A dose of straight talk on the economy for politicians

Uncertainty about the economy, taxes, regulations and spending hurts small businesses.

Here are just a few questions on our minds:

What direction are taxes headed?

What will be the impact of the health care legislation passed last year?

Will we be able to get control of the country’s debt?

What about future business regulations?

Political uncertainty breeds a business climate where it’s nearly impossible for small business owners to make investment decisions. Businesses need to predict their future costs. Why make a big bet on your business, either hiring people or buying new piece of equipment, if the rules around taxes and regulations are unclear? In the absence of clarity and information, no decision is made, so the economy just muddles along.

A recent survey by the U.S. Chamber of Commerce showed 79 percent of small-business owners wanted more certainty from Washington, D.C., and 80 percent said the nation’s debt has had a negative impact on their business.

Our political leaders could create clarity by coming together to tackle the huge challenges before us. To date, they haven’t done this. Our political culture appears broken — unable to put partisan wrangling aside and focus on the common good.

It seems that many of our political leaders have forgotten two important tenets of leadership: the art of compromise and thinking long-term.

The art of compromise

We strive to elect people who are strong advocates for their ideas. A rigorous debate of the issues is an essential hallmark of our democracy. Differing opinions and ideas result in better solutions to problems.

However, compromise in the current political climate for some strange reason is seen as a sign of weakness — you are tagged with backing down from your principles. Their notion of compromise is counterintuitive to any leader of a business or non-profit organization.

Successful leaders know they can’t always get what they want. No matter how much power they have in an organization, they recognize there are times when they have to be flexible. They learn to pick their battles and compromise when necessary in order to move the organization forward.

Thinking long-term

If we are thinking about the long-term, how does our country have more than $14 trillion of debt? The federal government is borrowing 40 cents of every dollar spent this year. We have $1 trillion-a-year deficits for as far as the eye can see.

We cannot borrow our way back to prosperity. Businesses could never operate this way — why should we think the government can? The country’s fiscal house is a mess, and yet our political leaders seem paralyzed to fix it.

Every organization is confronted with the tension between the problems of today and the problems of tomorrow. This tension creates no easy solutions, no quick fixes. But strong leadership is about making sure that the solutions of today aren’t made at the expense of the future.

A $14 trillion debt is shameful and a clear sign that as a country we are too focused on the short term and are paying an exorbitant price for the solutions to today’s problems.

Entrepreneurs and certainty

Successful entrepreneurs practice the art of compromise and think long-term. They also excel in a world of ambiguity. Business owners are great problem solvers, knowing they will face very diverse challenges every day. The business plan conceived at start-up may be totally different just a few months into operation. They have the drive to take the risk for the chance to be rewarded by the marketplace.

However, the small business community can’t operate in a world with political uncertainty. The risks are just too great. They need some level of certainty around taxes and regulation. They need to understand their future costs. Without it, small businesses can’t prosper or grow jobs, harming both our community and country.

Pat Sisneros is the vice president of college services at Everett Community College. Juergen Kneifel is a senior associate faculty in the EvCC Business program. Please send your comments to entrepreneurship@everettcc.edu.