Report: Small Business Owners Give Federal Government Programs a ‘C or Below’ Grade

With President Joe Biden delivering his State of the Union address tonight, Goldman Sachs 10,000 Small Businesses Voices is releasing new survey data showing the “State of Small Business Support.”
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Sad small business owner
More than 60 percent (60%) of survey respondents give the federal government a “C or below” letter grade on the effectiveness of programs, services, and tax credits available for small businesses. // Stock photo

With President Joe Biden delivering his State of the Union address tonight, Goldman Sachs 10,000 Small Businesses Voices is releasing new survey data showing the “State of Small Business Support.”

Goldman Sachs 10,000 Small Businesses is an investment to help entrepreneurs create jobs and economic opportunity by providing a comprehensive business education program and access to capital and business support services.

The program represents a $750-million investment by Goldman Sachs in the name of small-business growth. At no cost to participants, 10,000 Small Businesses offers 19 regional education programs in the United States, including Wayne State University in Detroit. The  curriculum was designed by Babson College in Wellesley, Mass.

In a telling reveal of how small business owners feel about the programs currently offered by the federal government, 63 percent give the federal government a “C or below” letter grade on the effectiveness of programs, services, and tax credits available for small businesses.

What’s more, 71 percent give the federal government a “C or below” letter grade when it comes to the job it does marketing and communicating about the programs, services, and tax credits available to small businesses.

At the same time, 34 percent of small business owners say they have a good sense of what federal programs, services, and tax credits are available to them.

Small business owners have a clear directive to fix the problem: 92 percent say it’s important for Congress to comprehensively modernize the Small Business Administration (SBA) — an agency that has not been reauthorized by Congress since 2000.

In turn, personally, 75 percent of small business owners report they are optimistic about their financial trajectory in 2024. Furthermore, 57 percent expect to create jobs this year, 62 percent are projecting an increase in profits before the year concludes, and 28 percent rate the economy as good or excellent — a 9 percent increase compared to three months prior.

“Leaders in Washington often talk passionately about their support for small businesses and praise small business as the backbone of the American economy, but small business owners would like to see that talk turn into action by having Congress prioritize modernizing the Small Business Administration,” said Janice Jucker, Co-Owner of Three Brothers Bakery in Houston, and an alumna of the Goldman Sachs 10,000 Small Businesses program.

“Congress has not reauthorized the Small Business Administration since 2000, which means the programs, resources, and charge of the agency are rooted in a bygone economy. Small business owners will be watching the State of the Union — and the election year campaign to follow —  hoping to hear candidates and elected officials prioritize the modernization of the Small Business Administration.”

Examining specific programs offered by the federal government:

  • 18 percent say the federal government does an “excellent” or “good” job offering procurement assistance and support;
  • 29 percent say the federal government does an “excellent” or “good” offering assistance in accessing capital;
  • 34 percent say the federal government does an “excellent” or “good” job offering technical assistance and entrepreneurial development; and
  • 50 percent say the federal government does an “excellent” or “good” job offering disaster assistance or relief programs.

Other key findings from the “State of Small Business Support” survey dataset include:

  • 91 percent say they will “definitely vote” in the 2024 presidential election;
  • 84 percent say a candidate’s small business policy positions will be an important factor in who they vote for in the 2024 presidential election; and
  • Only 7 percent think elected officials keep their promises to small businesses all or most of the time.

The survey data is a result of responses by 1,453 Goldman Sachs 10,000 Small Businesses alumni in a survey conducted by Babson College and David Binder Research from January 15-19, 2024. The survey included small business owners from 49 U.S. states, Washington, D.C., and Puerto Rico.

Goldman Sachs 10,000 Small Businesses Voices, which in April marked its three-year anniversary, builds on Goldman Sachs 10,000 Small Businesses and organizes program participants to advocate for policies that matter to them.

To date, 10,000 Small Businesses has served more than 14,500 small businesses across the United States. The program has reached businesses from all 50 states, Puerto Rico, and Washington, D.C.

The Goldman Sachs Group Inc. is a leading global financial institution that delivers a broad range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world. Last September, the company opened a private wealth management office in downtown Detroit.

Learn more about Goldman Sachs 10,000 Small Businesses here.

To read a DBusiness magazine feature about Goldman Sachs 10,000 Small Businesses and Cathy Koch, president and CEO of K-Tec Systems Inc. in Ferndale, who is an alumna, visit here.