Note:
Having observed radio silence for a few weeks, Hard Truths is now back on the airwaves in time for the run-up to the US presidential election. Coverage continues as normal from here on in...
Article:
Small business is a form of enterprise that Hard Truths views as critical to the functioning of a modern economy, and one that came into prominence during the last debate. Small business is broadly defined in the US as employing fewer than 500 employees and gaining less than $7 million in annual revenue. These small businesses, the motor shops, dry cleaners, photographers, corner shops etc. are the motors of an economy. Fully 52% of Americans are employed in small businesses, and these businesses are very often the most versatile and agile in the economy. Small businesses are often able to adapt to changing economic circumstances more effectively than large enterprises, reorienting themselves and re-strategizing quickly and efficiently. Economies fluctuate, and in situations where corporate priorities hinder an appropriate reaction, a small business can take decisive action and adapt to the new environment.
Small businesses may posses considerable flexibility in their capacity to weather economic changes, but they are incredibly vulnerable to government policy. Small businesses are very tax-sensitive, possessing neither the capability nor the size to be able to manipulate their tax dealings. Small businesses is also affected by other government policies, including employment legislation, health-care legislation and corporate law. It is extremely important for small businesses to have as few obstacles placed in their path as possible, given that their need to gain and keep momentum is absolute. If a small business loses it's momentum in sales, production, operations and so on, it runs the serious risk of failure. If small businesses have a true weakness, it is that they largely cannot endure long periods of inactivity or uncertainty. The effect of stifling legislation and overbearing government is exactly that, and the danger to posed to small business cannot be underestimated The US must never follow a European path down the road to small business lethargy, where employment legislation and high taxes in countries such as Italy and France make opening a business a risky and unpleasant proposition.
Creating the conditions where starting a small business is an exciting, challenging and rewarding experience, not a frustrating one, is key to the growth of a modern economy. Small business-people are the guardians of the future of this economy. They must be encouraged, and conditions must be put in place that allow for easy access to capital, knowledge and allow for painless start-ups. It is not enough to pay lip-service without providing better conditions, as the UK government has done. No, allow Hard Truths to provide a pointer. These conditions are a step in the right direction:
This is of course not all that is necessary, but a President who is wiling to put in place policies that allow for such conditions will go along way towards ensuring that no matter what economic challenges appear, the small businesses of the US are there to adapt to the new conditions, to stimulate the economy and to create jobs. Whichever candidate wins the election must make small business a top priority, in order to revive the flagging US economy. Mitt Romney, however, appears to be aware of this, and willing to bend his mind towards creating the necessary conditions; whereas Barack Obama appears to not really care a great deal.
Gentlemen, small business will provide the entrepreneurial spirit and drive that will keep America on top economically. Do not follow Europe towards a policy of slowest growth and stifled hope. Give small business the conditions it needs, and it will repay the favor with a booming economy.
Creating the conditions where starting a small business is an exciting, challenging and rewarding experience, not a frustrating one, is key to the growth of a modern economy. Small business-people are the guardians of the future of this economy. They must be encouraged, and conditions must be put in place that allow for easy access to capital, knowledge and allow for painless start-ups. It is not enough to pay lip-service without providing better conditions, as the UK government has done. No, allow Hard Truths to provide a pointer. These conditions are a step in the right direction:
- Acceptably low personal and business taxes.
- A simple and easy to navigate tax code.
- Easy access to startup and expansion capital, possibly with government loan guarantees.
- Simple and nonrestrictive employment legislation, with minimal union activity.
- Free trade conditions across state and federal borders.
- Access to an educated and motivated workforce, achieved through education.
- Access to cutting-edge knowledge, research and expertise.
This is of course not all that is necessary, but a President who is wiling to put in place policies that allow for such conditions will go along way towards ensuring that no matter what economic challenges appear, the small businesses of the US are there to adapt to the new conditions, to stimulate the economy and to create jobs. Whichever candidate wins the election must make small business a top priority, in order to revive the flagging US economy. Mitt Romney, however, appears to be aware of this, and willing to bend his mind towards creating the necessary conditions; whereas Barack Obama appears to not really care a great deal.
Gentlemen, small business will provide the entrepreneurial spirit and drive that will keep America on top economically. Do not follow Europe towards a policy of slowest growth and stifled hope. Give small business the conditions it needs, and it will repay the favor with a booming economy.
