Inside Entrepreneurship: What Small Bizs Need To Thrive
I’m watching the new administration’s small-business initiatives closely. Here’s my short list for leveraging the innovation and drive of America’s small-business owners.
• Fire up the Small Business Administration. The Bush administration demoted the Small Business Administration from Cabinet status and closed regional SBA offices that provided a broad range of lending, emergency relief, and education services to prospective and active small businesses. A retooled and better-financed SBA can stimulate enterprise growth at the grass-roots level.
• Enforce small-business contracting laws. In recent years, small-business owners have not gotten their legal fair share of federal government contracts. Change can happen today provided the Obama administration has the will to say no to larger corporate contractors.
• Improve credit access. Watch the news releases of leading banks that have received funds from the Troubled Assets Relief Program. They report that they are actively opening up credit to the business community, but what about the small-business community in particular? As long as banks reduce or eliminate credit lines for routine working small-business owners need, expect more job losses. Initiatives that might allow small-business owners to accelerate depreciation deductions on new equipment purchases won’t matter if business owners can’t get the money to buy the equipment in the first place.
• SBIR diversity. I’m a proponent of the Small Business Innovation Research grants that can provide up to $500,000 in funding to commercialize promising technologies and services.
• Simplify the tax code. Simply stated, business owners have too many tax returns and tax payment obligations to manage on a quarterly and annual basis.
• Maintain capital gains tax treatment. Offering lower tax rates for investors and owners in privately held businesses helps businesses raise equity, especially when credit markets are closed to entrepreneurial businesses.
Photo by mjamesno.
Jaclyn on March 19th, 2009 8:22 am
I really think that the credit stipulations need to be a little bit on the softer side for businesses, especially these day’s, it seems next to impossible for businesses to get financing. and the tax code would probably be a lot better if it was a little more simplified and easier to implement as well as understand.
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