While Bush guts SBA, rate of US entrepreneurship falls.

[MH1]

(Hello all, some of you know me already, but I just got my "star" so I can post to the John Kerry Group. Woo-hoo!)

I posted this out in the wildwoods too (GD: Politics) - if it's bad form to double-post it here, let me know and I'll delete it if I can. Also, it is cross-posted at my blog, Freedom's Fire, Brightly Burning, and at Booman Tribune. I only have one commenter at Booman but I added some links in my responses that you also might find interesting. For those who don't know, BT is a dkos spinoff, but a kinder, gentler place - they may not love JK there as much as we do, but I haven't seen anything ugly.

Okay, here's the main course:

NPR's Marketplace Morning Report Friday morning (6:50 EDT rendition) reported a recent study that found entrepreneurship is down significantly in the U.S. from 2003 - 2004. The study found the number of persons starting new businesses in America dropped by 4 million in 2004, to about 18 million from about 22 million in 2003.

The study, Entrepreneurship in the U.S.: 2004 Assessment, was conducted by Paul Reynolds of Florida International University and can be downloaded from the Entrepreneurship Research Institute website.

An excerpt from the Executive Overview of the report:

Levels of Activity

• Evidence of a substantial rise in U.S. activity from 1993-2000, and a subsequent decline through 2004.
• In the year 2000, about 23 million between 18-74 years of age were actively engaged in a start-up or new firm management; this declined to about 18 million in 2004.
• There has been a statistically significant drop in activity of 20% from 2003 to 2004; representing a one-year reduction of 4 million involved in the entrepreneurial process.
• This decline in participation is concentrated among young adult men and women, 18-34 years of age, and mid-career men, 35-54 years of age.
• This decline is associated with a less positive personal context for entrepreneurship among these gender-age specific groups.

Section B of the report, "Changes over time", includes the following observations:

Based on this one item indicator, there have been dramatic changes in the U.S. level of participation in the start-up process over the past 11 years. As shown in Figure B-1, there was a considerable change from 1993 to 1998-99; participation in business start-ups more than doubled. There was a further increase--perhaps as much as 80%--from 1999 to 2001. Following 2001 there seems to have been a decline, perhaps as much as 28%. All of these changes are statistically significant.

Key points:

• a doubling in business start-ups from 1993-1998/1999
• a further 80% increase in start-ups from 1999-2001
• a decline - possibly as much as 28% - in start-ups from 2001-2004

Who says the Bush administration is good for business? Didn't the Bush Administration try to blame the recession of 2001 on Clinton; then say that the recession was over rather quickly? If the recession ended so quickly, why such a dampening of entrepreneurship?

The graphs in the report also show that while the overall trend from 2001-2004 has been down, there was a small spike in activity in 2003, but that was followed by a dive from 2003 - 2004. I am not an economist, but I am not thrilled by the picture these numbers paint.

The "Changes Over Time" section of the report further noted, in analysis of surveying potential causes for the decline, that

It would appear that those at the "entrepreneurially predisposed" stages of their work career are very sensitive to slight shifts in the opportunity structures in their immediate personal environment. A few adjustments in the perception of opportunities can affect a substantial proportion of these individuals and, in turn, affect the overall level of entrepreneurial activity.

Given the importance of small businesses and entrepreneurship to the U.S. economy, and the American values of opportunity, independence, and self-determination, one might think that the President would express deep concern and take serious action to address the decline in entrepreneurship shown by this study. However, during his administration, George W. Bush has shown himself to be anything but a friend to small business. For example, refer to the statement (pdf) by Senator John Kerry, ranking member of the Senate Small Business Committee, on the Bush Administration's proposed 2006 budget for the Small Business Administration. Senator Kerry notes that

• The proposed 2006 budget of 593 million for the SBA is 12.5% less than the amount requested in the FY2005 budget; and 20% less than the actual FY2005 appropriations.
• "According to the President's FY2005 budget, over four years, the cumulative reduction in SBA's resources amounted to a 25-percent cut, the most of all 26 agencies. The next most cut were the Corps of Engineers at 15 percent and the Department of Transportation at 8.3 percent."
• The next paragraph explains that Senator Kerry had to dig for that comparison data, because in the FY2006 budget's comparison of impacts on major agencies, the SBA was merged into the category "Other Agencies" - as Sen. Kerry concludes, "essentially downgraded from the staus of a 'major Agency'."

In a press release regarding the removal in conference committee of an amendment to the FY2006 budget that would have restored much of the SBA funding, Sen. Kerry noted "Since 2001, the SBA's budget has been cut by 36 percent, more than any other federal agency." Other recent Bush Administration assaults on small business include gutting the LowDoc program, a program that streamlines the loan process and is particularly helpful for rural loan-seekers.

It is clear from this record that the Bush Administration and the Republicans in Congress are not particularly interested in encouraging small business and entrepreneurship. In fact, if the study reported by NPR this morning and detailed above is correct that "those at the 'entrepreneurially predisposed' stages of their work career are very sensitive to slight shifts in the opportunity structures in their immediate personal environment", then cuts to the SBA which reduce opportunities will further reduce entrepreneurship in America. And as Paul Reynolds, the study's author, stated on the NPR program this morning, "if it declines that much in 2005 , I think the country has a problem."

On the other hand - and I can't say it enough - John Kerry "gets it" that enabling small business and entrepreneurship is essential to core American values of independence and self-determination. John Kerry "gets it" that small businesses protect and care for their people and community better than large corporations. John Kerry "gets it" that entrepreneurship is the linchpin of our economy.

John Kerry GETS IT. Will the Republicans running Washington, and the people who voted for them, GET IT before it's too late?

[whometense]

1. I'll say welcome here too.

And thanks. Your blog posts are great. A lot of us cross-post in other places as well. The way I see it, the main goal is to get the good word out!

I appreciated your comment on Booman Tribune. I've visited there a few times, but haven't really got a fix on it yet - or on The Next Hurrah, either. And then there's TPM Cafe. A lot of new places to go - it gets confusing, and there are only so many hours in a day to spend online.

There's a lot of info here, beautifully pulled together. Thanks.

[MH1]

2. Thanks for the compliments.

I'm finding that I really enjoy doing this kind of research and writing.

[TayTay]

3. That was exceptional.

I just read Kerry (and the other MA Dems) statement on getting MA fishermen relief from SBA because they have had to close up shop due to the Red Tide epidemic. There is simply no money. However, there were strings to be pulled for getting a SBA loan to fund Pres *'s run across the country to call for destroying Social Security. The priorities of this Admin as so far out of whack it is humiliating.

This was great work. Also, I loved your comments on the AHP's debate over at DKos. These plans are not good enough, but the * Admin is tring to tout them as a cure-all for the small business health care crisis. It leaves too many with unaffordable premiums and with the need to cherry-pick who gets coverage and who doesn't. (And it still doesn't help with the idea that one catastrophic illness in one small business can devastate everything.)

Nice work! So, you're from PA? (I hate Santorum, btw. We recently had a sort of 'worst Seantor' contest and Sen. Man-On-Dog was either tops or close to it.) There are a lot of people who seem to have had some reflection time on Kerry and have come to the conclusion that he was a pretty good (great) nominee. We are going through that strange Democratic back-biting time, but I am hoping that we get over it soon. There is so much work to do. Welcome aboard!

[MH1]

4. Glad you like it!

Yes, with the Red Tide thing it does go to show that JK is in touch and working for his constituents. I even saw one letter he wrote requesting the bureaucrats take certain steps to streamline the process for fishermen applying for relief. I don't remember the detail but my thought at the time was wow, this guy is paying attention to the nitty-gritty details of making sure people get what they need - he didn't just stop with getting the disaster declaration. Cred meter is up another notch!

Ditto your remarks on *'s using SBA money for bamboozlepalooza.

AHP's - did you look at the Booman thread I linked in my dkos post? There are some good links in there, too.

Yes I am from PA, in a burb of Philly. Conveniently located between Boston and D.C. ;-)

Did you by chance come to the Philly rally on 10/25? I took the day off to volunteer and wow was I glad I did. Didn't get within handshake distance of JK but it was still a great time. I was standing under the media bank and they picked up some of my whoopin' and hollerin' on the tape. Heh heh.

[TayTay]

5. No, I was in NH on those days

trying to figure out why no one was home in NH. The NH office had so many volunteers come up from MA that they sent us out to canvass four to a car. We actually took turns going up to doors, where upon we discovered that no one was home. Everyone was out getting munchies and such for the World Series that was to start that night. (It was a big deal up here.)

Then the rest of the time, from Sunday to the day after Awful Wednesday, just turned into a big blur. I remember having a near death experience with the Red Sox, but being resurrected in an entirely implausible way. (And I went to bed too late.) Then I got up and worried about NH and wondered if there was anything else I could do. (I knew Mass was going for Kerry no point annoying people there.) I had bothered everyone I knew in NH and had had some success. I had called all the relatives in far off and exotic places like Arizona and Colorado and done what I could. So I fretted about Kerry then I fretted about the Red Sox. Then I had another near-death Red Sox experience and worried some more. It was a fun time.

The, for one brief shining moment, all was right with the world. The sun shone brightly and all was right with the world. The Red Sox won and this strange feeling of being utterly satisfied took over me. I had nothing to complain about for days. Very, very un-New Englandlike. Then the happiness went away and crushing loss and deep depression returned to Boston in autumn. Sigh! It was an emotional roller coaster and I was so frickin tired I couldn't form coherent sentences. (And people admitted later, they were afraid to talk to me anyway.)

But, I'm much better now. Sigh! Philly sound like it was fun.

[MH1]

6. Heh. I missed all the other rallies, too,

doing canvassing or whatever. But this one was on a workday so I figured I'd indulge.

Video is still online at cspan (although the quality is terrible):

http://www.cspan.org/Search/basic.asp?BasicQueryText=John+Kerry&SortBy=date

scroll down to: Sen. Kerry & Fmr. Pres. Clinton Campaign Rally

It was a great speech, too. That was when I started to realize what I'd been missing by not paying closer attention to the man himself.

This was Big Dog's first event after open-heart surgery. Philly loves the Dog, among other reasons because he saved the Shipyard and a ton of jobs. The crowd was about 100,000 - an amazing sea of people. The local R's whined about the Mayor closing off the parkway and allowing city workers to attend the rally. We heard about that for weeks!! Yuk, yuk.

I think on that day everyone in the crowd believed we were listening to the next President. The joy was just overwhelming. The only thing unhappy thought I had was that it would probably be even harder to get a chance to shake the man's hand after he became Prez.

Here's a pic of the crowd:



That sea of people is covering a several lane highway (the Ben Franklin Parkway) for several blocks. (But of course the story I saw on CNN said "Thousands of people..." Yeah. Try a HUNDRED thousand.)

There's a couple nice closeups of JK and the Dawg posted at http://missbitty.blogspot.com/2004_10_01_missbitty_archive.html. I didn't get any myself that day, unfortunately.

[TayTay]

7. Those are gorgeous pics!

So where the wonderful pics from Madison, WI of the rally that happened around that time as well. Gawd, it did feel like it was going the Dem way. (I think a case can be made that it did go that way. Sigh!)

It's funny how memories get all jumbled up. The end of that campaign will always be entwined with the Red Sox victory in my mind. (The two events were The topics of conversation for Oct 2004.) I went campaigning in my Red Sox hat, I met folks who wanted to talk about issues and who was pitching that night. Did you see Curt Schilling and wasn't that amazing and is Kerry peaking too early? I went to a small rally in Nashua, NH that had the co-owner of the Sox bring in all the Red Sox stuff and play the 'Dirty Water' song and 'Sweet Caroline.' I waved the red, white and blue

Kerry
Red Sox
We Believe

sign, which I still have, and screamed for both events to turn out positively. And mostly I worried. It was the best of times, it was the worst of times. I tried to button-hole everyone I knew to get them to vote for Kerry, then we talked about pitching and if this was 'The Year' after all. (The year for whom?) I must have had 30 people ask me the Boston Hypothetical of the month: 'God tells you you can have only one, a Kerry victory or a Red Sox World Series win: Choose.' (I tried to kill anyone who asked me this with extremely bad and piercing looks, but it didn't work.) I said, in the smallest voice of my life, 'Kerry.' (I really did. Several people didn't believe me anyway, sigh!)

That is my confusing memory of Oct/Nov last year. It was an emotional roller coaster that I hope never, ever to repeat. (Too much. Too exhausting. Too up and down, too 'I'm too old for this.')

[MH1]

8. Emotional rollercoaster.

It was an emotional roller coaster...

Yeah, it was that.

...that I hope never, ever to repeat. (Too much. Too exhausting. Too up and down, too 'I'm too old for this.')

Pensive thought...

If it was like that for us, what about for Kerry, who lived on that rollercoaster for what, 2 years?

I was in the second-worst depression of my life for about 2 weeks after election day. Then some news story came out that Kerry said he was "Fired up, and ready to go back to work in the Senate..."

I said hell, if he can be fired up after this, then I'd better get off my ass, suck it up, and get fired up too.

I'm ready to repeat it, except with a different ending this time.

[kerrygoddess]

9. The Red Tide issue

The fishing/seafood industry has taken a lot of hits in recent years.

This Red Tide situation is really an economic disaster for the areas affected. There are a lot of related undustries affected by this including restaurants and tourism.

Before this the industry has been dealing with areas being overfished, quotas on some fish, competing with larger commercial fishing companies and commercial companies from other countries fishing in our waters. Our fisherman often need to go farther out, stay out longer and thus, are putting lives in more danger.

It's a very, very dangerous business. Most people don't get that situations similar to "Perfect Storm" happen frequently. I knew one of the guys on that boat. Most families who rely on the fishing industry for a living will never send a father and son out on the same boat, or multiple family members. It's too risky.

The people in the industry who have tried to deal with the SBA in the past have learned that the SBA makes you jump through hoops and it takes forever. Anyone who has been through process of applying for an SBA understands that.

Kerry has consistently fought to make things easier for all sorts of small businesses to get funding. The MicroLoan program was his "baby" and although considerably easier and quicker, it's still hoop jumping. I just went through the process last July and it took about 6 weeks before I finally got approved for a pitance.

On Friday Kerry took things a step further and asked the Commerce Department to step in and declare a disaster under "under Section 312 (a) of the Magnuson-Stevens Fishery Conservation and Management Act" which will overstep the SBA and provide direct relief which is now needed.

http://www.lightupthedarkness.org/blog/default.asp?view=plink&id=1062

So, yes JK is in touch with his constituents and he understands the issue that fisherman and the seafood industry face. His concerns for the industry affect not just his constituents in MA but the entire industry.