Small Business

July 31, 2013

Microbusiness is a major job creation engine in California

Small companies in California have had a far greater impact on job creation than previously estimated, and this has been going on for an number of years. According to an analysis issued by Small Business California, businesses with less than five employees, sometimes called “microbusinesses”, were the state’s main engine of job growth between 2003 and 2010. These firms added 719,729 positions over that time period, while all other small businesses lost a combined 460,368 jobs during the same time frame.

California’s microbusinesses added jobs even during the depths of the recent recession, creating 120,818 positions between 2008 and 2010. Larger businesses, including firms with more than 500 workers, lost a combined 1.02 million jobs in those years. The report was based on an analysis of data from the U.S. Small Business Administration, Office of Advocacy and can be viewed at this link

It is possible that the role of microbusiness has been far greater than previously estimated and this should provide some serious food for thought for economic development professionals and those responsible for business policy formation in California.

Filed under California Economy, Small Business by

August 26, 2012

Startup California Launches

A new initiative for startup companies has recently launched in California. Startup California is part of the Obama administration “Startup America” initiative, and is being overseen by the private sector component of that initiative “Startup America Partners”. From their press release:

Along with the resources Startup America Partnership offers entrepreneurs nationally, Startup California will focus on breaking down silos across communities and uniting entrepreneurs, corporations, universities, foundations, and other California leaders, to work in concert with a wide range of local and state resources that can dramatically increase the prevalence and success of the California startup ecosystem. Startup California is on a mission to increase the number and scale of new high-growth firms in order to create economic growth, innovation and quality new jobs in the state.

“Startup companies drive the economy, and we think business leaders and policy makers should view these startups as the proverbial canaries in the coal mine – a willingness to experience business danger without compromise. They can alert us to opportunities that can fuel our economy for decades to come. But, they also can highlight looming challenges that stifle growth,” said Ash Kumra, Startup California Champion and Co-Leader.

For more information about Startup America, please visit their website at

Filed under Small Business by

May 24, 2007

Campaign launched to stop small business contracts from going to Fortune 1000 firms

The American Small Business League has launched a political campaign to try to stop the Federal Government from its despicable practice of awarding small business contracts to Fortune 1000 companies. The Federal Government has always had an absurd concept of what it means to be a “small business”. By some of their definitions, it means “less than 500 employees”. They also noted that Federal procurement for small businesses is centralized within 50 miles of Washington, D.C., and want a more decentralized program that would stop California companies from being locked out of these deals. From their press release:

Small business owners across the State of California are contacting United States Senators Barbara Boxer and Dianne Feinstein and asking for their help to halt the flow of government small business contracts to Fortune 1000 corporations. To date, fourteen different federal investigations have all found that billions of dollars in contracts earmarked for legitimate small businesses have instead found their way into the hands of some of the largest companies in the United States and Europe. The bill, H.R. 1873 the “Small Business Fairness in Contracting Act,” passed through the House of Representatives last week and will allow large companies like Boeing, Lockheed Martin, Halliburton, Rolls-Royce and L3 Communications to keep their existing federal small business contracts for up to five more years. Small business owners are asking Senators Boxer and Feinstein to amend the bill and push for the immediate removal of all Fortune 1000 corporations and other large companies from federal small business contracting programs and to force all firms with existing federal small business contracts to re-certify on an annual basis. The campaign to garner the support of Senators Boxer and Feinstein has been organized by the Petaluma, California-based American Small Business League. If Senators Boxer and Feinstein can convince the Senate to add a provision in the new legislation to close the loophole that allows Fortune 1000 corporations to obtain small business contracts, the ASBL predicts that up to $60 billion a year in federal small business contracts would be re-directed to legitimate small businesses in California as well as every other state in the country.

Filed under Opinion, Small Business, U.S. Government by

March 9, 2007

California Banks failing small business

“Not one of California’s 15 major business banks did a good job of lending to small businesses, making it difficult for these critical businesses to access capital and provide much needed goods, services and employment in lower income neighborhoods” according to a report by the California Reinvestment Coalition.

Among its findings: Citibank was the only bank that did a satisfactory job in all six California counties, California’s largest bank- Bank of America offered the least access of any bank and received a failing grade for its small business lending, Wells Fargo Bank received a C grade- it lent more than its share of community deposits but was not good at lending to small businesses in California’s lower income neighborhoods, In Los Angeles U.S. Bank got a perfect score in offering access to small businesses, In contrast City National Bank received an F in its headquarters county of Los Angeles.

“This study highlights the institutional barriers that small and minority-owned businesses continue to face when trying to expand their businesses. Since small businesses are the key to opportunity and hope in lower income communities, these barriers cut the heart out of the American ideal of equal opportunity,” said CRC Executive Director Alan Fisher. “This is a situation that must be remedied by major financial institutions,investigated by the U.S. Congress and scrutinized by the federal regulators who are responsible for overseeing these lenders.”

Filed under Banking and Financial Services, Small Business by

February 6, 2007

NASA Faked Small Business Contracting Data

“The National Aeronautics and Space Administration has lost an 18-month legal battle with California-based American Small Business League, forcing NASA to provide detailed information that proved the agency had exaggerated its small business contracting statistics for 2002, 2003 and 2004. The ASBL filed the suit in San Francisco federal court after NASA refused to comply with a Freedom of Information Act request as well as a second formal appeal for information that revealed billions of dollars in contracts that NASA had reported as going to small businesses actually went to many of the nation’s largest defense and aerospace contractors, such as Lockheed Martin and Boeing.”

Filed under Aerospace and Aviation, Small Business, U.S. Government by

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