It is refreshing to see that the President of the United States understands that the backbone of this country rests on the shoulders of entrepreneurs and the small businesses they run. At Infusionsoft, we recognize that as half a million jobs are being lost every month, that just as many new entrepreneurs are being born and starting businesses. They are taking their severance packages and going out to make their own way.
President Obama’s speech mentioned John Wilson at NC Design Group, which runs 1st Choice Cabinetry in Raleigh, North Carolina, who said it well:
“Small business people are incredibly resilient and resourceful given half a chance. But we need the chance.”
Raising the guarantee on SBA loans to 90% and purchasing $15 billion in SBA loans is a start to where we need to go. The good news is that this move will get some of the secondary credit markets back open for small business owners in this country, however I suspect it will simply free up existing loans and lines of credit. In order for this plan to succeed, we — the American entrepreneur — will need to see new lending taking place.
One of the more controversial pieces of the President’s plan is the elimination of capital gains taxes for private investors for small businesses.
Established entrepreneur and business woman Sramana Mitra has written about bootstrapping as a weapon for mass reconstruction, but she also discusses tax policy and stimulus issues as well. Infusionsoft’s CEO, Clate Mask, noted in a comment on her post titled, “Stimulus Package for Entrepreneurs,” that “…stimulating angel investment in small business is spot on. Every entrepreneur needs a rich uncle… and most of us don’t have one.”
While there may be opposition and concern about the President’s plan to eliminate the capital gains tax for investments in small or startup businesses, those that are in opposition are missing the point. This reduction will give angel investors currently sitting on the sidelines the incentive and encouragement needed for them to invest. As all of us entrepreneurs know, very few of us are going to go to a tier 1 or tier 2 VC firm for capital. It will be our own local angel investors who will stimulate growth in our businesses.
It is too early to tell what impact this first step is going to make on the economy and the small business owner, however it is a refreshing step to get the American entrepreneur focusing on the positive news. Only the American entrepreneur has what it takes to rebuild our country stronger than it was before.
This is a very insightful message.
A major part of America’s driving force of wealth comes from the entrepreneur’s that are willing to take extreme risk everyday, to see the true American Dream.
Job well Done!
Byron Burke, CEO
BB Media Global Group
You REALLY think Obama is FOR small business??? LOL, that’s a joke.
Big business has been getting tax breaks for years, while it’s small business which has been driving growth.
This is much better than free money or handouts. This is giving an incentive to people to grow the economy. But it’s still the investor’s money at risk – so investment decisions will still be made (or at the attempt will be made) wisely.
I’m pleasantly surprised to see Infusionsoft on the side of progress – wherever it comes from – rather than kneejerk republicanism (see comment above).
I appreciate the balanced approach of InfusionSoft and accepting reality with a positive outlook. I just finished reading the ebook “Master of the Moment’. I love the way it starts with a person who has just solf off his business learning lessons from life to make a new beginning. I expected the ebook to be the usual run of the mill when I downloaded it. I was surprised by the way the narration started and progressed, it was like watching a film. I will never forget the journey through the experiences so vividly presented.
Thank you all for your comments, this certainly is an electrified topic for entrepreneurs across America, which is why I LOVE the fact that we are having these discussions.
Keep your comments coming, this is a great dialog.
Entrepreneur and businessman is really on of the keys to have a strong economy… Of course they are belong to big businesses..
Entrepreneur and businessman is really on of the keys to have a strong economy… Of course they are belong to big businesses..