STATEMENT
of the
Honorable Nydia M. Velázquez, Chair
House Committee on Small Business
Full Committee Hearing: “Small Businesses and Broadband: An Engine for Economic Growth and Job Creation”
May 12, 2010, 1 p.m.

Just as the interstate highway system revolutionized American commerce, today, we are presented with a similar challenge. Building a nationwide broadband infrastructure is an equally ambitious task – and it is just as fundamental to our prosperity in the 21st century.

Over the next decade, we can expect the growth of this field to produce good-paying jobs for millions of Americans. The number of jobs dependent on broadband and IT are expected to grow by 25 percent over the next 10 years -- creating opportunities for large and small companies in every sector of the U.S. economy.

While building a nationwide broadband infrastructure will be vital to our economy’s long-term health, deploying this technology also carries immediate economic benefits – at a time when our nation needs every job we can find. Some have estimated that, over the next four years, we will see 30,000 jobs a year from the broadband investments funded through the Recovery Act, alone.

Beyond the immediate payoff, widespread broadband adoption will mean new economic opportunity for communities across the nation. Small businesses already benefit enormously from the Internet. For Americans looking to launch a new enterprise, broadband offers lower start-up costs. This is especially important now, as many dislocated workers are looking to entrepreneurship as a way to replace lost income.

For the established small business, high speed Internet can expand a firm’s client base using a company website, social networking or other forms of online advertising. Firms can utilize voice and video communication as a low-cost method to connect with customers around the world – and reach previously untapped markets. They can store data online, access office productivity tools and even improve the energy efficiency of their business.

The FCC recently released a “National Broadband Plan,” an ambitious initiative aimed at accelerating the adoption of high speed Internet. Bringing the public and private sector together, the plan offers steps to accelerate the rollout of broadband – and help small businesses embrace these benefits. Although three-quarters of small businesses currently have a website, only one in four sell their products using e-commerce. In today’s global economy, that’s simply not good enough. The National Broadband Plan could help narrow this gap, creating additional growth opportunities for small companies. As this plan is refined and implemented, the Committee will need to ensure that entrepreneurs’ needs are kept top of mind.

Putting broadband in more American homes and businesses is just one part of the equation. The Internet has always served as an unparalleled laboratory for innovation and entrepreneurship. If we are to reap the full benefits of this economic engine, it is vital that the Internet remain a platform where free speech and new ideas flourish – and consumers can connect with whomever they choose, while accessing services of their choice. Just last week, the FCC released a new framework aimed at preserving this freedom, without discouraging investment in our nation’s broadband infrastructure. In coming weeks, the strengths and weaknesses of this initiative will receive significant consideration. Small businesses have much at stake in how the debate plays out. It is my hope that today’s discussion will shed light on what these policies mean for online entrepreneurism.

The business owners before us today highlight the variety of opportunities created by broadband. I look forward to hearing their thoughts on how broadband is empowering America’s small businesses now – and how Congress and the FCC should take their needs into account, as we craft policies that will shape the Internet’s evolution for decades to come.

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