May 21, 2012
How subsidized employment can help small businesses grow
D&G Sports Ventures, LLC, which manages paintball facilities like Hollywood Sports in Bellflower, hired 25 people into permanent roles from the 10,000 Jobs Program.
Today President Barack Obama proclaimed May 20-26 as National Small Business Week, as presidents before him have done for the past 49 years. This week we celebrate all those who have followed a dream, taken a risk and “hung their shingle.”
The federal government says there are 27 million small businesses across the country. According to the U.S. Small Business Administration, small businesses employ about one-half of all private-sector employees and pay 43 percent of the total U.S. private payroll. They also generate about two-thirds of the nation’s new jobs.
Earlier this month, I was in Washington, D.C., asking our national leaders to expand subsidized employment programs, which have helped many small businesses keep their doors open during the recession. There has been a lot of debate about the stimulus funding and bail-outs, but this I know: the 10,000 Jobs program we implemented here in LA County worked.
By subsidizing employment for local companies and agencies, we put over 11,000 people back to work. They were able to pay their mortgage or rent, feed their families and stay off of public assistance. For many small companies, it was also a desperately needed lifeline to help them transition through tough economic times. Many of these companies had contracts coming in, but did not yet have the cash flow to hire new people. 10,000 Jobs helped them bridge that gap.
Subsidized employment is a great way to provide people with work experience, while lowering labor costs for employers. We must continue to find ways to support our local entrepreneurs. And so this week we recognize the contributions of small companies, from local manufacturers to start-ups and mom-and-pop stores, for all they do for our economy and our communities.