Small businesses fuel the country’s economic engine
President of the National Small Business Association Todd Mc- Cracken told a UMHB audience that he is concerned with issues like tax codes and health care reform and how this could affect the small business world.
“We are an advocacy group, and our goal is to advocate on the behalf of small business people across the country for government policies that will potentially help them grow, survive and significantly start new companies,”
McCracken spoke from small business owners’ perspective about the country’s economic crisis on Nov. 12 at the Lord Conference Center, which was filled with students, faculty and small business owners from the community.
Senior finance major Lindsey Weaver said, “we all hear about issues taking place on Capitol Hill, but it was exciting to actually see and hear it from someone like Mr. McCracken who is directly involved with what is going on.”
McCracken told how the NSBA operates.
“We like to think we’re at the center of the economic discourse right now because the small business community, as you probably hear, creates most of the jobs and employs half of the secular work force.”
He believes the small business community is the central element for the American economy.
“How can we say with a straight face that we say we represent the small business community? Because the reality is, if you stop and think about it, the small business community is about as diverse as the country is,” he said.
Small businesses are important for the economy.
Sophomore marketing major Chris Joshlin said, “I really didn’t know that the health care plan was going to affect all the small businesses, and Mr. McCracken really showed how important small businesses are.”
“You’ve got small manufacturers that employ a couple hundred people, individual consultants that make work by themselves, new immigrants running brand new companies and family businesses that have been there for several generations,” McCracken said.
“Businesses in every corner of this country — you really have to think about what is fundamentally important.”
Due to the economic situation, McCracken said businesses are continually
going in and out of work.
“Every year, there (are) between 500,000 and 600,000 new companies that didn’t exist before, and that sounds like an extraordinary amount of economic growth and opportunity, and that’s true,” he said.
“But the other thing you have to understand is between 525,000 and 575,000 companies disappear every year. That’s almost the same number.”
McCracken said that only about 50,000 companies survive.
“It’s sometimes more, sometimes less. I suspect in the last year or so that the number went negative — we don’t have the statistics, but I believe
there are actually fewer companies than a year ago,” he said.
That is a large amount of unemployment in the country.
“This enormous economic engine that we have in the United States is of
these small entities and is dependent upon a huge inflow of new entrance every year,” McCracken said.
McCracken said it will be diffi cult to get the economy back on track.
“We have to find a way to start 600,000 new companies every year to continue to use that economic engine to grow the country that we have.”