Why Washington Has It Wrong on Small Business

Trying to understand and gauge small businesses in America can be quite the challenging task namely because all small businesses typically get lumped together no matter if you have 1 employee or 400 employees.  The government takes a broad brush stroke to dealing with small businesses which can mean a disaster for some and a strategic advantage for others.

This WSJ article takes a specific look at how the government treats small businesses and what they get wrong in trying to apply the same policies and procedures to all.

•  The government, though, lumps them all into one category, covered by the same rules, policies and federal agency. Generally speaking, if you have fewer than 500 employees, you're a generic "small business"—whether you're the dry cleaner who's been on the same corner for a decade or a tech company that just launched in a dorm room.
• Small companies create enormous numbers of jobs, but those gains are driven by a handful of startups that actually grow big. Most small businesses start small and stay that way.
• Less than a quarter of America's 27 million small businesses have employees. An even smaller portion grow beyond 20 employees. And many of them don't want to. New research from the University of Chicago finds that 75% of small-business owners aren't aiming for growth at all. They're basically just looking for a steady job as their own boss.