to the word snot? What exactly is your problem?

[@JupiterThunder]

I worked for a small business, and in that time I learned how a profit is made by such businesses. There are three steps: 1. Screw over your customers by charging too much. 2. Screw over your employees by not paying them the market rate. 3. Walk away counting the cash.

[@rob19632]

You worked for some poor businesses then because that isn't sustainable, eventually the customers dry up. Look after your customers and look after your staff , and they then produce a profitable business.

[@charliemoore2551]

Labour's decision to raise employers' NI contributions is going to force a lot of small businesses to close. Who benefits from that? Big business. Who is Labour courting as donors? Yes. Big business. It doesn't take long to join the dots.

[@jamesgeorge8915]

So we get a rise in Inflation and/or a rise in unemployment? Where does the growth come from!

[@lonevoice]

I agree exactly. I welcomed the increases to minimum wage but that probably needed to be offset by a reduction in employers national insurance rather than an increase. I can't see that this helps the economy and is slightly inflationary. We have a beating heart of an economy which is under strain with a lot of unproductive fat on the outside. Any surgical intervention from Reeves in the budget needed to be directed towards the fat and not the heart itself. The UK's economic heart has has been increasingly put under strain over the past decade or so as more and more has been drained off from the active economy into assets. In this context I relate the hearty to the active economy and assets as the unproductive fat. It may be a generalisation but is probably not far from reality.

[@davidmacaart953]

Another reason to become Self Employed is if like me you have a chronic illness & have to take irregular periods of time off to recover but work furiously for longer periods of time. I've had two businesses now, the first folded after the building industry collapsed in 2010/2011 following the 2008 financial crisis & the second during the pandemic when theatres were shut. During both these events despite being disproportionately affected & meeting all the criteria for help I was given none whatsoever. If I am now forced into PAYE & not given time off when my health spirals there is no place for me in this fascist society & I am sure I am not alone. As a consequence I am currently making preparations to sell everything I own & leave this insane island for good & see what the rest of the world has to offer.

[@Rex-G8UBJ]

Labour's new motto? - Intende ad mediocritatem Happy to run my own business work hard but maintain my autonomy. I can take a wage of £416 a month (currently £758) or pay more tax... Sounds like a tax increase to me?

[@user-xu5vl5th9n]

The other question is why employees cannot choose to become self employed. There are advantages and disadvantages for employer/employee but HMRC will not permit people choosing.

[@InquisitiveBaldMan]

Society loses regardless whilst money leads the government. 2nd jobs, think tanks etc... Why would they be concerned by small busniess? They dont pay up like big oil/gas, Russian oligarchs etc...

[@simon1876]

Thank you for explaining to me exactly what I do. Verbalizing my attitude to running a small business. You are completely correct. The business is run for security well-being of the team that attend. We don't run it to make profit hence the investment in stock property, talent, machinery Goodwill. The making of money is incidental to these activities. Whilst what Rachel reeves has done is purely pecunary and can be dealt with by price rises, because of the mental attributes that you allude to, I am incapable of coping with the employment law that gives workers rights on day one. How can I invite an unknown quantity into my home AKA my business and not be able to ask him to leave if all understanding doesn't quite work out?. And the other thing that you don't mention about family businesses is they are multi-generational and are built to pass on. I worry now that the business relief and the consequence with inheritance tax is far more worrying than a bit of a price rise

[@HieouyaAgnèsDoyo]

!I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $2m+ before retirement.

[@BensonTati]

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[@BensonTati]

I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $200k passively by just investing through an advisor, and I don't have to do much work. Inflation or no inflation, my finances remain secure. So I really don't blame people who panic.

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[@HieouyaAgnèsDoyo]

how would you recommend i enter the crypto market? I am also looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach? and How can i reach her, if you don't mind me asking?

[@stevefrancis4949]

Problem with the minimum wage is it gets used to tax or stop people from getting help, by making sure it takes people just over the thresholds for help. If you raise the minimum wage you have to raise the tax bar otherwise it's like inflation, if your wages go up less than inflation your losing not gaining.

[@shaunmiller7370]

Agree with you totally around a tree surgeon business sole trader Anya I had employment two, maybe three men to wear permanent third was freelance to me. I used to pay them a wage, but that is all I took out of the business was a wage machinery breakdowns or came out of the business and yes profit wasn’t very marginal after you pay everything paid your tax paid your national insurance paid your liability insurance, your employers insurance, let alone what the banks charge on a business account making profit was very marginal

[@skyblazeeterno]

so you did have a wage AND profit

[@dr.impossibleofcounterpunc1984]

Having control over a small business is one of the reasons people do it. But now, small businesses are being strangled by government and the outcomes look exceptionally bleak. It's not worth even starting up a small business today, because the state clearly doesn’t like you, and having a small business means controlling your destiny, which government doesn't like one bit. Gone are the days when you could open a business and feel a sense of achievement and prosperty. The state doesn't like both. Its all about control and micro-managing society toward a singular purpose.

[@advocate1563]

Well said Richard. SMEs are not understood and kleptocrscy capitalism has created monopoly effects. Paul Johnson, IFS said yesterday that his FD had sent an email saying theNIC bill for th8s charitable thonk tank next year will be £100k!!!!!

[@indricotherium4802]

As far as the Westminster political class is concerned, there's no revolving door with the small business sector. The two major parties are sold on a model that makes their leaderships the chums, soulmates and equivalents of CEOs in the corporatocracy this nation seems set on becoming. In such context, small business is a tiresome, messy and time consuming side issue.

[@bernieburrows3731]

It makes you wonder who Labour is taking advice from. It sounds like no experts from small businesses, were involved in the decision making process.

[@davidmcculloch8490]

Government simply doesn't understand small business and probably doesn't want to, as it is sponsored and lobbied by corporate interest. The more corporate power, the less diversity in society. I wish Starmer would listen to these videos instead of McSweeney and his gang of charlatans.

[@stevenwilliamson6236]

Could you do a survey to get evidence for your contention or get someone else to do it?

[@MichaelPickles]

This feels like explaining to Socialist Marxist, but the problem is they don't care, It is simply oppressed and oppressor. The media and activists go after the easiest target. Working people. I will define that (something labour cannot do) as somebody who works for a living. I believe that's around 40% of the UK. Correct me if I'm wrong. Now there are people that think because they believe they are oppressed that if you're a small business owner you make lots of money. This is not the case. to add to that family run businesses tend to look after their employees like extended family. In reality the companies they really want to be going after don't pay any tax at all look at the likes of Google Microsoft etc all based in Dublin, a tax haven. So again they go after the easy target, That already pays the most tax.

[@dcphillips1991]

I've a feeling the employers NI wouldn't have gone up if so many small businesses didn't avoid tax at such high rates.

[@helenheenan3447]

You raise an interesting point. When the local car repair shop offers to do a cash deal, rather than putting it through the books, do you accept the cash deal, or do you tell them, "No, thanks, I'd rather pay you more, and have you declare it on your tax return"? Similarly with the plumber, the carpenter, the gardener....

[@grimlancedeathknell8506]

If the taxes on small business's we're so crippling to start with they might not be avoided at all. You don't appear to understand the problem. If they were fairer almost no one would risk avoiding them at all would they? Leaving the Mafia to go after those that do. We have to work smart just to exist when "Government" has armed thugs and a Gaol to ensure we pay up - if you think we would avoid low, fair taxes you are wrong. But its likely you are being paid to spout this. Nice work if you can get it. :) Get boosted. We need the future clear of you lot.

[@nickgreen8268]

Hear, hear - great video and remember that 80% of business start ups actually do fail because they just can't make enough to cover that, all too often, derisory wage in comparison with public sector renumeration.

[@sirmeowthelibrarycat]

😠 Derisory wage for you . . . therefore derisory wages for everyone? Your unwarranted comparison between private and public earnings is a call for us all to become impoverished. But wait . . . isn’t that what austerity is intended to achieve, except for the uber uber and mega wealthy who must keep their cash under their beds?

[@nickgreen8268]

​​@@sirmeowthelibrarycatThanks for demonstrating the problem.

[@skyblazeeterno]

IMO most businesses fail simply because there is not really much of a market for what they are selling or its simply an oversaturated market (barbers, nail parlours, vape shops, fast food) . My town as an area where its like a revolving door of small businesses with niche ideas. I admire the people trying to follow their dreams but the market is rarely there - vegan pizzas, dog grooming, pet cafes, bubble tea

[@ΛλρληΛαρλωμ]

They don't. It's all about mega business nowadays

[@julianhammond6713]

There is an important distinction to be made between self employment and a small business. The difference is capital: the self employed do not generally deploy capital whereas small businesses usually do. Self employed people are happy with a wage, but if you put capital into a business you also need to make a return on this capital, otherwise you would be better off investing it elsewhere. This return on capital is called profit.

[@skyblazeeterno]

THIS. Anyone thinking a small business is much different from a larger business is a little foolish and probably has never had ANY experience working in both. Still capitalists - still exploitative

[@julianhammond6713]

@@skyblazeeternoYou think making a return on your capital is exploitative ? Where do you invest your savings ?

[@OneAndOnlyMe]

Do we need so many variations of a business in a sector though? Losing some won't mean that society loses out.

[@Minimmalmythicist]

It's funny that economists haven't done that much research on them when most people work for a small business and they make Up a huge chunk of the economy.

[@colinthompson3111]

At the end of the video, the gentleman simply makes the argument for keeping people working at minimum wage. Minimum wage is not a living wage. Surprised to hear a MMT proponent making the low wage argument.

[@OghamTheBold]

DWP #forced me to apply for a job in HR while sick contrary to ECHR-I mustn't be _neurotypingpool_ because HR called me "a pushy reporter" just for asking why the pay of the US owned business was so low Then I found out about the FATALITI€$ (my bad-had to edit-spelled that last word wrong)

[@DavidJohnAshman]

is it possible that Rachel Reeves does understand but had to choose this as the other options weren't on the table.

[@user-xu5vl5th9n]

This is why this NI increase is so pernicious.

[@safirahmed]

Dyslexia is a form nuerodiversity that allows people think outside the box making connections between unconnected ideas.

[@200405InVision]

Opportunity cost. Compare and contrast the situation with regards to the national insurance that self employed pay to that of the employee now. Reports claim that the UK Budget measures will cost an average of £600 per employee. Believable if it will raise £23bn of the £40bn sought. On the other hand it's now possible to take on or recontract 4 employeees on the minimum wage at 16 hours part time per week and have no NIC to pay at all. Then again making these 4 employees legally into self employed contracts, more or less solves everything here. Creating more of those micro small businesses Richard mentioned. Some though, will inevitably, pay cash in hand and fudge matters. The usual suspects in those areas, like hospitality, fast food, and entertainment. Leaving a hassle to clear up if discovered. The Budget makes it look like that's exactly what the Chancellor wants- more self employed. An unintended by-product of these NIC measures? Time will tell.

[@shaunmiller7370]

Small businesses find a niche that they can exploit, but it’s only a finite niche. There is only a certain amount of wiggle room there you’ve got competition so you either retain less staff or you pass your costs on to the customer now in my business tree surgery. Still worry about one thing do you wanna pay VAT? I said no I’m not VAT registered so there was something I used Ron‘s orb because everything in my business has got that added to it, but I couldn’t pass it on see a £300 job days work would be £360 in at the time when I was doing the surgery. The £300 mark was me it’s now well I put mine up day rate 450 but still people say who’s there that pay on top of that and I don’t know because somebody else would come along and do it cheaper that’s cool competition but I had meant to think about I had the petrol to think about so many things and Richard is got it right you I’d pass it to the customer or you employee less people

[@physiocrat7143]

"Profit" is a misleading term. It rolls up wages - the reward for labour, and imputed rental income.

[@Seagreengoat]

💚🙏

[@timwoodger7896]

We got millionaires begging to be taxed more and she chooses this 🤯 why is it always the little Guys that pay the price for our Corporatocracy?

[@chillitotes]

Small business pay the owner a salary and more often than not its not a great deal

[@skyblazeeterno]

Ive worked in small businesses on and off through my life - terrible for employees most of the time often breaking health and safety regs, employment laws, really prone to minimum wage for staff while the bosses never fail to roll up in a new flash car, often union unfriendly or dont even recognise them, poor progression prospect, often have nepotism,very few perks Sorry lets not idolise and idealise small business...in the end they are still capitalists

[@Guitar6ty]

No country can progress by disposing of its industrial base and using mass immigration to push growth which pushes land and property prices exponentially whilst lowering wages. This disenfranchises the young and innovation as the only jobs available are low wage service jobs. Germany is now following the same route as the UK with high crime and factory closures indeed the whole of the west is on a down ward trajectory. Small businesses are having the same problems with renting properties and are now priced out of starting up. The service industry is not going to cut it in this age of Ai which will cull 1.6 billion jobs in the next 3 years. Its already hitting banking warehousing. administration and retail shopping. Productivity is at an all time low I wonder what the cause of that could be.

[@sirmeowthelibrarycat]

😠 You had to mention ‘mass immigration’ but not the issue of a falling birth rate leading to there being more deaths than births at the last count. Who do you expect to do the work needed to maintain a functioning society, if not those you appear to resent? But don’t worry! There is a solution, of a kind, when a Reform UK Limited business becomes the government with Figel Narage as Der Leader 🥴!

[@skyblazeeterno]

dont mention immigration we MUST accept its good for us and not question its usefulness

[@zhubajie6940]

No, they're not viable.