The Government Increasingly Loves Small Business
Tuesday, December 9th, 2008
Whether you look at funding, manpower, or legislative attention, the government loves small business. As “The Little Engine That Could” quotes highlighted earlier, every politician wants to at least appear to be on the small business owner’s side. The Ewing Marion Kaufmann Foundation even publishes a detailed advice booklet for would-be political candidates, titled Entrepreneurship, a Candidate’s Guide.
The U.S. government began to level the playing field for all businesses beginning in the 1930s, when the Securities and Exchange Commission was formed. The key development for small business was the founding of the SBA in 1953. In the late 1950s, the SBA introduced Small Business Investment Companies (SBICs), which started banks down the path of loaning more money to small enterprises. Now the agency’s role has grown to include education, funding of research studies, and assistance in procuring government contracts. However, the SBA is still best known for the guaranteeing of small business loans, allowing banks to lend more while carrying less risk. As a result, the agency has become the largest single financial backer of U.S. businesses in the nation.
In addition, the agency helps support a whole infrastructure of 1,100 small business development centers (SBDCs) located in multiple cities in every state. These centers provide advice and education for those looking to start or grow their own business. In 2003 alone, they counseled and trained more than (more…)