State’s economy counts on small business
Small businesses have historically been the foundation of the California economy, employing thousands of workers and providing vital services in our community.
The auto shop that repairs your family’s car, the florist and the delicatessen are all main street small businesses that keep our economy moving.
That is why my fellow colleagues and I are taking the time to recognize these businesses. We recently recognized this key component in the American dream and how it impacts our state economy and provides an important contribution to our communities, our families, and our lives.
Small businesses are the traditional foundation of the state’s economy and statistics show this. State Employment Development Department data shows that approximately 96 percent of all businesses in the state are small businesses, and most of these - 79 percent - have fewer than 10 employees. Small businesses generate nearly two-thirds of all new jobs.
Through their ingenuity they are able to engage in experimentation, innovation and take risks that can be more difficult for larger companies. The creativity demonstrated every day at these family-owned small businesses is moving California’s economy forward.
Furthermore, there are nearly 23 million small businesses in the United States, representing a staggering 99.7 percent of all private sector employers, employing half of the private sector workforce, according to the Small Business Administration. In fact, small businesses account for three-quarters of the new jobs created annually.
Yet, while they are critically important for freedom and opportunity, small businesses are struggling to keep their doors open under the heavy burden of taxes, over-regulation and bureaucracy. Years of mismanagement in Sacramento have forced these neighborhood entrepreneurs to comply with a host of costly, job-killer laws, impediment of transportation needs and lack of infrastructure that hurt their ability to maintain and expand their businesses in California.
Over the last decade, vehicle travel has increased 5 percent more than the state’s population. Congestion is costing motorists $20.7 billion annually in lost time and increased fuel consumption. As a result, many businesses have shut their doors for good, or have moved to neighboring states.
Small businesses are not only important for growing our state’s economy, but are also important for working families. I recently voted for workers comp reform as a limited but necessary step to help small business owners find some kind of relief. I also voted against various job killer bills such as AB 2832.
I am proud to recognize the significance of these businesses and I pledge to remain persistent in efforts to improve the climate for conducting business in California. Our economy, our families and our future depend on it.
Contact Assemblyman George Plescia at (858) 689-6290.