Over the last few years, small businesses have had to adapt and innovate to survive — navigating shutdowns, inflation and workforce shortages. So why, in the face of these historic headwinds, has the federal government failed to permanently fill the role of the small business advocate?
This position, officially called chief counsel for advocacy, was created by Congress in 1974. The chief counsel runs an independent office from within the Small Business Administration and is appointed by the president and confirmed by the Senate. However, there hasn’t been a permanent chief counsel in more than half a decade.
It’s a significant job. These are significant times. So where’s the small business advocate?
As the CEO of a Utah-based manufacturing operation that survived the pandemic, I know firsthand the challenges of hiring. However, the six years this position has been without a permanent appointee are way too long. Furthermore, several other positions within the Office of Advocacy have also been left vacant.
The Office of Advocacy’s mission, according to its website, is to be the “independent voice for small business within the federal government,” advancing “the views and concerns of small business before Congress, the White House, federal agencies, federal courts and state policymakers.” It serves as the federal watchdog on regulatory issues that impact small businesses, as well as leading research that would be valuable to policymakers and entrepreneurs alike.
In a bipartisan effort, the chair and ranking member of the House Small Business Committee recently wrote to the White House, “This position has been vacant for far too long and filling the position should be a top priority of the Biden administration.” They continue, “Office of Advocacy is the only government entity considering the impacts regulations may have on small business owners.”
Many small businesses like mine face significant challenges in understanding and complying with ever-changing and confusing federal regulations. Filling this role would give us a voice when it comes to the impact of these regulations.
In addition to serving as our watchdog, the small business advocate also plays an important role in collecting data that is essential to policymaking. Congress should charge the Office of Advocacy with leading in-depth, multiyear evaluations of SBA programs and building an ecosystem of researchers and data on small businesses. This would enable the office to share critical data and research with other agencies with the goal of promoting advocacy. I also recommend establishing a public-private advisory group to make recommendations to Congress and SBA, ultimately redefining the agency’s approach to data.
As a useful model, members need only look at the effectiveness of the data and research operations at the Department of Housing and Urban Development’s Office of Policy Development and Research. Over the years, HUD has built an admirable research arm that has helped the agency effectively use data as a key leverage point for improving policy. This can serve as a blueprint for success.
Unfortunately, filling the role of chief counsel for advocacy is not the only thing that has been neglected in Washington. With the COVID crisis largely in our rearview mirror, we’re asking our representatives in Washington to refocus on modernizing the Small Business Administration as a whole.
Congress has not reauthorized the SBA in 23 years, and it has never been more important. Data shows that small business creation has been shattering records across the U.S. over the past three years — jumping more than 78 percent over the previous 14-year average. Now is the time to put the infrastructure in place to support America’s small businesses into the future.
Through my advocacy work with Goldman Sachs 10,000 Small Businesses Voices, I hear from many small business owners about the need to modernize the SBA to meet their needs. In partnership with the Bipartisan Policy Center, our community put forth a policy agenda with a blueprint to reauthorize the SBA.
Our recommendations would help improve access to capital and close persisting financing gaps, increase and streamline government contracting opportunities for small businesses and update the SBA’s development programs and counseling options so that the programs and services offered are relevant and accessible to 21st-century small businesses.
Small businesses are America’s job creators! Now let’s fill the job of the SBA’s chief advocate.
Natalie Kaddas is a member of the Goldman Sachs 10,000 Small Business Voices, chair of the U.S. Chamber of Commerce Small Business Council and CEO of Kaddas Enterprises.