Andrew Weinstein has put together a great read over at Mother Jones covering wealthy US corporations passing as small businesses. I have long suspected this to be the case, and this article seems to confirm my suspicions. I have also long suspected that many small business owners are unaware of many benefits that are in place specifically for small business owners. This also seems to be the case, and may go a long way toward accounting why small business owners also vote against their best interests.
In the course of reading comments, I was quite interested in this particular point made in reference to legal framework specifically created for small businesses:
Helen Kistler 10/12/2012 04:05 PM in reply to keepntch
That's how Wal-mart started.
Although I have not seen documents to back this up, it would not surprise me if it were true, and even if this were not the case with Wal-Mart it is totally true that many of today’s big and morally questionable enterprises started out as small businesses.
Small businesses, the real ones, are an important part of the American landscape. Also, I would guess that a lot of people running their own businesses, are not making vast sums of money. In my case, it is matter of trade-offs. One attraction to running one’s own show is the freedom. It also allows people to do things that they love doing. Also I try to create a work environment that allows people to be creative and to put their families first - this gives me great personal fulfillment.
The author, Adam Weinstein, is the second generation in his family to start a business; I am third generation. However, I decided to start my enterprise overseas, so I do not enjoy some of the small business advantages that Weinstein points out in his article, but I know that small business often qualify for exemptions from many regulations. Yet, I am frequently puzzled to hear hysterical outcries by small business people in the US about “gubmint” regulation that will destroy them. Actually government regulation represents a way for the real small business owners to play on a level field. I do not understand why every small business owner is not aware of these facts.
How is it that many authentic owners of small businesses do not see that it is the giant corporations that are the real threat to their lively hood. When Wal-Mart comes into a small town and drives the mom and pop places out of town, that is not an accident, it is a strategic plan. Competition increases risk and big companies like Wal-Mart have a bunch of MBAs sitting around planning of ways to decrease the company's exposure to risk.
Three of my personal takeaways from this small business outcry against regulations:
1. Many small businesses do not know about waivers and how to access information on waivers and other legal benefits specifically for small businesses.
2. Small business legislation needs to be reviewed, and legislation put in place so that big corporations cannot subvert the spirit of the law and distort the real intent of the law.
3. The US government needs to craft a strategic plan to provide information to as many small business owners as possible.
Getting information into the hands of such a wide and diverse range of small business interests is indeed challenging, but I believe that increasing the funding for the SBA, the IRS, and other government agencies that work with these small businesses would be a great step forward. There should be a planned and sustained outreach effort to inform small business owners throughout the United States of their exemptions and other benefits that they may be eligible for.
Wealthy enterprises should not be allowed to parade around as small businesses and all the time create a climate of fear and resentment of regulation among genuine small business owners. Exemptions for small businesses are of no use unless small business owners are aware of them. It seems we need a government information campaign which could also help the economy move forward.