by Rachel Stires
Clash Daily Guest Contributor
There was a time when small businesses mattered in the United States, and sound federal policies that were in place enabled small business owners to roll with the big boys. Our economy was once built around them, but every economic downturn in the 20th century slowly chipped away at policies that help enable small businesses to compete with large corporations. Federal policies put in place to address economic recessions heavily favored extraordinarily large and profitable firms. This caused the dynamism that we once had for small enterprises to slowly erode. In fact, a recent study shows that entrepreneurship has deteriorated in each decade since the 1970s. The same report also indicates that the millennials are on the journey of being the least entrepreneurial group on record.
The declining support for small businesses is discouraging many who want to start small. The share of medium enterprises has fallen by 50% since the 1970s. Our markets are concentrated but less competitive. United States’ economy has come to resemble a stagnant pool. Who will save small businesses in America? Well, I think Donald J. Trump has the answer. However, before I mention the reasons why President Trump is a blessing to small business owners like you and me, allow me to mention why small and middle-sized enterprises matter and why America needs them.
Why Do Small Businesses Matter?
Although, small businesses operate in their own unique way, the cumulative impact of these businesses is enormous. In America, there are over 28 million small enterprises that account for 54% of all sales in the country. The small and medium-sized business sector provides 55% of all jobs in the U.S. In fact, over 600,000 franchised small businesses in America provide jobs for more than 8 million people.
Small businesses play a significant role in every sector. Politically, these companies help promote and strengthen reforms. The small businesses sector empowers and fosters a vibrant middle class, which can serve as leaders seeking better reforms and economic stability. Economically, small and medium-sized businesses encourage entrepreneurship and also have an unwavering interest in promoting a level playing field for all. This shows that an active small and medium business sector is a vital ingredient if we need to make America great again. Simply put, small businesses should not be ignored because they are the backbone of the American economy.
Trump Administration and Small Businesses
It is true that candidates from both parties publicly worship small businesses but do nothing about them when they get in office. However, I think Trump will help small businesses choke the domination and oligopolies of the 19th century. He is going all the way to help SME sector if the current trends are anything to go by. Here are the three things that Trump is doing that could save small businesses from unpredictable currents of the free market.
Less Healthcare Costs for your Small Business
The motivation behind the Affordable Care Act for insurance covers was noble. Through the Act, many small businesses have gotten covers they would not have received before. However, the costs of the covers are still way too much for most small companies, and that’s why the ACA needs to be replaced. If repealed and replaced, Trump promised to come up with a more affordable alternative that will enable more low-wage employees to access health care. This means that more workers will stick with small businesses rather than going to work for employers (big companies) who can provide insurance.
In one of his promises, Trump promised to lower corporate taxes from 35% to 15%. This is a significant cut that could help small businesses achieve a healthy cash flow. If he delivers this promise, small businesses will now have enough money to cover their bills. Small companies will have the financial muscle to enable expansion and for the hiring of more workers.
Throughout his campaigns, Trump promised to revive entrepreneurship in the United States. He said that he would do this by introducing new entrepreneurial development legislation and also through the Small Business Innovation Research (SBIR) programs. Using this two approaches, Trump will be able to elevate entrepreneurship from every level. The two methods will also foster a healthy relationship between small business owners and the government. New policies and regulations will be introduced to provide a level playing field for all. The SBIR programs will also help small businesses to adopt technology cheaply. What’s more? Small businesses will get more funds and will be more productive because of friendly policies and regulations.
We need to accept and support the growing number of small enterprises in the country. Our markets will become more competitive if we embrace entrepreneurship. It is time to revive the love we had for small businesses. If we deal with the internal issues and constraints facing our business environment today, we will be able to exploit the untapped potential in small businesses. As a result, there will be more job creation. Large enterprises will treat small businesses as partners, and our economy will grow more rapidly.
Image: Excerpted from: Onasill ~ Bill Badzo Bristol Tennessee ~ Unce Sams Loan Office ~ Historic Store ~ My Old Photo via photopin (license)
Rachel Stires is a contributing writer and media specialist for the Louder with Crowder. She regularly produces content for a variety of small business topics from a conservative viewpoint. She writes a wide range of blogs, based around educating people on the nuances of running a small business through a conservative viewpoint.