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Monday, March 16, 2009

Obama Lauds Small Firms, Innovation

President Barack Obama emphasized the importance of entrepreneurship and technological innovation in remarks to small business owners, community lenders and members of Congress who visited the White House on Monday. "Small businesses don't just provide jobs -- they provide the innovations that help us lead in the global economy," he told the group, noting that smaller companies produce 13 times more patents per employee than large companies. "Now, think about it. Hewlett-Packard began in a garage. It was a small business. Google began as a research project -- small business. The first Apple computers were built by hand one at a time -- small business," Obama said.

The president added that the ongoing economic recovery and the nation's prosperity in the future depend on the success of America's small businesses and entrepreneurs. "Small businesses are the heart of the American economy," he said, noting they account for half of all private sector jobs. His stimulus plan raises the guarantees on Small Business Administration loans to 90 percent and eliminates costly fees for borrowers and lenders. The plan also includes a series of tax cuts for small businesses and tax incentives to encourage investments in small businesses. Meanwhile, the Treasury Department has launched the Consumer and Business Lending Initiative to help unfreeze the credit markets, Obama said. "We've already done a lot. But we've got to do more," he said.

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