By Michael Roth, Next Street
I was asked to give a presentation to the leadership of one of our Fortune 500 clients recently on a simple topic: What is the current state of small business in America?
My first thought: Everything Everywhere All at Once. The current macroeconomic trends and our shifting policy landscape are changing rapidly and abruptly like tectonic plates shifting beneath the surface, creating ripple effects felt far and wide. If you want to hear the entire presentation, reach out to me – I’m always happy to share. But, in summary, we discussed how macroeconomic trends like reindustrialization, an aging population, artificial intelligence, and geopolitical instability, along with policy shifts related to trade policy, immigration, and the war on DEI, among others, are emphasizing the need to focus on strategies that drive sustainable growth and resilience for small businesses.
That sort of support will inevitably take vast resources, but the more I look around, the more I come to the same realization: we don’t have an investment problem in America. We need to govern urgently.
Let me explain. America is an incredibly wealthy country. Trillions of dollars flow through federal, state, and local governments to provide healthcare, build housing, spur entrepreneurship, build infrastructure, and so on. Yet, I can’t schedule a doctor’s appointment. I find myself part of the 45% of Americans now spending more than 30% of my income on rent. And my choices to travel from DC to NJ are a delayed Amtrak, a delayed flight, or sitting in traffic on I-95. The money is there. The problem? It doesn’t always get where it needs to go, and when it does, it is tangled in bureaucracy or poorly aligned with the needs of the people it’s supposed to serve.
For example, as part of my work at Next Street, we support more than 200,000 small business owners each year who struggle to access capital. The frustrating part? The capital exists. Billions of dollars sit in government-backed programs and community institutions designed to reach these business owners, but red tape, outdated systems, and inefficiencies block their path. Instead of unleashing innovation and growth, the system stifles it.
The solution is not about MORE investment – it is about getting today’s resources to work urgently for people.
I’ve seen what happens when government works as it should. During the early days of the COVID-19 pandemic, I oversaw the Paycheck Protection Program and funded more than SIX MILLION businesses hit hardest by the crisis in just THREE MONTHS. We streamlined processes, cut through bureaucracy, and got critical relief to those who needed it most. Urgently. The result? Fifty million jobs saved and businesses who anchor their communities stayed open. It was a powerful example of what’s possible when government operates urgently and effectively to solve real problems. We shouldn’t need a global pandemic to operate this way.
The same holds true in other areas. Infrastructure projects are delayed for years due to permitting challenges. Investments in workforce development programs often fail to align with the actual needs of local employers. Affordable housing funds go unspent while families live in cars. The gap isn’t in resources; it’s in how those resources are managed and deployed.
When we think about government, we often picture it as a lumbering bureaucracy. But what if we reimagined government as a service provider—one that listens to its “customers” (the people), works collaboratively with communities, and operates to achieve the outcomes over the process?
Today, the US is investing trillions in new industrial policy that will build much-needed manufacturing, infrastructure, and energy. The key to unlocking this investment, and unlocking America’s potential, is urgent governance. Many state and local governments face the same challenges, though we see some acting urgently as service providers.
The government can work for its people when we break the mold of “business as usual.” These investments can be a catalyst for real, measurable change for economies and the small businesses that build them. It’s possible, but only if we innovate the way support is deployed. In 2025, let’s make sure the resources we already have can have big impact for all small businesses.
I’d love to hear your thoughts. Do you agree that urgency in governance is the missing piece? How can we work together to reimagine government as a force for good in our communities?
Photo by Erik Mclean on Unsplash.