The Proliferation of New Businesses—a Boon to Small Practitioners?

Source: CPA Trendlines

Intuit and the Institute for the Future have visualized a future economy populated by micro-businesses, millions of them, needing accounting, finance, payroll, and business management help.

The players in this new economy will include baby boomers, their grandchildren, and immigrants.

Baby boomers will be either displaced from their corporate jobs, or retire but continue working. They have the following resources:

• Capital.
• Skills, though they may not be strong in IT.
• Desire to work—it may be part-time, but to baby boomers, part-time may be 40 hours a week.
• Extensive networks.

The younger generations are characterized by:

• Having very little capital but little need for it.
• Great high-tech skills, but not very much in the way of people skills.
• Aversion to large corporations.
• Having taken college courses in entrepreneurship.

Immigrants:

• Have good international connections.
• Know foreign languages and cultures.
• Are deficient in English and knowledge of American culture.
• Are highly motivated to succeed.
• Have little capital.

Knowing the needs of these new entrepreneurs will help accountants, particularly those in small firms, prepare for an exciting future.

From CPA Trendlines, http://www.telberg.com/telbergblog/, Bay Street Group LLC, Dobbs Ferry, NY, June 18, 2007. For the complete survey click here, then select the article The Next Big Thing: Are You Ready? from the June 18, 2007, issue.