A growing economy is good news for small business
America’s growing economy is ushering in a golden age for small businesses. For the second year in a row, the country’s economy is outperforming expectations.
Nationwide, business owners are investing in their companies and their employees by raising wages, providing bonuses, increasing benefits, and creating more jobs. Last year, hourly wage growth exceeded three percent for the first time in almost 10 years. More than 5.5 million jobs have been created since November 2016, and the numbers of job openings have surpassed the number of unemployed workers for the first time on record. The national unemployment rate remained at 3.8 percent in March, the thirteenth straight month it has been at or below 4 percent. This is the longest streak in nearly 50 years.
The Tax Cuts and Jobs Act signed into law by President Trump is helping to fuel this growth. It helped increase the American worker’s real disposable personal income by $2,300, allowing them to keep more of their hard-earned money. We are seeing more investments in business, while business sector productivity is growing at an annual rate of 1.9 percent. This is nearly twice the rate of the expansion prior to the tax cuts.
As Tax Day approaches, I would encourage small business owners to work with their tax professionals to see if their business qualifies for important deductions offered by the new tax law.
Businesses are also benefiting from the President’s deregulation efforts. Since the earliest days of the Trump Administration, federal agencies have been reviewing and rolling back job-killing regulations. In 2018, federal agencies issued 12 deregulatory actions for every new significant regulatory action, saving businesses $23 billion in regulatory costs.
This is good news for America’s 30 million small businesses, which create the majority of our nation’s jobs. Surveys show small business owners are optimistic about the long-term economic outlook and are planning to hire more workers and expand their footprints.
I am proud to represent 4 million small businesses across Arkansas, Louisiana, New Mexico, Oklahoma and Texas as Regional Administrator of the U.S. Small Business Administration. These entrepreneurs are the dreamers and innovators who are powering America into a promising future. It is the SBA’s mission to support them every single step of the way as they continue to grow and thrive. Find out more about the SBA’s programs and services by visiting www.sba.gov. Follow us on Twitter@SBASouthCentral.
Justin Crossie is the regional administrator of the U.S. Small Business Administration’s South Central Region, serving Arkansas, Louisiana, New Mexico, Oklahoma and Texas.