3 Things You Should Know About Small Business: September 14
NEW YORK (TheStreet) -- What's happening in small business today?
1. New York City's beverage ban will crush restaurant franchisees profitability. In a move meant to help fight the obesity epidemic, the New York City Board of Health on Thursday approved a proposal put forth by Mayor Michael Bloomberg to ban large-sized sugary drinks, which passed despite the restaurant and franchise industry opposing the measure.
According to the New York Times, establishments that receive health department inspections will be subject to the rule but those like convenience stores, vending machines and some newsstands would be exempt from the rule, which is slated to go into effect on March 12, 2013. The rule does not affect fruit juices, dairy-based drinks or alcoholic beverages.
The franchise industry is reeling from the passed measure.
"This is an example of government overreach that unfairly targets restaurant franchises and does little to combat obesity," Judith Thorman, IFA's senior vice president of government relations and public policy said in a statement. "Mayor Bloomberg did not consult with the franchise industry, the restaurant industry or the beverage industry about the impact of this action and now this ban adds unnecessary and arbitrary costs to franchisees who are already struggling to stay in business in a challenging economic environment."
The ban also puts restaurants at a competitive disadvantage against other types of businesses that are exempt from the ban and will likely result in higher costs to consumers, the IFA said.
2. Neither candidate understands small business needs. Both President Barack Obama and Republican candidate Mitt Romney mentioned small businesses multiple times in their convention speeches, but do either of them truly understand what's best for small businesses?
Policies including those covering taxes, banking, health care, trade and the environment are more likely to favor big companies, leaving Main Street struggling to compete, says Bloomberg Businessweek.
The biggest problem is that all small businesses are not the same. A pizzeria's needs are different than that of a small manufacturer, the article says.