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Report: Small Business Owners Give Federal Government Programs ‘C or Lower’ Grade

Sad small business owner
More than 60 percent (60%) of respondents give the federal government a letter grade of “C or less” on the effectiveness of programs, services and tax credits available to small businesses. // Stock photo

As President Joe Biden delivers his State of the Union address tonight, Goldman Sachs 10,000 Small Businesses Voices releases new survey data showing the “State of Small Business Support.”

Goldman Sachs 10,000 Small Businesses is an investment to help entrepreneurs create jobs and economic opportunity by providing a comprehensive business education program and access to capital and business support services.

The program represents a $500 million investment by Goldman Sachs in the name of small business growth. At no cost to participants, 10,000 Small Businesses offers 12 regional educational programs in the United States, including Wayne State University in Detroit. The curriculum was designed by Babson College in Wellesley, Mass.

In a telling revelation of how small business owners feel about the programs currently offered by the federal government, 63 percent give the federal government a “C or lower” letter grade for the effectiveness of the programs, services and tax credits available for small businesses.

What’s more, 71 percent give the federal government a grade of “C or lower” when it comes to the work it does in marketing and communicating about programs, services and tax credits available to small businesses.

At the same time, 34 percent of small business owners say they have a clear idea of ​​the federal programs, services and tax credits available to them.

Small business owners have a clear directive to fix the problem: 92 percent say it is important for Congress to comprehensively modernize the Small Business Administration (SBA), an agency that has not been reauthorized by Congress since 2000.

In turn, personally, 75 percent of small business owners report that they are optimistic about their financial trajectory in 2024. Additionally, 57 percent expect to create jobs this year, 62 percent project an increase in profits before before the end of the year and 28 percent rate the economy as good or excellent – an increase of 9 percent compared to three months earlier.

“Leaders in Washington often speak passionately about their support for small businesses and praise them as the backbone of the American economy, but small business owners would like to see that speech turned into action by having Congress prioritize modernizing the Small Business Administration,” said Janice Jucker, co-owner of Three Brothers Bakery in Houston and an alumna of the Goldman Sachs 10,000 Small Businesses program.

“Congress has not reauthorized the Small Business Administration since 2000, meaning the agency’s programs, resources and functions are rooted in a bygone economy. “Small business owners will watch the State of the Union (and next year’s election campaign) in hopes of hearing candidates and elected officials prioritize modernizing the Small Business Administration.”

Examine specific programs offered by the federal government:

  • 18 percent say the federal government does an “excellent” or “good” job of providing procurement assistance and support;
  • 29 percent say the federal government makes an “excellent” or “good” offer of assistance in accessing capital;
  • 34 percent say the federal government does an “excellent” or “good” job providing technical assistance and business development; and
  • 50 percent say the federal government does an “excellent” or “good” job of offering disaster assistance or relief programs.

Other key findings from the “State of Small Business Support” survey data set include:

  • 91 percent say they will “definitely vote” in the 2024 presidential election;
  • 84 percent say a candidate’s small business policy positions will be a major factor in who they vote for in the 2024 presidential election; and
  • Only 7 percent believe elected officials keep their promises to small businesses all or most of the time.

The survey data is the result of responses from 1,453 Goldman Sachs 10,000 Small Businesses alumni in a survey conducted by Babson College and David Binder Research from January 15 to 19, 2024. The survey included small business owners from 49 US states, Washington, DC, and Puerto Rico.

Goldman Sachs 10,000 Small Businesses Voices, which celebrated its third anniversary in April, builds on Goldman Sachs 10,000 Small Businesses and organizes program participants to advocate for policies they care about.

To date, 10,000 Small Businesses has served more than 14,500 small businesses across the United States. The program has reached companies in all 50 states, Puerto Rico and Washington, DC.

Goldman Sachs Group Inc. is a leading global financial institution offering a broad range of financial services to a broad and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the company is headquartered in New York and has offices in major financial centers around the world. Last September, the firm opened a private wealth management office in downtown Detroit.

Learn more about the Goldman Sachs 10,000 Small Businesses here.

to read a Business magazine article about Goldman Sachs 10,000 Small Businesses and Cathy Koch, president and CEO of K-Tec Systems Inc. in Ferndale, who is an alumna, visit here.