Entrepreneurs and Small Businesses Key to Boosting the Economy

Are policymakers and our elected officials focusing on the wrong measures and the wrong targets in their efforts to get our economy moving once again?

As SBE Council Chief Economist Raymond J. Keating noted today in a media release, a survey unveiled by the Kauffman Foundation on October 1 found that 56 percent of voters trust small business owners to guide the economy, as compared to only 14 percent trusting members of Congress.

The American people get it. They know that it's entrepreneurs and small businesses that are going to get the economy back on a solid growth track. Government efforts aimed at juicing up or bailing out the economy are generally ineffective. There are a range of "cheaper" alternatives that will help the economy create jobs, and spur innovation and entrepreneurship. Politicians need to focus on removing barriers that drive high costs, and hurt the profitability of small businesses.

In reflecting on the current state of the economy, Keating said today: "All of the talk and action regarding Wall Street bailouts, whether one agrees or disagrees with such measures, are at best temporary band aids. In addition, talk of another so-called stimulus plan featuring more tax rebate checks or increased government spending makes no sense. Instead, the current need is to enhance incentives for investment and entrepreneurship."

SBE Council continues to highlight a series of pro-growth policy steps for lawmakers to implement. For example, lowering or eliminating capital gains taxes on both individuals and corporations would boost the returns on starting up, expanding and investing in businesses. The U.S. would attract more business and capital by reducing its sky-high corporate income tax rate. Expensing capital investment expenditures should be a permanent option for all businesses.

Keating's plea to Congress is an urgent one: "The economy faces a crisis of capital right now. Small businesses certainly understand the need for capital to grow, and how tough it can be sometimes to find that capital. We need policy changes that alter the capital investment equation dramatically in favor of investment and growth in the U.S."

Indeed, focusing on the right target (entrepreneurs) with the correct set of policy solutions and measures will help restore confidence and economic growth.

Karen Kerrigan, President & CEO
Raymond J. Keating, Chief Economist