You would have to be a hermit to not know that this is an election year. Our news is filled with coverage on the upcoming elections. There are governor, Senate, and House representative elections in every state this year and scores of local elections.
Candidates have no shortage of issues to discuss this year. The candidate debates have been consumed with talks on healthcare, immigration, government spending, foreign policy, and much more.
One topic hasn’t gotten much attention from candidates, but it deserves more of their time. Small Business. For the first time in this country’s history, entrepreneurship in the United States is in decline. Fewer small businesses are starting each year than ever before, and the total number of small businesses in this country has dropped as more businesses close their doors for a variety of reasons.
One of this country’s greatest institutions, small business, is in peril, and nobody in government seems to care. This is despite the fact that small business creates the majority of new jobs in this country (about 75%), leads the way for innovation in this country (10-15 times more than larger companies), and is the primary driver of the overall domestic economy (over 50% of GDP).
What is causing entrepreneurship to decline in the U.S.? Several key factors are at play:
- The “Walmart-ization of America”. There has been a huge shift in our economy from “mom-and-pop” stores to national chains. Small businesses are having a harder time competing with larger mega-companies like Walmart, Costco, and Amazon.
- Capital for growth. Historically, most small businesses received their growth capital from small community banks. The number of community banks has declined by over 75% in the past two decades. Fewer small banks mean less capital for small businesses.
- To leave their current employer and start a new business, people need to know they can secure health insurance on their own. Historically, due to pre-existing health issues, this prevented many aspiring entrepreneurs from starting new businesses. During the Obama presidency, the passage of the Affordable Care Act gave these new entrepreneurs a chance to leave their jobs and start new companies. The small business start-up rate jumped for two years before the new administration arrived in Washington, D.C., and began efforts to roll back that small business-friendly legislation.
- Immigrants account for more than 30% of new business start-ups in this country. Small businesses also depend on immigrants in the labor pool to fill many positions from executives to entry-level positions. The number of immigrants coming to the U.S. today has dwindled significantly, and small businesses as a whole have felt the pain of the government policy decisions that are driving these immigrants to other countries.
What can be done? Here are five questions that we can ask anyone running for political office in 2026:
#1. Do you support the Affordable Care Act and its efforts to eliminate pre-existing conditions for new policyholders?
#2. Do you favor expanding the Small Business Administration (SBA) and its efforts to provide SBA-guaranteed loans to more small businesses? The SBA also provides valuable training and resources to small businesses through its SCORE and SBDC offices.
#3. Do you support easing current immigration policies in the U.S.?
#4. Do you support tax credits for individuals starting new businesses in the U.S.?
#5. Do you support eliminating non-competes in business today, since they often prevent individuals from starting new businesses?
The more affirmative responses we get to these five questions, the better our chances as a country of reviving one of the most important institutions in the United States.