The Importance of Small Businesses

I recently read a great article, or more specifically a memo to President Obama, that lays out the problems of small businesses very clearly. Although small businesses “account for half of all private-sector jobs in America, and more than 60 percent of the new jobs generated in the past decade,” their struggles are ignored even though they could be a key component to improving the economy.

One small business problem is one that Far West Capital has encountered frequently: “While large companies sit on mountains of cash, small businesses struggle to maintain lines of working capital, to pay their creditors in thirty days, and to meet payroll every two weeks—all while waiting two months or more after sending out an invoice to get paid themselves.”

With the help of Far West Capital and small business advocates (citizens and large business owners), small businesses are trying to stay afloat but a greater voice is needed and the Obama Administration is taking steps to helping small businesses.

This month, Obama Administration officials will visit eight cities to hold “Startup America: Reducing Barriers Roundtables” to hear from  entrepreneurs in hopes of building a stronger environment for innovation. The second roundtable will be fittingly held in a booming entrepreneur city, Austin, Texas (at the annual South by Southwest) on March 12. Other cities in the tour include Durham, N.C.; Boston, MA; Silicon Valley, CA; Atlanta, GA; Pittsburgh, PA; Minneapolis, MN; and Boulder, CO. It will be interesting to read the insightful report that will come from these roundtables and hopefully it will help produce positive results.

According to the website, entrepreneurs and small business owners interested in attending any of the events can learn more by emailing
re**************@sb*.gov, and small business owners and entrepreneurs who are not able to attend one of the roundtables will be able to submit ideas, comments and suggestions online to be considered for inclusion in the final report. If you’d like to learn more about the Startup America Initiative, visit the official website.

How do you think small businesses can improve the economy?

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