Category Archives: Regulations

Gloria Larkin, WIPP’s National Partner of the Month – February 2017

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Gloria Larkin, president of TargetGov, has been a staunch ally of WIPP for years. She leads GiveMe5 webinars, responds quickly and effectively to WIPP’s calls to action, and is always on the lookout for new WIPP members. It’s thanks to people like Gloria that WIPP thrives!

Read our Q&A with Gloria to learn more about her and her work.

Q: Tell us a little about TargetGov and its mission

A: TargetGov is celebrating its 20th year in business in 2017! Our mission is to help small, mid-sized and large government contractors win business and aggressively grow their companies. Our clients have won over $3.9 billion in federal contracts in just the last five years.

Q: Have you always been an entrepreneur? If not, what inspired you to take the leap?

A: I have been both an employee and an entrepreneur. I took the leap 20 years ago because I wanted to do something that no one else was doing—help businesses see great success and increase their revenues with a targeted, proactive marketing and business development process.

Q: Have you encountered challenges you had to overcome as a business woman and if so, what have you learned from them?

A: The challenges have been constant, and access to capital is one of the biggest. Through the years, I have had several business loans to grow my business, and none of them were the amount I asked for. It’s an issue even to this day. In applying for a line of credit, I was offered less than half of what I thought it should be. I had the chutzpah to say exactly the amount I thought they should give me (more than double what they offered) and was pleasantly surprised that they agreed. In the past I wouldn’t have pushed, but now, I do.

Q: Do you have a success story that you are particularly proud of? Tell us about it!

A: My proudest moments are when our clients contact us and tell us of their awarded contracts and successful business growth. It feels like my children are successful and I am one proud parent! The first billion was a heady milestone. Now as we see the four-billion milestone coming this year, we are ecstatic about their success!

Q: What is the biggest lesson learned working with the federal government?

A: The biggest lesson is that the federal government market is constantly changing. The rules and regulations are burdensome, yes, but success is predicated on having a strategy and plan that addresses this constant change and adapts proactively, with a trackable, measureable and scalable process. Seeing it work in real life is extraordinary!

Q: Do you have any tips you would like to share with women pursuing federal contracts?

A: This is a demanding market and one must be well prepared, have a well-thought-out roadmap, the discipline to execute it, and measurable actions to track success. This is truly the market in which you can think BIG and see results. But it takes effort and knowledge; use the experts to help you!

Q: Tell us about your experience as a WIPP member. What resources and value has WIPP provided that has been helpful to you and your company?

A: WIPP has truly changed my life. I started getting involved as a committee chair, then learned how to talk to my Congress people. I participated in virtually every area WIPP works in and found a home on the procurement committee. Then I worked my way onto the government board, and then to Chair of the Educational Foundation. Thanks to WIPP, I have testified before the House Small Business Committee, and traveled to more than 15 states and had lifetime trips to Dubai and Abu Dhabi, Japan and Oxford, England to speak or work with women in those counties. Working to start the GiveMe5 program, and supporting it through the years has been a great highlight. WIPP has impacted more than 30,000 women business owners through GiveMe5! And I am deeply honored to have many WIPP members as clients and heart-felt friends.

10 Things You Should Know From the Linda McMahon Hearing

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By Ann Sullivan, WIPP Chief Advocate

On Jan. 24, the Senate Small Business Committee held a hearing on the confirmation of Linda McMahon (former WWE CEO), to become Administrator of the Small Business Administration (SBA). Here are the 10 things you should know about her hearing:

  1. SBA is still part of the cabinet—President Obama elevated the position of SBA Administrator to cabinet level. President Trump is sticking with that change.
  2. Existing programs are safe…for now—When questioned by numerous senators on specific program commitments, McMahon repeatedly said that if the program is working then it should be continued.
  3. She will go to bat for small business in the executive branch—McMahon sees herself as the small business advocate within the executive branch, and will go to other agencies and make sure that more federal contracting opportunities are provided to small businesses.
  4. She will work to expand the 5% contracting goal for women—Senator Duckworth (IL), asked about the 5% goal, and McMahon expressed support for women entrepreneurs, broadly, “I have been very forthcoming in wanting women entrepreneurship to grow. And I will continue to support that, it is very near and dear to my heart.”
  5. She has a history working with Veterans—According to McMahon, WWE was always concerned about veterans and how to help create jobs for them. Senator Cardin (MD) discussed the Veterans Institute for Procurement (VIP) program and noted its impact and high performance.
  6. Look for an emphasis on mentoring—Given McMahon’s background in business mentoring, she may focus on programs that incorporate mentorship. As co-founder of Women’s Leadership LIVE, McMahon’s organization educates entrepreneurs about all facets of starting and expanding their business.
  7. She wants to help free small businesses from burdensome regulations—While many senators asked questions about regulatory burdens on small businesses, Senator Ernst brought up the PROVE It Act—legislation passed out of committee last session that empowers the SBA Office of Advocacy to require agencies to analyze rules for their small business impact.
  8. Speaking of advocacy—McMahon expressed support for expanding the independent SBA Office of Advocacy to ensure that the voice of small business is heard on federal regulations.
  9. She wants small businesses to participate in anticipated Infrastructure projects—When asked about promoting fair opportunities for small businesses to compete for work in the highly anticipated infrastructure plan, McMahon stated that small business participation was a given.
  10. Streamlining cumbersome federal contracting—McMahon expressed support for streamlining the alphabet soup of federal websites and databases like SAM and FBO.

This was a conciliatory confirmation hearing. Given the contentious nature of other confirmation hearings, it was unknown what tone McMahon’s hearing would take. But the hearing went well. Senators were polite and McMahon was responsive to concerns. With so much partisanship in Washington, it was positive to see McMahon’s interest in working with the committee—both sides.

In With the New

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By Ann Sullivan, WIPP Chief Advocate

With inauguration festivities up ahead and a newly elected Congress hard at work, it is time to get down to business. The New Year serves as a good reminder that while there may be some new faces in Washington, many of the policy ideas are those we have seen before. Below are some highlights of what is both old and new in Washington for 2017.

Old and New. For the first time in years, our Country has unified government in the House, Senate, and White House. The difference this time is that the government is united by the Republicans, not Democrats. Amazingly, it’s only been six years since the Democrats controlled the government. New—now the Republicans are in change.

Old. Some problems don’t change. Creating more opportunities for women entrepreneurs to access capital continues to be a major theme for WIPP in 2017. Today, women entrepreneurs receive only 4% of commercial loan dollars. WIPP’s access to capital platform Breaking the Bank has been well received by policy makers because it is focused on solutions.

New. Some problems just surfaced. WIPP recently released a report, “Do Not Enter: Women Shut Out of U.S. Government’s Biggest Contracts,” finding clear evidence that women-owned small businesses have limited opportunities to win some of the federal government’s most sought-after contracts, despite a proven ability to deliver innovative goods and services. The report also outlines steps policy makers can take to rectify the problem.

Old. 2016 Was certainly a year of regulations for federal contractors. From Paid Sick Leave, to Overtime, Fair Pay and Safe Workplaces—it was often difficult to keep them straight.

New. 2017 is the year of deregulation. President-elect Trump and the U.S. House have strongly indicated many Obama administration rules will be repealed. The House just passed the Midnight Relief Act to quickly repeal any rule finalized in the last 60 days of an Administration. WIPP supports efforts to make it easier for women entrepreneurs to work with the government.

New. Government contracting finalized. While it took many years, SBA has finally released the new all-small business Mentor Protégé Program, and new rules making it easier for WOSBs to work with other WOSBs. WIPP looks forward to working with SBA to ensure WOSBs can use these program changes to grow our businesses.

Old. Wait –Nothing gets repealed in government contracting, there is just more to pile on.

Old and New. In 2017, 125 women hold seats in the U.S. Capitol building. One hundred and four women hold seats in the U.S. Congress, making up over 19 percent of the chamber. A greater percentage of women serve in the U.S. Senate, where there are 21 women (making up 21 percent). While the total number of women is identical to the number last Congress, there is one key difference—64% of the new women elected are women of color.

New. Firsts in Congress. Representative Lisa Blunt Rochester of Delaware is the first woman, and woman of color to serve from Delaware. Senator Catherine Cortez-Masto is the first woman, and first woman of color Nevada has elected to the U.S. Senate.

As WIPP prepares to work in the 115th Congress, we plan to present our ideas based on input from membership. We will work with all Members of Congress, and the new Administration, because one of the few things everyone agrees on is that enabling businesses to grow strengthens our economy. Women are entering the ranks of business ownership at record rates, and launching a net of more than 1,100 new businesses each day. We will work for the next several years to reinforce and grow the success of women’s business owners.

So what are we waiting for—let’s get to work.

Why Federal Contractors Will Probably Be Working This Labor Day

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By John Stanford, WIPP Government Relations

The Department of Labor and FAR Council issued final regulations that require federal contractors to disclose labor violations from the past three years. This blog updates an earlier edition with what you need to know. For more details or if this impacts your business, I encourage you to read official guidance here.

Ahhhh, Labor Day. The unofficial end of summer. A century-old government-granted day off to squeeze in another day at the pool, buy the last of the school supplies (who really needs a protractor anyway?), see the grandparents, and now – for federal contractors – an opportunity to review your company’s legal history.

It doesn’t sound quite right, does it? But for thousands of federal contractors, that is exactly what newly finalized regulations mean. I will get into to the details and timeline of the new requirement in a moment, but first, a little history on a change WIPP has watched closely.

In 2014, President Obama issued an Executive Order with the goal of barring bad companies from winning federal contracts. The following summer the Labor Department (DOL) and the FAR Council (overseers of contracting rulebook, “the FAR”) proposed how this could be achieved. Last week, final rules were published – and contractors nationwide let out a collective groan.

You see, excluding companies with a history of bad acts from winning government work – a generally universally accepted idea – is not easy. WIPP said just that in our formal comment last year. We agreed that companies that follow the rules should not have to compete against companies that break them for federal contracts. But the proposed system would place burdens on women-owned contractors and dump paperwork requirements on contracting officers.

Our comment, along with hundreds from individual business owners and other trade groups, did little to sway the government from moving forward. The new requirement detailed below goes into effect on October 25, 2016.

The regulation requires federal contractors and subcontractors to disclose violations of 14 federal labor laws and the equivalent state laws from the previous three years. Exemptions were provided for companies with contracts valued less than $500,000. Prospective federal contractors will need to declare if they had labor violations in the previous three years when submitting an offer. During an initial evaluation, contracting officers will see that declaration (a simple “yes” or “no”), without any additional detail or explanation.

Later, if a contractor were likely to win an award, the contracting officer would have to decide if the contractor is a responsible company (a requirement of all government contracts already). It is in this phase that details like appeals, remediation, or mitigating factors could be explained. Contracting officers will attempt to identify companies with “serious”, “willful”, “repeated”, and/or “pervasive” violations and not award them contracts. Companies with minor violations could still be considered responsible and win contracts.

In what the government views as a compromise since their initial proposal, the system will be phased-in over the next two years. The DOL released the following timeline:

Phased-In Implementation Schedule

  • Week of September 12, 2016:Preassessment begins, through which current or prospective contractors may come to DOL for a voluntary assessment of their labor compliance history, in anticipation of bids on future contracts but independent of any specific acquisition.
  • October 25, 2016: Thefinal rule takes effect. Mandatory disclosure and assessment of labor law compliance begins for all prime contractors under consideration for contracts with a total value greater than or equal to $50 million. The reporting disclosure period is initially limited to one (1) year and will gradually increase to three (3) years by October 25, 2018.
  • January 1, 2017: The Paycheck Transparency clause takes effect, requiring contractors to provide wage statements and notice of any independent contractor relationship to their covered workers.
  • April 25, 2017: The total contract value threshold for prime contracts requiring disclosure and assessment of labor law compliance is reduced to $500,000.
  • October 25, 2017: Mandatory assessment begins for all subcontractors under consideration for subcontracts with a total value greater than or equal to $500,000.

 

Needless to say, our concerns remain. And before I go into a few of them, I would point out that the $50 million threshold sounds like a lot. It includes, however, companies on a multiple award contract with a ceiling amount above $50 million. Meaning a company that wins a BPA or IDIQ valued above $50 million, though not necessarily the amount of work the company will actually perform, will face the October 2016 deadline.

On a broader level, the rule simply is not ready for primetime. The Labor Department and FAR Council chose not to include what state labor law violations must be reported. It is impossible to gauge the impact of a regulation when missing significant portions.

What is in the rule, however, is equally concerning. In some cases, violations that require reporting will not be be fully adjudicated. That is, companies would have to report decisions against them that may ultimately be overturned – as nearly a third of NLRB decisions have been.

This is compounded by WIPP’s worry that simply having violations on record will “blacklist” companies without providing any opportunity to offer explanation. With limited resources and time, contracting officers may elect to avoid companies with any disclosed violations, despite the intent of the order to only bar violations of a certain severity.

Burdens on subcontractors are also being created. They must report violation history as well – directly to DOL. This was a notable change in the final rule, by making the subcontractor and the Labor Department engage each other, and not put the responsibility on the prime contractor.

At the same time the government has admitted it lacks the resources to answer all questions about weighing different labor violations from hundreds of thousands of subcontractors. Ultimately, this change could be the most damning, as many of these companies are unaware of the new requirements because they never sought business with the government in the first place.

Finally, the Fair Pay and Safe Workplaces requirement is one of many in a disconcerting trend of new regulations that specifically target federal contractors. Earlier this year, regulations raised the minimum wage solely for workers on federal contracts. New requirements regarding sick leave were also released. These make contracting with the federal government more onerous, particularly for women entrepreneurs seeking to enter the market. At a time when we want more competition and innovation in government, policies impacting only federal contractors put up barriers for entry.

Without question, WIPP supports efforts by the federal government to rid the contracting environment of businesses with a history of abusive and neglectful violations. In doing so, the government levels the playing field for the millions of businesses playing by the rules. But the government already has those tools and this rule will not achieve this goal. Instead, it will be harder to be a contractor, pushing the innovative products and services of women-owned businesses out of the federal market.

So to the federal contractors out there gearing up for a warm holiday weekend, fire up those grills, wear that final white outfit, and head into the office – it’s going to be a busy day.

 

John Stanford is part of WIPP’s Government Relations team in Washington, D.C., specializing in federal procurement and healthcare policy. When not bothering lawmakers about needed changes, he can be found in the woods at local golf courses.

Regulatory Race to the Finish

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By Debbie Kobrin, WIPP Government Relations

173414-425x283-government_regulationsWith the party conventions right around the corner, and a few months to a new President, you might think the current administration would be slowing down. But things are moving in the opposite direction. The Administration is churning out plenty of new contracting rules, and shows no signs of stopping anytime.

In June, SBA finalized a new subcontracting rule which will help WOSBs with subcontracting requirements, by easing the “50 percent rule” to allow a WOSB to do less than 50 percent of the work on a contract, as long as the WOSB subcontracts to other WOSBs. The rule also shifts the limitations on subcontracting from requiring a prime to perform at least 50 percent of the labor on the contract, to requiring a prime perform at least 50 percent of the dollar amount of the contract. The rule also contains changes to subcontracting plans, roles for Procurement Center Representatives (PCR), Joint Ventures and more.

Also last month,  the GSA finalized a new regulation requiring contractors to report transaction or task order level data on goods and services to GSA. Under the transactional data rule, businesses are required to tell GSA what federal agencies purchase through GSA. This rule applies to GSA contracts including the Federal Supply Schedule (FSS) and Government-wide Acquisition Contracts (GWAC).

Last week, the FAR Council finalized a rule strengthening subcontracting regulations by finalizing the “ list us, use us” requiring for prime contractors to make a good faith effort to utilize small subcontractors to the same degree as listed in the bid or proposal. WIPP has supported this change for a number of years, and testified on its value to women business owners. The rule also requires prime contractors to assign NAICS codes to subcontracts, and restricts prime contractors from prohibiting a subcontractor from discussing payment issues with the contracting officer.

In addition to what we have seen over the past several months, SBA is expected to release a new Mentor-Protégé Program for all-small-businesses any day now. The SBA is also expected to work on rules associated with lower-tier subcontracting credit, WOSB certification, and the WBC program.

The FAR Council continues to work through its back-log and plans to release new rules that include creating a government-wide definition for consolidation and bundling, providing subcontractors with additional payment protections, and implementing the Department of Labor Fair Pay, Safe Workplaces Executive Order.

As we enter the home stretch of the Obama Administration, there is a clear impetus to do as much as possible over the next several months. As new information about rules becomes available, WIPP is committed to keeping you informed.

 Let us know what you think about Regulations by taking We Decide 2016 Quick Poll.

Are Regulations Discouraging Entrepreneurship?

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By: Jake Clabaugh, WIPP Government Relations

Is the federal regulatory process stacked against entrepreneurs? The Joint Economic Committee sought to answer this question during a hearing entitled “Encouraging Entrepreneurship: Building Business, Not Bureaucracy.” The Committee’s Vice-Chair, Pat Tiberi (R-OH) opened the hearing with this direct question to witnesses: Is the thicket of government bureaucracy strangling private initiative?

Before taking on the Vice-Chair’s question, the witnesses began by framing the landscape. Entrepreneurship – the birth of new firms – has been trending downward since President Jimmy Carter’s Administration in the 1970’s. Dr. Tim Kane, a Research Fellow at Stanford University’s Hoover Institution, highlighted the decline in the number of startup firms from 16% of total firms in the U.S. in 1977 to just 8% today.

Despite the decline in overall start-ups, National Women’s Business Council (NWBC) Chair Carla Harris lauded the growth in women-owned businesses. Since 2002, the number of women-owned firms has leaped from 6.5 million to 10 million. Women are creating businesses at 2 -1/2 times the national average. The progress made by women business owners provided a bright spot in otherwise gloomy testimony on the outlook for entrepreneurs.

When the witnesses were asked what regulations were causing the most headaches, the Affordable Care Act (ACA) was the most commonly cited culprit. Specifically, the ACA defines a full-time employee as an individual working thirty hours a week instead of the traditional forty. This definition determines whether a business is exempt from the employer mandate. The witnesses echoed the experiences of many WIPP members who have found the thirty-hour workweek definition detrimental.

To tackle this and other regulatory challenges, WIPP partnered with the National Association of Manufacturers, Small Business & Entrepreneurship Council and International Franchise Association to launch Rethink Red Tape.  As part of this initiative, WIPP will be calling on policymakers to produce better, fairer rules. In the opinion of the Joint Economic Committee and WIPP Members alike, regulatory reform will be a win for entrepreneurship.

FCC Set Top Box Hearing – Move Towards Good Direction

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This week, WIPP kept a close eye on the House Energy and Commerce Committee’s oversight hearing of the Federal Communications Commission.  The hearing had a major focus on the Commission’s proposal to regulate set-top boxes which has received much criticism from since its release earlier this year.

More than 190 Members of Congress from both sides of the aisle and several advocacy groups and industry leaders have spoken out against how the proposal could negatively affect media diversity and consumer privacy. We at WIPP expressed our own concerns about how the proposal could specifically harm women and minority programmers in the media marketplace.

Under the FCC’s proposal, the playing field would be stacked against minority programmers in tilted in favor of tech giants.  These large companies would be able to take content from independent and minority programmers and redistribute it without having to pay the content creator.  As a result, these programmers would lose revenue that is necessary to maintaining and funding the creation of new quality content for their audiences.

This past February, 18 independent programmers and content creators wrote a letter to Congress expressing concern about the “devastating and lasting harm” the proposed regulations could have on media diversity and their businesses.  They stated that “It’s clear that the independent programming landscape would quickly become a ‘race to the bottom’ if this rule were to pass.

Fortunately, the video industry recently came up with an alternative to the FCC’s proposal that would protect the copyrights of programmers’ original content. Under this plan, pay-TV providers would offer apps that can be used on third-party boxes or streaming devices.  This way, content creators remain in control of how their programming is distributed and consumers are able to access their favorite shows on the device of their choice.

It seems that after months of debate, the Commission is moving forward in a positive direction.  During this week’s House hearing, Rep. Marsha Blackburn asked the FCC Commissioners if they believe their original proposal to regulate set-top boxes is flawed.  All Commissioners acknowledged that the original proposal needs improvement and that the video industry’s proposal is potentially a better approach.

Commissioner Jessica Rosenworcel and Commissioner Mignon Clyburn further stated that the Copyright Office voiced concerns with the FCC’s proposal and that copyright security and privacy must be put in place.

We strongly encourage the FCC to move forward with this apps approach.  This alternative offers a constructive solution for all content creators, especially women and minority businesses enabling them to continue doing what they do best: providing consumers the diverse content they demand.

Facts About Recent Changes to Overtime

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The Administration’s final overtime rule, published on May 18th, will make an estimated 4.2 million new workers eligible for overtime pay. Salaried workers, making up to $47,476 annually, will get time-and-a-half payments for work over 40 hours in a week. The effective date is December 1, 2016.

Background

obamatime-state-mapOn March 13, 2014, President Obama signed a Presidential Memorandum directing the Department of Labor (DOL) to “propose revisions to modernize and streamline the existing overtime regulations.” Specifically, the President cited the exemption for executive, administrative and professional employees as having “not kept up with the modern economy.”

In response to the President’s memorandum, Department of Labor issued the proposed rule on July 6, 2015. The final rule was issued on May 18, 2016 and can be found here.

How The Overtime Rule Works

The Fair Labor Standards Act (FLSA) guarantees workers a minimum wage and overtime pay for hours worked above 40 hours in a week. However, some employees are exempted from the overtime pay requirement if:

(1) the employee makes a pre-determined and fixed salary;

(2) the salary is above $47,476 annually;

(3) the employee’s job duties primarily involve executive, administrative, or professional (EAP) tasks.

Since 2004, that salary threshold was set at $23,660 per year. The new rule more than doubles the threshold to $47,476 per year. Employees in executive, administrative, or professional positions making less than the increased salary threshold will not meet this exemption and thus must receive overtime pay. Furthermore, the salary threshold will automatically update every 3 years beginning on January 1, 2020.

WIPP’s Comments and Concerns

The 508-page rule addresses many of the more than 270,000 comments received including specific comments made by WIPP. WIPP advocated for an exemption for small businesses. The DOL recognized WIPP’s concerns, but concluded that their final salary threshold would “provide relief” as it is slightly lower than the $50,440 that was originally proposed. While the salary threshold is lower than estimated, it is still double the current threshold.

DOL also recognized WIPP’s concern of a loss of workplace flexibility. WIPP’s comment noted that many employees perform some of their work remotely and outside of normal business hours, such as working from home. The DOL responded that it “does not believe that workers will incur the significant change in flexibility.” The rule went on to state that, “Employers should be able to trust such valued employees to follow the employers’ instructions regarding when, where, and for how many hours they may work and to accurately record their hours worked.”

WIPP’s also commented on the difficulty of tracking employee hours to ensure compliance. This comment was also recognized by DOL, but they did not address this concern in their final rule.

The Fair Labor Standards Act, which governs the overtime rules, includes a carve-out for businesses that have less than $500,000 in annual revenue and do not engage in interstate commerce. However, DOL guidance suggests that the interstate commerce requirement is likely met by most businesses.

DOL has published additional information on these changes here. Please reach out to WIPP’s Government Relations team at advocacy@wipp.org with any questions.

 

Small Business Policy Index 2016

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Small Business & Entrepreneurship (SBE) Council released the 20th edition of its annual Small Business Policy Index, “Small Business Policy Index 2016: Ranking the States on Policy Measures and Costs Impacting Entrepreneurship and Small Business Growth.”

The Index ranks all 50 states according to various major government-imposed or government-related costs that have direct or indirect impact on entrepreneurship and business, as well as on start-ups and small growth eager companies.

The Index investigates in total 50 measures, from which:

  • 25 are tax related,
  • 18 relate to rules and regulations,
  • 5 focus on government spending and debt issues, and
  • 2 remaining measures deal with the effectiveness of important government undertakings.

The outcome is accessible through an interactive map displaying states’ ranking in color, with a summary per state provided after selecting a state.

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The most policy-friendly states to entrepreneurs under the “Small Business Policy Index 2016” are: 1) Nevada, 2) Texas, 3) South Dakota, 4) Wyoming, 5) Florida, 6) Washington, 7) Alabama, 8) Arizona, 9) Ohio, 10) Indiana, 11) Colorado, 12) Michigan, 13) Utah, 14) North Dakota, and 15) Virginia.

On the other side of the ranking we can find: 40) Maryland, 41) Maine, 42) Iowa, 43) Oregon, 44) Connecticut, 45) Vermont, 46) Hawaii, 47) Minnesota, 48) New York, 49) New Jersey, and 50) California.

The authors highlight several findings from the report, which are especially interesting to note:

  • Average real annual economic growth of the top 25 states’ was by 29.2 % faster than the average rate for the bottom 25 states.
  • Also, the top 25 states’ average state population growth of 4.9 percent from 2010 to 2015 was double compared to only 2.5 percent for the bottom 25 states.
  • The top 25 states also witnessed positive net domestic migration of a 2.00 million at the expense of the bottom 25 states, which lost 2.03 million people.

The SBE Council President and CEO Karen Kerrigan provides her explanation of the founded facts: “Policy matters for entrepreneurship and small business growth. Quite simply, when elected officials impose weighty tax and regulatory burdens, the increased costs and uncertainties mean reduced risk taking and less economic opportunity. The message from our ‘Small Business Policy Index’ to state officials is clear: If you are serious about helping small business, then reduce barriers to entrepreneurship and government costs imposed on small business.”

To access the Small Business Policy Index 2016 full report please click here.

Regulation or Innovation? Congress Will Weigh In On FCC Regs That Can Impact Advances In Technology And Wireless Access

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19109887010_40b0dfa987_mOn November 17th, all five FCC commissioners are scheduled to appear at a Congressional hearing during which they will discuss the Commission’s work including the upcoming incentive auction and the open Internet order passed earlier this year.  This hearing is a very important opportunity for Congress to ensure the FCC’s recent actions on these issues serve the interests of the American people and our economy.

The economic landscape has changed drastically over the past few decades.  Advances in technology and broadband are changing consumer demand, and businesses and entrepreneurs must evolve in order to compete and thrive in today’s marketplace.  However, current FCC regulations are failing to keep up with these changes, and as a result are interfering with competitive industries’ efforts to innovate and grow.

For business owners, access to high-speed broadband enables increased efficiency of business operations, improved customer service, reduced cost, and the ability to reach new customers and markets.  Entrepreneurs also gain the flexibility to start and grow their businesses, whether they are working from an office, their home, or on the move.

The benefits of today’s broadband technology exist because of the hands-off regulatory approach the government applied to the Internet over twenty years ago.  This framework has a proven record of increasing private investment in new networks, enabling innovation to thrive, and expanding access to the highest quality broadband services to more consumers and businesses.

Unfortunately, the FCC could hurt this track record of success by changing course and adopting old regulations that were meant for the old telephone monopoly.  By saddling the Internet with price regulation micromanagement, among other things, the FCC is discouraging companies from building out their broadband infrastructures.  Similar policies have failed in Canada and the European Union.

The FCC’s regulatory overreach is a high-risk gamble. It puts consumers and businesses in harm’s way, risking the choice and lower costs we have experienced and benefitted from in the modern, broadband-connected world. Instead, we need to maintain the long-held, light touch policy. This approach will generate even more innovation and investment in our broadband infrastructure, crucial for business owners throughout the country.

Congress needs to hold the FCC to a high standard this Tuesday and ensure its actions help foster an innovative and competitive business environment.  This is the only way wants to provide consumers and business owners with access to the high-quality, affordable broadband services they need, while helping to grow our overall economy.