Big Work for Small Businesses
As the Illinois State Director for the National Federation of Independent Business, (NFIB) Kim Clarke Maisch spends her time in Springfield educating state lawmakers on the problems and priorities that small business owners face. Often serving as a liaison between the employer and the agency, Maisch also guides small businesses dealing with government issues at the state level. Before joining the NFIB team, Maisch was the director of communications for Illinois Comptroller Loleta Didrickson and press secretary to U.S. Congressman Jerry Weller. Her legislative background also includes working for the Illinois House Republican staff as a member of the press staff. Maisch has a bachelor’s degree from Southern Illinois University and a master’s degree from the University of Illinois at Springfield.
At the January meeting for area members of the National Association of Women Business Owners Central Illinois held at Jill’s on Galena, Maisch discussed state issues impacting small businesses and the key issues expected in the 2007 Illinois Legislature. NFIB is a member-funded organization and the nation’s leading small-business advocacy association, with offices in Washington, D.C., and each of the 50 state capitals. The organization represents 21,000 small-business owners in Illinois. NFIB’s network of members, about half a million strong, can send their views on the issues directly to state and federal lawmakers through a unique member-only ballot.
“For example, when we determine that an issue is an important one for the majority of our members, we will issue a member ballot to our membership. On the ballot, we pose the issue and then provide a proponent and opponent viewpoint. Then we ask our members to vote on the issue,” Maisch said. “If the majority of our members support a specific issue, then NFIB will lobby in support. And, of course, if the majority opposes an issue, we will then oppose it at the Capitol. We truly believe this is the best way to represent and be the voice of small business in Illinois and in Washington—we actually take the pulse of our members on major issues before we take a position.”
Currently, a top concern facing Illinois’ small business owners is the rising costs of health care. Health care costs have been a major concern for decades, Maisch said.
“Many states have taken it upon themselves to cobble together a ‘solution’ for health care. We will definitely see a health care bill this year, and it will probably dominate a lot of time and energy,” Maisch said. “Some current proposals being floated around would include forcing employers to spend at least 4 percent of their payroll on health care costs or face an assessment from the state. So for small businesses that can’t afford to offer health insurance, this will be a huge issue.”
The health care program in Illinois alone has a first year price tag of about $5 billion. It is very likely NFIB will be debating increased taxes and other revenue sources to pay not only for the deficit in Illinois but also for some of the other programs being discussed. According to recent published reports, the state is facing liabilities and unfunded commitments exceeding $100 billion, Maisch said. “There is a grave concern that the governor and state lawmakers will look to enact a service tax in Illinois or some other broad-based tax, like a gross receipts tax, to pay for new programs,” she said.
Currently, there is no service tax in Illinois, which is a boon for small business owners. Keeping those tax rates low is also very important to the state’s competitiveness, Maisch said.
In terms of attracting new businesses, Illinois’ main incentive is a relatively low tax rate. Illinois has a flat 3 percent personal income tax and 4.8 percent corporate income tax. Unfortunately, in the areas of workers’ compensation and unemployment insurance, Illinois is much more expensive than neighboring states. “State lawmakers and the governor should carefully consider how their policies will affect small businesses,” Maisch said. “For instance, while increasing the minimum wage is popular, there is going to be job loss as a result. Small business owners could be forced to lay off workers, not fill open positions, cut back employees’ hours or in some cases simply close their doors if they can’t make a profit due to high wage costs.”
Because NFIB is a national organization, members get the benefits of advocacy efforts on both the federal and state level. In addition, NFIB only represents privatelyheld and sole proprietors so a small business owner’s voice can be heard. “We truly look out for the small employers and not the big corporations. Sometimes people tell me that they don’t think their voice counts, or that their one vote doesn’t matter. With NFIB you can join with like-minded businesses and put forward a strong and effective voice on issues that make a difference,” Maisch said. “We also work with small businesses that need help when it comes to the maze of state and federal government, working with state agencies to get answers or help with a regulatory issue.”
The organization is very politically active and provides election and voter information to let members know who is supporting small business issues in the State Legislature and in Congress.
“For many small businesses we provide a quick education on State Government 101 and Politics 101. Many businesses are simply shocked when they learn how the legislative process works and how difficult it can be to get bills passed or to stop bills that are anti-small business,” Maisch said. “They often marvel at the lack of “common sense” that is demonstrated by legislators and don’t understand why government can’t run more like a business.”
The major reasons for the failure of small businesses have not changed over the years, Maisch added. The reasons include insufficient capitalization—many new business owners do not have a business plan that properly anticipates cash flow needs and run out of money before they have sufficient customers and a sufficient cash flow. Another major reason is an external one—not properly anticipating economic conditions like opening a gourmet restaurant during an economic slump or opening a luxury car dealership when gas prices are going through the roof.
In terms of survival rates, about 65-75 percent of new firms will survive at least three years. However, if a business is growing during the first three years, their survival rates are much higher. “It is important to note that survival rates also vary by industry, with higher survival rates in services and lower survival rates in construction and restaurant industries,” Maisch said.
One of Maisch’s proudest moments in her position wasn’t a legislative accomplishment, but a political one. She recruited an NFIB member to run for state senate against a 22-year incumbent who, she said, had a horrible voting record on small business issues. Despite all the odds and most political pundits’ predictions, he worked very hard and won. “He has proven to be a great state senator and has been able to articulate to his senate colleagues how the issues they debate affect small employers in Illinois,” Maisch said. “We need more small business owners to run for office!”
For the future, Maisch said she has a great interest in finding a solution to the health care problems facing small employers. “This is an issue that is so important to employers and their employees, not to mention an important issue for our society as a whole.”
Wilson Harder single-handedly founded NFIB in 1943. Harder’s vision was to give small and independent business a voice in governmental decision making.
Any owner of a privately-held business may join NFIB. Although many small business owners across the country write checks up to $2,400 to support the cause, NFIB offers a special flat membership rate of $200 annually or $20/month to small-business owners who sign up online at www.nfib.com. tpw
At the January meeting for area members of the National Association of Women Business Owners Central Illinois held at Jill’s on Galena, Maisch discussed state issues impacting small businesses and the key issues expected in the 2007 Illinois Legislature. NFIB is a member-funded organization and the nation’s leading small-business advocacy association, with offices in Washington, D.C., and each of the 50 state capitals. The organization represents 21,000 small-business owners in Illinois. NFIB’s network of members, about half a million strong, can send their views on the issues directly to state and federal lawmakers through a unique member-only ballot.
“For example, when we determine that an issue is an important one for the majority of our members, we will issue a member ballot to our membership. On the ballot, we pose the issue and then provide a proponent and opponent viewpoint. Then we ask our members to vote on the issue,” Maisch said. “If the majority of our members support a specific issue, then NFIB will lobby in support. And, of course, if the majority opposes an issue, we will then oppose it at the Capitol. We truly believe this is the best way to represent and be the voice of small business in Illinois and in Washington—we actually take the pulse of our members on major issues before we take a position.”
Currently, a top concern facing Illinois’ small business owners is the rising costs of health care. Health care costs have been a major concern for decades, Maisch said.
“Many states have taken it upon themselves to cobble together a ‘solution’ for health care. We will definitely see a health care bill this year, and it will probably dominate a lot of time and energy,” Maisch said. “Some current proposals being floated around would include forcing employers to spend at least 4 percent of their payroll on health care costs or face an assessment from the state. So for small businesses that can’t afford to offer health insurance, this will be a huge issue.”
The health care program in Illinois alone has a first year price tag of about $5 billion. It is very likely NFIB will be debating increased taxes and other revenue sources to pay not only for the deficit in Illinois but also for some of the other programs being discussed. According to recent published reports, the state is facing liabilities and unfunded commitments exceeding $100 billion, Maisch said. “There is a grave concern that the governor and state lawmakers will look to enact a service tax in Illinois or some other broad-based tax, like a gross receipts tax, to pay for new programs,” she said.
Currently, there is no service tax in Illinois, which is a boon for small business owners. Keeping those tax rates low is also very important to the state’s competitiveness, Maisch said.
In terms of attracting new businesses, Illinois’ main incentive is a relatively low tax rate. Illinois has a flat 3 percent personal income tax and 4.8 percent corporate income tax. Unfortunately, in the areas of workers’ compensation and unemployment insurance, Illinois is much more expensive than neighboring states. “State lawmakers and the governor should carefully consider how their policies will affect small businesses,” Maisch said. “For instance, while increasing the minimum wage is popular, there is going to be job loss as a result. Small business owners could be forced to lay off workers, not fill open positions, cut back employees’ hours or in some cases simply close their doors if they can’t make a profit due to high wage costs.”
Because NFIB is a national organization, members get the benefits of advocacy efforts on both the federal and state level. In addition, NFIB only represents privatelyheld and sole proprietors so a small business owner’s voice can be heard. “We truly look out for the small employers and not the big corporations. Sometimes people tell me that they don’t think their voice counts, or that their one vote doesn’t matter. With NFIB you can join with like-minded businesses and put forward a strong and effective voice on issues that make a difference,” Maisch said. “We also work with small businesses that need help when it comes to the maze of state and federal government, working with state agencies to get answers or help with a regulatory issue.”
The organization is very politically active and provides election and voter information to let members know who is supporting small business issues in the State Legislature and in Congress.
“For many small businesses we provide a quick education on State Government 101 and Politics 101. Many businesses are simply shocked when they learn how the legislative process works and how difficult it can be to get bills passed or to stop bills that are anti-small business,” Maisch said. “They often marvel at the lack of “common sense” that is demonstrated by legislators and don’t understand why government can’t run more like a business.”
The major reasons for the failure of small businesses have not changed over the years, Maisch added. The reasons include insufficient capitalization—many new business owners do not have a business plan that properly anticipates cash flow needs and run out of money before they have sufficient customers and a sufficient cash flow. Another major reason is an external one—not properly anticipating economic conditions like opening a gourmet restaurant during an economic slump or opening a luxury car dealership when gas prices are going through the roof.
In terms of survival rates, about 65-75 percent of new firms will survive at least three years. However, if a business is growing during the first three years, their survival rates are much higher. “It is important to note that survival rates also vary by industry, with higher survival rates in services and lower survival rates in construction and restaurant industries,” Maisch said.
One of Maisch’s proudest moments in her position wasn’t a legislative accomplishment, but a political one. She recruited an NFIB member to run for state senate against a 22-year incumbent who, she said, had a horrible voting record on small business issues. Despite all the odds and most political pundits’ predictions, he worked very hard and won. “He has proven to be a great state senator and has been able to articulate to his senate colleagues how the issues they debate affect small employers in Illinois,” Maisch said. “We need more small business owners to run for office!”
For the future, Maisch said she has a great interest in finding a solution to the health care problems facing small employers. “This is an issue that is so important to employers and their employees, not to mention an important issue for our society as a whole.”
Wilson Harder single-handedly founded NFIB in 1943. Harder’s vision was to give small and independent business a voice in governmental decision making.
Any owner of a privately-held business may join NFIB. Although many small business owners across the country write checks up to $2,400 to support the cause, NFIB offers a special flat membership rate of $200 annually or $20/month to small-business owners who sign up online at www.nfib.com. tpw