DJV You are correct that 80% of small business's fail and partially correct on failing to plan--but by far the biggest reason is the segmant of population (quota's again) that receive these loans.
To put it in perspective--for some to get small business loan they have to present projected plans and have some working capital--and "others" do not. America has a Mathew Lesco* mentality.
*The Tampa Tribune: "The Mathew Lesco 1136 page telephone book-size guide lists 15,000 sources for $350 billion in government cash."
Read this today.
"Although December's unemployment rate was the lowest in 14 months, it reached that level because fewer people were looking for work, the department said. More than 300,000 people gave up their search for jobs and dropped out of the pool of available workers, the department said"
I would like to ask this question--there is no doubt that there are abundant amount of lower tiered paying jobs available---
What makes is so enticing to these 300,000 to sit on their ass and not work at all vs working at minimum wage job????
---and on this statement
"It's so funny how just 30 years ago one bread winner could go to work and taka care of his family nicely"
I can tell one one HUGE reason is credit cards and living beyonds one means. Who had a credit card 30 years ago or could earn back then $12,000 a year but run credit up to $30,000 a year with no colateral. 30 years years ago there was no such thing as 2nd and 3rd mortages on houses. You dreamed to own home free and clear not to build equity to take out loans.
Back then when you purchased something that is price you paid.
Today people evidently are clueless what they actually pay for that $1,000 item they put on credit card by the time they pay it off if they ever do.
30 years ago how many cars wre driven to school--and the few that were how many were new? RIGHT!
Drive by a school now and look at the BMW's ect.
I can't speak for others but my father had small farm and worked at shoe factory when I was child. In addition it took him year to build his own house after work. We kids had to pick up soda bottles at 2cents cash in to help pay for school bus which cost $2.50 a month if you did not go to public school. Father later hit the big time and got job @ Chrysler where he drove 160 miles round trip for 20 more years to pay off 360 acre family farm from his sisters.
People made things do back then because if they coundn't afford it they saved till they could. If job paying $1 an hour was all that was available thats what they did till they found something better. They made no excuses,took what was available knowing full well it "was their fault" if they did not make ends meet.