our economic future

The Labor Department US job numbers for October show 128,000 new jobs.

What the media didn’t tell you was that businesses with fewer than 20 employees shed 12,000 jobs in October.

That’s according to the ADP National Employment Report on all sizes of businesses.

In 4 of the last 5 months the net job loss since May has been 112,000 for these small businesses, according to ADP.

Not only are these small businesses not creating jobs, the United States is at a near 40-year low in new business startups.

Our economy is facing a crisis. Economists tell us that essentially all new jobs come from small businesses less than 5 years old with fewer than 5 employees.

Fortunately, US Sen. Tim Scott, R-SC, is working on small business start-ups.

He and Sen. Amy Klobuchar, D-MN, formed the bipartisan Senate Entrepreneurship Caucus to “diagnose the causes of this ‘start-up slump’ and find a comprehensive strategy to counteract it.”

They have introduced the Enhancing Entrepreneurship for the 21st Century Act. It calls for the Department of Commerce to find the underlying factors driving the current start-up slump. This study will look at causes for the low rate of small business creation including access to capital.

Another US Sen. Ron Wyden, D-OR, also recognized the problem in small business growth and is focusing on federal tax incentives to solve capital needs.

He has introduced the Providing Real Opportunities for Growth to Rising Entrepreneurs for Sustained Success Act.

He is concerned with expanding women entrepreneurs’ access to capital.

Data shows that despite a dramatic increase in women-owned businesses, their share of revenue continues to be only 4%.

His bill will help women and men small business owners gain access to capital.

First, the act would establish a 1st Employee Tax Credit to help small business owners hire their 1st employees, a major step toward job creation.

The tax credit would be equal to 25% of W-2 wages and claimed annually, up to $10,000 in a single year, with a lifetime limit of $40,000. The credit can be used against income or payroll tax.

Second, the act would create a tax credit to encourage non-owners to invest in small businesses. Equity investment today is almost non-existent for small businesses.

In a world that seems only to be concerned with big business, small business owners who make our economy strong appreciate the efforts of these senators.

Mr. Knapp is CEO of the South Carolina Small Business Chamber of Commerce and co-chair of Businesses for Responsible Tax Reform.