NEW YORK–(BUSINESS WIRE)–The Bipartisan Policy Center and Goldman Sachs 10,000 small business voices, in partnership with small business owners across the country, released a new report today – From Pandemic to Prosperity: Bipartisan Solutions to Support Today’s Small Businesses. New report urges Congress to reauthorize the Small Business Administration (SBA) for the first time in more than two decades, allowing small business support programs to be redesigned to reflect the realities of today’s economy .
The report crystalizes more than a year of conversations with small business owners, as well as nationwide surveys of small business owners conducted by Goldman Sachs 10,000 small business voices, and discussions with current and former government officials. Its findings underscore the urgent need for Congress to provide more support for small businesses and reauthorize the SBA to address the persistent challenges faced by small business owners, primarily: recruiting and retaining workers in a highly competitive environment, ensuring that employees have access to affordable, quality child care. , access to capital and competition for government contracts.
“Small businesses contribute to the economic vitality of our country, but outdated policies are holding them back,” said David Solomon, Chairman and CEO of Goldman Sachs. “Our new report shows that bipartisan solutions, like expanding access to pensions and investing in high-quality child care, will advance economic growth.”
“When Congress last reauthorized the Small Business Administration, Amazon was best known as the world’s greatest river, and the iPhone was still seven years away from being introduced. It is imperative that Congress reimagine the role the Small Business Administration can play in reinvigorating the American economy with modernized programs that provide small business owners with the support they need to succeed today – not the seemingly ancient economy of 20 years ago. said Jessica Johnson-Cope, chairman of Goldman Sachs 10,000 small business voices National Leadership Council and Chairman of the Johnson Security Bureau in Bronx, NY.
A summary of key findings and the full report are available here.
The policy report identifies for Congress and policymakers the critical challenges facing small businesses as members consider modernizing the SBA through new authorization and supporting small businesses more broadly. Key findings include:
Small businesses are unable to compete with large companies for talent: Three-quarters (75%) of respondents to a recent Goldman Sachs 10,000 Small Business Voices survey who have difficulty retaining employees say they can’t afford to compete on salaries, two-thirds (67%) say they can’t afford to compete on benefits, and 39 percent say they can’t afford to offer a retirement plan. Existing programs and policy incentives designed to address the hiring and retention challenges of small businesses are often poorly adopted because they are too cumbersome and complex.
Affordable and reliable child care is essential for workers and small business owners: More than half of small business owners in the Goldman Sachs 10,000 Small Businesses Voices survey said they or their employees had faced childcare issues during the pandemic. For smaller child care companies, the pandemic has also exposed the shortcomings of the core child care business model. The cost of providing quality care exceeds what most parents and families can afford, even with existing government supports.
Inequalities in access to capital will persist beyond the pandemic: In the January Goldman Sachs 10,000 Small Businesses Voices survey, 48% of Black small business owners said they plan to take out a loan or line of credit for their business in 2022, compared to 33% of all respondents. to the investigation. And only 19% of Black small business owners were “very confident” in their business’ ability to access capital, compared to 31% of all respondents. Research has shown that black-owned businesses deemed to have “low credit risk” are consistently less likely than other small businesses to receive all the funding they seek, widening the ambition/trust gap.
Simplifying government contracts is key to small business participation: Each year, the federal government spends hundreds of billions of dollars to buy goods and services, ranging from software and technology to furniture and construction. The federal government’s record of meeting contractual targets for subcategories, including for disadvantaged small businesses and women-owned small businesses, is mixed. For example, the government has only twice achieved its target of contracting out small women-owned businesses since its inception in 1994.
“Supporting small businesses as they move beyond the pandemic will require thoughtful, forward-looking policies designed to serve small business owners in today’s economy,” said Joe Wall, Country Director of Goldman Sachs 10,000 small business voices. “While Congress and the Small Business Administration have taken critical and laudable steps to help small businesses face strong economic headwinds during the pandemic, a Congressional reauthorization of the Small Business Administration presents an ideal opportunity to revitalize the federal government support for small businesses across the country.”
“Congress’s reauthorization provides an opportunity for a healthy exercise in ensuring that federal policies and programs reflect current economic realities so they can achieve the desired effect,” said Dane Stangler, director of strategic initiatives at the Bipartisan Policy Center. “Remarkably, across all industries and regions, the challenges most small business owners face revolve around access to capital, labor, government contracts and child care, providing a clear blueprint for Congress as it considers reauthorizing the Small Business Administration to better serve those working to build and sustain businesses in our modern economy.
APPROXIMATELY 10,000 SMALL BUSINESS VOICES
Goldman Sachs 10,000 small business voices is an initiative for program participants to organize and advocate for the policies that matter to them. He relies on Goldman Sachs 10,000 small businesseswhich over the past decade has provided access to education, capital and support services to more than 10,000 small business owners in all 50 states, Puerto Rico and Washington D.C.