Small businesses, those with fewer than 500 employees, create more than half of the United States’ gross domestic product and employ more than half of all employees in the country, according to the U.S. Small Business Administration.
In fact, companies with fewer than 20 employees lead the nation in the creation of new jobs. Small business owners, with their own money and at huge risk to their personal financial futures, routinely are the ones making the live-or-die decisions that lead to our economy either growing or shrinking.
But today a paralysis of sorts has swept through the small business community. Many small business owners feel as if they are under attack from federal, state and local governments. Yes, the spin says, “Open for business” and “We love small business,” but actions indicate otherwise.
Small business owners are facing a daunting onslaught of new laws, rules, regulations and ordinances that will have huge, unintended consequences that will hinder their growth and likely put them out of business.
Consider a local example. The state of Washington Department of Ecology recently enacted draconian stormwater treatment standards throughout local cities and counties. For a 30,000-square-foot office building on a two-acre site, these standards add $875,000 to the cost of a construction/new development project.
To put this in perspective, the business owner who wants to take a risk, build a new building and hire 75 new employees would be required to spend $875,000 in additional cash, up front.
Because these unreasonable costs do not add any value to the project and can never be financed even as financial markets recover, the small business owner is forced to spend far more than is feasible.
End result – the expansion never happens.
So what can we do? What must we do?
Small business owners need to take time right now to gather all of their voices together. They must speak up and demand recognition, respect and provide input into new laws and regulations that affect their ability to do business.
Small business owners need to focus on a local approach to business. By spending money locally and building relationships with other local businesses, they can create strong, competitive economies.
This approach allows communities to benefit directly from the increased economic activity. Over time, this vitality attracts other businesses and customers, which helps a region develop into a healthy, influential economic force.
Small business owners must take advantage of the great opportunities that exist right now.
For example, land for new facilities is very cheaply priced, construction costs are decreasing and lease rates are down. Today, a small business may not be ready to make an investment, but now is the time to get moving.
Planning to relocate or construct new facilities takes at least a year, which means if small business owners want to be in a position to take advantage of the market rebound, now is the time to get going.
The best part about being a small business is that our business is our life’s work.
Be proud, stand tall, push back, and demand the respect and support from the public sector that we as small business owners have rightfully earned. Without us, there is no hope for America.
Ron Frederiksen is the president and owner of Vancouver-based RSV Construction Services Inc. He can be reached at 360-693-8830 or ron@rsvconstsvcs.com.
