Just as Bob Dylan sang “The Times They are A-Changing”, a survey of small business owners revealed their desire for Congress to revitalize the US Small Business Administration in response to current changes in the economy that are directly impacting their companies.
Much of their advocacy is a result of the disproportionate impact COVID-19 had on small businesses and the acceleration of the digital economy that is forcing them to find ways to adapt.
The survey was part of a just released new small business report – From Pandemic to Prosperity: Bipartisan Solutions to Support Today’s Small Businesses published by the Bipartisan Policy Center and Goldman Sachs 10,000 Small Businesses Voices. It captured the views and sentiments of small business owners across the country through surveys and direct conversations.
David Solomon, chairman and CEO of Goldman Sachs commented on its findings, stating, “Small businesses add to the economic vitality of our country, but outdated policies are holding them back. Our new report shows bipartisan solutions, like expanding access to retirement plans and investing in high-quality childcare, will advance economic growth.”
The report presented an urgency to act on its findings, advocating for Congress to work on a broad range of issues impacting small businesses. The report identified specific areas of importance such as: recruiting and retaining workers in a highly competitive environment, ensuring that employees have access to affordable child care, accessing capital and competing for government contracts.
“When Congress last reauthorized the Small Business Administration, Amazon was best known as the world’s largest river, and the iPhone was still seven years away from being introduced,” said Jessica Johnson-Cope, Chair of Goldman Sachs 10,000 Small Businesses Voices National Leadership Council and President of Johnson Security Bureau in The Bronx, NY. “It is imperative that Congress reimagines the role the Small Business Administration can play in reinvigorating America’s economy with modernized programs offering small business owners the support they need to succeed today…”.
The small business report identifies for Congress and policymakers the critical challenges facing small businesses. Select key findings from the survey include:
Small Businesses Are Unable to Compete with Larger Businesses for Talent:
- 75 percent of survey respondents are having difficulty retaining employees and say they can’t afford to compete on salaries,
- 67 percent say they can’t afford to compete on benefits, and
- 39 percent say they can’t afford to offer a retirement plan.
The survey concluded that existing policy programs and incentives now in place at the SBA for small business hiring and retention challenges are adopted less than sought because they are overly burdensome and complex.
Affordable, Reliable Child Care is Critical for Workers, Small Business Owners:
Over half of small business owners said they or their employees had faced childcare challenges during the pandemic, highlighting deficiencies in the basic business model of child care. The cost of quality care exceeds what most parents and families can afford to pay—even with existing means of government support.
Access to Capital Inequities Will Persist Beyond the Pandemic:
- 48% of Black small business owners said they expect to take out a loan or line of credit for their business in 2022, compared to 33 percent of all survey respondents, and
- Just 19% of Black small business owners were “very confident” in their businesses’ ability to access capital, versus 31% of all respondents.
The report notes that even when Black-owned businesses are deemed to be “low credit risks”, they are still less likely than other small businesses to receive all the financing they seek.
Simplifying Government Contracting is Essential to Small Business Participation:
The federal government’s record is mixed in meeting contracting goals for subcategories—including for disadvantaged small businesses and women-owned small businesses.
Joe Wall, National Director of Goldman Sachs 10,000 Small Businesses Voices, advocates for post-pandemic policies be forward looking, so they address the challenges small businesses are facing in today’s economy, stating,
“While Congress and the Small Business Administration took critical, commendable steps to aid small businesses in the face of strong economic headwinds during the pandemic, a Congressional reauthorization of the Small Business Administration provides an ideal opportunity to revitalize the federal government’s support for small businesses across the country,” says Wall.
The small business report timely advocates for change when small businesses are just emerging from the dramatic and adverse impact of COVID-19, while facing additional challenges brought about by the rising digital economy.
