Vice President Kamala Harris has unveiled a plan to support small businesses across the United States. The plan includes reducing government bureaucracy, introducing a standard deduction for small businesses, easing occupational licensing, investing in rural businesses, and ensuring that one-third of federal contract dollars go to small businesses. Despite the promising aspects, the plan is criticized for its lack of specific details.
This makes it difficult to assess the practical implications and costs of the initiatives. While the startup scene in the U.S. is thriving, established small businesses still face significant challenges.
Harris’s support for existing businesses
These businesses represent a substantial portion of the economy, employing 61.7 million Americans and making up 99.9% of all businesses. Instead of focusing predominantly on startups, Harris’s plan could better support existing small businesses in several ways. These include extending the Qualified Business Income Deduction, implementing regulation reforms, improving utilization of existing programs, and promoting Employee Stock Ownership Plans (ESOPs).
The existing small business owners are the backbone of the economy and require targeted support. Vice President Harris’s approach could benefit from a shift in focus toward these established businesses to ensure their survival and growth in a rapidly changing economic environment.
