Magazine article The Small Business Advocate

What's Advocacy's Story? Small Business Matters

Magazine article The Small Business Advocate

What's Advocacy's Story? Small Business Matters

Article excerpt

In the past week, I've had two things come across my desk that really sum up for me what the Office of Advocacy is all about. Yes, we're about small business research and advocacy; but sometimes the key message gets lost in technical topics and legal intricacies.

Our story is simple. Small business matters. Big time. This comes through in glorious, high definition in our two newest reports.

Small Business Profiles for the States and Territories show how important small businesses are to the United States as a whole and to each state and territory individually. The country overall has slightly more than 6 million small employers, or 99.7 percent of all employer firms. (Firms with more than 500 employees are very few in number - there are only about 18,000 of them.) Small firms provide 50.4 percent of our private sector jobs, and they generate more than half of U.S. private non-farm gross domestic product. They are also the nation's most reliable job creation engine. Between 2004 and 2005, small businesses created 78.9 percent of the nation's net new jobs.

Through all 50 states, these statistics form a pattern. In every state, almost all firms are small and they provide roughly half the jobs. In some rural states, small firms provide as many as twothirds of private- sec tor jobs. Small firms had positive net job creation in all but five states in the most recent year studied, and small businesses created all of the net new jobs in 14 states and the District of Columbia.

It should be very clear by now why small businesses matter. Their ingenuity, their community roots, and their resilience are the nation's best hope for future job creation and economic recovery.

Congress created the Office of Advocacy because small business is so important; yet when it comes to regulation and policymaking, small business is at a disadvantage. Small firms annually pay 45 percent more per employee than large firms to meet their federal regulatory obligations. …

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