The problem with Obama’s plan for small business is that the definition is wrong. Most businesses are small businesses according to the Small Business Administration. The term “microbusiness” has yet to catch on, but the truth is that there are a lot of self employed sole proprietors who need help keeping their businesses afloat.
Most people don’t realize this, but 99% of American businesses are “small businesses”. That is, only one in 100 business employs 500 or more workers, which is how the Small Business Administration (SBA) generally defines this term so often bandied about by politicians on both sides of the political spectrum.
So, it’s reasonable to ask ourselves: If 99 of every 100 firms in America are small, what value does the term “small business” really have? Not much, actually.
The reality is, the value of the term of art “small business” is only political in nature; “smallness” suggests local, Mom-n-Pop, salt-of-the-earth, when in fact the one million small businesses President Obama proposed to help out in his address through a $30 billion investment of tax-payer money are not really representative of most small or new ventures.
In fact, three out of every four businesses have no employees at all!