Small businesses are key drivers of growth for the American economy. They are on the cutting edge of innovation and successfully address problems that bigger companies can’t. However, it can be difficult for the voice of small businesses to be heard over the din of large corporations. Congress needs to hear about the needs of small businesses and how they differ from those of larger businesses. ACT | The App Association recently hosted a webinar highlighting key concerns of small businesses that the new Congress can address. The discussion featured insights from multiple small businesses and advocates including:
- Suzanne Borders, CEO & Founder of BadVR
- Dele Atanda, CEO of metaMe
- Alexis D’Amato, Government Affairs Director of Small Business Majority
- Taylor Downs, Federal Policy Manager at ACT | The App Association
Check out the full recording here or see below for a recap of our conversation!
Panel Recap
Our panelists represented small businesses with a wide range of goals and needs, highlighting the places where they are all in agreement. Suzanne spoke about the importance of intellectual property (IP) protection for small businesses, especially high-tech businesses like hers. She knows firsthand how fundamental IP can be to a business’s value, especially in the early years of an innovative concept without many current customers. She also emphasized that key tax incentives for beneficial business activities, like research and development (R&D), can provide a significant boost to technology companies. The tax landscape changed in 2022 when the longstanding R&D tax deduction provision was upended. For the first time in nearly 70 years, businesses were no longer able to fully expense their R&D costs in the year they were incurred. This shift has placed significant financial burdens on small businesses, making it harder for them to continue investing and competing in a global tech ecosystem.
Dele discussed the pros and cons of regulation in the areas of artificial intelligence (AI) and blockchain, describing the two technologies’ similarities and differences for viewers. In both areas, he advocated a light-touch approach to regulation that doesn’t stifle creativity but allows for a shared framework for users. The App Association has long advocated for light-touch regulation on key emerging technologies like AI and blockchain to encourage innovation and growth. Large, burdensome regulations like the European AI Act do not support the development of these technologies and risk leaving companies behind. Congress has the opportunity to ensure small businesses can thrive by encouraging participation in the development of consensus-driven and voluntary rules for AI and blockchain development.
Alexis shared her perspective as an advocate for many businesses that are part of the Small Business Majority. She highlighted the need for tax reform to support small businesses both through the R&D tax deduction and the qualified business income deduction. She also noted the importance of pro-competitive policies around key business activities like mergers and acquisitions. Businesses with no exit strategy—such as through a merger or sale of the business—are less valuable to the market. If these avenues become restricted, more businesses will have to rely on going public, which is out of reach for many small businesses.
In Conclusion
Small businesses are key drivers of economic growth, but they rely on Congress to support them through procompetitive intellectual property protection, tax policy, and regulatory action. This webinar brought forward several key policies that small businesses need to thrive. Congress should take action to protect innovation and the technology businesses that make it possible.