With all of the political banter being tossed related to healthcare and the economy, it seems to me that the current administration is missing the target. Small business is the crux of the US economy, not large corporations. While the credit “purse strings” have been opened for large corporations, it is still very difficult to get lines of credit for small business, which are vital to the continued operational success of any small business.

Quick Facts:

  • Small businesses represent 99.7 percent of all the nation’s employer businesses.
  • Employ half of all private sector employees.
  • Pay 45% of total U.S. private payroll.
  • Have generated 60% to 80% of net new jobs annually over the last decade.
  • Create more than 50% of nonfarm private gross domestic product (GDP).
  • Supplied more than 23% of the total value of federal prime contracts in FY 2004.
  • Produce 13 to 14 times more patents per employee than large patenting firms.
  • Are employers of 41% of high tech workers (such as scientists, engineers, and computer workers).
  • Are 53% home-based and 3 percent franchises.
  • Made up 97% of all identified exporters and produced 26 percent of the known export value in FY 2002.

How big is small?

The majority of small businesses (100 employees or less) are made up of less than 4 employees:

Breakdown of U.S. small businesses (<100 employees) by number of employees

Based on the above facts, it seems to me the quickest way to economic recovery is to quit catering to the giant corporations and create a “bailout” of the small business owner. The bailout would consist of tax breaks and incentives for small business, and does NOT include forcing the small business owner to provide healthcare coverage for their employees. If the current administration truly cares about the US economy, then they should lend an ear to the small business owner.