Some Colleges Will Soon Charge $100,000 a Year. How Did This Happen

NASHVILLE, Tenn. It was only a matter of time before a college would have the nerve to quote its cost of attendance at nearly $100,000 a year. This spring, we’re catching our first glimpse of it. One letter to a newly admitted Vanderbilt University engineering student showed an all in price room, board, personal expenses, a high octane laptop of $98,426. A student making three trips home to Los Angeles or London from the Nashville, Tennessee, campus during the year could hit six figures. This eye-popping sum is an anomaly. Only a tiny fraction of college-going students will pay anything close to this anytime soon, and about 35% of Vanderbilt students those who get neither need based nor merit aid  pay the full list price. a few dozen other colleges and universities that reject the vast majority of applicants will probably arrive at this threshold within a few years. Their willingness to cross it raises two questions for anyone shopping for college: How did this happen? And can it possibly be worth it?

Who Pays What According to the College Board, the average 2023-24 list price for tuition, fees, housing and food was $56,190 at private, nonprofit four-year schools. At four-year public colleges, in-state students saw an average $24,030 sticker price. That’s not what many people pay, though, not even close. As of the 2019-20 school year, according to federal data that the College Board used in a 2023 report, 39% of in-state students attending two year colleges full-time received enough grant aid to cover all of their tuition and fees (but not their living expenses, which can make getting through school enormously difficult). At four-year public schools, 31% paid nothing for tuition and fees while 18% of students at private colleges and universities qualified for the same deal. Those private colleges continue to provide hefty discounts for people of all sorts of incomes. A National Association of College and University Business Officers study showed private nonprofit colleges and universities lowering their tuition prices by 56% from the rack rate during the 2022-23 school year. Vanderbilt provides discounts, too, and its financial aid is extraordinarily generous. Earlier this year, it announced that families with incomes of $150,000 or less would pay no tuition in most instances. Still, more than 2,000 students there who get no need based or merit aid will soon pay $100,000 or more. Why does Vanderbilt need all of that money

Where the Money Goes At a few small liberal arts colleges with enormous endowments, even $100,000 would not cover the average cost of educating a student, according to the schools. Williams College says it spends roughly $50,000 more per student than its list price, for instance. In other words, everyone is getting a subsidy. Perhaps its list price should be more than $100,000 too, so that its endowment is not offering unneeded help to wealthy families. Or, perhaps, a price that high would scare away low-income applicants who do not realize that they might get a free ride there. According to Vanderbilt, its spending per undergraduate is $119,000. “The gap between the price and cost of attendance is funded by our endowment and the generous philanthropy of donors and alumni,” Brett Sweet, vice chancellor for finance, said in an emailed statement. No one at the school would meet with me to break this figure down or get on the phone to talk about it. But Vanderbilt’s financial statements offer clues to how it spends money. In fiscal year 2023, 52% of its operating expenses went to faculty, staff and student salaries and wages, plus fringe benefits. Robert Archibald and David Feldman, two academics who wrote “Why Does College Cost So Much?,” explained in their book why labor costs are so tricky at these institutions. “The critical factors are that higher education is a personal service, that it has not experienced much labor-saving productivity growth, and that the wages of the highly educated workers so important at colleges and universities have soared,” they said. “These are economywide factors. They have little to do with any pathology in higher education.”

American Businesses

Businesses in America encompass a broad spectrum, ranging from colossal multinational corporations to independent entrepreneurs. This diversity includes large enterprises, small businesses, home based operations, online ventures, as well as both corporate and family-run farms. Serving as a crucial cog in the American economic machinery, businesses play a pivotal role by supplying goods and services globally. The consumption of their outputs serves as the primary engine propelling the nation's gross domestic product (GDP) forward. Moreover, businesses serve as engines of employment generation, avenues for wealth creation, and platforms for investment opportunities. Capitalism, as an economic system, fosters the growth of businesses. However, unchecked expansion can lead to concerns about monopolistic practices within industries. Instances of corporate fraud and accounting scandals have corroded public trust in the integrity of large corporations. Additionally, societal expectations place emphasis on the impact of businesses on environmental sustainability, local development, and the overall welfare of communities. Balancing the pursuit of profit with ethical considerations and societal responsibilities remains an ongoing challenge for businesses operating in America.

HISTORICAL DEVELOPMENTS

The economic landscape of America has undergone significant transformations since the arrival of the first colonists. Initially, trade with native peoples revolved around furs, food, and the exchange of American resources for imported goods. The early economy was characterized by industries such as agriculture, timber harvesting, and shipbuilding. However, with the nation's independence and the advent of the Industrial Revolution, manufacturing began to ascend in importance.

LEGAL STRUCTURES OF BUSINESSES

 Indeed legal and tax considerations play a crucial role in determining the structure of a business entity. Here's a brief overview of the main forms of business structures: 

Sole Proprietorship: This is the simplest form of business structure, where the business is owned and operated by a single individual. The owner retains full control over the business and its profits but is personally liable for all debts and obligations. From a tax perspective, income and expenses of the business are reported on the owner's personal tax return. 

Partnership: A partnership involves two or more individuals who share ownership of the business. There are two main types: general partnerships and limited partnerships. In a general partnership, all partners share equally in the management and liability of the business. In a limited partnership, there are both general partners who manage the business and have unlimited liability, and limited partners who invest capital but have limited liability. Partnerships also pass through profits and losses to individual partners, who report them on their personal tax returns. 

Corporation: A corporation is a separate legal entity from its owners (shareholders). It provides limited liability protection to its shareholders, meaning their personal assets are generally not at risk for the debts and obligations of the corporation. Corporations are more complex to set up and maintain, with specific requirements for governance and compliance. They are taxed separately from their owners, with profits taxed at the corporate level, and dividends taxed again when distributed to shareholders.

Limited Liability Company (LLC): For legal and tax purposes, all businesses must be structured as one of several legally defined forms: sole proprietorships, business partnerships, corporations, or limited liability companies (LLC). Each offers both advantages and disadvantages to the business owner.

THE ROLE OF SMALL BUSINESS IN A COMPLEX ECONOMY 

It's a common misconception that the American economy is solely dominated by large corporations. While it's true that many of the world's largest companies are headquartered in the United States, the reality is that a significant portion of employment in the country is driven by small and medium-sized businesses. According to data from the U.S. Census Bureau's 2002 economic census, a substantial number of Americans are employed by companies with fewer than five hundred employees. Specifically, out of America's 115 million workers in 2001, approximately 57.4 million were employed by such smaller enterprises. This underscores the significant role that small and medium-sized businesses play in driving employment and contributing to the overall economy.

Home Based Businesses

The landscape of small businesses in the United States includes a significant portion that operate from home. As of 2003, home based businesses accounted for 53% of all small businesses in the country. These businesses span various industries, with a notable presence in service industries, construction, retail trade, and other sectors such as finance, communications, manufacturing, and transportation. The majority of home-based businesses, approximately 91%, were structured as sole proprietorship, reflecting the simplicity and ease of setup associated with this form of business ownership. Additionally, 5% were structured as sub chapter S corporations, and 4% as partnerships, offering varying levels of liability protection and tax benefits to their owners. It's noteworthy that the vast majority (91%) of home based businesses had no employees, indicating that many entrepreneurs in this category operated as independent operators. Furthermore, less than half of these businesses operated on a fool time basis, with owners typically dedicating around twenty six to thirty five hours per week to their businesses. This suggests a flexible and often part time approach to entrepreneurship among home based business owners, allowing for a balance between work and personal life commitments.

U.S & Pakistan Business Council

The American Business Council of Pakistan was established in 1984 and has since been accredited as the voice of US businesses operating in Pakistan. It is a non profit organization one of the largest groups of single-country overseas investors in Pakistan and currently consists of Fortune 500 companies, small and medium enterprises, renowned business leaders and entrepreneurs, both American and Pakistani. The American Business Council of Pakistan is affiliated with the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and is a member of the U.S. Chamber of Commerce (USCC), Washington D.C., as well as the Asia-Pacific Council of American Chambers of Commerce (APCAC). ABC also has a close working relationship with the U.S.-Pakistan Business Council and utilizes its platform to create a dynamic exchange of ideas between its members, businesses, the State of Pakistan, United States of America and the world.

U.S & Pakistan Business Council

The U.S. Chamber’s U.S and Pakistan Business Council (USPBC) is the leading business private sector association of U.S. companies with business and investment interests in Pakistan. Through our policy recommendations, our active engagement with U.S. and Pakistani government officials, private sector organizations and think tanks, and particularly our trade missions, the USPBC has worked to expand commercial opportunities and promote a level playing field for American companies in Pakistan. Our membership is made up of senior level executives of U.S. companies from every business sector that are major investors in Pakistan and are firmly committed to the Pakistani market.

Council Visibility The USPBC furthers its mission and members’ policy goals through an extensive schedule of programs, outreach to Pakistani and U.S. government officials, and publications. 

Pakistan Presence The USPBC maintains close relationships with leading business organizations in Pakistan, including the American Business Council of Pakistan (ABC) and the American Business Forum (ABF). Council officials conduct policy missions to Pakistan to promote members’ priorities in meetings with senior Pakistani government officials and business leaders.

U.S.-Pakistan Business Council Membership 

Members have access to U.S and Pakistan Business Council information services and are and are involved in shaping policy priorities and outcomes. As an active and growing council, we offer an array of services and valuable networking opportunities for companies doing business in Pakistan. We hope that you find our website helpful and informative, and we welcome you to get involved in our efforts to strengthen commercial ties between Pakistan and the United States.

 

10 Great Business Ideas for Entrepreneurs

This list of 10 great business ideas will help you get started on your entrepreneurial journey. Note that many of the ideas below only require you to have a credit card processing partner to get started, so you can keep upfront expenses relatively low. Read on for some inspiration into the many types of businesses that could launch you to success. 

1.Real Sstate For many people, navigating the housing market is overwhelming. As a real estate agent, you can help people find their dream home at a price that fits their budget. In many states, you only need to complete a few months of classes and pass an exam to qualify as a real estate agent. Keep in mind that even with a certification, you’ll need strong social skills, so if you’re not a people person, this might not be the route for you.

2. Online resellingIf you’re interested in clothing and sales, you might consider starting an online reseller business. Although it takes time, dedication and an eye for fashion, you can start your business as a side hustle and turn it into a full-time resale business. You could start by using online store websites like Postmark and America to sell your unwanted clothing and items, then expand to your own resale website. Consider shopping estate sales and flea markets for hidden finds at a low cost and then listing them for a profit online. You may be able to collect a substantial inventory of items that are in good shape for very little overhead if you’re diligent enough and search the right places.

3. Pet sitting When these families go away for extended periods, your pet-sitting small business can give them peace of mind. As a pet sitter, you’ll watch over your clients’ dogs, cats or other pets at their house. As part of the job, you’ll need to feed them, give them water, play with them, and (with dogs) walk them as needed. To help keep clients satisfied, you’ll need to regularly update them on how their pets are doing. If you have other sources of income that require nothing more than an internet connection and a laptop, pet sitting may be an especially apt small business idea. Almost all pet owners will be glad to let you work on your laptop while you spend time at their home with their pets, meaning that you can run two income streams simultaneously. 

4. App development If you are knowledgeable and experienced in technology, you may want to consider a career in app development. Smartphones are an everyday accessory for many Americans that has increased the demand for mobile apps. Similarly, virtual reality software has become popular in recent years, so there is also a demand for VR app development.

5. Digital marketing The importance of the internet grows with every passing day, but it also becomes harder for businesses to cut through the online clutter and properly market themselves. Digital marketing services are always in demand. Yet, many small and midsize companies would rather outsource them than establish a costly in-house team. If you have chops in SEO, content marketing, pay-per-click advertising, web development or social media management, you could seize a business opportunity that allows you the freedom to work from home. Digital marketing is an important part of any brand, so you’ll need to respond to developments in your clients’ marketing strategies. Social media management entails watching for comments and messages around the clock, not just scheduling posts with a set-it-and-forget-it mindset. If you enjoy strategizing and implementing marketing plans meticulously, digital marketing could be the right business for you. You may also consider becoming an affiliate marketer, which is another form of digital marketing. 

6. Owning a food truck Food trucks come in all shapes and sizes, serving up a wide range of snacks and cuisines. Take your favorite style of food on the road, and sell your culinary passions directly to hungry customers. Sure, you’ll be working, but you’ll be in a space you’re passionate about, with a chance to connect to people who have similar interests. Starting a food truck is a great small business idea for entrepreneurs with a taste for the culinary. The overhead and upkeep for a truck is significantly less than for a restaurant, and you have the added benefit of mobility.

7. Medical courier service If you have a reliable vehicle and good time management skills, consider creating your own courier service more specifically, a medical courier service. As a driver, you would be responsible for transporting medical items like lab specimens, prescription drugs and equipment. You could start your courier business on your own or hire other drivers to work for you.

8. Online teaching The demand for online education has opened up possibilities for entrepreneurs. Since this is an online venture, you can choose any subject you know about and teach a course regardless of location. If you don’t have advanced knowledge in any particular subject, consider teaching English as a foreign language online to students overseas.

9. Rideshare driving If starting your own business seems daunting or too much of a risk, you can always use your car to become a rideshare driver. The overhead and responsibility of running the company fall on the rideshare service, giving you the freedom to work as much or as little as you want. Rideshare applications such as Uber and Lyft allow people to start side hustles that pay well and require little more than a willingness to drive people to their destinations and make occasional friendly conversation. Rideshare drivers have the independence of a small business owner without the heavy workload required to manage behind-the-scenes logistics. If any of the other business ideas seem to require too much effort or upfront capital, ridesharing might be the way to dip your toe into the world of entrepreneurship.

10. T shirt printing If you have a sense of fashion (or humor), you might enjoy launching a T shirt printing business. You can also license someone else’s designs and screen print them onto a blank tee. Either way, if you have space for a T shirt printing setup, you can easily acquire the necessary tools to get started.

What would be a good small business to start? 

If you want to maximize your profit while minimizing your workload, try any of the small business ideas that most frequently prove successful. However, if you’re more interested in pursuing your passions while earning enough money to live, start a small business that fulfills you, requires you to use your skills and offers you a good work life balance. There are so many great business ideas  and you know better than anyone what small business ideas will bring you happiness, success and stability.

Ministry Points out Key Risks to Pakistan Economy

The Ministry of Finance has identified eight critical fiscal risks that could potentially escalate vulnerabilities within Pakistan's economy. These risks encompass macroeconomic imbalances, escalating debt levels, guarantees, climate degradation, losses within State Owned Enterprises (SOEs), risks associated with public private partnerships, fiscal indiscipline among provincial governments, and governance challenges.

According to the Fiscal Risk Statement (FRS) for 2023-24 released by the Ministry of Finance, Pakistan has experienced significant volatility in its inflation rate in recent years. This volatility has been attributed to several factors, including currency devaluation and fluctuations in energy and food prices within the global market. The acknowledgment of these influences underscores the complex nature of inflation dynamics within Pakistan's economy. It emphasizes the need for strategic measures to mitigate the impact of external factors and to stabilize inflation rates, ensuring greater economic predictability and resilience. The Pakistani rupee has experienced significant depreciation in recent years, influenced by various risk factors such as trade imbalances, external debt, political instability and global economic conditions. The State Bank of Pakistan (SBP) is actively responding to increasing inflation by raising the policy rate. Moreover, the government is also focusing on taking effective policy, administrative, and relief measures to control inflation and stabilise the economy, the FRS said. The inflation outlook has deteriorated, and there is a heightened risk to external stability. The uncertainty surrounding the future adjustment path in energy prices is the main upside risk to the inflation outlook. However, a potential moderation in international commodity prices may contribute to a reduction in inflation. Further, exchange rate adjustments, passing on the impact of energy price increases, and interest rates on the higher side would enable the prices to decline over the medium term. Subsequently, it would follow the expansionary monetary policy and improvement in fiscal space given the decline in mark-up payments. As such, the stabilization measures taken during the last year can bring macroeconomic and fiscal benefits in the medium term.

Pakistan is among the top 10 countries most vulnerable to the impacts of climate change, as highlighted by the Global Climate Risk Index 2021, published by the German watch. With the number of days per year with a heat index greater than 35°C projected to rise significantly, Pakistan will be exposed to a more severe, frequent, and longer droughts, while the melting of the Himalayan glaciers will pose a major threat. The Ministry of Climate Change has already identified 33 glacial lakes prone to hazardous glacial lake outburst flooding (GLOF), which could put millions of people at risk. Moreover, Pakistan ranks 12th in the world in terms of climate vulnerability, as per the Climate Vulnerability Monitor, highlighting the need for an urgent action, the FRS said.

ONLINE BUSINESS IDEAS YOU CAN START IN 2024

Here is the list of the top online business ideas to get you started instantly. The best part is that all of these ideas have money making potential, meaning you don’t need to validate them before you start. If you are looking for the best online business to start, this is the only list you will need.

Most Popular Online Business Ideas

1. Social Media Manager Social media is an integral part of any business but it’s time consuming and ever changing so really quite difficult to keep up with and, more importantly, capitalize on. Many business owners are willing to outsource this time-intensive task, so it’s a great opportunity for social media fanatics. Bundle together a few interesting offers, such as “Startup social media kit” or “Small Business Social Media Starter Kit” that encompass everything from social media graphics to analytics reports and the seamless experience will bring you more clients than you expect.

2. T-Shirt Online Shop Platforms like Printout and Shoplift have made it insanely simple to start an online t-shirt business for anyone with a speck of imagination and an eye for design. But it doesn’t need to be an online t-shirt shop; you can set up an e commerce shop selling anything. The key here is to learn about print on demand, which forms the base for such businesses.

3. Dropshipping Business is the easiest option to start an e commerce business without having to buy any products in advance. Use drop shipping apps to find thousands of products from suppliers to sell online. Then sell to customers across the world while building and promoting your own brand, all without needing to invest in warehousing or manufacturing costs. You don’t need to pay for inventory until it’s sold to an actual customer. From online boutique to jewelry store to women’s clothing store to one-product store, drop shipping works for most online store ideas.Check out our guide to starting a drop shipping business to learn more about this great opportunity. 

4. Kickstarter/Indiegogo Advisor Grabbing the attention of curious browsers on the most popular crowd sourcing platforms like Kick starter and Indigo is a tough job. If you’re inventive and know how to tap into human emotion, then this is a niche worth exploring. Many aspiring entrepreneurs look for personalized advice to carry their campaigns to the finish line, so try offering action-oriented eBooks or online courses targeted at this particular audience. 

5. SEO Expert One of the online world’s hottest professions at the moment, this business is a gold mine for the tech-savvy entrepreneurs. While everyone’s slightly obsessed with getting their sites SEO optimized, not many people can actually wrap their heads around this topic. If you decide to go into this field, you can think about offering link building, content creation, e commerce SEO optimization, and similar one-off packages.

6. Selling Online Courses Derek Halterneck has built a really strong personal brand. He’s the founder of a software and business training company called Social Triggers and makes a LOT of money teaching people how to sell what they know best. And what he knows best is how to sell. If you’ve got some serious expertise, start making money out of it by selling online courses or simply teaching online.

7. Bug Testing Bug testing is a service that no software company can ignore. If you can build a platform to crowd source expert skills and resources to tackle this area, then you have solid chances of turning a profit. One of the most unique online business ideas, providing bug testing resources can be a lucrative way to boost your income. To find relevant jobs, go through the listings on Zip Recruiter and Indeed.  

8. Video Producer YouTube is the second largest site in the world, so there’s no surprise that video is becoming one of the main communication mediums for businesses of all types and sizes. If you have video filming or editing knowledge, it won’t take you long to build your clientele. Everything from video production workshops and video editing services to soundtrack libraries and DIY tutorials can appeal to the business world. Producing a video might be one of the most attractive online business ideas with lots of creativity and challenges .

10. Website Developer In the same vein as graphic design, website development is in constant demand as businesses are always trying to upgrade and improve their websites to get more sales. This means that you can work on new and existing websites concurrently, and get to try new things all the time. If being constantly challenged is what you are looking for, website development could be the best online business for you.

11. App Development Apps are an amazing lucrative market, so it is not surprising that more and more companies are investing in them. This means that there is a growing need for app developers to create their applications. Offering app development  is a great opportunity as you can work on vastly different applications on a daily basis.

12. Affiliate Marketing Affiliate marketing is where a person promotes a product that another merchant sells. Using advertising, social media, blogging, and more, an affiliate marketer can attract customers to their landing page. When customers click a link to buy the product they will then be brought to the merchant’s store to buy the product. As an internet business idea, this is great for anyone no matter their previous experience. Check out our guide, Affiliate Marketing: Everything You Need to Know, to learn more about this business model.

What Is Credit Control

Credit control is a strategy used by businesses to extend credit to potential customers to increase the sale of products and services. Credit control is a strategy used by businesses to extend credit to potential customers to increase the sale of products and services. The goal is to work with as many creditworthy consumers as possible and limit how frequently credit is offered to consumers with poor credit. 

 Definition and Example of Credit Control

Credit control is a standard businesses use to determine how much credit to offer their customers. While getting paid upfront is the easiest and safest way for most companies, it can also limit the total profits. Extending credit can make it easier for potential customers to purchase your products and services. By breaking up the payments into monthly installments or letting customers pay later, it can make the purchase more manageable. Alternate name: Credit policy For example, a company may offer in-house financing in which they allow customers with high credit scores to pay off a purchase over a set period of time. In theory, the financing encourages customers to make purchases, thereby boosting the company’s sales.

How Credit Control Works 

The success or failure of your business largely depends on the sale of your products and services. Sales are a clear metric for business success: the higher your sales, the higher your profits will be. Before you extend credit to your customers, you need to have a credit policy in place. Credit control determines who your business extends credit to. Extending credit to customers with a poor credit history or delinquencies can ultimately hurt your business more than it helps. A credit control policy can play out in a variety of different ways, depending on the type of business you run. For instance, professional services businesses may offer credit terms to individuals and companies. After the service is provided, they’ll typically send an invoice with payment terms depending on the service agreement. An e-commerce business, on the other hand, may set up a monthly installment plan to pay for the purchase of products. These types of companies will usually accept credit cards and other online payments.

 Types of Credit Control 

Two common types of credit control are restrictive and liberal. The policy your company implements will largely depend on its size, profit margins, and total market share. 

Restrictive Credit Control A restrictive credit control policy poses the lowest level of risk to your company. It means that  you’re only willing to work with customers that have a strong credit history. This is a good option for companies with low profit margins or where there are many risks involved. Liberal Credit Control A liberal credit control policy means the business is willing to extend credit to most customers. Companies that have high profit margins or operate in a monopoly may prefer a liberal credit policy.

Types of Credit Options

 If you choose to extend credit to your customers, you’ll need to decide which types of credit you’re going to accept. Here are a few of the most common types of credit options you may choose to offer. Credit Cards Companies that choose to accept credit cards will have to decide which payment options they’re willing to accept. For example, a merchant may not accept credit cards from a certain issuer but accepts cards from other issuers. Companies will pay an interchange fee for every card transaction, starting as low as 1.15% plus a few cents for Visa and Mastercard transactions. However, accepting credit cards comes at a very low risk to businesses because the risk falls on the credit-card issuers and not the individual customer.

Checks Some companies still accept checks from customers, though this can be risky. There is always a chance the check will bounce. If you choose to allow this option, you need to have a policy to obtain customers' identification. 

Credit Terms Finally, some businesses will extend credit terms to their customers. If you do this, you’ll need to have your customers sign a sales contract that outlines the payment terms. Before the terms are binding, the agreement must be in writing and signed by the customer.