PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Small Business Getting Boost from Tax Reform

By at 18 January, 2018, 7:50 pm

President Trump Hears First-Hand from H&K in Pittsburgh 

Washington, D.C. – President Donald Trump visited the H&K Equipment Company today, a small business in Pittsburgh, Pennsylvania. The management of the firm provided a first-hand account of how the “Tax Cuts and Jobs Act” is benefitting the business. Their positive outlook on the economy and prospects for growth in 2018 exemplify the confidence that many small business owners across America are expressing about their businesses and opportunities in 2018. According to Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan, the recently enacted tax package will help buoy the bottom lines of small businesses across America and strengthen positive economic trends in the U.S. economy.

“According to H&K, 2017 was their best year in business since its founding.  As conveyed by many small business owners and entrepreneurs throughout the country, the vast shift in policy over the past year has boosted their confidence and changed their mindset about risk-taking and expansion. Tax relief is now providing the capital for expansion and new equipment, as well as for wage increases for employees. With these investments and capital, small businesses can more effectively compete and take advantage of opportunities in a surging economy,” said Kerrigan.

Many businesses have already announced wage increases, bonuses and expansion plans as a result of the tax relief package, and Kerrigan said that smaller businesses continue to adjust their investment and wage plans as well. Like H&K, the additional capital small businesses now have as a result of tax relief and full expensing are key to growth and readiness.  In addition, and as we are seeing with announcements like Apple’s, the corporate tax cut is driving investment and more spending by big companies, which means extraordinary opportunities for small business suppliers.

“Tax relief along with the seismic shift in regulatory policy have unleashed the latent energy and potential of our nation’s entrepreneurs and small and big businesses alike. It will be very exciting to see where our economy will be at the end of next quarter, or even in a month,” said Kerrigan.

Kerrigan noted other positive economic developments in the past year that bode well for America’s entrepreneurial sector in 2018:

● Venture capital investment was the highest in 2017 since the early 2000’s, which is great news for startups and high-growth firms that drive innovation and quality job creation.

● Sales of small businesses saw a huge increase in 2017, with the last quarter of 2017 delivering a record-breaking performance. There was a 23% increase in buy/sell transactions compared to 2016.  These numbers demonstrate a very healthy market for people wanting to buy businesses, which is important to business dynamism and transforming our existing “stock” of U.S. firms.

●  Holiday sales were the strongest since the Great Recession – up 5.5% from 2016.  The retail industry is dominated by small businesses.

● Small business lending is getting stronger.  According to Biz2Credit’s latest Small Business Lending Index, business loan approvals at big banks and lending institutions hit new heights in December.

●  Entrepreneurship is trending higher.  This is a very positive trend as new business creation has been weak over the past decade or more.

SBE Council is working on a multiple fronts this year to further boost new business creation and more widespread success for small businesses in every corner of the country. The group’s policy agenda includes:  transforming the outdated regulatory systemimproving capital accesslowering health coverage costs and increasing choice and competition, global market access and intellectual property protection, and additional tax code fixes among other key issues. Regarding infrastructure, SBE Council will be working to ensure that the voice of small businesses is prominent and heard in this critical area. This big initiative for our nation needs to be beneficial to small businesses everywhere.

CONTACT:

Karen Kerrigan, kkerrigan@sbecouncil.org  

Raymond Keating, Chief Economist, rkeating@sbecouncil.org

703-242-5840

SBE Council is a nonpartisan, nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For nearly 25 years SBE Council has worked to successfully implement a range of policy and private sector initiatives to strengthen the ecosystem for startups and small business growth. To learn more, visit SBE Council’s website: www.sbecouncil.org. Follow on Twitter: @SBECouncil

 

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