I want to tip my hat to those enterprising, industrious, courageous and optimistic men and women of Utah who have the moxie to put everything on the line and start a small business.
It’s not easy. Anyone creating a small business had better be a hard worker with the resilience to plow through many obstacles and challenges. Consider that in 2014, 2,850 new Utah businesses were created. But 2,112 went out of business the same year. The new startups generated 9,815 new jobs, but 6,541 jobs were lost as businesses closed their doors.
Despite the odds, success is certainly possible. Almost 260,000 small businesses exist in Utah, employing more than 520,000 citizens, representing about 47 percent of Utah’s workforce. Small businesses created 20,228 net new jobs in 2015.
All of that is worth a celebration. National Small Business Week was commemorated in May, highlighting the importance of innovative entrepreneurs who turn ideas into businesses, creating jobs and forming the backbone of our economy. Over 50 percent of Americans work for or own a small business. Small businesses create the majority of new jobs in our nation each year.
Utah small-business people are engaging in the global marketplace, with 86 percent of all Utah exporters categorized as small businesses. Derek Miller, World Trade Center Utah CEO, said, “Utah businesses are increasingly taking advantage of opportunities around the world. The state’s exports grew from $12.3 billion in 2013 to $13.3 billion in 2014, an 8 percent increase in just one year. That is an astounding number when you consider the slowdown in the global economy, turmoil and violence around the world, and a strong U.S. dollar.”
The number and strength of small businesses is one reason Utah’s economy is the most diverse in the country, with the largest middle class and the most potential for upward mobility. As columnist LaVarr Webb wrote, “Clearly the oil and gas downturn has hurt Utah. But the nice thing about having one of the most diversified economies in the country is that when one sector is down, other sectors can keep the economy rolling.”
Thanks to the small-business sector, Utah has seen impressive wage growth, with the second highest year-over-year wage and salary increase in the country. The median income for individuals who are self-employed at their own incorporated businesses was $50,660 in 2013.
We should be doing all we can to encourage and help small businesses flourish. Survey research shows that taxes and government regulation are the biggest concerns of small-business owners. Over-regulation has grown significantly as a major concern over the last decade.
Congresswoman Mia Love is working to ease the regulatory burden on small businesses and to facilitate access to capital. HR3791, which passed the House on April 14, “will help Utah businesses get access to the credit they need and give them a better chance at obtaining economic freedom. This will help them pursue their version of the American dream,” Love said.
The U.S. Small Business Association (SBA) noted that, “Small businesses simply need an environment in which to grow and create jobs: economic stability; predictability, fairness and transparency in taxes and health care costs; common-sense regulations that don’t unfairly disadvantage small firms; and lawmakers willing to tackle the major issues facing our country.”
Stan Nakano, the SBA district director for Utah, said, “We all know that the people of Utah have long been identified by their enterprising and industrious nature — so much so that we have immortalized the word ‘industry’ as our state motto and the beehive as our emblem.”
Small businesses are worth celebrating. But beyond celebrating them, we must support them every day of the year so they can provide economic strength, generate the bulk of new jobs, bring innovation to market and create wealth that makes our state a great place to live and work.
A. Scott Anderson is CEO and president of Zions Bank.