Credit Card Balance? CT Residents Have Nation's Second Highest, on Average

With the holiday gift-giving season on the horizon, the sound of credit cards are being pulled from wallets and numbers being typed into online sites is also upon us. Before those bills even come due, Connecticut residents have a head start in building credit card balances. Connecticut residents have the highest average credit card balance, at $7,258, in the continental United States.  Alaska, at $8,515, is the only state where residents have a higher average balance in the U.S.

Rounding out the top ten are Virginia ($7,161), New Jersey ($7,151), Maryland ($7,043), Hawaii ($6,981), D.C. ($6,963), Texas ($6,902), Colorado ($6,718), and Georgia (6,675).  New York is next at $6,671.

The states with the lowest credit card balances overall are Iowa and Wisconsin, with an average of $5,155 and $5,363, respectively.

Connecticut average credit card balance - $7,258, - is not only second highest in the nation, but the average number of credit cards owned by Connecticut residents is 3.23, which ranks fifth among the states.  The states where people opened the most credit cards were New Jersey and New York, with an average number of 3.49 and 3.34 cards per person, respectively.

On the state’s average income of $70,121, which is second highest in the U.S., the average credit card balance is 10.35 percent of income.  Because of Connecticut’s high average income, the percent of income average is fourth lowest among the states.

The analysis, by the financial website Upgraded Points, used data of average credit card balances from Experian’s State of Credit: 2017, and data of average annual income by state in 2017 from research by the Federal Reserve Bank of St. Louis.

The analysis notes that “for the 58.8 percent of American households that pay off their balances in full, credit card debt is not a problem. But the other 41.2 percent carry some amount of debt every month and must pay interest fees.” In 2017, overall American credit card debt, according to Upgraded Points, broke through the $1 trillion mark and set an all-time high. The last time credit card debt was over $1 trillion was right before the Great Recession in 2008. In 2017, a survey by Pew Research found that only 46 percent of Americans made more than they spent.

The data indicates that states near the coasts tend to have the highest absolute credit card balances. “The only two states in the top 10 that aren’t by the ocean are Texas and Colorado.  States in the Midwest tend to have the lowest average credit card balances. Only three states in the bottom 10 were not in the Midwest: West Virginia, Arkansas, and Mississippi.”

Hartford, New Haven As “Suburbs” of Boston and New York Raises Possibilities - and Pushback

The objective was to provide evidence that Connecticut is on the cusp of a transit renaissance.  But a “thought leader” article by a prominent faculty member at the University of Connecticut School of Business – an acknowledged expert in transportation and its impact on residential property values – has drawn a range of reactions from municipal, business and transportation officials in Connecticut, including some pushback. The article, by UConn associate professor of real estate and finance Jeffrey Cohen, stated that “with high speed, inter-state transportation, it would be much easier for Greater Hartford and New Haven to thrive as suburbs of Boston and New York City.  Imagine how great it would be to hop on a fast train to Logan Airport, JFK or LaGuardia.  The world would be at our doorsteps, and our doorsteps would be there for the world to explore.”

The characterization of two of the state’s largest cities as potential “suburbs” of New York and Boston, seemingly overlooking Bradley International Airport and Tweed-New Haven in the process, has raised questions from officials.

“As the second-largest airport in New England and the recently ranked third-best airport in the country, Bradley Airport offers convenience and efficiency that the airports in Boston and New York cannot match. Enhanced rail connectivity to the airport would be a major win for passengers throughout Connecticut and Western Massachusetts, and we would encourage UConn to consider maximizing the airport in its own state rather than promoting the outsourcing of Connecticut’s economy to its neighbors,” Connecticut Airport Authority Executive Director Kevin A. Dillon, A.A.E, told CT by the Numbers.

“While the Connecticut Airport Authority is supportive of high-speed rail connectivity in Connecticut, it is unfortunate that UConn would not recognize the benefit of promoting and utilizing Bradley International Airport as the primary airport for travelers in the region,” Dillon added.

“With regard to Bradley, Aer Lingus’ commitment to another four years of service between Hartford and Dublin is a huge boon to our economic development efforts and we hope other airlines will take note and pursue additional domestic and international routes,” said MetroHartford Alliance’s Brian Boyer, Vice President of Communications, Marketing, and Media and Public Relations.  “It’s time to continue showing loyalty to our hometown airport as we position ourselves as a global region attracting international companies. With the ease of use at Bradley, brief 90-minute layovers in Dublin en route to destinations throughout Europe, pre-screening on return flights to clear customs before arrival in Hartford and the prospect of attracting new airlines, this flight is a win-win for our community.”

While some officials saw possibilities, as did Cohen, in the potential impact of continued enhancements to the state’s transportation system, they also acknowledged that those changes were not immediate and current assets should be maximized.

“Fast-growing healthcare, pharmaceutical, and technology sectors of the New Haven economy would be well-served with easier access to major markets in New York and Boston, and the international transportation options in those cities as well,” pointed out New Haven Mayor Toni N. Harp. “We know one-hour train service between New Haven and New York is technologically feasible: what we need to complete the project is the collective will to make it so.”

“High speed rail offers tremendous opportunities for New Haven.  Our proximity to New York City is already a great selling point for the region, if the commute time became significantly shorter, then we are that much more attractive as a location.  We should strive for this type of transportation improvement,” said Garrett Sheehan, president of the Greater New Haven Chamber of Commerce.

Sheehan went on to emphasize that “planning for the future of transportation should not take away from the present.  This type of high speed rail is years away.  In New Haven, we have an incredible transportation asset in Tweed-New Haven airport.  It is already located within the city limits and just short drive from anywhere in this region.  The Chamber supports expanding the airport’s runway and investing in Tweed to bring back more flights and destinations.  Even a handful of more flights would be beneficial to the economic growth of our region.”

Cohen, who has received national recognition in his field, praised the CTrail Hartford line - which connects New Haven, Hartford, and Springfield, MA - and CTfasttrak bus line – which links Hartford and New Britain - noting that “we are starting to see residential and business development near the stations, and this is one of the big benefits of transit.”

He added that “Some people in New York are starting to discover the hidden treasure of relatively low-priced real estate, along with the good schools, beautiful parks, and savory restaurants in central Connecticut.”

“An ideal location with easy access to major cities in the Northeast and Mid-Atlantic, we are proud to be at a point where talent and businesses from these markets should consider Hartford as an opportunity for economic growth and development,” the MetroHartford Alliance’s Boyer noted. “Transportation plays an integral role in this growth and with the new Hartford Rail Line and the continued growth at Bradley International Airport as one of the nation’s top mid-sized airports, we look forward to working with our community and prospective businesses to ensure long-term economic growth for generations.”

CT Voter Turnout Appears Highest for a Gubernatorial Race Since 1990

In the early 1990’s, voter turnout in Connecticut’s gubernatorial elections reached 68.2 percent in 1990 and 65.1 percent in 1994.  Turnout hasn’t reached that high level in the state’s quadrennial gubernatorial elections since – until Tuesday. The Office of Secretary of the State is reporting, as of Wednesday night, that statewide voter turnout was 66.9 percent.  If that turnout percentage stands, it would be the highest turnout in a race for Governor in nearly three decades, since 1990.

The strong turnout percentage this year is underscored by the fact that the number of registered voters is considerably larger.  As of Nov. 2 – not including those individuals who registered and voted on Election Day – the number of registered voters in Connecticut was 2,165,045, according to the Office of Secretary of the State.  Back in the ‘90’s, the list of registered voters hovered between 1.7 million and 1.8 million.  This year’s election brought a higher percentage of voters to the polls from a larger list of individuals registered to vote.

Voter turnout – the percentage of registered voters who actually vote – was 56.6 in 1998, 56.5 in 2002 when there were 1.8 million registered voters, and 59.8 in 2006 when the voter rolls reached 1.9 million.

The 1990 race featured well-known, high profile candidates for Governor – former U.S. Senator Lowell Weicker, Congressman Bruce Morrison and Congressman John Rowland.  The race was won by Weicker, running as a third party candidate.  Rowland would go on to win the office four years later, when voter turnout was somewhat lower.

In 2006, when the Connecticut voters considered their choices in a gubernatorial match-up between Gov. Jodi Rell and New Haven Mayor John DeStefano, a U.S. Senate race that featured Sen. Joe Lieberman, Democratic candidate Ned Lamont and republican Alan Schlessinger was also on the ballot drawing considerable interest.  Turnout that year reached 59.8 percent.

In 2010, Democrat Dannel Malloy won his first term as Governor, defeating Republican Tom Foley by the relatively narrow margin of 6,404 votes.  A third party candidate, Tom Marsh, received 17,629 votes.   Voter turnout that year was 57.4 percent.

Voter turnout is consistently higher in presidential election years.  In 2016, for the Donald Trump – Hillary Clinton contest, the voter turnout in Connecticut was 76.9 percent.  It had been slightly higher in 2008, when Barack Obama was on the ballot here for the first time, at 78.1 percent.

The number of people registered to vote also tends to surge in presidential election years.  In 2016 in Connecticut, the voter list included 2.1 million residents.  This year’s voter registration numbers, just prior to Election Day, were closing in on that total.

This story was updated at midnight Wednesday to reflect latest turnout percentage provided by the Office of Secretary of the State, which increased slightly throughout the day as additional information was provided by municipalities.

Progress Cited on Integrating Pedestrian, Bicyclist Safety Into State Transportation Projects

What comes next at the Department of Transportation was on the minds of more than 150 advocates and enthusiasts gathered for the Annual Meeting of Bike-Walk Connecticut  at Central Connecticut State University in New Britain this past weekend.  The fast-approaching close of the Malloy administration may also mean the end of the tenure of DOT Commissioner James Redeker, who has not only walked the walked, but rode the ride in “building and delivering a comprehensive pedestrian and bicycle program.” The accelerated change in attitude at DOT since Redeker took the helm in 2011 was evident in his being warmly introduced as a friend prior to his keynote address – not the adversary that previous vehicle-centric commissioners may have been.  He went on to highlight the department’s work on state projects, and in concert with municipalities, that is steadily transforming Connecticut into a more pedestrian and bike-friendly state.

Redeker’s presentation demonstrated why.  Among the highlights:

• Connecticut has or will be constructing 97 miles of multi-use trails along side road construction or reconstruction through 2021, and 35 miles of sidewalks accompanying road construction.
• A vendor-in-place resurfacing program has meant that 94 percent of roadways reconstructed have been restriped with wider shoulders, and roadway safety audits have been conducted on 145 miles of roadway and at 917 intersections.
• Enhanced pedestrian signage and pavement markets at uncontrolled crosswalks have been included in 1200 locations on state roads, with an additional 1500 locations planned for local roads in 2019. In addition 133 locations are planned for upgraded pedestrian controls at signalized intersections by 2020.
• 125 projects have been reviewed for Complete Streets design in 2017, with an additional 97 projects reviewed thus far in 2018. More than 80 Road Safety Audits have been conducted.

Driving the “absolutely amazing statistics” is a changed policy, Redeker said.  Now, supporting “safe access for all users by providing a comprehensive, integrated, connected multi-modal network of transportation options” is ingrained at DOT.  He noted that integrating trails is occurring regularly on major projects, with the goal of building a statewide trail system.

“Complete streets is now part of the DOT DNA,” Redeker explained.  Responding to some who question the lack of such plans as part of the agency’s manual, Redeker cited the statistics, adding, “look at us for outcomes, not manuals.”  The numbers – and the accomplishments - drew solid reviews in the room.

The agency’s Complete Streets program, established in 2014, established a new unit to review every project specifically for bicyclist and pedestrian needs, and requires project designers to evaluate and prepare a written assessment of pedestrian needs on every project.  A standing committee was also formed to guide and implement policy and practices, Redeker pointed out.

He noted that the changes are evident in large cities and small towns in Connecticut, from Hartford New Haven to Waterford and Washington.  He also highlighted the introduction of roundabouts in Connecticut communities, including Monroe, Seymour and Ellington, and Community Connectivity Grants that have funded 40 small-scale local projects totaling $12 million, with another 40 to be requested for upcoming State Bond Commission agendas, with an estimated cost of $13.4 million.

Upgrades in school warning signs include the replacement of traditional yellow signage with fluorescent yellow-green to enhance visibility was completed in 2015.  Pedestrian warning signs were replaced on state routes in 2017, and are on schedule to be upgraded on local routes in 2019 and include greater use of yield bars on pavement.

Upgrades in school wanting signs include the replacement of traditional yellow signage with fluorescent yellow-green to enhance visibility, and greater use of yield bars on pavement.  Signs were replaced on state routes in 2017, and are on schedule to be upgraded on local routes in 2019. 

Traffic signals are also being replaced along state roadways, with “pedestrian safety our number one concern,” Redeker stressed.  It is an extensive task.  Connecticut has more traffic signals that exceed 30 years old, more than any other New England state and the 10^th highest volume in the U.S.

Mention of the state’s “Watch For Me” campaign drew extended applause – the comprehensive initiative seeks to alert the public to the presence of pedestrians and bicyclists, to underscore the importance of assuring safety and police enforcement.

Danbury Leads CT in 5-Year Job Growth; 41st in Ranking of 50 States’ Leaders

When job growth is measured over the past five years, Danbury leads the way in Connecticut. An analysis of changes in employment figures between 2013 and 2018 from the 381 metropolitan areas defined by the U.S. Census Bureau focused on the leading city in each state, and ranked them. The analysis, by the website howmuch.net, found that Danbury - which saw job growth of 6.6 percent - outpaced Connecticut’s largest cities, but that the leading city in 40 of the 50 states had a stronger track-record.

The leading cities in five-year job growth were Lake Charles, LA: 28.3%; Bend-Redmond, OR: 26.6%; Elkhart, IN: 24.0%: St. George, UT: 23.4%; Greeley, CO: 21.1%; Gainesville, GA: 20.9%; Fayetteville, AR: 20%; Boise City, ID: 18.6%; Austin, TX: 18.4%; and Reno, NV: 18.0%.  The analysis notes that the top cities “are truly remarkable job markets at the center of the recovery, perhaps because they were hardest hit by the recession.”

The standing of Austin, Charlottesville and Nashville are noted for “a reputation as fun destinations with music and tech scenes. They are mid-sized cities with universities, hospitals, and large well-known employers. These are the ingredients for long-term economic growth and positive employment numbers.”

“In many ways, Danbury is the forgotten city in Fairfield County up north here,” P.J. Prunty, executive director of the Greater Danbury Chamber of Commerce, told the Danbury News-Times earlier this year. “These statistics show that people are attracted to a city that has opportunity and good employment. It’s growing, and that’s a good thing. People are voting with their feet by moving here.”  Back in April, the Danbury Labor Market Area had the lowest unemployment rate of the nine LMAs in the state. The Danbury LMA outpaced the state and national unemployment rates, the News-Times reported.

Leading the way in the five-year analysis, released this month, are Barnstable in Massachusetts, at 13.7 percent employment growth; in New Hampshire it is Portsmouth at 10.1 percent, in Rhode Island, Providence/Warwick at 7.7 percent; Maine the greatest job growth has been in Portland/South Portland at 7.1 percent.  Vermont is the only New England state with a leading city growing jobs at lower rate than Connecticut’s – Burlington/South Burlington at .8 percent.  Only Alaska and Wyoming are lower, rounding out the 50 states.

Also noted:  “Some places are factory towns with unsustainable growth rates. Others are truly remarkable places to live with thriving, growth-oriented economies, and still others are barely seeing any benefits from the economic recovery.”

Accelerating Efforts to Prevent Suicide in CT as Numbers Climb

The Centers for Disease Control and Prevention (CDC) released a report this year which indicated that suicide rates nationally jumped by 25 percent since 1999, a finding that “shocked” even experts who believed the rate had been flat. Each year, more than 41,000 individuals die by suicide, leaving behind their friends and family members to navigate the tragedy of loss, according to the National Alliance on Mental Illness. Connecticut's rate, 9.7 deaths per 100,000, rose 20 percent during that time, and 49 states saw an increase, according to the CDC. Connecticut’s suicide rate, is ranked number 46 in the country.

Suicide is the 10th leading cause of death in the U.S. with one occurring on average every 13.3 minutes.

For every suicide, there are 30 people who made the attempt, Dr. James F. O'Dea, vice president of the Behavior Health Network of Hartford Healthcare, recently told the Meriden Record-Journal.  The U.S. Health Resources & Services Administration reports that “approximately 45% of suicide victims had contact with primary care providers within 1 month of suicide.”

“Connecticut suicide rates may have not have increased as much in comparison to other states, but isn’t the real question, ‘Why is it increasing at all?’” Luis Perez, president and CEO of Mental Health Connecticut, told The Hartford Courant earlier this year.

“It’s been well-researched that most people who die by suicide do so because they want the pain to stop — and they don’t see any other way,” Perez said. “Prevention is critical. Knowing the safe and right way to talk to someone who may have thoughts of suicide and letting people know they are not alone, that millions of people struggle with suicide ideation is key.”

According to the state Department of Public Health, approximately 31 percent of victims had a history of treatment for mental illness and 42 percent had previously attempted or thought about suicide or disclosed their intent to commit suicide. The CDC offers 5 steps to help someone at risk: 1. Ask. 2. Keep them safe. 3. Be there. 4. Help them connect. 5. Follow up.

The U.S. government’s anti-bullying website, stopbullying.com, points out that “many issues contribute to suicide risk, including depression, problems at home, and trauma history. Additionally, specific groups have an increased risk of suicide, including American Indian and Alaskan Native, Asian American, lesbian, gay, bisexual, and transgender youth.”  The site indicates that “this risk can be increased further when these kids are not supported by parents, peers, and schools. Bullying can make an unsupportive situation worse.”

Matt Riley, Chief Operating Officer of the Connecticut-based Jordan Porco Foundation, recently told WTNH-TV that suicide is the second leading cause of death for Americans ages 15 to 24. One in ten college students and one in five high school students consider suicide. Young people considering suicide are most likely to talk to peers, so the Jordan Porco Foundation focuses on peer-to-peer outreach and awareness, with a series of successful program initiatives on college campuses in Connecticut and across the country.

In recent years, a new student-driven primary prevention program was piloted to help high school students develop positive coping skills and enhance protective factors in preparation for life beyond high school. Schools and organizations participating included Manchester High School, Immaculate High School in Danbury, Enfield Public Schools, Capital Preparatory High School in Hartford, Institute of Living in Hartford, Jewish Family Services in West Hartford, Wilton High School, Boys & Girls Club of Bristol, and Guilford Youth & Family Services.

Numerous organizations across Connecticut offer Mental Health First Aid, an 8-hour training to teach participants how to help someone who is developing a mental health problem or experiencing a mental health crisis. The evidence behind the program demonstrates that it helps trainees identify, understand and respond to signs of mental illnesses and substance use disorders.  The course is often offered to participants free of charge.

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UConn Analysis Has Role in Ensuring Integrity of State Elections

Little known even by University of Connecticut advocates across the state, the flagship university’s Voting Technology Research Center (VoTeR) advises the state on the use of election technology, investigates voting solutions and voting equipment, and develops and recommends safe-use procedures for electronic systems used in the electoral process. VoTeR will be at it again as a follow-up to Election Day, analyzing the technology and tabulations, as they’ve done before.

The Center’s website notes that “starting in 2008 the Center has performed technological audits and assisted in the hand-counted audit procedures in all statewide elections in Connecticut.”  Stated goals are “to ensure the integrity of the election outcomes conducted with electronic voting systems and to continuously assess the security and dependability of such systems.”

Alexader Russell, a Professor of Computer Science and Mathematics at the University of Connecticut, leads the Center. He holds a B.A. from Cornell University and both an M.S. and a Ph.D. from the Massachusetts Institute of Technology.

The mission of the VoTeR Center is to advise state agencies in the use of electronic election technologies, to investigate voting solutions and voting equipment, and to develop and recommend safe use procedures for electronic systems used in the electoral process.

“Of course, the most sensational attack against an electronic voting system is one which undetectably changes the reported outcome of an election,” Russell recently told UConn Today. “While the James Bond-appeal of these attacks elevates them to a common topic of conversation, the fact of the matter is that along the spectrum of various attacks those are comparatively difficult, expensive, and high-risk.”

A 2014 study published in the Journal of Election Technology and Systems concluded that “audits are a critical procedural component of the electoral process to guarantee the proper conduct of an election.”  The study, by Laurent D. Michel, Alexander A. Shvartsman and Nikolaj Volgushev of the Center, noted audits “can be valuable in the forensic analysis of data collected from voting terminals” used during an election. The system referenced in the study “was rigorously tested against several thousand event logs collected in real elections in the State of Connecticut.”

The statistical analysis of the post-election audit data for the November 2016 presidential election undertaken by the Center was released earlier this year, in June.  The analysis of 615 records “revealed no indication suggesting inaccuracy in the tabulator counts in the audited districts.”  The analysis, of 10 percent of the districts randomly selected by the Office of the Secretary of the State, was performed at the request of that office which oversees Connecticut elections in conjunction with municipal officials.

The analysis indicated that “445 records (72.4%) show no discrepancy, 85 records (13.8%) show discrepancy of 1 vote. There are 58 records (9.4%) showing a discrepancy of 2 or 3 votes; 14 records (2.3%) showing a discrepancy of 4 to 6 votes; 6 records (1%) showing a discrepancy of 7 to 10 votes; 3 records (0.5%) showing a discrepancy of 11 to 20 votes and 4 records (0.6%) showing a discrepancy of more than 20 votes.”

“The main cause for discrepancies between the hand and machine counts,” the review concluded, “appears to be human error in counting as reported by the auditors.”

Steps like training voting staff in best practices, and teaching them what to look out for in terms of suspicious activity, are key to safeguarding the entire voting system, UConn Today reported, indicating that Russell believes Connecticut has done a good job in these areas.

“One present difficulty is that vendors are primarily focused on functionality and ease-of-use rather than security,” Russell added. “In fact, we even lack clear standards for exactly what ‘security’ means for voting equipment.”

Connecticut makes certain that optical scan tabulators are not connected to the internet, and that each town performs logic and accuracy testing before each election or primary, to ensure that the voting equipment and ballots accurately collect the votes and tabulate the results, he noted.

More than 20 states – including Connecticut - faced cybersecurity threats in the 2016 election.

PERSPECTIVE: Small Business Owner Does Not Equal Entrepreneur, And That’s Okay

by Anthony Price My universe was shaken to its foundation, like a building crumbling to the ground under the force of a 9.0 earthquake, after reading Ben Lamm’s guest column in Entrepreneur magazine: “Stop Calling Everyone an Entrepreneur—They Aren’t.”

I thought this was typical Silicon Valley propaganda, from a hotshot in a hoodie and jeans. But after my less-skeptical self emerged, I began to think there was merit to what Ben was espousing. Ben, the founder of several companies and CEO of a startup, believes that the “entrepreneur” label has become as ubiquitous as Nikes on NBA-wannabes. He says that a lot more people are qualified to manage a “Jamba Juice than take companies from inception, through market traction (paying customers), funding, growth and eventual IPO or exit.”

I full-heartedly agree. Ben comes from a world where solving big “hair-on-fire” problems and scaling a business as fast as possible are crucial to owning a market and attracting OPM: Other People’s Money. This business template requires a steady stream of capital to be pumped into the business as fuel, which most businesses don’t have.

The money that your small business burns through is yours, or if you are lucky, your family’s, friend’s or the bank’s. In reality, a startup business has a limited amount of time to build a business with paying customers, or it will fail. Think of Chobani yogurt in your refrigerator—it’s expiration date is a constant reminder that it will not last forever.

The pressure comes from investors. When you play with OPM, investors are the house, they make the rules, and they want to make lots of money (10, 20, or 30x return or more) from a liquidity event (an exit from your business within five to seven years as a result of selling or going public).  In Ben’s view, the mission is the domination of an industry from the playbooks of Facebook, Google and Amazon.

Entrepreneurs Take Big Risks

Entrepreneurs view problems from a unique perspective. George Bernard Shaw, the playwright, said, “The reasonable man adapts himself to the world: the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” Entrepreneurs are the unreasonable men (and women), risk-takers, but not gamblers. To them, gambling is working at a job they don’t like, with no future for advancement, for a boss who doesn’t value them. Entrepreneurs are confident in their abilities to solve big problems, assemble a team and scale. They are a special group of people who believe in their vision, talent, version of reality and work ethic.

The biggest differentiator between an entrepreneur and a small-business owner is that the former wants to solve big problems, grow quickly and takes huge risks. Think Facebook, Google, and Tesla. Facebook has over two billion monthly users, and its mission is: “Give people the power to build community and bring the world closer together.” Google is the most visited website on the Internet. Its mission is: “To organize the world’s information and make it universally accessible and useful.” Founded in 2003, Tesla Motor’s mission is: “To accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.”

Small and Powerful

A business consists of coordinated activities that deliver value to customers with the intent of generating a profit to its owners. There are twenty-nine million small businesses in the U.S., which represent 99.9 percent of all businesses.

The U.S. Small Business Administration (SBA) defines a small business as having fewer than 500 employees; organized for profit; has a place of business in the U.S.; operates primarily in the U.S.; is independently owned and operated, and is not dominant in its field on a national basis. Michael Gerber, the author of The E-Myth states, “There is a myth in this country—I call it the E-Myth—which says that small businesses are started by entrepreneurs risking capital to make a profit. This is simply not so.”

Most small business owners make the misguided assumption that because they know the technical work of the business, they understand the business that does the technical work.  These are two different things, just as being a home baker doesn’t make one competent to run a neighborhood bakery or a corporate chain of bakeries.  Small business owner does not equal entrepreneur.

Compare Ben Lamm’s vision of a startup business on steroids with how most small businesses start. Look at your favorite small business. For example, the guy (Jim) who owns the automobile repair garage down the street probably started because he either worked in the family business or got tired of working for someone else. Jim doesn’t have a grand vision to be as ubiquitous as Pep Boys. Sure, he wants to make money, but the love of his craft, freedom from a boss, quality of life, and a sense that he can shape his destiny are all reasons that usually motivate someone to start or buy a business.

Just Do It

Customers determine winners in business. But a decisive factor for your future success comes down to how you answer this question: Will you be an entrepreneur or a small-business owner? Entrepreneurs take big risks to create something new, while small-business owners provide goods and services that the market needs right now. Each has its own value.

Life as a small-business owner is appealing. There’s no disputing its impact on the American psyche. In our winner-take-all society, we need balance between big-risk takers and steady small businesses. Ben states, “Entrepreneurs, at their core, are rare, transformative and risky. They are going to propel the society forward with big leaps of creative disruption. Small-business owners give us a stable base that de-risks the moonshots and protects us from the fallout of failures.” Our economy needs both the entrepreneur and the small-business owner.

To succeed in business, you have to know whether you’re playing as an entrepreneur who is ready to change the game, the industry, the world, or as a small-business owner seeking to make an impact on a smaller scale. If you’re trying to change the game, put on a pair of Shaquille O’Neal’s size 22, because that’s what changing the game feels like. Your choice whether to be an entrepreneur or small-business owner will affect how you start, fund, manage, and grow your business.

Takeaway: Decide what you will be. Choose one.

__________________________________

This is an edited excerpt from Get the Loot and Run: Find Money for Your Business, by Anthony Price of Hartford.  Price is founder and CEO of Lootscout, and an entrepreneur, speaker, panelist, and judge for business competitions. A trusted adviser to startups and growing businesses, his expertise is sourcing growth capital for entrepreneurs. This excerpt is published with permission of the author.

Will 2019 Legislature Ban Pet Leases? CT Would Be 4th State to Approve Ban

New York became the third state earlier this year, following Nevada and California, to enact a law restricting or prohibiting pet leasing, apparently a growing trend – and concern - across the country.  The law was approved last month and takes effect in December. Connecticut considered a ban on pet leasing during the 2018 legislative session.  A proposal was approved in the Senate, but was not considered by the House of Representatives, according to a report released this month by the state Office of Legislative Research (OLR). 

The Federal Trade Commission explains that “pet leasing is a relatively new industry. It relies on a financial product – a consumer lease – that is commonly associated with cars, furniture, and heavy equipment, not with puppies, parrots, and other pets. As a result, most people considering buying a pet are not expecting to be handed a lease.”

“There can be complications,” the FTC points out. “If the customer misses a monthly payment, the leasing company can repossess Fluffy, Fido, or Cookie the Cockatoo. And, if the animal gets lost, stolen, or dies, or if the customer can no longer keep the pet, the customer can still be required to make payments through the end of the lease period or pay a hefty early termination fee.”

These concerns, and others, are leading an increasing number of states to consider laws to govern – or ban – the practice.  Last month, published reports indicate that the American Society for the Prevention of Cruelty to Animals filed a lawsuit in New Jersey Superior Court on behalf of residents of Hopatcong, New Jersey, against a local pet store and another in Virginia. The lawsuit challenges the lease agreement.

Earlier this year, CBS News published a story about the practice, citing a Connecticut pet store’s practice that irked a local resident.

“Here's how it works: pet stores lure customers in with a cute but expensive pet. Then the customers sign what they believe is a loan that will allow them to make low monthly payments for the pet,” the CBS News report explained.  “But it's not really a loan; it's a lease. And customers often don't realize it until it's too late.”

The Connecticut law proposed earlier this year “generally would have voided any pet lease entered into on or after October 1, 2018,” according to OLR.  It stated that “Anyone taking possession of a dog or cat under such a contract would have been (1) deemed to be the animal’s owner and (2) entitled to the return of all amounts paid under the contract.”

Nevada law prohibits a person from offering to lease any living animal or goods intended for personal, family, or household use, including pets, according to the research published by OLR. California law, effective on January 1 this year, applies to dogs and cats and points out that the consumer taking possession of the dog or cat under such a contract is deemed the animal’s owner, voiding any lease agreements.  The New York law prohibits a contract for buying or financing a dog or cat that includes any provisions that authorize using the dog or cat as security and allow the lender or seller to repossess the animal if the buyer fails to make payments under the contract.  The law does not prohibit buying a dog or cat through an unsecured personal loan.