How Obama Is Hurting Small Business

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The Obama administration is recklessly inhibiting the largest creator of employment in our job-shrunken economy—namely small business.

Small firms represent 99.7 percent of all employer firms and have generated most net new jobs over the past 15 years, according to the Small Business Administration. Small firms provide from 60 to 70 percent of all new jobs, said Karen Kerrigan, president and CEO of the Small Business & Entrepreneurship Council (SB&EC), representing 100,000 small firms and 250,000 entrepreneurs.

A new survey of 100,000 members of the Small Business & Entrepreneurship Council, according to congressional testimony of  Ms. Kerrigan, indicates they face a most troublesome economy, with uncertainties and burdens.

A bleak report from the Associated Press June 4 said that economic recovery will probably take longer than envisioned, as the Labor Department reported that unemployment for May had crept up to 9.1 percent. When Obama took office, the jobless rate was 7.8 percent. Only 54,000 jobs were created in May. Private companies hired only 83,000 workers, the fewest in a year.

Ms. Kerrigan said, “May’s job numbers are not surprising given flawed government policies that continue to jack up business costs and fuel uncertainty.”

According to the new survey of the 100,000 members in the Council, 74 percent of small business owners report that higher gasoline prices are adversely affecting their business, and 47 percent say the high gas prices are blocking their plans to hire new employees. Some 41 percent says they already have raised their prices because of gasoline costs.

Twenty-eight percent said they have had to cut employees or their hours worked; 38 percent say they fear if gas prices don’t drop or if they go up still more, their business won’t survive, Ms. Kerrigan told the House Committee on Oversight and Government Reform.

Even if gas prices slide down a bit, they will likely stay relatively high and continue to pinch consumers’ pocketbooks and all the industries that depend on gas.

We would need up to 300,000 new jobs each month to make a major reduction in the unemployment rate, economists say.

Ms. Kerrigan spoke of “deep concerns” small business firms have about the economy and rising costs of health care, slow recovery, administration policy uncertainty, and the “need for a period of stability and certainty to generate positive momentum that will lead to sustained economic growth.” Only 7 percent of the firms surveyed said they used the new small business health care tax credit, “It is too restrictive,” said Ms. Kerrigan.

When it comes to creating jobs, particularly for small firms, Obama just can’t seem to get it right. For his new secretary of commerce, on June 2 he appointed John Bryson, a long-time dedicated environmental extremist. Instead of naming a person who is even slightly connected to the jobs engine of the economy — small business — he chooses a man whose only business credentials are as a former California power company executive and director of a couple of large companies.

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  • geez

    We can't afford anymore of this Obama's idiotic "leadership", but I guarantee you he will run on the idea of how much worse it would be if he hadn't made the tough decisions. What's really sad is there are millions of ignorant sheeple that will swallow that line of crap and vote for this community organizing moron again! 2012's going to require that every person with neurons still firing in their brain get out and vote for someone that actually has economic experience, has run a business and knows how to put people back to work. Here's my 2012 tee shirt… 2012 let's try intelligence and experience or how about this one… 2012 defend Jews and jobs VOTE!

  • Gamaliel Isaac

    Obama blames high gas prices but they'd be a lot lower if he hadn't inflated the dollar.

  • flowerknife_us

    The current Government demonizes those with the income level that actually support "small Businesses", Small businesses really depend on the level of discretionary spending available.Small business is being helped-to closeup. Reducing the consumer base while bleeding them out with the constant increasing of operating and material costs.

  • Asher

    Obama is collapsing the economy, and.Swelling the Welfare rolls. Obama said in his Cairo Speech. "As the Holy Koran tells us, "Be conscious of God and speak always the truth." He uses the Use of the Holy Koran, a translation from the standard reference in Arabic, al-Qur'an al-Karim. "America is not and never will be at war with Islam." "I consider it part of my responsibility as President of the United States to fight against negative stereotypes of Islam wherever they appear." Does anyone believe Islam is a religion of peace? So why does Obama cater to Islam and the Brotherhood? The Birth Certificate, the ties to Terrorists, Ayres, Rashid Khalidi, Khalid al-Mansour, Mazen Asbahi, Obama's first Muslim outreach coordinator, who resigned after it came to light that he had served on the board of a subsidiary of the Saudi-sponsored North American Trust, with Jamal Said, another unindibted co-conspirator in the 2007 Hamas funding trial…Wake up America, this guy has deceived everyone.

  • Cuban Refugee

    The communist table is being set for the government to consume all the platters of big business, and for the bread plates of small business to disappear by our fraudulent waiter's bureaucratic sleight of hand. By the time most of the diners in this country — and the world — realize that they are having a very bad dinner, everyone will be hungry except for the elites who run the restaurant franchise, and their families and friends. If we the people do not collectively throw our napkins on the table in disgust, and demand a refund, there will be long lines at the vomitoria due to the rampant food poisoning. Unfortunately, at the speedy pace this meal is being served by the maitre d's cadre of radical busboys, we may find that the exit doors to freedom have been bolted shut, and even the useful idiots who gave this nightmare of a restaurant an excellent review will be locked in and tied to their chairs.

  • Alfonz Shmedlap

    F., 06/10/11 common era

    Barack Husein Obama was a "community organizer." Did he ever have a newspaper route or a sidewalk lemonade stand? Did he ever sell magazine subscriptions door to door or flower and produce seeds? That's o.k. because he is among the Power Elite who simply know best what's best for us working-class ants.

  • voted against carter

    2 and a half years ago I had a thriving Advertising agency that employed 25 people.

    18 months ago I started laying them off.

    8 months ago I let the last one go.

    4 months ago I closed shop.

    Some time later this summer I will go into foreclosure on my house.

    Obama sure HAS fundamentally transformed America.

    no HOPE,… spare some CHANGE????

    • promise

      There's far too many stories like yours. Hang in there. I had something similar happen as well. I was laid off end of 07' and decided it would be a good time to have surgery on my knee. The surgery failed and I had to have it again 5 months later. I had the second surgery everything went well with the exception of being addicted to morphine/pain pills. Anyway, I finally started looking for a job end of 08' but can't get an interview. Other than one interview that I was way overqualified for all I heard for more than 2 years was the sound of crickets, and I have 25 years experience. I finally got an interview out of nowhere and I mean out of the blue, now I had not been to church in many many years but I promised God before the interview I'd pay tithe on every check received if the job came through. I'm keeping my promise to God for the 4th time today. I've paid my tithe since the day I got the job. I pay it to a church that preaches the whole bible, not some shriveled up bunch that plays church. Pray and keep your promise, God will keep His.

  • Ferret

    High gasoline prices screwing the economy ? Try paying US$6.50 per gallon like we do in Australia. And our economy isn't screwed.

  • Zavrina

    Heck of a job there, it abosueltly helps me out.