The Big Issues for Small Concerns

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Hasty: I think the real issue is on the cost-containment side. I'm not one for national health care, but I think that something has to be done or else we're never going to get a handle on this problem. I think the government has been afraid to step into this health-care industry and try to contain those costs so the average person can afford health insurance.

Next topic: minimum wage. Is this a concern to anyone here?

Hasty: This is one of these issues where I believe the market should dictate what the minimum wage is. With unemployment the way it is in this country, people compete for labor right now. And that's going to drive those rates up. It's all about supply and demand.

Batterson: That's some old labor-union issue that really doesn't exist anymore.

Zigulich: Do you feel optimistic about the economy?

Batterson: I feel fairly good. I'm a little concerned that interest rates may tick up more. That could cause the stock market to decline further, which is not good for the investment business.

Schroeder: One plus is that we've had political gridlock over the past eight years. It actually has proved to be a good thing, since it has stopped the government from interfering with growth in the economy.

Cooper: Well, as the technology guy at the table, I have to say I'm feeling darn great. Technology is playing a huge role in the future of the country, and it looks like it's just a major engine.

Herrera: I know that we're taking steps in the right direction. I think it has proved to be a great period for women in business.

One indicator of economic well-being is the availability of capital. Do you feel there's a glut of money available now for entrepreneurs?

Batterson: Well, as the venture capitalist here, I guess I ought to comment on this. You know, there's more private venture capital now than at any other time in the history of the country--about double what it was two years ago. So there is a tidal wave of so-called angel money sloshing around the country now to help people get started.

Does anyone have any thoughts about export policy, how much things like the North American Free Trade Agreement have helped small businesses?

Hasty: You know, it has really affected certain industries hard, because a lot of manufacturing has moved to Mexico. What's happening is that unskilled jobs are moving out of this country fast. Which leads us to the question, What do we do with the unskilled work force until they are trained to do technology jobs?

Batterson: What the Internet really is going to do is create a global economic revolution. Today if you're an Internet company in Chicago, you're basically an international company whether you want to be or not. And it's much easier to be, because of the communication links that the Internet provides. That's true whether you're a company like mine that's providing capital worldwide or to people who are selling anything.

Looking back over the past decade, do you think any issues of concern for small business have been solved?

Hasty: Yes, I think that if we look over the past 10 years, this has been the greatest economic time this country has enjoyed. There are more new small businesses being created right now than at any other time in history. Venture capital is plentiful. Many of the incentives that the government provided have helped, such as the SBA lending programs. The reduction in taxes has been a catalyst. If you look at capital-gains tax rates now, they are the lowest that they've ever been. This has spurred business formation and growth. And even if you look at estate taxes, although they are a major penalty to individuals, they have been coming down.

One final question: Will it make any difference who's elected President this fall?

Zigulich: I don't think so.

Kerns: I do. Mainly because I believe if George Bush is put in office, it will change the general flow of capital made available to businesses. In general, the Democratic platform has spurred investment in the small-business sector over the past eight years by reducing bank regulation and lowering interest rates, so it's easier to get bank loans. Historically, raising money has been the biggest hurdle for small businesses in this country. The Republicans don't have a good track record in this regard. They have a tighter focus on fiscal restraint.