The Big Issues for Small Concerns

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Batterson: What the Internet really is going to do is create a global economic revolution. Today if you're an Internet company in Chicago, you're basically an international company whether you want to be or not. And it's much easier to be, because of the communication links that the Internet provides. That's true whether you're a company like mine that's providing capital worldwide or to people who are selling anything.

Looking back over the past decade, do you think any issues of concern for small business have been solved?

Hasty: Yes, I think that if we look over the past 10 years, this has been the greatest economic time this country has enjoyed. There are more new small businesses being created right now than at any other time in history. Venture capital is plentiful. Many of the incentives that the government provided have helped, such as the SBA lending programs. The reduction in taxes has been a catalyst. If you look at capital-gains tax rates now, they are the lowest that they've ever been. This has spurred business formation and growth. And even if you look at estate taxes, although they are a major penalty to individuals, they have been coming down.

One final question: Will it make any difference who's elected President this fall?

Zigulich: I don't think so.

Kerns: I do. Mainly because I believe if George Bush is put in office, it will change the general flow of capital made available to businesses. In general, the Democratic platform has spurred investment in the small-business sector over the past eight years by reducing bank regulation and lowering interest rates, so it's easier to get bank loans. Historically, raising money has been the biggest hurdle for small businesses in this country. The Republicans don't have a good track record in this regard. They have a tighter focus on fiscal restraint.

Batterson: I went on the Internet and pulled off some stuff about George Bush and Al Gore on their programs. I found out that the Small Business Survival Committee, a lobbying group that claims to have 50,000 small-business members, basically gave Governor Bush a B-plus for his small- business program and gave Vice President Gore an F.

I looked at both candidates' positions on their websites, just to see if I agreed with this group. Gore's platform, except maybe a little bit in high technology, is so vague that it's hard to tell if he has a clue about small business. Bush's is a little more specific, but again, a lot of his proposals are from an aerial view of 50,000 ft. They are on topics that really don't affect small-business people and entrepreneurs trying to start their own businesses.

Zigulich: That's true. Our mission is to be successful in spite of the barriers that are laid out by the government. It's difficult to overcome the challenges, but we have to.

This piece was written in coordination with FSB, a Time Inc. magazine that goes to more than 1 million small-business owners