Small business climbs out of backseat
to big business

By Pat Murphy

August 9, 2006

The San Francisco small business community yesterday climbed out of its backseat role to the interests of big business.

Releasing a 110-page study of small business economic impact on the City, one representative asserted "...it's time that City government catches up and realizes that small businesses are driving the economy of this city."

In recent years small business representatives grumbled their needs were dismissed by local government in favor of big business, mostly recently in lack of representation on the City's Universal Health Care Council.

Framers of past unsuccessful tax hike ballot proposals also ruffled the small business community by not consulting small business.

Gathered on the steps of City Hall in an 11:00 a.m. press conference Tuesday, small business voices said the study indicates small business is more loyal to employees than large firms.

"Perhaps some of the most startling figures released in the study show that of the job losses in San Francisco during 2000 through 2004, 71% of the jobs lost were of large employees," said Scott Hauge, president of Cal Insurance.

The report was compiled by economist Kent Sims for Cal Insurance.

Hauge added, "One of the most eye opening figures is the fact that small business released less than ten percent of their employees during the recession while large business released more than 20% of theirs despite the two groups of business having similar shares of the pre-recession private employment."

According to the study, small business produces a $14.4 billion annual payroll.

"Small business is the crux of the San Francisco economy," Hauge stated.

"San Francisco City Government clearly needs to develop an attitude that will created and facilitate small business and we hope this study will encourage them o realize this City's fullest potential, embrace small business and create a pro-small business atmosphere."

For complete report, click here.

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