Small Business
Small Business and Recovery Plans
US Chamber.com does a nice job summarizing the effects of the Stimulus and Recovery Plans on Small Business
Small Business Under Siege
By Tom Donohue, President and CEO
Some may remember the old country song “Looking for Love in All the Wrong Places.” Something similar is happening in Washington today–politicians are looking for recovery in all the wrong places, namely, more government programs and spending. Instead, they should look to small businesses, which have led us out of the last seven recessions and create 60% to 80% of net new jobs.
But, policymakers are doing more harm than good. Let us count the ways.
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Small Business Action Alert
Alerts from Small Business California
There is raging battle going on in Washington over reauthorization of the Small Business Innovative Research[SBIR] program. Now you are probably saying to yourself this doesn’t affect me but it does indirectly. Read on
The SBIR program directs $2.2 billion annually in Federal grants to small technology businesses across the country.
There is legislation in the House [HR 2965] which would allow venture capital controlled companies to participate in SBIR. With this legislation, Congress is changing the definition of small business to include subsidiaries of multinational corporations and companies majority owned by multi-billion venture capital funds and other large financial institutions, including foreign institutions to in SBIR. This fundamental change in definition of a small business opens the door to greatly reducing Federal Research and Development grants for companies that have traditionally been defined as small business- those with 500 or fewer employees.
Small businesses which creates most of the private sector jobs and exceed all of the patent filings of research universities currently gets only 4.3% of the Federal R&D grants. Passage of HR 2965 would not only reduce money going to traditional small businesses but because of the increased size of grants reduce the number of grants by 50%. I am urging you to send an email to Speaker Pelosi and Congresswoman Speier asking them to oppose this. FYI the Senate Small Business & Entrepreneurship Committee has passed S1233 which would not allow this. Congressman Markey and Congresswoman Tsongas will be introducing an amendment tomorrow more friendly to small business
Text of the email to the Congresswomen could be
Dear Speaker Pelosi/Speier
I am a small business owner in San Francisco. There is a bill in the house HR 2965 dealing with reauthorization of the Small Business Innovative Research program which would change the definition of small business to include venture capital firms with more than 500 employees. I urge you to support the Markey/Tsongas amendment.
Sign and make sure your address is included
Please send the Email to Brian Perkins in Jackie Speier’s office Brian.Perkins@mail.house.gov
And Mark Herbert in Speaker Pelosi’s office Mark.Herbert@mail.house.gov
You can send one email to both
If you want the Markey amendment please let me know.
If you want to call the numbers are Speier- Brian Perkins- 650 342-0300
Pelosi- Mark Herbert- 556-4862.
If they are not there leave a message.
Time is of the essence as the vote in the House could be as early as Tuesday. Also I will be meeting with Speaker Pelosi’s representative with a group of SBIR recipients Tuesday at 10:30
Please, please , take a few moments to write or call. Please send me copy of email or let me know you called.
If they VC’s are successful they have said they want all the SBA programs open to them
Scott Hauge
President
CAL Insurance and Associates, Inc.
2311 Taraval Street
San Francisco, CA 94116
Phone: (415) 680-2109
Fax: (415) 680-2137
“Always looking out for you”
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Scott Hague – Small Business California
We recently had a chance to sit down with Scott Hauge – President of Small Business California. Scott Hauge is president and owner of CAL Insurance & Associates, Inc. located in San Francisco. CAL Insurance specializes in providing insurance for small to medium sized businesses. The company was founded in 1927 and currently has 30 employees.
Mr. Hauge has been a leading advocate in paving the way for small and medium sized businesses. He has introduced government legislation that has affected business on local, state and national levels. He is considered one of the insurance industry’s leaders in setting guidelines and has received numerous awards and countless commendations for his efforts. Most recently Mr. Hauge was named Small Business Advocate of the Year 2007 by the National Small Business Association (NSBA).
Why did you get involved in Business Advocacy? I got involved for three reasons. First I have always been interested in public policy. I am a product of the 60s and the student protest at that time.
I got involved in small business advocacy because it fit my public policy interest and gave me the vehicle to get out of the office forcing my staff to make decisions on their own. This also benefited my business because I wanted to differentiate CAL from other insurance agencies. We can honestly say we represent small business not only on insurance related issues but in local, state and federal government small business concerns.
What has been your greatest success? This may be a disconnect but being involved in Volunteers in Medicine. I am the Vice Chair of the Volunteers in Medicine Institute. We help communities set up free clinics for the working uninsured We take retired health professional who provide free health services to the working uninsured. We take no government money. We currently have 71 clinics in 22 states are working on a clinic in SF and I am Vice Chair of Volunteers in Medicine SF.
If you want political the defeat of Proposition K in SF. This was a gross receipts tax on top of all the other taxes imposed on SF businesses. Our position was opposed by the Mayor, the Board of Supervisors, nonprofits, labor and big business. It really showed the potential power of small business.
What has been your biggest challenge? Getting small business people to not feel like victims. We have incredible power if small business people will get involved in the political process and contribute financially to organizations that promote the small business agenda.
Do you have a role model? Not currently. When I got involved in small business advocacy in 1984 I had two people that gave me advise. I listened to them and it helped me be successful in my advocacy. I think that small business people that are not active need to reach out to leaders in the community who they respect and follow their advise.
Have you ever run for office? No and I never will. My wife would divorce me if I did.
What do you think are the biggest challenges facing small and local businesses? There are a whole host of things. Health insurance cost, regulations, access to capital, workers compensation cost, taxation, etc. These are issues but the biggest challenge is to get government people to listen to our concerns. We are ignored.
Tell us about Small Business California. I founded SB Cal because I did not think grass roots small business people had a voice in Sacramento. There are organizations that say they represent small business but they in my opinion do not. For example the California Chamber is a great organization but at the end of the day they represent big business. The National Federation of Independent Business also is a great organization but they are to identified with the Republican party.
What will SBC focus on in 2009? We are currently doing our survey to determine our agenda. In 2008 it was health issuance cost, education and workforce development, infrastructure, regulation, energy, taxation and workers compensation cost.
When do you sleep? I do sleep about 5 hours but I am always thinking about small business. A few years ago I spoke at a California National Association of Woman Business Owners Association Conference. It was in Sacramento and honestly it was exhausting. I drove home to San Rafael and fell asleep watching TV. I woke up the next morning and my wife told me when she tried to bring me to bed that I told her I couldn’t come to bed unless all the small business people came also. She told me she said that was not possible but I persisted. She said that she finally agreed and I went to bed.. I think I may be a little over the top.
What should small and local businesses ask of their legislators? The question here is not so much what they should ask but that they should talk to their legislators. We have massive numbers and very few small business people ever correspond with their representatives. If small business people would spend just a few minutes a month sending emails, calling and writing their government people about their concerns we could really impact policy.
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