STATEMENT
of the
Honorable Nydia M. Velázquez, Chair
House Committee on Small Business
on the
Job Creation Through Entrepreneurship Act of 2009
Wednesday, May 20, 2009

Rep. Nydia M. Velázquez (D-NY), the Chairwoman of the House Small Business Committee, delivered the following remarks today on the floor of the U.S. House of Representatives during debate on H.R. 2352, the Job Creation Through Entrepreneurship Act of 2009:

“Mister Speaker, I rise in support of H. Res. 2352, modernizing the Small Business Administration’s (SBA) Entrepreneurial Development (ED) programs. I rise in support of this House Resolution, which will update and improve the SBA’s ED programs. This bill is a bipartisan product, and will not only strengthen small firms, but will help them create new jobs for American workers.

“This week, we are honoring our nation’s job creators—the entrepreneurs who generate roughly 70% of all new positions. As we celebrate Small Business Week this year, we find ourselves in a different place than in celebrations past. The economic landscape has changed considerably. And in the face of an historic recession, small firms can’t always go it alone. After all, starting and running a small business is no easy lift, even when times are good. That is why The Job Creation Through Entrepreneurship Act is so important. It revs up the engine of our economy—the entrepreneurs who are creating jobs, and changing the way our country does business.

“This bill gives small firms the tools they need to flourish. By enhancing SBA’s Entrepreneurial Development Programs, it will help existing businesses grow, and allow aspiring entrepreneurs to get off the ground. These resources are critical. In fact, small firms that use them are twice as likely to succeed as those that don’t. But unfortunately, many of these initiatives are outdated and under funded. Today, we will take important steps to ensure they are running at full capacity.

“Despite declines in Corporate America, the entrepreneurial spirit is alive and well. Every month, 400,000 new businesses start up across the country. Imagine if each of those firms had access to resources like business development training? Through H.R. 2352, they will. This bill provides entrepreneurs with the tools they need to do everything from draft a business plan to secure equity capital. These services put small firms on a level playing field, allowing them to compete in virtually any sector, including the federal marketplace.

“Although most industries are struggling, the federal marketplace is booming. With billions of stimulus dollars now in play, that sector presents enormous opportunity for entrepreneurs. But before they can crack the industry, small firms will need to know its “ins and outs.” H.R. 2352 provides the training they need to do so. It also offers the necessary technology.

“In order to adapt to new markets, many entrepreneurs will need to retool their operations. Through cutting-edge technology programs, this bill allows entrepreneurs everywhere to access the information they need. In doing so, it encourages entrepreneurship in places where it might not otherwise grow. For struggling rural regions and inner cities, H.R. 2352 will be an economic catalyst. It will also reflect the changing face of American business. More and more, women, veterans, and Native Americans are starting their own firms. For these people, entrepreneurship is more than a means of employment—it is a path to economic independence.

“From rejuvenating rural regions to promoting entrepreneurship in underrepresented communities, ED makes good economic sense. And in fact, every $1put into the program puts another $2.87 into the treasury. If you ask me, that’s a pretty good Return on Investment. By modernizing and enhancing the program, the returns will only get better. Because at the end of the day, strengthening ED empowers small businesses, allowing them to grow and—perhaps most importantly—create new jobs for American workers.

“Entrepreneurs have an unmatched talent for job creation. In the last few months, much has been made of that ability. And with good reason. As employment continues to climb, we need to be investing in the businesses that can put Americans back to work. The Job Creation Through Entrepreneurship Act of 2009 will do just that.

“Already, SBA’s Entrepreneurial Development programs help small firms do everything from draft business plans to access capital. These services have been an invaluable resource for countless entrepreneurs, and have led to the creation of hundreds of thousands of jobs. In fact, ED helped generate 73,000 new positions in 2008 alone.

“But despite the program’s inherent value, it is in sore need of modernization. Today, we are going to begin the process of turning it around. In doing so, we will ensure small firms have the tools they need to spark a sustained recovery. And what better time to reinforce the backbone of our economy? This Small Business Week, we can do more than celebrate our entrepreneurs—we can empower them, and help them play their unique role as economic catalysts.”