Small Business In Washington State:
A Vital Part of Our Economy
October 2001
Each year 22% of all businesses in Washington fail. Our business climate is one of the toughest in the nation. Policymakers around the state realize we have a problem. Business and policy leaders are discussing changes to the tax and regulatory structure that will attempt to ensure large businesses like Boeing and Microsoft do not move more jobs to other states. One voice, though, has been conspicuously absent in this discussion: small business.
The primary forum of discussion, Governor Locke's new Competitiveness Council, does not include a small business representative, and the media do not adequately report the issues and concerns of small business. This is unfortunate, because small businesses in Washington face many unique obstacles on their road to success and profitability.
Like many of the large businesses that wield the lion's share of the political influence in this state, small businesses are adversely affected by high taxes, traffic congestion, energy costs and burdensome regulations. But the Washington Policy Center recognizes the unique and important role small business plays in our economy.
Small businesses provide a strong backbone to our communities. They make up over 90% of all businesses in Washington and provide over 60% of all jobs in the private sector. Washington's smallest firms create nearly three times as many jobs as the state's largest employers, and small business owners take substantial personal risks as they attempt to transform their ideas into successful, job creating companies.
Small businesses do not have the political clout or resources to bargain with state and local government officials, and they are more likely to suffer the adverse effects of high taxes and conflicting regulations. Because the hard-earned savings of their founders often determine their budgets, most small businesses cannot afford to hire lawyers, consultants and outside contractors to help them navigate the gauntlet of government red tape they face every day.
Beginning this month, the Washington Policy Center is working with a number of chambers of commerce across the state and other business organizations to give a voice to the small business community. In partnership with the National Federation of Independent Business (NFIB) and the Independent Business Association (IBA), we will be holding fifteen Small Business Roundtables at locations throughout the state. Small business owners are encouraged to participate in a discussion of the major barriers to their success and what can be done to reform a system that is often times weighted against them.
By actively participating in the project, small business owners can share their views on the problems they face and discuss the solutions that will guide our state towards more growth and prosperity. We will publish the results and offer practical solutions to state and local policymakers and the media. Through our roundtable discussions and published results, we will ensure that the concerns of small business play an important role in the development of sound policy for years to come.