June 18, 2013 1 Comment
Virtually all American small businesses hire Americans. They spends their money here. They pay their taxes here. Their profits stay here, helping to grow our economy. They support local businesses. Small business grows American jobs.
While big government, big business and big union continue to capture the headlines in the Mainstream Media (MSM) the latest Gallup Polls tell the real story – Americans’ Confidence in Congress Falls to Lowest on Record. Small Business continues to garner the trust of most Americans – 76%!
Americans don’t discriminate when it comes to entrepreneurship. Entrepreneurship and American exceptionalism is an equal opportunity endeavour.
This message needs to resonate with more politicians, whose confidence with the American people is at a new low – only 10% according to the Gallup poll!! Yet who do politicians pander to, Big Business 22%, and Big Union 20%, right there with them.
While Big Government is busy making deals with major corporations like Amazon and Time Warner here in Florida, small businesses are left to compete for business at lesser margins. They compete for qualified employees at higher salaries. Why? Big government subsidized competition for big business through tax incentives, tax breaks, and now even Obamacare, delaying the corporate mandate.
What politicians need to do, is pay attention more attention to small businesses. Recently I tested my own theory that small business grows jobs at a much greater rate than big business. I arrived at some interesting conclusions.
A large portion, over 50% of the 55M employees recorded by the SBA in 2008 employed by small businesses, are concentrated in the 1-50 employee businesses. One could then draw the conclusion, the more start-ups the better. Feeding start-ups to grow quickly into the categories of 5 – 25 employees is a path to greater job growth, than big business.
|Business size – Category||No. Employees||Percent of Total Employees under 500||Increase in Employment by Business Size|
There needs to be more start-ups, a.k.a., small businesses. To encourage the increase in numbers of employees in the 5 – 25 employee categories would mean enabling small businesses to create more jobs, at a faster pace.
To demonstrate this further, another US Government Small Business Administration (SBA) study shows companies between 20 and 100 employees produce the most significant rate of growth both in employment and revenues.
|Legal Form||U.S., All Industries Employment Size of Firm|
|of Organization||Total||0 *||1-4||5-9||10-19||20-99||100-499|
More of the incentives afforded to the large corporations should shift to smaller businesses to increase the numbers of smaller businesses who succeed. Check out: America Runs On Small Businesses Infograph.
Consider as larger corporations continue to downsize, largely due to technology replacing people, where is job growth going to come from? The answer, entrepreneurs and innovation. There’s more to this story. Let me know what you think?
If politicians want to win elections, they need to run on a small business for jobs platform. They need to ask, “What can be done to increase the success of start-ups, reduce their failure rate, sustain their growth and the rate of employment to the extent they can grow and produce significant gains in employment and revenues?”
A combination of small business development, combined with technology and innovation will grow this economy faster than dishing out boondoggles to big business.