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Small business and growthBy Joe Durso, Mayor of Longwood
Small business will lead the way.
Recently I attended the opening of another small business in Longwood. This time it was 4Rivers Smokehouse, a restaurant that has won the hearts (and stomachs) of people throughout Central Florida. John Rivers’ newest restaurant has hired 80 employees. His company has grown to more than 250 employees throughout the region and it plans to keep growing. As we all gathered for the ribbon cutting, I realized how true it is that small business is the chief driver that will help our region and our nation restore economic stability and the growth that comes with it.
While the news is often dominated by stories of huge multinational companies and multi-billion-dollar deals, most people do not realize how much of an impact small businesses really make. The U.S. Small Business Administration (SBA) recently reported that small businesses currently make up 99.7 percent of all employers and that there are more than 27 million small businesses in the United States. More importantly, these small businesses are responsible for nearly 50 percent of our national non-farm gross domestic product (GDP). So what does this mean?
Ultimately it means jobs! The latest SBA figures show that small businesses are poised to create 75 percent of the net new jobs in our economy. But for that economic growth to occur, governments and communities across America need to get their priorities straight.
Many people believe that economic growth is simply an issue of credit – if the business has credit, it can expand by putting itself in debt. But debt in these economic conditions can be fatal to a business and its long-term outlook.
In my opinion, there is bigger issue to be addressed – government regulation. If we expect small business to create jobs, we need to let them lead the way and reduce regulatory challenges so they can expand, hire new employees and lead our economic recovery.
Regulations affect small firms more than big business because of the economies of scale. While large corporations have hundreds of employees among whom to spread regulatory workloads, small businesses may only have three or four employees to do the same work. According to the SBA’s Office of Advocacy, small businesses pay a disproportionately high cost to comply with federal regulations -- 36 percent higher than larger businesses. Piling on state and local government regulations only compounds the problem for business owners who may have limited capital to invest in an already tense marketplace. It’s a staggering burden that leads many small business owners to simply shut their doors rather than face growing regulatory costs.
I wholeheartedly believe in keeping regulation in the economy to a minimum because over-regulation stifles innovation, eliminates incentives and destroys competition. Some regulation is needed, of course, to ensure the public’s safety and well-being. But while safety and environmental regulations can and do serve a valuable purpose, too much regulation saddles businesses with costs that every business owner -- and ultimately every customer -- must bear.
Seminole County’s future depends on small business. Whether it’s your favorite restaurant, a contractor on a home-improvement job or the design company helping your business to grow, small business will continue to be the foundation of our economic house. So I encourage you to support your favorite local small business and buy local. It’s good for you, it’s good for the business – and best of all, it is good for our community.
