Tag Archive for 'regulations'

Small Business Advocate Poll: “Just get out of our way!”

The Question:
What do you want the federal government to do to help you with your small business?

0% - Initiate more programs to help small businesses

71% - Get out of our way by reducing taxes and regulations

29% - Both of the above

My Comments:
These days it seems a lot of people have their hands out for help from the government; from GM, Chrysler, and AIG, to who knows how many big banks. Then there are the unions, public and private, that rely on government support for their very existence. Big corporations make billions of profits doing business with the government. And one out of every seven Americans - over 50 million - now receives some kind of welfare.

But there is another group of folks out there that is about half the number of welfare recipients, produces over half of the U.S. economy, and sign over 70 million paychecks every week - small business owners. So what does this group want from the government? Well, we asked them about that last week in our online poll, with this question: What do you want the federal government to do to help you with your small business? Here’s what they said:

Not one person chose, “Initiate more programs to help small businesses,” as their answer. But those who believe the government should just, “Get out of our way by reducing taxes and regulations,” came in at 71%. The rest, 29%, allowed that the government should do “Both of the above.”

What if every group of Americans felt the same way small business owners do? I would like to see what that looks like, wouldn’t you?

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I talked more about what small businesses want from the government this week on my radio program. Take a few minutes to download or listen.

Check out more of Jim’s great content HERE!

Take this week’s poll HERE!

Watch Jim’s videos HERE!

Next Main Street movie: “Small Business Shrugged”

At this moment four years ago we were in the middle of The Great Recession whirlwind. We didn’t know how bad things were going to get because all of the shoes had not dropped in reaction to the financial crisis. Millions were still being laid off, GM and Chrysler had not yet taken bankruptcy and the federal government was injecting the first of trillions of dollars into a shell-shocked economy.

Today, 43 months after the technical end of The Great Recession, surveys I report about on my radio program (NFIB, Tatum, our online poll, etc.), indicate that about a fifth of small businesses are doing well, about as many are doing poorly, and the middle 60% are doing just okay. This economy should be a rising tide floating all boats; but it isn’t. Instead, as in 2009, every small business owner is still anxious about the next 12 months.

During recoveries of past recessions, concerns were about market dynamics created by the usual suspects: inflation, global trade, supply and demand, technology disruptions, fear and greed, etc. But this not-so-great recovery is different.

For the first time in my long career (seven recessions), the origin of what will wake up small business owners at 3am in 2013 are mostly challenges created by the federal government. Here’s the short list: higher taxes; unsustainable budget deficits and debt; hundreds of Obamacare mandates, regulations, penalties and taxes (Galen Institute); thousands of new 2013 regulations costing businesses $123 billion, plus 13.6 million compliance man-hours (American Action Forum).

But alas, there is one more thing which may be more troubling to this market sector that produces over half of the U.S. economy: A zero-sum philosophy coming from Washington that the financial success of “fortunate” Americans is at the expense of others. But successful entrepreneurs are only fortunate because, like every American, they have a Constitutional right to pursue success, not a guarantee of success.

Small businesses take economic headwinds in stride because they know the marketplace is self-healing with the passage of time. But government-created headwinds not only don’t heal, they compound, and this truth does not motivate small business owners to take risks.

Most small business owners want to grow and hire, but they don’t have to. So far, that’s not a government mandate. The next movie the political class may see playing on Main Street could be titled, “Small Business Shrugged.”

Eventually government expansion and economic expansion become mutually exclusive.

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This week on The Small Business Advocate Show I talked more about America’s lack of small business optimism and why political policies are to blame for the slow economic recovery. Click here to download or listen. Afterward, please let me know what you think.

Check out more of Jim’s great content HERE!

Take this week’s poll HERE!

Watch Jim’s videos HERE!




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