THE STATE OF AMERICAN SMALL BUSINESSES AND THE HURDLES THEY FACE
For American small businesses, the recession never ended. While they have recovered somewhat from the depths of the Great Recession, they still haven’t returned to their pre-recession peaks—nearly seven years later. And while the economy as a whole has been stagnant, a host of new regulations and taxes threaten the growth of small businesses even more. According to top indicators, small businesses are still operating in a purgatory between recession and recovery.
New small business polling* data by The Job Creators Network finds that only 19 percent (one in five) of small business owners plan to hire additional employees over the next year. And only 27 percent (fewer than one in three) think that doing business will be easier over the next year. Numerous other indicators tell a similar story of an ongoing stagnation of American small businesses.
The implications of small business struggles are serious. Small businesses account for half of all jobs and two-thirds of new jobs created in the United States. They represent about half of the economic output of the country. As small businesses goes, so goes the American economy as a whole.
Drawing on numerous indicators, this report will reveal the state of American small businesses and highlight the main impediments to its flourishing. Though there are numerous reasons for its ongoing stagnation, a new poll*, which is backed up by other indicators, finds that the main reasons are (1) overtaxation, (2) overregulation, and (3) a lack of access to capital.
These happen to be impediments that are entirely within policymakers control to fix. Meaningful policy reform to bring small businesses back, finally get the economy going again, and provide opportunity for millions of American employees must address them.
*National poll of 408 small businesses conducted by Connection Strategies on January 7th and 8th, 2016.
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BSBB Bus Tour and Small Business Townhalls!
Over the past few months, the Job Creators Network (JCN) has been able to hear the challenges small businesses face first hand. While on the Bring Small Businesses Back (BSBB) bus tour, we traveled 10,000 miles and brought together nearly 20 U.S. Representatives, 7 governors, hundreds of small business leaders and community members in nearly 30 locations in 17 states. Check out event recaps by clicking on the city below! Check back for 2017 dates!
● (4/07) Orlando, FL ● (6/21) McHenry, IL ● (8/01) Oshkosh, WI ● (8/29) Aurora, CO ● (9/19) The Woodlands, TX ● (9/27) Chandler, AZ ● (9/29) Lincoln, NE ● (09/30) Oklahoma City, OK ● (10/04) Dubuque, IA ● (10/05) Highland Park, IL ● (10/06) Milwaukee, WI ● (10/07) Grand Rapids, MI ● (10/12) Columbus, OH ● (10/13) Center Valley, PA ● (10/13) Quakertown, PA ● (10/14) Sterling, VA ● (10/14) Cumberland, MD ● (10/19) Roswell, GA ● (10/20) Atlanta, GA ● (10/20) Alpharetta, GA ● (10/20) Johns Creek, GA ● (10/21) Savannah, GA ● (10/24) Duluth, GA ● (10/25) Boca Raton, FL ● (10/25) Miami, FL
For more information on participating, sponsoring, or attending in 2017, please contact Betty Braun.
U.S. Rep Randy Hultgren (R-IL) announced the Bring Small Businesses Back Tax Reform Act (H.R. 5374), which would reduce the tax burden on the nation’s small business job creators.
The Act would:
- Lower the tax rate for pass-through businesses’ first $150,000 of income to 10 percent and to 20 percent for their first $1 million of income.
- Allow pass-through businesses to immediately expense all investment in equipment.
- Simplify cash accounting for tax purposes for all businesses with gross receipts less than $25 million.
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