No matter how many times it’s disproven in action and policy, there are some who continue to believe that the answers to our nation’s financial hardships can be found within the federal government.
In an article in TIME magazine earlier this month, author Rana Foroohar claimed that despite political rhetoric and popular opinion, small business does not provide a foundation for the U.S. economy. According to Foroohar, it’s a total myth that entrepreneurship is an important factor in strengthening our economy.
For business owners, it can be frustrating to see this type of misguided thinking published in mainstream outlets. But rather than ignore it, we must continue to communicate the importance of small business as we work to renew our nation’s economy.
It’s estimated that there are between 13 million and 17 million small businesses in the U.S. today. That’s defined as companies with 250 or fewer employees. If every one of those businesses added just one employee, we’d be looking at about 15 million new jobs. That’s twelve times the number of jobs created in 2010.
And while Foroohar points out in the article that the number of start-ups has declined by 23 percent since the 1980s, business owners have clearly felt the government’s role in that contraction. Entrepreneurs know all too well that taxes and other government regulations can easily be the difference in hiring new employees, or at least in the quality of benefits an employer can offer.
Small business is the backbone of our economy and is still the American dream. Our founding fathers wisely built our government to be slow moving, for the safety and freedom of its people. And while the cumbersome nature of our federal government is one of it’s power-checking benefits, this makes it a lousy economic stimulator and job creator. Those tasks are better left up to our most innovative and hard working citizens.
The TIME article can be found here.