Small Business Owners Propose Ways to Improve State's Economy
January 2004
Most of the country is enjoying a robust economic recovery, with job growth and productivity increases spurring record gains in economic activity. But the Washington economy, while showing signs of improvement, continues to stagnate, suffering from restrictive policies imposed by state and local government that create unnecessary barriers to business success. News coverage tends to focus on local giants like Boeing and Microsoft, and while these are important, it is small business that is the real catalyst for job growth and revitalization.
Our state's small enterprises provide over 55% of private sector jobs and comprise more than 95% of all businesses. State leaders should work to create a business climate that encourages small business and reduces barriers to their success.
To help improve the small business climate, Washington Policy Center convened a Statewide Small Business Conference at the SeaTac Hilton this last October. The meeting was co-sponsored by more than seventy organizations, including the Association of Washington Business, Independent Business Association, National Federation of Independent Business and chambers of commerce in Seattle, Spokane and dozens of other communities.
More than 350 small business owners from across the state attended the conference. It featured eight breakout sessions moderated by leading experts on major policy issues identified by small business owners as the primary barriers to their success. Discussion topics included the increasing tax burden imposed by the workers' compensation program, the job-destroying effects of Washington's high minimum wage, the rising cost of buying health coverage for workers, and the frustration of dealing with the contradictory dictates of state regulators. In each session, business owners voiced their thoughts on how to improve Washington's small business climate.
The concrete results of the Conference will be delivered to legislators in a published report titled, "Agenda for Reform: Priority Solutions for Improving Washington's Small Business Climate." The report in hard copy, is also available by calling Washington Policy Center.
As the new legislative session gets underway, elected leaders in Olympia will have the benefit of practical ideas that come directly from small business owners; ideas that highlight the basic changes necessary to revitalize our state's business climate. Here are some of the main recommendations from the 2003 Statewide Small Business Conference.
Workers' Compensation Insurance
Improve claims management process
Implement wage simplification
Unemployment Insurance
Reduce benefits to be more in line with the national average
Provide better incentives for workers to get back to work
Workplace regulations
Introduce full-employment trigger for increasing minimum wage
Rely on federal workplace standards before creating new state regulations
Rising Cost of Health Insurance
Cap non-economic damages for medical malpractice lawsuits
Improve small business access to basic health insurance
Workforce Training
Improve tax and regulatory incentives for small businesses to train workers
Enhance public perception and availability of vocational and technical training
Access to Technology and Telecommunications
Decrease taxes on telecommunications services
Expand broadband into rural areas
Environmental Regulations
Compensate regulatory impacts on private lands
Regulate for results by allowing flexibility in meeting environmental standards
Tax Burden
Permanently establish Priorities of Government budgeting process
Reduce taxes for all businesses; don't just shift the tax burden
Liability and Tort Reform
Limit construction liability through Condominium Act reform
Implement joint and several liability reforms