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Tax Law Won’t Help Small Businesses Grow

A scientific opinion poll performed in four Senate battleground states and with a +10 Republican sample (41% R, 31%D), significantly higher than the national average, shows the majority of small business owners will not be able to hire new employees or give raises because of the new tax law. When asked if they would hire a new employee as a result of the new tax law, 69% of the plurality Republican sample said they would not, while only 25% said they would. When asked if they will be giving their employees raises due to the new tax law, 59% said no, while 31% responded that they would.

Financing Patterns by Race and Ethnicity

The SBA issued “Financing Patterns and Credit Market Experiences: A Comparison by Race and Ethnicity for U.S. Employer Firms“. Hispanic and Black Americans are underrepresented in business ownership compared with their shares of the general population. Asians (73 percent) Hispanics (72 percent) and Blacks or African Americans (70 percent) rely on owner’s personal or family savings as a source of startup capital, while 65 percent of Whites relying on this source.

Economic Impact of Immigration By State

In light of recent developments in U.S. immigration policy, WalletHub compared the economic impact of foreign-born populations on the 50 states and the District of Columbia. We determined which states benefit the most — and least — from immigration using 19 key indicators. Our dataset ranges from median household income of foreign-born population to jobs generated by immigrant-owned businesses as a share of total jobs. 

Latino Business Ownership

An important contributor to economic inequality in the United States is the large and persistent racial and ethnic disparity found in business ownership and performance. Blocked opportunities for minorities to start and grow businesses create losses in economic efficiency, especially through their effects on limiting job creation, wealth accumulation, innovation, and local economic growth. This report provides several new findings on Latino business ownership and success using the latest available Census Bureau data. Latinos are separated by U.S.-born vs. immigrant status to provide insights into the constraints faced in starting and running successful businesses.

Amazon’s Small Business Impact

Amazon released its first-ever Small Business Impact Report which found more than 1 million U.S.-based small and medium-sized businesses are selling on Amazon. That report needs to be digested along with the loss of local tax revenue and what happens to Main Street that was reported in Amazon and Empty Storefronts: The Fiscal and Land Use Impacts of Online Retail.

2016 Rural Firms Credit Survey

The physical location of rural small employer firms in less densely populated areas presents an economic, demographic and cultural context that is distinct from the one in which urban small employer firms operate. This Report on Rural Employer Firms compares the business and financing conditions of small employer firms located in rural areas to those located in urban areas. This report is part of a series of reports that use data from the 2016 Small Business Credit Survey (SBCS), a national data-collection effort by the twelve Federal Reserve Banks. All differences between urban and rural small employer firms highlighted in this report are statistically significant based on credibility intervals.

2017 UN Report on Poverty & Human Rights in the US

I have spent the past two weeks visiting the United States, at the invitation of the federal government, to look at whether the persistence of extreme poverty in America undermines the enjoyment of human rights by its citizens.  In my travels through California, Alabama, Georgia, Puerto Rico, West Virginia, and Washington DC I have spoken with dozens of experts and civil society groups, met with senior state and federal government officials and talked with many people who are homeless or living in deep poverty.  I am grateful to the Trump Administration for facilitating my visit and for its continuing cooperation with the UN Human Rights Council’s accountability mechanisms that apply to all states.

CDFIs & Impact Investing

Many urban and rural communities throughout the country lack the capital and resources necessary to create opportunity and promote growth. The community development financial institution (“CDFI”) industry has focused on filling this gap by investing extensively in these communities to improve their economies, physical environment and the financial well-being of residents. In many ways, CDFIs have been pioneers of promoting progress by investing for social impact.

What Women Entrepreneurs Need to Thrive

Senator Jeanne Shaheen (D-NH), Ranking Member of the Senate Committee on Small Business & Entrepreneurship, released a report titled: “Tackling the Gender Gap: What Women Entrepreneurs Need to Thrive.” This timely study draws on interviews with 14 female entrepreneurs, who detail the obstacles they faced and how they overcame them, to highlight current initiatives and provide recommendations to eliminate the unique barriers confronting women-owned small businesses.

2016 Microbusinesses Credit Survey

This report is one in a series based on the findings of the 2016 Small Business Credit Survey (SBCS), a national collaboration of the Community Development Offices of the 12 Federal Reserve Banks. As a supplement to the Report on Employer Firms released in April 2017, this Report on Microbusinesses details findings on the financing experiences and outcomes of the smallest firms in the United States, including the self-employed.