A Bloc Is Born

An independent political consultant comments on the small-business community as a voting bloc in US politics.

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Until recently, owners of small businesses didn't have much time for politics: they were too busy running their companies. That changed in the last election, and U.S. politics will never be the same

In the pundits' ongoing analysis of the 1994 political earthquake that hit Washington, D.C., the small-business community as a voting bloc has been largely ignored. While the press has written a lot about the new House and Senate members who have business backgrounds (nine of the freshman class belong or belonged to the National Federation of Independent Business [NFIB]), it has said little about the role of small business in electing those agents of change. This month's White House Conference on Small Business marks a good time to examine the role of small business in the past election and how it will help shape policy for this and future congressional classes.

Most analyses of last year's election attribute the change to angry white males mad at Congress or President Clinton. That interpretation is simplistic: what really happened in the election is an ongoing "dealignment" -- a shift away from party allegiance among the electorate. Voters no longer cast their ballots as Republicans, Democrats, or even independents. Although about 30% of the population is classically Democrat or Republican on general abstract issues of macroeconomics and the role of government, a growing percentage of the population -- about 70% -- believes that neither party is relevant anymore, in terms of producing solutions for its personal concerns. Those people now vote on issues, principles, and the individual candidates.

That represents a major shift in the mentality of the public. And so, while political pundits and the media continue to think in terms of Republican, Democrat, and independent, voters don't. The only reason people register as Republican, Democrat, or independent is that they have no other choice. I have a driver's license, but that doesn't say anything about what I believe -- only that registration is necessary for me to drive a car. The same holds true today for voter registration.

That is a nationwide phenomenon that has been developing for the last 20 years -- and accelerating in the last 10 years, since the Reagan election. It was first led by ideological conservatives, including the Christian Right. I worked on organizing the Christian Right, and I observe similarities between that political movement and the one we are now seeing among entrepreneurs.

Let me explain: the issues of the two groups are different -- but the political relevance is not. It was not so long ago that many members of the national media believed that born-again Christians were an insignificant proportion of the population and that they were so diversified on issues and ideology that they would never be able to become a focused voting bloc. In fact, the group made up about a third of the adult population, and its members were like-minded on social and family issues and were defending what they saw as their heritage and culture. Christian activists were driven by the conviction that a lack of morals and the breakdown of the family unit were destroying American society. Pat Robertson helped catalyze the group by putting a face on the movement when he ran for president. American politics hasn't been the same since.

Again, I am not equating the values and beliefs of small business with the Christian Right. I am pointing out the political similarities. Both groups are driven by principle and purpose. Party issues are secondary. Neither the small-business community itself nor the national press realizes the community's size or influence as a voting bloc. (According to the Marketing Research Institute, in Pensacola, Fla., 53% of employed Americans work for a small business with 250 employees or fewer.) Part of the reason is that until recently, small-business owners have been apolitical. They have been so involved in their businesses that they literally haven't had the time to participate in politics. Moreover, they haven't always seen the business of politics as directly relevant to their businesses.

That all changed when small-business owners suddenly felt besieged. The catalyst was the health-care plan of 1993. Suddenly, small-business owners believed they were being asked to carry the burden of regulations -- to absorb the shift in costs from big business. Who do you think would have been picking up that tab? And when small-business owners protested, when they said, "I can't work on less than a 3% margin," Hillary Clinton responded by saying, "I can't go out and save every undercapitalized entrepreneur in America." That was a battle cry.

Prior to last year's election, the NFIB held meetings around the country to see how strongly small-business owners felt about the issue. We were overwhelmed by the number of people who attended and said they believed that their very survival was at stake. We helped them out. The NFIB executed one of the most extensive grassroots lobbying efforts in recent history. We raised more than $700,000 for political communications to our members, and we took an active role in elections by organizing small-business conservatives at the county level, contributing to more than 200 congressional campaigns, and training people to build coalitions. We told our members how to get politically involved, and they did. There's every indication that more than half the people who voted in the 1994 election were small-business owners, small-business employees, or members of small-business households who voted in the interest of business owners.

Dealignment, combined with an energized group of small-business owners, produced dramatic results. The group disregarded any party labels and voted on straight business issues. The Republicans were the big winners only because they represented the agents of change. Entrepreneurs are avoiding the Democratic party because it does not appear to understand the concerns of small business. It does not seem to be eliminating programs at a time when businesspeople feel that government is far too intrusive already. On the other hand, there is no guaranteed Republican benefit from these trends. Many people are skeptical about whether the Republicans know what they are doing. The Republican party could be a home to the newly politicized business owners, but if the party blows it, people will opt for a third way.

Had there been a strong independent slate available, voters would have seriously considered it. We have a good example in history, before the Civil War, when the all-powerful Whig party went out of existence and the Republican party was born. The government had become self-serving and vague. The majority party did not represent a clear vision or direction for the country. The public became convinced that government couldn't or wouldn't present efficient solutions to its overriding problems and needs. The grassroots movement questioned blind party loyalty and switched its decision-making priorities to agenda and principles. Our current lawmakers should pay heed. When government appears to be too intrusive, arrogant, and misunderstanding, citizens will demand change.

Today the public wants change. It wants to feel confident about the country's leaders. This Congress will deliver the goods, or voters will look elsewhere in 1996. Small-business owners have realized their potential and have changed the political landscape, just as the emergence of ideological conservatives did. Politics will never be the same.

R. Marc Nuttle is vice-president of the National Federation of Independent Business and works out of Oklahoma as an independent national political consultant.