isler northwest, business advisors, portland

A New Study Says Business Loans Help Startups Grow. Personal Loans Don’t

Article by Rob Mandelbaum | Found on Forbes

Business 101 teaches that entrepreneurs must begin almost immediately to build company credit. That advice has always rankled a certain breed of DIY business owners, the ones who find debt of any kind anathema. Now, though, a new study demonstrates that borrowing money confers a huge advantage on a new business — but only when the debt is in the company’s name. Companies financed by personal debt actually perform worse than those with no debt at all. Read more

isler northwest, cpa, portland

The Hot New ‘Retirement’ Plan for Baby Boomers: Starting a Business

Article by Leigh Buchanan | Found on INC.COM

Characterizing a Boomer business as a retirement hobby is as misleading as saying all 20-somethings launch app companies. Still, startups by people over age 50 tend to skew small. Gallup reports that 80 percent are lifestyle businesses meant to supplement retirement income and keep the mind engaged. Read more

isler northwest, portland, cpa

To Be or Not to Be … An Entrepreneur

Article Found on Knowridge Science Report

Today, more and more self-employed business owners may call themselves entrepreneurs, a label that connotes creativity, innovation, and success.

But not all business owners are alike.

Prof. Ross Levine found evidence that a company’s legal status–incorporated or unincorporated — can be used as a reliable measure to distinguish entrepreneurs from other business owners.

By identifying this distinction, the research shows that incorporated business owners open companies that are entrepreneurial and require high-level cognitive skills.

On the other hand, unincorporated business owners tend to lead companies that demand more manual talents.

The findings are detailed in “Smart and Illicit: Who Becomes An Entrepreneur and Do They Earn More?,” forthcoming in the Quarterly Journal of Economics.

Their latest study is part of a larger body of work aimed at defining the key characteristics of entrepreneurs, and how to predict their success beyond a one dimensional definition of self-employment. Read more