Reflection on my "White House" Day

I would like to make it clear that I visited the White House Business Council Briefing open minded as a small business consultant and a business owner. From managing my own operations to helping entrepreneurs and small businesses become more efficient and profitable while expanding their markets, I know the struggles, the obstacles and the hurdles of Main Street.

While I believe that less government is critical for spurring business growth and entrepreneurship, I also believe that small businesses have to be given a stronger presence and voice in the policymaking process. The US economy is no stronger than the local economies. Therefore, the rebounding of the national economy begins at a local/regional level. "Buy Local" and "Made in USA" have to become touch points for policymakers across the executive branch and Congress.

Economic growth will happen not by imposing more regulations or by creating new government agencies, but by allowing the innovative and entrepreneurial spirit to develop ideas, technologies and businesses in an efficient and productive way. I agree with a comment I read that "the Administration needs to listen – not broadcast philosophy. It needs to talk to business people – not political organizers or lifetime politicians.”

At the end of my "White House day," I had a level of confidence that the Administration is heading in that direction. Like with anything else, it is matter of executing the plan as intended.

Fourteen years ago I landed as a legal immigrant at the Newark airport in pursuit of the American Dream, speaking no English and having a couple thousand borrowed dollars. Today, I still believe in that very dream, which has been the heart of the American nation. My objective is to share informational resources in hope that those may be just what an entrepreneur, innovator or small business needs to create a job and contribute to the local economy.

 

White House Business Council Conversation (cont.)

On January 13, 2012, after President Obama delivered his remarks on business and the economy in the East Room of the White House (i was sitting in the third row about 12-15 feet from the President), our group was directed to the Eisenhower Executive Office Building for the White House Business Council conversation on jobs and the economy.

The discussion was opened by Ari Matusiak who serves as Executive Director of the White House Business Council.  He described what he hoped to be accomplished during the following four hours, which was to introduce several new online resources within the Administration and public-private partnership to help grow small businesses, to get perspectives and input on how to improve the policymaking, and to give us the opportunity to ask questions and get answers directly from the Administration officials. 

Ari Matusiak emphasized on President Obama’s speech about the existing complex and costly web of several federal departments providing access to federal resources and services and his decision to cut through the bureaucracy and consolidate unnecessary departments.  He also mentioned “BusinessUSA”, the platform that consolidates information and services from across the government into a single, integrated network for business owners and entrepreneurs, which will be launched in early this year. (http://business.usa.gov/) 

Then, he asked for inputs on the biggest obstacles and concern faced by small businesses in the communities we came from.  Access to capital, costly regulatory and compliance burden and government bureaucracy were the top three on our lists.   

Mr. Matusiak introduced the rest of the speakers:

·       Mark Doms, Chief Economist, Department of Commerce

·       Matt Erskine, Deputy Assistant Secretary, Economic Development Administration, Department of Commerce

·       Aneesh Chopra, White House Chief Technology Officer

·       Andre Gudger, Director of Small Business Programs, Department of Defense

·       Greg Nelson, Deputy Director, Office of Public Engagement

The briefings continue as follows:

Mr. Mark Doms, Chief Economist, Department of Commerce, gave us an overview of US 2011 economy and started by stating that the 2011 job market started strong.  There were five negative events that affected the 2011 job market trend, which were the oil/energy/gasoline prices that jumped up, the uncertainty on the European financial markets, the earthquake and the tsunami in Japan which created supply/production problems, the US debt debacle, and the fear of a “double digit” recession.  Per Mr. Doms, the overall economy gained some steam at the end of 201.   The job growth picked up some in December primarily due to the 280,000 jobs lost.  The Chief Economist clarified that more than a half of those were education job cuts.  

Mr. Doms continued with what was ahead for 2012 – anticipated moderate growth. To the questions of what holds us back and why moderate, he mentioned the following reasons: a) the European economic situation and uncertainties; b) the US housing market; c) the continuous job cuts in the government sector; and d) the gas prices.  He mentioned that in 2011, the gas price increase did not affect the US gas consumption.  In regards to growth in exports, Mark Doms made a remark that the uncertainty comes to a degree to the uncertain demand of US products and services on the word market. 

Next, Matt Erskine briefed us on some administration initiatives for job creation and economic growth.  He emphasized on the new programs for stimulating exports, local manufacturing, and innovation. 

When Aneesh Chopra took the stand, our entire group felt overwhelming inspiration and excitement from what was ahead in terms of innovation and technology.  He did an overview of administration initiatives for boosting innovation in light of the America COMPETES Act and stated that innovation is the key to the success of our economy.  He discussed information technology initiatives in improving health care, smart energy and education as well as access to capital for research and development (R&D), engineering, and mathematics education.

Andre Gudger, Director of Small Business Programs Office at the Department of Defense, described his role as ensuring that small businesses are able to compete for government contracts.  He mentioned initiatives such as Quick Pay (improves cash flow cycle) and moving away from low-cost technically acceptable contracts. 

More to follow.. 

Jan 13, 2012: The President's speech (from My Visit To The White House)

Friday, January 13th, 2012 - What a day to remember!

10:30am - Attending President Obama's closed-press conference on improving the services that the Federal government provides to America's small businesses by having a more adaptive, responsive, flexible federal department devoted to economic growth and competitiveness. The President made it clear, "to meet the 21st century’s needs, we can’t have a 20th century government structure. CEOs are able to reorganize to meet demand and opportunity. Start-ups apply their muscle where it can be most effective. We need a new approach, devoted to helping American businesses to better compete in the global economy and maximize services for the American people."

 

As President Obama stated, there are six major federal departments or agencies that focus on business or trade: the U.S. Department of Commerce’s core business and trade functions, the Small Business Administration, the Office of the U.S. Trade Representative, the Export-Import Bank, the Overseas Private Investment Corporation, and the U.S. Trade and Development Agency.

In his speech, the President asked the Congress for the authority to merge those six entities into a single department tasked with boosting American business and promoting competitiveness.

The way the system is currently organized, every entrepreneur who needs to do business with the government has to navigate a maze of overlapping regulations and competing bureaucracy.  Obama pointed at a chart that shows exactly how impossible that process can be. He referred to it as the "spagetti effect" picture and said that "a business looking to government resources starts here."

The President's proposed plan would change that. His goal is to consolidate the redundancies that currently exist, to cut waste, and eliminate duplication.  Small business looking for government resources will go to ONE department, ONE website, and ONE hotline.

What to do when the cash flow gets tight?

If there was a reality show about the “normal life” of an average small business, it would look like this: creditors and vendors are calling and demanding their money; employees are at the door for their paychecks; the landlord wants the rent by the end of the week…

The truth is that most small businesses are constantly fighting a cash crisis. Their biggest fear is not about securing the next deal or raising prices. It is having enough money to get through the week.

Every business owner knows that cash is the lifeblood of the business. Run out of cash and their business will die.