One of the biggest challenges for small business health is ignorance. "A hurdle for many small businesses is they don't know what they don't know," Govanii Coratolo, Executive Director of the Council on Small Business for the U.S. Chamber of Commerce states.  Laws and compliance regulation are multiplying at the federal, state and local levels, making it hard for even the smartest small business owner to stay up to date.

Health Insurance
The #1 issue facing small business health, according to a survey by the National Federation of Independent Business, is the cost and availability of health insurance. Many small businesses can't afford to offer insurance to their employees at all.  Those entrepreneurs who commit to having health insurance for their employees find that their employees find that their plans have higher sales, underwriting and operating expenses than their large corporate competition. This translates into higher costs for the small business owner and often drives up employees' contributions to the plans.

Liability
Coratolo believes that personal liability is probably another huge risk that small businesses have to think about. He says, "Businesses are seen as viable targets for jackpot justice judgements. " He tells about a real life example of a small manufacturer of  brakes with just 25 employees. When a truck equipped with the company's brakes was in an accident, the driver sued every company that provided a part for the truck. To say the least, the brake manufacturer had to settle just to avoid lengthy litigation. See the problem?

Taxes
Many small business owners also don't know how to follow all the tax laws and may find the in trouble with needing IRS audit help within a few years. They have no idea of the difference between or advantages of sole proprietorships, sub-S corporations, C-corporations, or partnerships.   All the government's official statistics regarding small business are drawn from Schedule C tax filings. If a business owner isn't filing these or files multiple businesses under one schedule, the numbers will be thrown off.

Capital 
Many small businesses historically don't have adequate funding at the beginning. Owners use personal savings, loans from family and friends, credit cards and even second mortgages on their homes.  This leaves the small business health at risk for corporate or personal bankrupcy. Coratolo believes it is essential to the smalll business' health to know the right way to get started.

Pensions
There are many hoops to jump through for the small guys including pension planning. A sole proprietor has to provide for themselves when it comes to retirement planning and they also have difficlty managing employee retirement plans and providing corporate matching.  Smart planning and accounting advice could make the difference, but most small businesses don't know where to turn.

Corontolo knows that there is a lot of information available, but it takes diligent research, persistence and a healthy amount of skepticism. It also takes a great deal of time, which most small business owners don't have. He says, "In many cases they flly by the seat of their pants." What a description!




Fear of official bodies also comes into play concerning small business health and for good reasons. Most small business interactions with state, federal or local governments are negative. There is always the fear of getting caught doing something wrong, so many entrpreneurs keep their heads down and go it alone.

The best way to ensure small business health however is not to go it alone. Small businesses need strong resources and expertise on their side to protect them from the world around them. Having a team of experts in their fields is possible and more affordable than they realize.