Issue Position: Small Businesses

Issue Position

Small Businesses: An Engine for Economic Growth, Job Creation and Community Development

With the unemployment rate in Massachusetts currently at 9.5%, it is imperative that our state does everything in its power to put our residents back to work and accelerate economic growth. One area of the economy where we can take immediate action to ensure the retention of our current workforce, as well as spur job creation, is the small business community.

As the son of two small business owners, I grew up in my parents' workplace and know first-hand the struggles that these businesses face, even in a favorable economic climate. My parents have operated Flowers By Sal in Cambridge for over 40 years and continue to be an integral part of their community.

Small businesses keep our neighborhoods vibrant, employ local residents and provide support to community-based organizations in nearly every city and town in the Commonwealth. They are the backbone of our cities and towns and we have to ensure that they continue to play this important role in communities throughout the state. In addition, they can also play a central role in our economic recovery and we should give them the tools they need to make this happen.

First, to assist them in creating jobs I support a $2,500 tax credit for each employee hired by a small business who stays employed for at least a one-year period. This incentive will provide business with much needed tax relief and allow them to re-invest in their infrastructure and hire additional staff.

Second, the rising cost of healthcare coverage has placed a significant burden on small businesses and needs to be made a priority on the state level. In speaking to many business owners, the unpredictability of rate increases by health insurers in recent years is often the single factor that has prohibited them from hiring new staff and in some cases, retaining the staff they currently employ. We must mandate caps on rate increases to allow businesses to budget accordingly and give them the assurance of knowing that an unexpected rate hike will not be a factor in the retention of their current workforce.

Third, we must work with local banking institutions to continue opening lines of credit. Without credit small businesses cannot expand. We have used government funding to sustain these banks and we must now hold them accountable for assisting us in this period of economic recovery. Small business need capital now and we have to make sure that they receive the resources they need to continue doing business and expanding employment opportunities.

In addition, we must continue to properly utilize the tools that have helped stabilize the economy during the recession. We must ensure that federal stimulus funding is being directed to the appropriate agencies to both create and retain jobs. Millions of dollars have been allocated to expand small business and we need a State Senator who knows how to work with the various agencies on Beacon Hill to make sure that stimulus dollars are distributed into our communities in a both an efficient and transparent manner.

Finally, we must continue to encourage new industries, such as the biotechnology and film industries, to make Massachusetts their home. Both of these industries have contributed much needed revenue to our state, and in the particular case of the film production companies who have done work in our communities, have contributed to the stability of our small businesses, such as restaurants, retailers, supermarkets, hotels and coffee shops.

The recession that we have faced has been difficult on all of us and our economic recovery will not happen overnight. While they are not the only area of the economy we must focus on, we would be well-served by partnering with the small business community to help accelerate this process and put more our state's residents back to work and on the path to financial stability.

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