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Monday, November 02, 2009

Government vs. Small Business

On November 1, the Jacksonville (NC) Daily News ran an editorial titled “Small Businesses Bear Brunt of Government.” It is one of those rare occurrences where a newspaper editorial hits economic reality perfectly.

The editorial, in part, said:

Small businesses often work on the tiniest of profit margins. They must constantly invest back into the business to stay viable, leaving very little profit — especially during the early, startup years. Most strive to be the best of neighbors, giving back many times over to people and events in their local areas. They support their communities not just with taxes and fees, but also through charitable giving as well as providing jobs, purchasing materials and equipment and providing a reason for people to come to the community in the first place.

Governments control, tax and regulate small businesses at every level, from the city to the county to the state to the federal government. Just as with individual and families all across this country, small businesses are being squeezed, not simply by the economy’s failures, but also by governments hungry for more money and control. This not only is unfair, it is also dangerous — perhaps even lethal — when it comes to the preservation of a growing and thriving middle class.

Absolutely correct!

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council

1 comment:

ukm said...

The number of small businesses are about a million units in Indonesia. They sometimes become a political commodity through populist policies made by government or through a campaign of political parties. They said that the policy is made for small business interests. The implementation of these policies still face many obstacles, especially in the distribution of revolving funds for small entrepreneurs. However, small businesses in Indonesia will be able to survive without relying on government stimulus. Small business success depends not only on financial aid, but still many other aspects such as training on business management, application of appropriate technology, or the promotion and marketing assistance. The government has given adequate attention to these aspects, although such efforts must be improved in future.