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Rise of the Pint-Size Startup Is Reshaping the U.S. Economy

36 points by petethomas 2y ago

cheschire 2y ago
https://archive.is/DEBW0 https://archive.is/DEBW0
teqsun 2y ago
This article didn't seem to mention one of the darker possible drivers of that spike in people "starting businesses", which was to commit PPP loan fraud.
- oldpersonintx 2y ago
  [dead]
- sickofparadox 2y ago
  Every time I see an article with a criminal getting sentenced or a local administrator gets accused of wrongdoing I look up whether they had a PPP loan and 9/10 they do. Its a pretty fun game, if a little depressing: https://www.pandemicoversight.gov/ppp-simple-search-landing https://www.pandemicoversight.gov/ppp-simple-search-landing
- blitzar 2y ago
  They would have needed to start their business in 2019 to execute this particular fraud in 2021. If you have a time machine, I can suggest of a few other, more profitable ways to make money.
  - fragmede 2y ago
    If the only solution you can see to a bit of red tape like needing an LLC from 1999 is "having a time machine", you might not be cut out for defrauding the government. Which is probably good. The LLC needed to have been created in 1999, but most tax cheats already have one, since you want to have one for all sorts of tax dodges. In order to buy a (luxury) car for business and claim it on your taxes (which has technically been closed as a loophole, but that's stops no one from trying), you need to have a business to run it through. So PPP loan fraud anyone was only open to anyone who's already shown a propensity to cheat on their taxes already, or anybody not creative enough to figure out how to get the information necessary for a PPP loan for an LLC from 1999 from someone who has one. (hint: there are ways other than a time machine)
    - blitzar 2y ago
      Nevertheless, people did not incorporate companies and employ people in 2022, 2023 & 2024 to get PPP loans in 2021. Fraud exists, bad actors exist. It is not required to literally make up time and space bending scenarios to fit the narrative.
tines 2y ago
Isn't the "pint-size startup" the status quo for the US? It may be my americocentrism speaking but I feel like the kid-run lemonade stand is as American as it gets. Big business is the aberration, not the rule.
gamblor956 2y ago
Before the tech fad, these were just called "small businesses." They've always been a large part of the U.S. economy.
n_ary 2y ago
I am immensely curious to know about the finances & accounting of these businesses. None of the examples made sense to me about how they have enough to keep the lights on. Please someone eli5 me. May be American things are too different to me to imagine correctly.
- karaterobot 2y ago
  I didn't see enough in that article to really say how they're doing. But, remember that when the key word is 'startup', not having enough to keep the lights on may be an accurate summary of how they're doing. Being featured in an article by the Wall Street Journal may make it seem like these startups are doing great, but we don't really know. The fact remains that most startups aren't making much money at all.
deleted 2y ago
[deleted]

36 points by petethomas 2y ago

https://archive.is/DEBW0 https://archive.is/DEBW0

This article didn't seem to mention one of the darker possible drivers of that spike in people "starting businesses", which was to commit PPP loan fraud.

oldpersonintx 2y ago
[dead]
sickofparadox 2y ago
Every time I see an article with a criminal getting sentenced or a local administrator gets accused of wrongdoing I look up whether they had a PPP loan and 9/10 they do. Its a pretty fun game, if a little depressing: https://www.pandemicoversight.gov/ppp-simple-search-landing https://www.pandemicoversight.gov/ppp-simple-search-landing
blitzar 2y ago
They would have needed to start their business in 2019 to execute this particular fraud in 2021. If you have a time machine, I can suggest of a few other, more profitable ways to make money.
- fragmede 2y ago
  If the only solution you can see to a bit of red tape like needing an LLC from 1999 is "having a time machine", you might not be cut out for defrauding the government. Which is probably good. The LLC needed to have been created in 1999, but most tax cheats already have one, since you want to have one for all sorts of tax dodges. In order to buy a (luxury) car for business and claim it on your taxes (which has technically been closed as a loophole, but that's stops no one from trying), you need to have a business to run it through. So PPP loan fraud anyone was only open to anyone who's already shown a propensity to cheat on their taxes already, or anybody not creative enough to figure out how to get the information necessary for a PPP loan for an LLC from 1999 from someone who has one. (hint: there are ways other than a time machine)
  - blitzar 2y ago
    Nevertheless, people did not incorporate companies and employ people in 2022, 2023 & 2024 to get PPP loans in 2021. Fraud exists, bad actors exist. It is not required to literally make up time and space bending scenarios to fit the narrative.

tines 2y ago

Isn't the "pint-size startup" the status quo for the US? It may be my americocentrism speaking but I feel like the kid-run lemonade stand is as American as it gets. Big business is the aberration, not the rule.

gamblor956 2y ago

Before the tech fad, these were just called "small businesses." They've always been a large part of the U.S. economy.

n_ary 2y ago

I am immensely curious to know about the finances & accounting of these businesses. None of the examples made sense to me about how they have enough to keep the lights on. Please someone eli5 me. May be American things are too different to me to imagine correctly.

karaterobot 2y ago
I didn't see enough in that article to really say how they're doing. But, remember that when the key word is 'startup', not having enough to keep the lights on may be an accurate summary of how they're doing. Being featured in an article by the Wall Street Journal may make it seem like these startups are doing great, but we don't really know. The fact remains that most startups aren't making much money at all.

deleted 2y ago

[deleted]