Importance of Small and Mid-size Businesses
Immigrants from throughout the world continue to come to the United States because of its uniqueness in the world, frequently referred to as “American Exceptionalism”. Only in the United States does everyone have an equal opportunity to succeed and prosper, assuming they are willing to work hard and take risks. It is for this reason that over 600,000 new businesses are started each year, while half a million fail. The Heritage Foundation reports that small and mid-size businesses (those employing fewer than 500) represent 99% of all employer firms, employ more than 50% of all private-sector employees, pay 44% of the U.S. private payroll, and have generated 64% of net new jobs over the past 15 years. Clearly, small and mid-size businesses, as a group, are America’s engine of economic growth.
Threats to Small and Mid-size Businesses
We are now witnessing an unprecedented alliance of Progressive big-government with big labor and big business. History has shown us many examples of these type alliances, all with dire consequences. The policies which this big-government, big labor, and big business alliance support, with its many taxes, rules, and regulations, will be mutually beneficial for them, while destructive to small and mid-size businesses. Many congressional bills only provide guidance, while relying on the various federal agencies, with help from big business lobbyists, to create the detailed rules and regulations. Not only will these large businesses be able to influence these rules and regulations to favor themselves, they have the resources to deal with the many rules, regulations, and added complexities required by an ever intrusive government into the private sector, while small and mid-size businesses do not have these resources. Once these regional, local small and mid-size businesses disappear, big businesses will fill the void with their branch operations. A sampling of the ever increasing rules and regulations is listed in the American Spectator’s July-August, 2010 Issue – “America’s Ruling Class – And the Perils of Revolution” by Angelo M. Codevilla.
Up to now, small and mid-size businesses have relied on organizations, such as the Chamber of Commerce, the National Small Business Association, U.S. Small Business Administration, and the Business Roundtable, to represent and advocate their interests. Unfortunately, these organizations have either misjudged their deal-making or have been ineffective in their lobbying to stop the current assault on small and mid-size businesses.
Small and Mid-size Business Actions
Small and mid-size businesses’ only recourse now is to align itself with local, non-partisan, citizen groups focused on leveraging their large base of informed and passionate volunteers to impact elections at the local level and to hold politicians’ feet-to-the-fire in regards to adhering to principles of limited government, free markets, and individual liberties. Only with adherence to these Constitutional principles can small and mid-size businesses continue to prosper in our uniquely American capitalistic system.
Small and mid-size businesses must educate their employees and encourage them to also get involved with local citizen organizations. Small and mid-size businesses can also assist local non-partisan citizen neighborhood groups with funding. This can be a very synergistic relationship, since these grassroots citizen groups don’t have much money and small and mid-size business owners don’t have much time. These donations should be viewed as excellent investments, with excellent Return-On-Investments (ROR), if this synergistic coalition is able to prevent big-government envisioned tax increases and to reverse, costly to administer, rules and regulations.
Small and mid-size businesses can extract a page from the Progressive’s playbook, captured in THE BLUEPRINT – How the Democrats Won Colorado, published in 2010 by Adam Schrager and Rob Witwer. The innovative donor model described in this book directs donor contributions to aligned, local groups, each of which provides different and complementary capabilities. This distributed network of aligned, local groups limits transparency, minimizes duplicative efforts, completely hides the flow of donor money, and insulates the network from missteps by any of the aligned, local groups. Importantly, this donor model assures efficient and effective utilization of donor money without an intermediary entity or organization which can enrich itself first and then direct the remaining funds to their favored initiatives.