What Is a Small Business Set-Aside?

The United States Small Business Administration, senior trade expert Richard Ginsberg, said in a telephone interview with reporters that the Small Business Administration mainly helps small businesses obtain financing by providing financing assistance, providing multi-faceted consulting and technology Three approaches, including the U.S. government procurement contract, help Americans who are committed to starting small businesses. Our mission is to help Americans start small businesses, grow small businesses, and achieve wealth goals. ^[1]

U.S. Small Business Administration

Richard Ginsberg, a senior trade expert at the U.S. Small Business Administration, said in a telephone interview with reporters,

The Small Business Administration is an independent small federal government agency in the United States.

Burdened by the US Treasury (taxpayer's money).

Budget passed

The Small Business Administration (SBA) of the United States

The U.S. Small Business Administration (SBA)

(1) Consulting and management training services. The first is consulting services,

At present, many small enterprises in China are facing internal and external problems, and their living conditions have received extensive attention from all walks of life. We believe that the most effective way to help small businesses tide over difficulties is to solve their capital turnover difficulties. Small enterprises have the characteristics of small, urgent and frequent funding requirements. Under the current financial system, without good system design, it is difficult for small enterprises to meet their capital needs through formal financing channels. Throughout the history of the development of small businesses in countries around the world, their success is inseparable from the government's effective institutional arrangements and mechanism design, which provide many conveniences for small business financing. The U.S. Small Business Administration (SBA) is recognized for its role in promoting small businesses and shaping entrepreneurship. The background of the establishment of the SBA is similar to the current situation facing our country. The stones of other mountains can be used to attack jade. The successful model of the US government to set up SBA is worth learning from. It can be partially transplanted to the current country and alleviate the crisis of survival of small businesses. ^[5]

Back in time, the predecessor of SBA was "Reconstruction Financial Corporation". In 1932, in order to alleviate the impact of the Great Depression on businesses, President Hoover established the Reconstruction Finance Corporation, which aims to provide government loans to all affected businesses. This practice was inherited by its successor, President Roosevelt, and a large number of talented people were employed and played a role in Reconstruction Finance Corporation. During the Second World War, when large enterprises thrived due to the surge in demand for war materials, the survival space of small enterprises was unprecedentedly narrow, and their survival once became the focus of social attention. The United States Congress noted the plight of small businesses and established a temporary agency in 1942 to provide government loans to small business owners, while encouraging financial institutions to lend to small businesses. After the war, the agency was incorporated into the Reconstruction Finance Corporation. During the Korean War, the United States set up similar agencies to serve small businesses. In addition, research at the time found that the main reason for the failure of small businesses was the lack of information and technology. To help small business owners get more and better training, the US Department of Commerce set up a small business office.

Driven by President Eisenhower, the SBA, which replaced the main functions of the Reconstruction Finance Corporation and Small Business Office, was established in 1953. The role of SBA is described as "serving small businesses as much as possible through direct assistance, consulting, assistance and protection". The following year, the SBA began to provide loans and loan guarantees to small businesses, secure government orders, and provide various training for small business owners. As of 2000, nearly 20 million small businesses have been helped by the SBA. Today, SBA's support for small businesses has not weakened. In the United States, SBA is affectionately called "the mother" by large and small companies. It is precisely because of the existence of the SBA that the interests of small businesses have been concerned, and their market dominance has been treated fairly.

SBA has launched small business investment company projects since 1958. As a link between venture capitalists and small businesses, the project has become a model for public-private partnerships worldwide. Famous companies like Apple, Compaq, Intel, and AOL have all grown up with the support of this project.

The US government's model for promoting small businesses is unique and attractive. Is this model suitable for China? The SBA was established because the living environment of small businesses became worse during the economic crisis and war, prompting the entire society to pay unprecedented attention to small businesses. The situation facing our country is very similar to that of the United States. In 1942, the per capita GDP of the United States exceeded 1,000 US dollars, but last year, China's per capita GDP was less than 3,000 US dollars, which is at a similar stage of economic development. Second, the current predicament of Chinese small enterprises is unprecedented. It is affected by the international financial crisis and squeezed by a huge fiscal expansion plan internally. Its survival space is becoming increasingly narrow. Many American companies at the forefront of innovation today have developed from small businesses, and their success is inseparable from the strong support of SBA. Today's achievements in the United States and the dominance of countries in the fields of technological innovation, industrial innovation and knowledge innovation are inseparable from the emergence and vigorous development of a large number of small enterprises. Therefore, 30 years after the reform and opening up, we should realize that in the current stage of development, the status of small enterprises is very important. Whether it is to absorb social labor, take the road of creation in China, or to achieve sustainable economic development, small businesses have played and will continue to play an important role. How to improve the living environment of small businesses, the path taken by the United States can give us a lot of inspiration.

In addition, there are huge differences in the financial systems of China and the United States. China's financial system has a high degree of monopoly, with large banks occupying a dominant position, and the number and capabilities of small banks are very limited. There are more than 10,000 small and medium banks in the United States, located in various parts of the United States, providing a full range of services for many scattered small businesses. From this perspective, even excluding the SBA factor, the survival environment of Chinese small enterprises is worse than that of the United States. Therefore, the author believes that the development of small enterprises should be escorted through institutional innovation at the moment, and should not stop at headaches and feet. Recent policy developments are expedient, at best, they can only help large and small companies in deep trouble to overcome the difficulties for a while, rather than let them get rid of institutional financing difficulties. Institutional innovation means the establishment of an authoritative specialized agency, which aims to provide a wide range of comprehensive services to small businesses, not only possessing corresponding powers, but also having sufficient and endless resources. First and foremost should be devoted to providing facilities for small business financing.

It is an important measure to promote the development of China's small enterprises by drawing on the conditions of the United States government and choosing the best from them. As the US SBA claims, faster, more flexible and more adventurous small businesses are the cradle of innovation. Millions of people will use their ingenuity to provide a wide range of products for museums, shops and homes. Society will benefit from small businesses. We look forward to the establishment of a Chinese-style SBA as soon as possible so that small businesses can do more on the Chinese mainland. ^[6]