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Mr. President, I Don’t Think You See Us

by Donna Maria on January 28, 2010

I agreed with many of the things President Barack Obama said in yesterday’s State Of The Union address. We do need health insurance reform. We do need to tackle the issue of childhood obesity. We do need to invest in the skills and education of American people. We do need to increase our exports to foreign countries. We do need more jobs.

(If you are reading this via email or RSS and cannot see the video, click here.)

And yes, we also need to support small businesses. But I disagree with the President’s assumption that all small businesses need in order to thrive is money.In his speech. the President said that while banks seem to be lending again, they are lending to big corporations and leaving small businesses in the dust. True enough I suppose. But he went on to say that the way to fix that problem is to take $30 billion of the money Wall Street banks have repaid, and use it to help community banks give loans to small businesses. Sounds good, but here’s the problem.

The President is still talking about traditional small businesses. He’s not talking about very small businesses that are not looking for money.

In times past, it was rare that a business of any size would try to launch without substantial financial reserves or a loan or an investor of some kind. But today, there is a growing number of businesses that don’t want a loan.

These businesses are run by people who don’t define wealth by how much money they have, but by how much enjoyment of life they have. They’re run by people who would rather contract work out than hire employees. And they refuse to wait around for a bank to give them a green light before they start to build their American dream.

These people are you. They are me. They are us.

But I don’t think President Obama sees us, or if he does, I don’t think he thinks that we are present in large enough numbers to warrant any particular kind of consideration.

What Do We Want?

We are not looking to hire people in any large numbers. We are not looking for money either. We’re simply looking for a level playing field so we can compete fairly and equally in our chosen fields.

I think it’s great to put $30 billion toward small business lending. But in all honesty, I think the banks will figure out a way to make the process so arduous and the terms so unfair that, even if a tiny business gets a loan, they may quickly wish they hadn’t.

In addition to throwing more money around, I wish President Obama would address the issue of the red tape that small businesses must deal with these days. It’s not the lack of funding that’s strangling us. It’s the increasing number of unnecessary fees, filings, inspections, guidelines and hoops we have to deal with — at the state and federal levels — in order to get started. Even if a very small business gets a loan, what good does it do if all of the funds must be spent to comply with one-size-fits-all regulations that were put in place to curb the practices of large, multi-national corporations?

What good is a loan if you have to use it to break down barriers to entry, instead of make a profit?

I don’t think President Obama is addressing the issue of the very small business owner. I don’t think he sees us.

Shouldn’t we try to change that?

Question: What do you think is the bigger problem facing very small businesses today, lack of money or excessive regulation?

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Tagged as: banks, barack obama, business loans, economy, lending, Money, president obama, small business, state of the union

  • Excessive regulation is definitely something that affects us in our small business. Like many posting here, I grew my business with no bank loans for many years. It was only after we were grossing over $1million in sales that I was eligible for a line of credit.

    Though this is not a federal regulation, it is an example of over-regulation - we need new pallet racking for our warehouse and the city needs us to get a permit for the pallet racking and then come in to inspect the pallet racking. And of course, there are fees associated with all of these things. Since when did putting up shelving become something that needed regulation? Sheesh.

    And, if it wasn't enough to have to worry about city, then there's county, state and federal laws which sometimes don't correspond with eachother (for example, Washington state has its own OSHA laws that are different than the federal government's).

    And on top of that, the whole "Let's tax the rich for all the new programs" always gets me because small business people often get mis-classified into that category because of the way our small businesses are structured.

    I've given up hoping my government will help me in any way and just resorted to praying they won't hurt or cripple me.
  • Perfect illustrations unnecessary government regulation. Your last sentence is a tempting strategy indeed but I hope we don't have to resort to that as a nation.
  • Excessive regulation and red tape. Example... a VA hospital wants to buy from us. I spent FOUR hours online filling out forms to 'be listed as a government vendor'... Gross Sales for the past 3 years? of course I keep that at my fingertips! (not!) The order they are placing will not pay for the time I spent qualifying for their order. And then there's the FDA and the FTC and and and... I *never* had outside capital or loans in the growth of Nature's Gift. Tried, and never qualified. I was too small for an SBA loan??? So I did without, and survived. Don't throw money at us, clear the way for us!
  • Great contribution, Marge! Such a good example of how hard work, creativity, tenacity and smart use of technology can overcome any obstacle, including money. You've done it, and continue to do it. I want Obama to see you -- and see all of us who started with nothing but a dream and money had very little with it coming true!
  • Well the only thing I'll say about his speech, is throw everything at the American People including the kitchen sink, and something will stick. This man is completely out of touch with America, and Jobs and getting this economy back on its' feet again should have been first priority of business when he took office, not closing Guantanamo Bay and forcing a health care plan down our throats when the majority of us do not want it as it is written...let's get America back to work and this should be the only focus for now...just my 2 cents.
  • Back to work and back to business -- indeed!
  • Yes, we must try to change that!

    We run 2 small businesses in our household, plus the farm (which I consider a 3rd business). We deal with a lot of read tape, a lot of "pulling of teeth." It has taken us 2 weeks to get something approved for one of the businesses (through credit and lending). Times are tough, and from what I can see, they might get even tougher! We do need help, in more ways than one.

    All of us are truly the backbone in this country! And that needs to be recognized by all!
  • Do you think people would invest the time and the money it would cost to come to Washington and tell the administration all of this stuff in person? I'm talking about a good old fashioned demonstration across the street from the White House? What do you think?
  • soapbartender
    Excessive regulation & taxation is strangling small businesses of all sizes. We don't need more money thrown at the problem, we need less government interference in every aspect of our lives! How can we accomplish that? Fire Congress! Vote Libertarian!
  • I'm angry enough to fire Congress, but I don't think that will happen. I think the best thing is to showcase people like you who have grown your business free from some of the regulations now being contemplated, and you've done it without investors and a bunch of OPM (other people's money). And, importantly, you've done it without endangering the public. You are a shining example of small business success!
  • soapbartender
    Thanks, but don't be so sure about Congress...look what happened in Massachusetts! In the meantime, I plan to keep growing my business slowly and surely with an "I don't depend on anyone else to be successful" attitude and a strict "pay as you go" philosophy.
  • I see a White House visit in your future, Donna Maria.
  • From your lips to God's ears. I think I could make a unique contribution to the discussion. We'll see.
  • I don't think he understands small business at all. We don't need more government, but we certainly need lower tax rates and less regulation. As an example... it costs almost $50,000 to open a body shop in California with all the fees and oppressive regulation. They are even taxing us when we recycle our old tech equipment. If he really wants to fix the problem, put a one year moratorium on capital gains taxes. You would see an incredible surge of businesses start up.
  • Thanks for sharing another example of how unnecessary regulations that serve no one are making the problem worse. I think he did mention something about suspending the capital gains tax. Maybe I wasn't listening well, but I thought I heard something about using that as a way to encourage investment in more equipment. I cannot believe they tax people on recycle of old equipment. How did they justify that? (Or did they?)
  • dM, I agree. It's less about giving us money, and more about getting out of our way. We know how to do the things we need to do and we do them cheaper and more efficiently than companies with dozens or hundreds of employees, because that's what bootstrapping is all about. The problems come when we have to spend our time and money filling out and filing paperwork, consulting with lawyers, or researching new laws and regulations to make sure we are complying. Making sure we are (as you once put it) "regulated proportionate to the risk we bring to the marketplace" has to be a priority if we value the micro businesses in our country! Thank you for all you've done to help us be heard!
  • Good points, Emily. I think that our country is just not used to focusing on tiny businesses because, up until now, we have not been able to participate in most industries. The Internet has made our entry possible in large numbers and the government does not know how to deal with that. We have to help them or else the steamroller will keep on going. I'm with you girl!
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