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Saturday, May 24, 2014
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Monday, May 19, 2014
My comment on change in definition of "small business" by SBA.
“Comments can be submitted on this proposed rule on or
before July 18, 2014, at http://www.regulations.gov, identified by the following RIN
number: (RIN 3245-AG49). You may also
mail comments to Khem R. Sharma, Chief, Office of Size Standards, 409 3rd St.,
SW, Mail Code 6530, Washington, DC
20416.”
Monday, May 19, 2014
I’ve done startup workshops in Denver, Colorado for some 20
years as an alternative to the SBA venture capital model of formal market
research and formal strategic planning. What I’ve been doing for decades was
viewed by most as eccentric when I started in 1994, it is becoming more
accepted recently with publications advocating along similar lines, back in ’94
the only theoretical underpinning was from Dr. Amar Bhide the professor of
entrepreneurship at Harvard University who’d sent his students to interview
successful startups, articles in the Harvard Business Review soon became his
very fine, but virtually ignored, book The Origin and Evolution of New
Businesses, Oxford University Press. www.bhide.net
The Wall Street Journal had a column a few days ago pointing
out that most of what is now being taught on college campuses about startup is
not helping. The more talk about startup, the fewer startups, virtually all talk
is what I would call propaganda at the encouragement of the SBA and it’s many
off-shoots, SCORE, SBDCs, etc, and it is killing small business in America.
One part of the problem is how the SBA defines small
business, right now any business with up to 500 employees with certain
exceptions. Yes, this definition needs to be changed, but not in the direction
the SBA suggests, to 1,500 employees for some businesses. The definition by
number of employees needs to be revised down, I suggest to 300.
Why 300? Because that’s what E.F.Schumacher’s experience led
him to back in the late 60’s in his very good book Small is Beautiful—Economics
as if People Mattered. More than 300 employees and the nature of the
interactions between the people starts drastically changing.
I’ve started a virtual “chamber of commerce” with the
intention of helping local chambers provide more real help to startups, as an
alternative to the very expensive and ineffective SBDC program. Businesses with
10 to 100 employees, the bedrock of American business, is in sharp decline.
Why? Because the SBA is killing startups. It’s a tax funded enterprise clearly
intending to snuff out the entrepreneurial spirit in America.
But I don’t want to misrepresent my statement here, it is my
own and not that of any organization. The Small Business Chamber of Commerce,
Inc. does not lobby at this time, and I do not expect that it ever will.
I say I’m a
recovering MBA because much of what I was taught in graduate business school I’ve
had to overcome to be of real help to people who are starting their own
business. Since 1994 I’ve worked with thousands of people and what I’m saying
here is based on that experience. I read a lot, but in no way am I an academic.
That does not mean there is not academic
support for what I’m saying here to you now.
Nobel prize winning economist Edmund Phelps points out the
very real problem of the sharp falloff in vitalism and dynamism in our culture
since the late 60s, I recommend his most recent book to your committee before
you make a decision on this, it’s called Mass Flourishing. Also the recent Harvard Business Review Press
book Just Start.
My little book, endorsed by Dr Amar Bhide, has been on sale for the last 20 years, as far as I know it has never done any harm and a lot of people have told me it has helped them. The Kindle version is 99-cents, and I’d suggest the committee buy it and make copies for all committee members, you have my permission to do so. Go to Amazon.com and search on “John Wren, Daring Mighty Things.”
My little book, endorsed by Dr Amar Bhide, has been on sale for the last 20 years, as far as I know it has never done any harm and a lot of people have told me it has helped them. The Kindle version is 99-cents, and I’d suggest the committee buy it and make copies for all committee members, you have my permission to do so. Go to Amazon.com and search on “John Wren, Daring Mighty Things.”
Thank you for your consideration. I’d be glad to answer any
questions you might have.
John S. Wren, MBA+++ (Cornell College, University of Denver,
BA’69, MBA’80, Regis University)
1881 Buchtel Blvd, #501
Denver, CO 80210
(303)861-1447 cell
(720)495-4949

SBA may call business with 1,500 employees small.
This is crazy. I just received this media release from the Small Business Administration. New director's first major effort is to make larger businesses eligible for SBA assistance by changing the definition..
The definition of "small business" that the SBA has used for years of 300 employees does need to be changed, but they are going in the wrong direction.
Here's my idea: let's cut from 500 employees to 300. EF Schumacher (author of Small is Beautiful) makes a good case for 300 being the right number, beyond that it's hard for the owner/manager to know all the employees personally.
Below is contact information. If you think cutting to 300 is a good idea, I hope you'll take a couple of minutes and send in an email. Thanks!
John S. Wren, MBA+++
Founder & CEO until fired, Small Business Chamber of Commerce, Inc.
www.SmallBizChamber.org Facebook.com/Small.Business.Chamber
(303)861-1447
The definition of "small business" that the SBA has used for years of 300 employees does need to be changed, but they are going in the wrong direction.
Here's my idea: let's cut from 500 employees to 300. EF Schumacher (author of Small is Beautiful) makes a good case for 300 being the right number, beyond that it's hard for the owner/manager to know all the employees personally.
Below is contact information. If you think cutting to 300 is a good idea, I hope you'll take a couple of minutes and send in an email. Thanks!
John S. Wren, MBA+++
Founder & CEO until fired, Small Business Chamber of Commerce, Inc.
www.SmallBizChamber.org Facebook.com/Small.Business.Chamber
(303)861-1447
|
Denver, Colorado USA
Small Business Chamber of Commerce, Inc, 960 Grant Street, Denver, CO 80203, USA

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