10 Ways To Strengthen Small Business in America
Entrepreneurs understand that it’s pointless to complain about a problem unless we are ready to offer a solution. That’s why we invited these same entrepreneurs to share their thoughts on how to stimulate small businesses in America. It is clear that more needs to be done to help small businesses, but what are the solutions?
What resources, legislation, and tools are needed to help entrepreneurs build thriving companies? How can we help small business owners create jobs and opportunities for their communities?
As soon as we asked what should be done to help small businesses, we were flooded with thoughtful, strategic, and common-sense solutions that could help entrepreneurs all over the country. Just in case Congress, local governments, or any community organizations are looking for new ideas on how to refuel small businesses… this is a great place to start.
Here are 10 ways to stimulate small businesses in America… from entrepreneurs who understand what their businesses really need:
1. Create a national entrepreneurial program in schools. We would like to see a national program in schools and universities that teaches entrepreneurship to the youth of our nation. Get the idea creators and future business builders prepped before they hit the real world. -Ian Aronovich, GovernmentAuctions.org
2. Give government grants to for-profit companies. Allow government grants to be awarded to for-profit companies with appropriate expertise/capability. Why the restriction that only non-profit organizations should be qualified to effectively administer funds and produce great results? Especially with today’s reporting and informational tools, any organization can be held accountable equally. I do not see the fairness, nor, maybe even more importantly, the logic in assuming that non-profits are the only organizations capable of producing great results or of being held accountable. -John Mierzwa, CALA Academy
3. Create a small business under-employment program. I think that there should be some type of “small business under-employment program” that is put in place with certain restrictions as far as how many years in business, etc. I say this because I know hundreds of business owners that cant get unemployment because they havent worked for anyone in years yet they also cant pay their bills and it seems like the only option open to them is Welfare. Which is a hard pill to swallow for a formerly middle class or upper class person who had a thriving business. -TIffany Bradshaw, Bradshaw & Co.
4. Get rid of payroll taxes for small companies. We should get rid of employer-based payroll taxes for companies with less than 10 employees and less than $5 million in revenues to make hiring less expensive. Another idea that works with the same statistics would be to give potential employees certain tax incentives to go to work for companies with less than 10 employees and less than $5 million in revenues to make startup and small business jobs more attractive. -Ian Aronovich, GovernmentAuctions.org
5. Start making more construction loans. We need construction loans available so that we can get a lot of people back to work which in turn will create expendable income that can be spent in small businesses such as restaurants, retail stores, amusement parks on vacations etc. It used to be the families would go out to eat often and they are not doing this. It drives me crazy to work with clients who are residential or business customers who can’t find money to build because banks won’t lend. Small business doesn’t need a stipend we need the banks to get back to lending money for projects and to move the economy forward that way not by handing out money to business. WE NEED DISPOSABLE income back in the marketplace and this can only be created through more jobs period. -Jacob J. Gabrie Town Center Realty Group.com
6. Back private investors. It would really help if the government provides guarantees to the seed, angel investors and venture capital industries similar to the ones provided by the SBA to banks for loans to small businesses. This would make sure that a lot more businesses would get funded. Similarly helpful would be an incentive to banks to offer no-interest loans to entrepreneurs for business startup capital up to $250,000. -Ian Aronovich, GovernmentAuctions.org
7. Eliminate the red tape for new businesses. I’d recommend removing any fees or unnecessary red-tape until the small business is profitable. So many regulations require annual fees or “publishing” your corporation, etc. Let the startups focus on execution before burdening with red tape. There was a great video about all the crazy city, state and Fed regulations throughout the country. Ill try to find and forward. Example: Philly charging bloggers a bloggers tax. -John Boyd, MeetingWave
8. Guarantee bank loans. The bottom line about lending to small businesses is that it will not happen anytime soon without significant changes to the system. My proposal is to commit billions of federal dollars for loans to small businesses. The difference is, the lending institutions that are involved will have the loans guaranteed 100% by the federal government. Naturally, the small businesses will still be held accountable to repay the loans, while the lending institutions will bid for the rights to make these loans and receive a (relatively) small fee to administer the funds. As it stands today, the lending institutions simply will not lend to even slightly risky companies right now unless they are mandated to do so or unless the loans will be guaranteed. -John Mierzwa, CALA Academy
9. Create a federal venture fund. The United States should create a government-based seed and venture fund which hi-tech startups can use for investment capital to launch businesses and grow them. -Ian Aronovich, GovernmentAuctions.org
10. Require banks to lend money. The government should help establish standards by which banks that they bailed out or own a share of can lend money. I mean actually make sure that funding is coming out of the institutions that are receiving government money, because it does not seem to be trickling down as was intended. -Andrew Moore, Arlington Designer Homes
Any other suggestions? What solutions do you think are needed to strengthen small businesses in America? Share your thoughts below…