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Small Business Group Says Public Policy Must Change to Reflect Changing Nature of Labor

August 31, 2001
As released by the Small Business Survival Committee, August 31, 2001) FOR IMMEDIATE RELEASE: CONTACT: August 31, 2001 Darrell McKigney Office: 202-785-0238 Weekend: 202-907-8098 SMALL BUSINESS GROUP SAYS PUBLIC POLICY MUST CHANGE TO REFLECT CHANGING NATURE OF LABOR WASHINGTON – As Americans observe Labor Day this weekend, the Small Business Survival Committee (SBSC) says politicians should take note of the changing nature of labor in this country and change public policies to better reflect the new economy. “It’s time for government leaders to recognize that the nature of work in this country is changing dramatically and public policies must change to keep up with the times,” said SBSC President Darrell McKigney. “The reality is, the days when most people worked 9-5 for a big company are fading fast and are being replaced by a new economy that is more high-tech, service-oriented and most notably, moving fast towards small business and the self-employment.” McKigney noted that according to U.S. Government figures, the number of home-based businesses has increased by about a third over the last decade and is growing fast. Figures also show small businesses are creating three-quarters of all new jobs. “I think the explosion of the internet and technology has created enormous opportunities for people to be self-employed and run small businesses, and the growth of services has fed that as well,” McKigney said. “And if the economy results in some rocky times, you may see even more people looking towards self-employment either as a necessity or for financial security.” SBSC Chairman Karen Kerrigan cited an increasing number of women who choose to work out of their homes part-time or run small businesses as another reason for the move towards self-employment: “Women today want more options, opportunities and flexibility in their lives, and for many women a home office or entrepreneurship gives them that.” McKigney says public policy must change to reflect a changing work force. “Too much of our public policy favors the old factory-style work model and is hostile to home businesses. That’s simply a left-over of the old economy where management and labor unions were both hostile to home businesses. “We should welcome the movement towards more self-employment and home-based businesses. They not only create more options for working people, they also have benefits for transportation, energy, environmental, and family issues as well.” McKigney said laws involving home office deductibility, insurance deductibility, payroll taxes, independent contractor status, ergonomics rules and other issues have been stacked against the self-employed for many years and changes must continue to be made. He praised legislation introduced by the Ranking Member of the Senate Small Business Committee, Senator Kit Bond (R-Mo) which addresses some of these issues. The Small Business Survival Committee is a national nonprofit, nonpartisan small business advocacy organization based in Washington, D.C. For more information, see www.sbsc.org. ###