Overall, small businesses express little confidence in current business policies and policy-making. Almost three-quarters (73%) believe these policies favor large companies over small businesses. This sentiment spans political affiliations, with 79% of Republican and 71% of Democrat and independent small business owners agreeing that the current business environment is skewed in favor of big corporations. They argue that policies often reflect the needs of well-funded, established companies, potentially leaving small businesses in a challenging position, unable to compete on the same scale.
When it comes to business policy-making, most small business owners (86%) agree that they have little say in the process. This feeling of exclusion is prevalent across party lines: 91% of Republican business owners worry about their lack of influence, as do 82% of Democrats and 88% of independents. Despite the fact that small businesses make up 99% of all businesses in the United States, their voices appear underrepresented, leaving many feeling marginalized in discussions about economic policies that impact them directly.
In today’s politically polarized environment, finding common ground between business owners of opposing parties is rare. In our study, while Republican and Democrat small business owners disagreed on several points—for instance, 64% of Democrats rated the economy as “good or excellent,” whereas 60% of Republicans rated it as “poor”—they found consensus on the feeling of being sidelined in business policy discussions. This shared frustration underscores the significance of the issue: a lack of voice in policy-making isn’t merely a partisan problem but a systemic one affecting a diverse group of business owners across the country.
For many small business owners, these policies often appear to prioritize corporations that are better positioned to weather economic fluctuations and regulatory demands. Small businesses, in contrast, often operate with tighter margins and fewer resources, making them more vulnerable to unfavorable policies or regulations. This power imbalance can inhibit growth and limit the opportunities small businesses have to expand, innovate, and compete effectively.
The lack of influence in policy-making also affects the types of policies being proposed and implemented. Small businesses, for example, are often more focused on local issues and immediate operational concerns, such as access to affordable health care for employees, local tax incentives, and community-specific support initiatives. However, without representation, these priorities risk being overshadowed by broader corporate interests. The result is a one-size-fits-all approach that fails to address the unique needs of small businesses, particularly in diverse regions and industries.
The perception that small business concerns are ignored in policy-making contributes to growing frustration within the community. Many small business owners feel that their contributions to the economy are undervalued, despite the fact that they generate nearly half of all jobs in the country. This lack of appreciation not only affects morale but can also deter entrepreneurs from entering the market or encourage existing owners to consider scaling back or even closing their businesses.
Understanding these perspectives is crucial for policymakers who aim to support economic growth. Addressing the challenges faced by small businesses requires a commitment to inclusivity in policy-making, with policies that reflect the on-the-ground realities of these entrepreneurs. By integrating small business owners’ input, policymakers can make well-informed, data-driven decisions that not only support small businesses but also strengthen the broader economy.
Article contributed by
The AFE Editorial Team