SMALL BUSINESSES

Problem

Small businesses are the backbone of the economy — yet policy treats them like disposable scenery while catering to multinational corporations.

The reality

• Over 99 percent of all U.S. businesses are small businesses.

• Nearly half of all private workers rely on them.

• They create two out of every three new jobs.

But survival is fragile:

• 20 percent fail within a year

• Half close within five

• Pandemic disruptions wiped out more than a third, temporarily or permanently.

Barriers are structural — not personal failure.

• 80 percent of small business loan applicants at big banks are denied

• Black- and Latino-owned businesses face:

  • Higher denial rates

  • Smaller loans

  • Fewer banking partners

• Women-owned and rural small businesses face the steepest hurdles.

Meanwhile, consolidation accelerates:

• A handful of corporations dominate retail, shipping, logistics, and hospitality.

• Chains secure tax breaks and subsidies unavailable to local owners.

• Low-margin pricing by tech giants undercuts small operators.

• Community dollars leak to corporate headquarters instead of circulating locally

The result:

• Neighborhoods lose character and economic anchors.

• Workers lose independence and bargaining power.

• Entrepreneurs struggle to build generational wealth.

This is not a lack of talent. It is a lack of fair rules.

Solutions

1. Expand access to capital

• Create national lending programs through community banks and CDFIs

• Guarantee low-interest loans up to $250,000 for working-class entrepreneurs

• Offer grants and microloans for:

  • First-time owners

  • Women, BIPOC, and immigrant-led businesses

  • Rural and tribal communities

• Ban discriminatory lending and enforce transparent criteria.

Impact: More entrepreneurs get the funding needed to start, sustain, or expand their businesses, resulting in increased business survival and job creation.

2. Enforce antitrust and protect fair competition

• Break up monopolies in tech, shipping, food, and distribution.

• Ban predatory pricing below cost to wipe out competition.

• End sweetheart subsidies and public land giveaways to large corporations

Impact: Fair competition gives small businesses realistic opportunities to grow, thrive, and contribute more to their local economies.

3. Simplify regulation for small operators

• Create one-stop federal portals for:

  • Licensing

  • Payroll and taxes

  • Compliance requirements

• Offer multilingual compliance support.

• Create micro-exemptions for the smallest firms to avoid unnecessary red tape.

Impact: Entrepreneurs devote more time to running and growing their businesses, thereby increasing productivity and customer satisfaction.

4. Take healthcare off small employers’ backs

• Move toward universal healthcare coverage.

• Allow small businesses to buy into public plans during the transition.

• Expand sick leave and workers' benefits without forcing small owners to absorb all costs.

Impact: With healthcare costs lifted, small businesses can hire and retain skilled workers, improving growth and job stability.

5. Invest in community business ecosystems

• Fund community incubators, shared kitchens, co-ops, and commercial maker spaces.

• Support public markets, night markets, and pop-up retail.

• Partner with workforce development programs at community colleges

Impact: More startups can launch, sustain growth, and remain anchored in their communities, boosting local economies.

6. Strengthen workers as partners

• Raise wages to stabilize industries like retail, food, and hospitality.

• Offer tax credits for skills training and apprenticeships.

• Allow targeted visas for key workforce shortages.

Impact: Better-trained, fairly-paid workers help small businesses succeed and compete, creating resilient industries.

Bottom Line

Small businesses are not asking for special treatment — they are asking for fair rules.

If we invest in local entrepreneurs and foster competition, communities keep their identity, workers keep their jobs, and wealth stays where it is generated rather than flowing to corporate headquarters.

A thriving small business economy is how we revitalize main streets, rebuild local wealth, and bring economic power back to everyday people.