President Barak Obama, addressing an assembled group described small businesses as, “the backbone of America’s economy.” No matter what your political persuasion might be, there is no arguing that the success of small businesses is essential to the health of the nation’s economy. A strong and resilient economy that continues to grow is dependent on the success of these enterprises. How can small businesses be encouraged to grow and flourish? Here are a few answers.
Money Helps
Small businesses take cash to develop and run. Lenders are more cautious than ever before when it comes to lending to start ups. Enter the Small Business Administration (SBA). Each year, the SBA extends loans to well qualified borrowers who are starting or expanding a business. Funding small businesses is essential to their continued survival, making the availability of loans a high legislative priority. Privately funded incubators and micro lenders also benefit those who need a jump start.
Taxes and Fees
For many years, major corporations have benefited from tax codes and regulations that help them to prosper. Many small business owners have not had the same advantage. Recent changes in tax law have extended benefits to small business owners that allow them to flourish by extending many of the same perks enjoyed by their big business brothers.
Lessening the Burdens of Regulation
Small business owners are required to jump through many regulatory hoops. In a survey commissioned by Paychex, Inc., a payroll service serving small businesses, owners reported that regulations slowed their rate of growth. Changes in health care, tax codes, and state budgets have added additional stresses that worry these owners.
Small business owners provide jobs and needed services. Recognizing the needs of these companies is essential if our economy is to continue to grow and prosper.