What the Stimulus Package Means for Small Business

Ga stimulus money.

I am a small landscape company in atlanta, that does 90% yard renovations. In the past 2 weeks I have had 4 different customers fail to proceed on there project at this time for one reason or another. July is usually the best time for new sod (hot weather sod) to get a jump start and take hold of the soil. However, after 13 years of relative success in the business I am close to closing my doors. The fact is that Georgia received 52 million of stimulus money a few months ago and you can be rest assurred that the same large contractors that have supported the polititions in washington in the past are the omes that are paving the roads and building the bridges here in Georgia.

Ok, I have read that homeowners can receive a tax credit for installation of some energy efficient product in there homes. What about the other small contractors out there? what do we have to offer to receive a stimulus package? I install GREEN sod, does that qualify for something?

Really this package needs to be stopped now since only 10% has been let and re- distribute the balance to the little guy somehow. It makes more sense to have the small businees's hire immediate help for immediate results within our small business world.

The best I heard of so far is this. Someone calculated that if your take the $700 billion and divide it up among the taxpayers in Americia we should all receive around $400,000 each. What would you do with $400,000 dollars. Pay off my Mortgage and all my college loans and all my bills and put money in the bank and save it for a rainy day. That way we wouldn't have had to bail out all the banks and still have money left over. It's so simple but since we are all not polititions with our hands out it will never happen.

But it sure sounds good doesn't it?

Phil Polak of GA @ Jul 13, 2009 19:00:59 PM

small business and the stimulus package

There was virtually nothing in the stimulus package directly aimed to small companies. construction projects for roads and bridges go to pretty large firms! maybe some sub-contracts. The approach of the government was to depend on "trickle down ecnomics" for small firms.

bill of PA @ Jul 02, 2009 11:36:52 AM

Study size too big to be relevant

Steve.

I'm not making your point for you. I'm making it clear that you don't need a study to say that at least a very small percentage of 99.93% of all businesses in America will benefit from the stimulus. It's an absurd study to do.

And you need to get your percentages right rather than throwing things out there to attempt to support your study that aren't reality. Businesses under 50 employees is 96% of all businesses, but businesses under 20 employees is 80%, not 95% as you suggest.

You also should publish what you told me in private - that you feel it's likely that there will be a lot of 50 employee companies that might benefit, but that companies under 20 employees will not likely benefit directly from this stimulus (your words, not mine).

You put this study together so SCORE counselors (most of whom have never started a small business), are going to use this as a counseling tool, and almost 100% of their audience are companies under 20 employees. SCORE employees are going to wave this at those businesses and create the false impression that there is something in this stimulus for them. That is simply irresponsible on your part.

Since you believe that some (not all) businesses with 50 employees will likely benefit, then your study should say that the top 4% of all businesses in America will directly benefit from the stimulus.

Your quote - "a lot people are claiming that small businesses will not benefit at all from the stimulus package.", and you're using this to justify your study. The problem is the fundamental one I'm addressing and you're not, that your use of "small" and those that say "small" business will not benefit, are entirely different usages.

Please give me the names of those you say "small businesses will not benefit", and I'll check with each of them and ask them how they define small. I'm one of those that say small business will not benefit directly, and I define small as under 20 employees. You define small as under 500. Until we're all using the same sample size, you can't claim that you've disproved my claim that small business won't beneift. Again, you yourself said businesses under 20 employees will not likely benefit directly from this stimulus, but since you define "small" as 99.93% of all businesses - any under 500, you get to conveniently distort the argument by using "small" in a way that any of your detractors would not.

You can't disprove people's claims who use "small" to mean businesses under 20 employees, by studying businesses under 500. Study the same universe as your detractors before you make the claim you have disproved them.

Imagine me recruiting funds to do a study on "small" people, and deciding that the universe of all small people included anyone under 7 feet tall (assuming that is 99.93% of all people). Who would fund such a ludicrous study? And how could I claim I disproved anyone elses claims when they use small to mean people under 5'4"?

Chuck Blakeman of CO @ Jun 13, 2009 23:12:37 PM

Thanks for illustrating the point of the study

Our main goal in doing the study was to point out that the small business sector of the US economy will benefit from the spending associated with the stimulus package.

As you point out, this is pretty self-evident given the extensive role small businesses play in the US economy.

However, a lot people are claiming that small businesses will not benefit at all from the stimulus package.

This mis-information is resulting in many small businesses thinking there is no reason for them to even explore potential stimulus package opportunities.

Since we released the study literally thousands of small businesses have directly or indirectly benefitted from stimulus spending. Hopefully this news will spread and more small businesses will realize there are stimulus related opportunities. Our hope is our report helps in this process.

As for your sizing point, if we only look at small businesses with 0-20 employees we would still be including roughly 95% of all businesses in the US. There is no way to cut the small business sector by size and not get a large % of total US businesses.

This, again, is the point. The small business sector is a large and important part of the economy and because of this many small businesses will benefit from stimulus spending.

Steve

Steve of CA @ Jun 12, 2009 12:48:09 PM

Study size too big too be relevant

This study, as with all studies based on the SBA's definition of small business is unfortunately unhelpful, simply based on the sample size. The findings tell us that 1.6 million jobs will be created in the small business sector, but the small business sector (by SBA definition and by the definition used in this study) comprises 99.93% of all business - nearly every business in America.

99.93% of all people are under 7 feet tall - does that make them short? Saying that jobs will be created somewhere in the 99.93% of businesses included in this study just doesn't say anything relevant.

If the study focused on businesses between 0-20, or 20-50, o4 50-100, or some sample size that had some meaning to it, it would be a good study. But saying that some of the nearly 100% of businesses in America might benefit from the stimulus - well, you just don't need a study to say that, do you?

Chuck Blakeman of CO @ Jun 11, 2009 23:27:40 PM