In the 10 year period from 1996 to 2006, small businesses accounted for nearly 40 percent of total U.S. employment, according to a survey conducted by American Solutions, an advocacy group based in Washington, D.C., that we co-founded. Workers employed by small businesses increased by 4.2 million or approximately 11 percent.
But small firms are bearing the brunt of the current recession. David Altig and Melinda Pitts of the Federal Reserve Bank of Atlanta report that job losses for American businesses with fewer than 50 employees reflect 45 percent of total job loss in the current recession compared to just 9 percent in the 2001 recession.
Small business owners are voicing their concerns. Respondents in American Solutions' monthly small business survey in July cited high compliance costs related to OSHA, EPA and IRS reporting regulations as "a significant strain." One in five small business owners estimated that reducing these restrictions by half could save their company as much as $50,000 annually.
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