The Kauffman Foundation at its annual State of Entrepreneurship address in Washington, D.C released a new survey covering the disconnect between government and small business. According to the report, which surveyed more than 2,000 entrepreneurs and small business owners, “Seventy-nine percent of startup entrepreneurs say they had no support from government to launch their companies, and 60 percent believe that government doesn’t care about businesses like theirs.” Those same respondents believe the government is more likely to support larger and more established businesses versus their own.
While most American’s probably wouldn’t disagree with that sentiment, it’s interesting to note the, according to the Kauffman Foundation, the majority of business owners have not used what’s available to them. “Fewer than half have tried working with their local SBA office; and fewer than a third have applied for any type of government grant or funding.” If small business owners do not think the government supports their success then these numbers make sense.
In addition to the overall outlook, the survey was also broken down by gender and ethnicity, with surprising results. To begin, Fewer women founders stated their companies performed well versus than their male counterparts (67% vs 72%). In an interesting part of the report, black startup founders had the most positive view of government support with 52% stating the government cared about them versus women (35%), men (44%), and Hispanics (42%).
Overall, optimism is still high for startup and small business founders as “sixty-seven percent of startups rate their 2017 performance as positive and expect 2018 to surpass it. More than half planned to invest upwards of $10,000 in their companies this year and to hire more people.”