With this being National Small Business Week, legislators on Capitol Hill can do a world of good both for the United States’ economy and for the lifeblood of the country’s financial system by passing Trade Promotion Authority (TPA).
As small business owners know, TPA is a power that’s given to the president of the United States that enables the commander in chief to form trade negotiations with foreign countries. The U.S. Congress still must approve trade deals in order for them to go into effect, but with TPA in place, lawmakers can’t attach amendments to them, helping to expedite the quickness with which deals are put into motion.
Thomas Donohue, U.S. Chamber of Commerce president, recently spoke on behalf of the small business community in promoting TPA, outlining why it ought to be passed as soon as possible.
“We need TPA because economic growth and job creation at home depend on our ability to sell American goods and services abroad,” said Donohue, speaking in front of the Senate Finance Committee. “Without TPA, the United States will be relegated to the sidelines as other nations negotiate trade agreements without us – putting American workers, farmers, and companies at a competitive disadvantage.”
He added that in order to have a more prosperous and successful future for small business owners of today and of tomorrow, the world’s foremost superpower – i.e. the United States – has to set the agenda. TPA helps to do that.
More than 90 percent of small businesses export to foreign countries.Small businesses highly involved in trade
“More than one-third of all U.S.-based merchandise exports derive from small businesses.”
Though foreign trade may seem like something that primarily concerns large business entities, small businesses are involved in it regularly, based on data from the Office of the U.S. Trade Representative. More than 97 percent of the estimated 300,000 companies in America that export products are small and medium-sized. Additionally, small firms constitute more than 33 percent of all merchandise that’s exported per year.
During Congressional testimony, Donohue pointed to the Trans-Pacific Partnership as a key negotiation that makes fast track authority crucial. He also said that TPP is a “once in a lifetime opportunity” that can’t be frittered away, which it very well may be if legislators further delay TPA’s passage.
National Small Business Week begins
May 4 – 8 is National Small Business Week, an annual awareness period first established by the U.S. Small Business Administration (SBA). This year’s theme is “Dream Big, Start Small.”
According to SBA data, more than 99 percent of employer firms in the U.S. are small business, which are defined as companies with 500 employees or fewer. Additionally, nearly two-thirds of new private-sector jobs are created by small businesses each year, and 98 percent of firms exports goods.
As of 2010, there were approximately 28 million small businesses in operation in the U.S. By comparison, there are only 18,500 firms that have 500 employees or more. California has the highest number of small businesses at 3.6 million, followed by Texas, Florida, New York and Illinois. These are also the U.S.’ most highly populated states.