One trumps two, small businesses rejoice.
The federal bureaucracy in Washington, D.C., has just been trumped. Despite how you might feel about President Donald Trump or all the controversy over his newly enacted executive orders, one, in particular, has caught my attention and the small business community as a whole. The executive order, titled, “Reducing Regulation and Controlling Regulatory Costs,” could be the largest cut in recent history for regulations on small businesses.
According to USA Today White House Correspondent Gregory Korte (January 30), “The order greatly strengthens the president’s hand in overseeing agency regulations, putting a limit on each agency’s regulatory ability through the annual budget process. And it requires that the costs of any new regulations be balanced through the repeal of at least two old regulations.”
Gregory Korte made it clear that President Trump’s intentions with this policy were to help small businesses specifically. Even though I think more can be done through Congress to reduce the burden on small businesses, this is by far a great start. If we take a look at Oklahoma’s economy, the majority of Oklahoma’s businesses are small businesses and promoting their interests is vital to continue our state’s economic momentum and diversification. According to Forbes contributor Steve Denning (October 2014), he mentions that The Kauffman Foundation and the Institute for Competitiveness & Prosperity have found that most private-sector jobs have been created by businesses less than five years old.
If you ask me, that’s a remarkable statistic.
Many believe that small businesses fail early on, within the first few years of business, and although that might be true, many of these companies are responsible for the majority of new jobs. This simple fact is another reason why we as Oklahomans and Americans should do all we can to make it easier to succeed as entrepreneurs, that includes reducing regulatory burdens at all levels of government. What we are seeing is that these young companies are the primary source of job creation in Oklahoma and America’s economy as a whole. Not only that, but many of these small businesses are injecting competition into the market and spurring innovation. By contrast, it’s the massive corporations, in bed with the government, who want to strangle or limit competition – this is not a formula for success because the moment the government plays favorites, small businesses lose and job growth is stifled.
Large corporations tend to have the money to pay for substantial legal fees and to lobby politicians to pass regulations that make it harder for smaller companies to compete. Like most would, these big companies tend to be more interested in protecting their piece of the pie, and if you drown out competition by regulations, you are not as eager to try something new and fresh. Many times it’s the novice or start-up company that is willing to challenge the status quo and by result will serve the marketplace better which can lead to expansion and job creation if done correctly.
President Trump’s decision to help reduce regulations on small businesses marked a victory for Oklahoma’s economy and the small businesses hungry to compete and grow. If we hope to promote real capitalism in which entrepreneurs and small businesses have the freedom to build and quickly hire the help they need, the key is to advocate pro-business and pro-growth economic policies that allow the ordinary individual or small business to compete. The last thing Oklahoma needs is more corruption and crony capitalism.
Love Trump or hate Trump, I will applaud his efforts to drain the swamp and find solutions that will help the everyday entrepreneur or working class individual.
Let’s pray President Trump continues to play his cards right and to use his influence and power in a constitutional manner. Only time will tell what kind of President Donald Trump will be or how he will continue to trump the D.C. insiders.