NSBA: Small Businesses DO Create Jobs and Prosperity

July 17, 2012

President Barack Obama recently commented on the ability of hard work and entrepreneurship alone to create financial success and economic growth. Although NSBA would agree that there are many critical parts that go into making a small business successful, the entrepreneurship and hard work driving small firms have created on average two-thirds of all net new job growth. Below is a statement from NSBA Chair Chris Holman, CEO of Michigan Business Network.com and President of The Greater Lansing Business Monthly.

“I don’t think any entrepreneur would claim that she “did it alone,” but to imply that somebody else made it happen shortchanges the huge risks—financial, time and emotional—unique to entrepreneurs that we undertake on a daily basis.

“President Obama pointed to the invention of the Internet as a result of government research—which would be far less advanced without countless entrepreneurial breakthroughs—but let’s make no mistake about who funds such research—and for that matter, the entire government. Certainly small businesses don’t do it alone, but the 70 million people who work for or run a small business contribute a significant amount.

“What the President failed to acknowledge is the unfair burden small business faces despite our well-documented and highly important role in the U.S. economy. What small business needs is a level playing field—something any serious politician ought to be working toward.

“Among the challenges facing America’s small businesses—challenges that land squarely in the small-business owners lap alone—is the fact that firms with fewer than 20 employees spend 36 percent more per employee than larger firms to comply with federal regulations, at $10,585 per employee per year.

“During the height of The Great Recession (from 2007 to 2010) employer establishment births dropped 12 percent, and the business startup rate fell below eight percent (of new firms as a percentage of all firms) in 2010, marking its lowest point on record.

“According to the World Bank, the U.S. ranks fourth in ease of doing business, but just 13th in terms of starting a business—clearly we’re doing something wrong here.”

Celebrating its 75th anniversary, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA’s 65,000 members represent every state and every industry in the U.S., and we are proud to be the nation’s first small-business advocacy organization. Please visit www.nsba.biz.