You see, recently I read an interesting piece in the Wall Street Journal titled; "SBA Chief Focuses on Access - Maria Contreras-Sweet aims to modernize the agency and help out underserved groups," by Ruth Simon. The article stated how they were building the online dating version for SBA loans where small business owners would answer questions and then be matched with the most applicable lenders. Apparently, access to capital has been cited by the SBA as the number one reason why smaller companies fail, or do not hire employees and grow our economy.
The reality is that any savvy start-up entrepreneur sees the risk of lawsuits, over-regulation, taxes, employee costs, and uncertainty. Also, the way the laws and regulations favor larger competitors and hurt smaller firms. Stupid or na�ve future business owners don't understand that and thus, are more apt to go into hawk for the outrageous startup costs, and take out a huge loan. The reality is that it is quite a hostile environment for smaller companies and the chances of success are severely diminished. In other words, it's not worth the risk.
So, why is the SBA ignoring the obvious, or are people in Washington DC running the SBA just so ignorant of the reality out there in the real world, or maybe they just don't care. Putting more people into economic enslavement and debt merely because they want a piece at the American Dream is completely disheartening to say the least. It seems we are putting kids into economic enslavement with student loans, small entrepreneurs into debt with SBA loans, and just allowing corporate lobbying as usual to run away with all the gains while government agencies run block as they drive for the touch-down.
If we want to tap into the small business growth engine, we need to me more fair with this segment of our economy, which employs over 70% of the workforce. To do that we need to look at all the laws, fees, regulations, financial reporting requirements, employment rules, and taxes we burden them with. Please consider all this and think on it.
Lance Winslow writes eBooks on Small Business.