This opinion piece fox business February 19, 2023.
Applications to start new businesses have also surged in times of a pandemic marked by shutdowns, labor shortages, supply chain disruptions and inflation. An entrepreneurial spirit was born at an unprecedented level.
Since August 2020, the number of new business applications has averaged about 400,000 per month. Before the pandemic, it was about 300,000 people per month, according to US Census Bureau data. There are signs that this is not just a pandemic-era trend. By the end of 2022, Entrepreneurship was still booming.
If you’ve spent time with entrepreneurs and small business owners, this trend shouldn’t come as a surprise. Entrepreneurs solve problems. When America experienced big problems in a focused time frame, entrepreneurs rose to the occasion. New economic needs and changing consumer preferences have created an even more conducive environment for starting new businesses.
For example, City Bonfires was founded in 2020 when restaurant industry salesman Michael Opalski and his neighbor Chris McCasland, who owned a restaurant and worked in the entertainment industry, were struggling with jobs. Together, they created a portable, reusable mini-bonfire device, suitable for apartment porches and hikes. Perfect for telecommuters who crave fresh air.
A widespread boom in entrepreneurship is a boon to local communities and bodes well for the U.S. economy. As the new business grows, it has the potential to employ more people in the community and boost the local economy. About one-third of new business applications today are marked as “high trending,” meaning they have a high likelihood of adoption.
Entrepreneurship can also be an opportunity for minorities, women, veterans, young entrepreneurs and immigrants to make their dreams come true. Research shows a 33% increase in black male business owners and a 22% increase in black female business owners in 2020 and 2021.
Our country’s unique free enterprise system allows for this kind of entrepreneurial growth, and Congress and the administration should do everything possible to ensure the growth and success of these new businesses. The U.S. Chamber of Commerce, in its Small Business Bill of Rights, details how elected officials can foster the freedom of new entrepreneurs to exist and thrive.
Great bipartisan action was taken in response to the devastation What COVID-19 has brought to small businesses When Congress passed seven laws in 12 months, all of them were designed specifically to help small businesses. It shouldn’t be a national disaster to push smart policies that benefit small businesses.
A widespread boom in entrepreneurship is a boon to local communities and bodes well for the U.S. economy. As the new business grows, it has the potential to employ more people in the community and boost the local economy.
Congress and administration can continue to support new entrepreneurs and small businesses in the following ways:
Encourage individuals to start businesses rather than punish entrepreneurs. For example, there are laws like AB 5 in California and similar proposals at the federal level to force employee relationships on sole proprietorships. Reclassifying a 1099 business as an employee will penalize independent contractors who want to blend multiple business activities and benefit from their own income and increased flexibility.
Prevent punitive tax increases for small businesses by extending the 20% pass-through deduction for small businesses. Without action in Congress within three years, small businesses face significant tax increases.
Avoid new mandates (project labor contracts, Davis Bacon wage requirements, retirement plans, etc.) that make entry costs so high that small businesses cannot enter the federal contracting space.
It reverses a pending move by the Federal Trade Commission that ultimately makes it harder for small business owners to partner with or sell to larger companies.
Protect the freedom of businesses to set their own prices and enter into contracts by opposing government price controls and new regulations governing private business contracts.
By taking advantage of free trade opportunities, we give small businesses more opportunities to sell to the 95% of global consumers who live outside the United States.
Our communities across the country need to remain good places to do business, especially during a time of accelerated entrepreneurship. Standing governments only hinder entrepreneurs and small businesses. When we should do whatever it takes to support these new businesses and economic growth.
About the author
Thomas M. Sullivan
Vice President, Small Business Policy, U.S. Chamber of Commerce
Thomas M. Sullivan is Vice President of Small Business Policy for the US Chamber of Commerce. Working with the Chambers of Commerce and the National Network of U.S. Chambers of Commerce, Sullivan harnesses the small business perspective and applies its grassroots power to federal policies that strengthen free enterprise and reward entrepreneurship. Convert.he runs the United States