Who Counts? Not Small Business…

How is our government counting jobs? 

According to Political Calculations, since 2009 under the Obama administration, through December 2011, we are losing private sector jobs in industries we consider the heart of America. 

In Transportation and Warehousing from 2009 through 2011 we have lost 769,000 (46%) jobs; in Manufacturing, 329,000 jobs (20%); and in all other civilian jobs the loss is 565,000 (34%). 

You can only draw one conclusion, if we are seeing an uptick in jobs, it is government created jobs using taxpayer dollars.  Your money.  In other words, its all about politics and getting re-elected.

Government getting in the way, is happening at all levels of government.  Isn’t it our loss if a small business loses an employee and Time Warner’s gain if they can count one or is there’s more to the story?  

An article in the Tampa Bay Times March 12, 2012, When it comes to recruiting businesses with taxpayer funds, Florida should be pickier, Robert Trigaux, Times Business Columnist states Time Warner received $3,000,000 to bring 500 jobs to Hillsborough County.  Not exactly.

Unfortunately, for one small business and the rest of the State’s taxpayers, Time Warner and the State’s jobs program is tapping into existing state jobs, not new out-of-state jobs.  Time Warner’s recruiters are calling in-state employees repeatedly recruiting them to leave their in-state employer, in this case, a small business in Pinellas County, to take a similar job for more money in Hillsborough County on the taxpayers dime. 

A high value software developer recently left his job at an in-state small business in Pinellas County, to work for Time Warner in Hillsborough County.  A small business in Pinellas recruited him 8 months ago from Buffalo, NY.  The cost to recruit and employ him, easily exceeded $10K, considering moving expenses and training costs.  This small business did not receive any state, county or local funds.  Time Warner should not receive credit for a new hire who is an existing worker from the State of Florida.  As a small business they employ 37 FTEs with average annual wages well exceeding $60K.  

The small business in Pinellas grew from approximately 25 to 33 plus FTEs in 2011 alone.   That’s a 32% increase in employment in one year.  Where else do you get that kind of return on employment?  Not with big businesses like Time Warner.  The small business in Pinellas expect to hire 5 – 10 additional FTEs in 2012.  They have a great benefits package and a casual work environment.  Still, it is hard to compete with large corporations, in particular, if the corporation is receiving millions of dollars in State money, to hire in-state employees.

Finally, there’s even the question of county government giving big business an unfair advantage over a small business right in their own backyard.  This story appeared in The Tampa Bay Times recently concerning Hillsborough’s Bass Pro Shops receiving $15 million in State and County funds to open shop next door to a local small business, Boaters World, offering many of the same products and services. 

Where’s the business logic in that and why does a government bureaucrat get to make decisions affecting private enterprise?  Outrageous!

About Idea Capitalist
Family guy and entrepreneur. Small Business owner. NFIB Leadership Council member. Serial blogger.

2 Responses to Who Counts? Not Small Business…

  1. Dan Wiessner says:

    IMHO government (all levels) should not be engaged in picking winners and losers, period. If each level of government were doing its basic job (providing services to its consitiuents, essentially its customers) at the lowest, most efficient prices it can, jobs, people and businesses would seek those jurisdictions out. Free markets are the best solution. Government interference in the markets creates aberrations and waste making them, by definition, less free.

    Like

  2. Pingback: Gallup Poll – Small Business Garners the Trust of Americans | Idea Capitalists

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