President-Elect Obama just announced that Karen Mills will head the Small Business Administration. While Mills has no direct experience with what I consider "real" small businesses (the SBA defines small businesses as companies having up to 500 employees), she has started off by making the right statements:
During the announcement, Mills called small businesses "the heart" of the American economy and said businesses on Main Street or perhaps a "green energy startup" are what can help the nation create jobs and remain competitive.
She also praised the American tradition of immigrants contributing to the economy by starting small firms in their new home.
Mills also stated that small businesses accounted for 70% of new jobs each quarter. Now, when you add this statement to what Obama just said today:
"[We will] focus singlemindedly on job creation, increasing demand, getting the economy back on track, fixing our financial markets. That is going to cost a significant amount of money on the front end."
you would think that small business will certainly be the primary focus of the incoming administration. He plans to spend a "significant amount of money" in stimulating job growth in the country Estimates range from $850 billion to $1 trillion.
Until the incoming administration takes power however, any such determination would be pure speculation. We can’t be sure yet where this money will be spent. Will he favor larger businesses, or truly small businesses on Main Street that form the backbone of our communities?
Another question is whether he will be pro-business or pro-labor? Obama’s first test on this issue may be the question of whether he will support measures that will make companies easier to unionize. His appointee to the Labor secretary position, Hilda Solis, is a staunch supporter.
The incoming administration’s first few months in office may foretell whether Washington really has small business interests in mind.
