Re: The entrepreneurial owners of successful, fast-growing companies have some suggestions, compliments, and a few grievances to air when it comes to doing business under the Bush administration. FYI, Mr. President!
Dear President Bush: You've said that "the role of government is to create an environment in which the small-business owner can grow to be a big business, in which people with the entrepreneurial spirit flourish, in which job creation is strong and evident." We agree with you. Small businesses make up more than 99% of all employers, account for 52% of the GDP, and provide two-thirds of net new jobs, according to the Office of Economic Research. Taken as a whole, they're an economic powerhouse.
Unfortunately, the voices of small-business owners don't always get heard in Washington. They are too busy to latch themselves on to the D.C. cocktail party circuit, where they might forward their agenda with some local bigwigs. And they don't have millions of dollars to hire lobbyists who could bend your ear from time to time. When it comes to political influence, small firms lack access.
This, we decided, was a situation Inc. could help rectify. So we asked some of our readers--the owners of successful businesses--to write you letters, explaining what's on their minds when it comes to doing business under your administration. For the most part, these letters do not address the macroeconomic forces that affect big and small companies alike. Instead, they discuss specific ways in which you could help improve their businesses and foster a more entrepreneurial nation. We hope you will listen.
Dear President Bush:
For the most part, America is a magnificent place to advance entrepreneurialism. In the spirit of advancement, and as the founder of a 15-year defense services company now also at the forefront of homeland security, I offer these suggestions.
Please rejigger the Fair Labor Standards Act, which established the 40-hour workweek, so that it allows for more flexibility in work schedules. For example, one of my employees would like to work 60 hours one week and 20 hours another for personal reasons. That's fine with me, but because she's an hourly employee, I would have to pay her time and a half for the 20 hours she works overtime the first week, which I'm not willing to do. FLSA leaves us only two choices: salaried exempt or hourly nonexempt. This situation came before Congress a few years ago and remains a bone of contention between the donkeys and the elephants. You could resolve it.
Open up the Salary Reduction Simplified Employee Pension (SARSEP-IRA). This tax-deferred retirement plan that lets both the employer and the employee contribute to an IRA is one of the fairest and simplest plans on the planet--but drop the IRS provision that prevents its use for companies with more than 25 employees. The limit only forces us to spend money on big investment houses to manage 401(k) programs.
I am pleased and proud to have such a strong leader in the White House.
Sincerely,
R. L. Manganello
CEO
Windmill International
Nashua, N.H.
Dear President Bush:
One of my concerns is the lack of affordable debt financing for privately held service companies like mine, one of the world's largest telephone answering services, with more than 2,000 employees serving 40,000 businesses in the U.S. Although interest rates are very low, getting access to money at low rates can be difficult. Service companies often don't have the tangible assets, like real estate and equipment, that banks (and their regulators) require as collateral. Our staff is our main asset. But banks won't accept people as security (and the employees would get really angry if banks tried to auction them off).
The government sponsors programs such as the Small Business Investment Corporations, which are privately managed financial institutions that finance only small businesses and are backed with both private capital and government loans. However, in my experience, these companies are run by venture capitalists who often look for returns in excess of 25%, which isn't inexpensive. These programs can help businesses grow, but the costs are often too high both economically and personally--because SBIC companies get equity in the company and often take positions on the company's board of directors.
Small businesses like mine need better programs that allow us to take advantage of the low cost of money. If you could make programs like that available, small companies would start to spend money and further stimulate the economy.
Respectfully submitted,
Gary A. Pudles
President & CEO
AnswerNet Network
Princeton, N.J.
Dear President Bush:
We have an obesity crisis in our country--with more than 59 million obese Americans, it's no surprise that obesity-related deaths are projected to overtake tobacco-related fatalities within 10 years. You might think there's not much a President can do about this. But that's not true.
Since it is unlikely obesity can be legislated away, the problem requires Presidential leadership--you need to help people recognize that fighting obesity is not an issue of fashion, it is a matter of life and death, or at least runaway health care costs.
There are two main causes of the problem: lack of exercise and poor diet. You are already setting a good example in terms of fitness. Now you need to address the role of added sugar in the diet. According to the USDA, the average American consumes about 45 pounds of processed sugar every year, well over what the World Health Organization recommends. If P. Diddy can spark national interest in running, imagine what you can do as President by speaking out on eating healthy. We're doing our part by making Honest Tea, a variety of organic teas that taste great and have only 4 to 10 grams of sugar per 16-ounce bottle. Here's what we'd like you to do:
(1) Ask the FDA to set a recommended daily allowance for added sugar and encourage food companies to disclose on their labels how much added sugar is in their products. If consumers start paying attention to how much added sugar is in the foods they buy, they will start to make informed and healthier choices.
(2) Show people that great-tasting, healthy alternatives exist by drinking Honest Tea in public. We'd be happy to send over a case or two. Avoid being photographed holding a bottle of soda or sweetened iced tea; one 16-ounce bottle of those drinks can contain up to 60 grams of sugar--25% more sugar than the World Health Organization recommends for an entire day. Life is sweet enough.
