I chose to get involved because I am a business owner, a small business activist and I live and work in the area.

Last night was the VIP opening of the more neighborhood-sized WalMart on Anderson Lane in Austin, Texas. The RG4N board was invited and several of us went including the original President, Paige Hill.

Our efforts to stop the supercenter were not about size as much as about the impact of that size. That impact includes traffic, litter, security, safety issues for those with disabilities, crime, air and water quality. It was also about the impact on locally owned stores that do not fare well with a big box, especially a WalMart, nearby.

This store, while not perfect, does some good things. I look forward to continued dialogue with the store manager, Scott Gray, on behalf of my fellow business owners from the area.

As Jason Meeker, our Vice President and Communications Chair said, RG4N hopes that people will realize that if things are going on that they don’t think are good for the neighborhood, they should voice their concerns. And, if they work together, they can make a difference.

Independent businesses are parts of our neighborhood. We could not have accomplished what we did without Alamo Drafthouse North, Discount Electronics, Encore Music, Genuine Joe’s Coffee, Kids N Cats, Scandinavia Contemporary Design, Thunderbird Coffee, Zingers and others. They did not just locate their businesses in the neighborhood they were actively engaged in what was going on. And these were the names that my fellow neighbors and board members thanked when we were being interviewed by the media.

What should that tell other independently owned businesses? That these businesses made friends for life. Those who live in the neighborhood see that businesses located in the neighborhood care. They are engaged.

It should also tell every owner that the role of business in neighborhoods should be more than giving donations to the local school or scout group. That’s good, but there’s more to do.

You chose that location for your retail or service business. Now choose to be involved in its future.

What can you do?

1. Be a small business activist.
2. Join your local Neighborhood Association or Home Owners Association if you can. There may be several in your area so look around. In Austin, there is a list of all known active associations at the Austin Neighborhood Council. Most have a membership category for businesses.
3. Read the local neighborhood paper, join and participate in the online neighborhood association discussions or at least stay informed by talking to customers, those who live in the neighborhood, and owners of other local businesses.
4. If there is something that will affect your neighbors, get involved. Offer places for them to meet or put out literature.
5. Help recruit other local businesses that might not have heard about what their “community” is trying to do.

This way you give yourself some control over what happens. Besides, independent businesses can do things that chains and larger businesses can’t without getting permission from a corporate office which may or may not understand.

I know you are busy. So am I. This is not too much to ask. Your future is on the line here, too.

So, just do it. You’ll feel like you are part of something special. You will be. You’ll have a special kind of network. One in which there is give and take and people care about people. One that is about more than prospects and sales.

Finally, tell other businesses what you did. Together, you and your neighbors can keep your community the best it can be for everyone. After all, this is your “business neighborhood”, too. What happens to them effects you.

What have you done lately?

I saw Keith Olbermann’s Countdown program, “Small in Name Only” on MSNBC on September 22, 2010, about the “kooky” (their word not mine) definition of small business. It isn’t weird, it’s just flexible as the Small Business Act intended it to be. Maybe it needs work. I certainly think so.

This is what the SBA (Small Business Administration) says on the FAQs page of their website. You can check me out on this.

“Size standards define the maximum size that a firm, including all of its affiliates, may be to participate in federal government programs that are reserved for small businesses. The Small Business Act states that in determining what constitutes a small business, the definition will vary from industry to industry to reflect industry differences accurately.”

It then goes on to say to read the Small Business Size Act. If you follow the link, you get this:

“The SBA defines a business concern as one that is organized for profit; has a place of business in the U.S.; operates primarily within the U.S. or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor; is independently owned and operated; and is not dominant in its field on a national basis. The business may be a sole proprietorship, partnership, corporation, or any other legal form.”

There’s part of my problem. The Countdown show maintains that when it comes to  taxes,  a small business designation is only for “pass through” entities (sole proprietorship, partnership, S corp) and then points out how ridiculous this is. But that statement about legal entity status does not pass the SBA test. Or, at least part of it.

The SBA goes on further to say:

“These size standards apply to SBA’s financial assistance and to its other programs, as well as to Federal government procurement programs when there is a benefit available to qualifying as a small business concern.  Also, the Small Business Act states that unless specifically authorized by statute, no Federal department or agency may prescribe a size standard for categorizing a business concern as a small business concern, unless such proposed size standard meets certain criteria and is approved by the Administrator of SBA.”

The expert that Olbermann brought in to comment really didn’t give a full picture of how federal agencies, including the IRS, are supposed to define “small business”. So why was there no slide of it to give viewers that definition?

Why was no one at the IRS not asked to comment? Better theatre I guess.

Why didn’t the IRS want to comment? Have they screwed up in their definition of “small”? Probably not. Smart tax attorneys found a way to take advantage of that definition.  Other small business owners and I used to joke that if you had a business that was the smallest in your NAICS code, the government defined you as a small business. That would make Chrysler a small business.

Not the only time either that “small” has big consequences. It’s been proposed that venture firms that own part of “small business” be eligible for the really one and only government grant, the SBIR (Small Business Innovation Research Grant). Now, that is really weird and in my view and others it’s also totally unfair!

In other words, just because you say you are “small” does not by government standards say you are. Of course, these definitions refer to programs for small businesses including procurement and loan guarantee assistance. Shouldn’t a federal definition be the same across all areas of government including taxes? I always thought so or how can anyone keep up with being an on again off again small business.

Where is the IRS on all this? Nowhere to be seen. Odd. For years, the IRS director just around tax time would go on record saying that the regulators would be on the lookout for small businesses because we were all out to cheat the government. Maybe these men and women were thinking of the businesses like Bechtel and Price Waterhouse Coopers that were labeled by Olbermann as  “small businesses”. By whose definition? Be specific. Where are they getting their definition? Let’s see it!

I am not saying I am for reducing taxes for the wealthiest. I am saying check your facts before you get out the tar and feathers. I’ve been a moderator (for KUT radio’s nationally syndicated show “The Next 200 Years”)  and there are rules even for commentators.

If you would like to read more about the size standards and judge for yourself about who the heck people are talking about, here are some useful links.

• Size Standards Methodology
• Small Business Size Regulations
• Table of Size Standards
• Summary of Size Standards by Industry
• Guide to Size Standards
• Size Protests, Size Determinations, and Appeals
• Revision of Size Standards
• Use of Size Standards for Government Procurement
• Businesses Determined Other Than Small

And, if you don’t think that’s confusing enough, the states have their own definitions by statute. In Texas, a small business is defined in Vernon’s Civil Statutes as under 100 employees. That said, if you look just at the latest statistics on the number of firms in the Austin Metropolitan Statistical Area, there are 35,129 firms under 500 employees. About 880 of them have from 100-499 employees. That’s 2.51 % of that total; pretty close to the 3% people are yelling about. And, this percentage holds true in most MSAs where I can find numbers. (These particular numbers are provided by the nonpartisan LMCI division at the Texas Workforce Commission.)

Some of those 880 are probably making a lot than $250,000 in order to support the overhead of that number of employees. And, unlike the commentator would lead one to believe, I’ll bet they are not all Republicans. I could be wrong on that and I can’t exactly check. But, it would seem reasonable given the bigger small business owners I have met are not from just one party. (Some of their spouses have even served as Democrats in the legislature and elsewhere.)

What good can come out this mess? Maybe, the powers that be will get real and come up with a definition that actually and accurately defines who we small businesses really are. How about media people being a help to solve the problem instead of exploiting it. Yes, there are some who don’t quality for the term. Then change the tax laws and stop stomping on small business as a whole.

Finally, you never even talked to one of us to see our take on this issue of definition and taxes. Call me, Mr. Olbermann. I’ll talk to you about what it’s like to be a very small business owner who pays taxes, meets payroll, and provides for health insurance for staff for over 20 years.

What is Austin City Manager Marc Ott doing about the Small Business Summit Resolution?

I have not seen City Manager Marc Ott’s proposed budget. I am curious to see if he followed Council’s directive and included anything about how the City will try to address the needs and wants expressed by the 40 business representatives that were part of the original Summit.

According to the resolution that passed in June, Ott has 120 days to come back to Council with a report and policy recommendations to enhance the City’s effort to facilitate growth of locally-owned businesses.

That means there may be nothing in the budget. If his budget passes, it looks like it will mean higher sales and property taxes (and they wonder why we aren’t  hiring or buying).

If you are a business owner  in Austin, you also should want to know if there is anything in it for you.

It is not only the City’s responsibility to take action of course. Those of us who are the visionaries behind those businesses have responsibilities, too.

As for this visionary, I would like to know what, if anything, the City can and wants to do along with a time frame so I can see how it will affect my plans.

Part of the reason, is that like many other businesses, I find that sometimes the City  becomes my competitor by offering goods and services that are already competitively available from me or other locally-owned for-profit businesses.

Where is the call to see if these goods and services for local businesses already exist?

I would like to see the City see what is out there and how it can engage in promoting those locally-owned businesses first before deciding it has to be our 800 pound competitor. I saw some requests on the list and heard some at the Summit that I know companies in the Austin area already provide and I would be happy to help identify them.

Let’s keep local money circulating locally. That’s just good business and appropriate economic development. If we do, that means that hard-working City staff can focus on what they do best. There will be no need for the City to hire because local businesses will do the hiring. That’s what they keep asking us to do. The City can help us do that.

Because we are local businesses we have had to make payroll, pay taxes, and fulfill our regulatory obligations. We really do know how to better serve other businesses than any well-meaning bureaucrat ever will. (Before I started my business 28 years ago, I was a bureaucrat so I know.)

What can the City do for your business to make it stronger?

I was invited by Bijoy Goswami of Bootstrap Austin to attend an event sponsored by the Entrepreneurs’ Organization (EO) in Austin that was billed as an “Intimate Conversation with Bill White”. Bill White, former mayor of Houston, is running against Rick Perry for Texas Governor this fall. It turns out that White is an honorary EO member.

Former Houston Mayor Bill White is running for TX Governor

It was intimate as promised. I was about two feet away from the man who started by saying that he was pleased to be here for this “job interview” which brought some chuckles. In his prepared remarks, he said if he were “hired”, he would run the state like a customer-centered business. He would focus on what people want, not what the state wanted to “sell”. Sounds pretty good.

When Q&A time came, I asked Mayor White a question about how he viewed the state’s role in something that is near and dear to my heart: the role of government especially in hard economic times when there are tough decisions to be made.

I referred to what the state should do when you have warring factions and differing interests when it comes to economic development and property rights. I should know. I have spent three years of my life focusing with a great group of people, my neighbors and fellow business owners from Responsible Growth for Northcross, an organization that was formed to try to keep our neighborhoods livable and our independent businesses sustainable against WalMart, the biggest corporate giant since the Roman empire.

In addition, during that fight I found my own city government allied against us instead of being neutral or acting as a facilitator. I also saw them take a more appropriate role over a similar redevelopment issue with a neighborhood  in the university area that did not have Allandale Neighborhood Association’s reputation of fighting changes that it felt would destroy the quality of life and the safety and well being of those who live there. The outcome of this fight was viewed by all as a precedent for the future of other neighborhoods in other parts of Austin and in other cities that faced this dilemma of redevelopment vs. retention.

White’s response to my question about economic development controversies

Perhaps Mayor White misunderstood my question about the state’s role in this aspect of economic development. First he asked me if I wanted the truth. I said “yes”. Then, he said that he did not think that the state should take sides but should let this be decided locally. I appreciate his honesty because I do believe he really does feel that way.

I agree that the state should not take sides in this kind of issue although in Texas, Austinites frequently feel like the District of Columbia, that there is a lot of “Austin-bashing” when it comes to legislation that only applies to us.

But, I disagree on the “no role” to play. What I hoped he would say is that he thought, like a well managed business, that the state should take the higher road and seek ways for the parties to get to know each other and arrive at some mutually agreed upon points so they can reduce the mistrust and anger and get something done.

White says he is a doer. I thought he would want to do something. Guess I was wrong. Texas has an $18 million shortfall. To get through this, we all need to cooperate and find a way that neighbors and businesses large and small, local and recruited can be heard and have a mediator, even an ombudsman to discuss things safely.

For a few years, Texas did have a small business ombudsman under the Department of Economic Development. Not that this lone person got involved in these kinds of issues, but maybe they should have. Of course, with just one person to cover the whole state, that was probably not reasonable. But, maybe as White touted when talking about his accomplishments in Houston, one person could focus on finding others to help out and together they could get things done.

What I think the government’s role should be in economic development controversies

How do I view government’s role? What is my expectation? It is one based on my experiences. I worked for the state before starting a business. I have worked on political campaigns. I have helped with voter registration and for years kept these forms available and visible for anyone who came to our offices. I have walked door to door. I have been a delegate to local, state and national summits. I have been and am a small business activist.

I don’t believe in big government. I don’t believe in small government either. I do believe in adequate government, enough to do the job and that there are some issues that require a 40,000 foot view just as it takes a 40,000 foot view to run a successful business.

In regard to the issue of economic development, I believe we need to attract business. We also need to retain, sustain and grow our local businesses while protecting the integrity and safety of neighborhoods. We have limited resources and we will be borrowing from Peter to pay Paul. Maybe though, Peter and Paul could agree to share and play nice if there were someone setting the rules and guiding the process. Someone who had that vision. I am not sure White is any different than any of the other politicians current and past.

I do have one hopeful memory to draw on. When the Americans with Disabilities Act was signed into law twenty years ago this week, there were a lot of mad and confused people. Some thought it was the end of  business as we knew it, businesses would go bankrupt trying to comply, and that the goals were unattainable and unreal. The Governor’s Office on People with Disabilities with support of  Governors Ann Richards (D) and later George W. Bush (R) and under Virginia Roberts, its wonderful executive director, brought together a charter group of businesses to create the Governor’s Business Leaders Network. My company was part of that charter group. We were all volunteers. Together, we came up with ideas that we could disseminate to our peers and make this transition easier and better for all. I am proud of what we did. I think this is a good pattern to follow.

Call me Goldilocks if you like but fairy tales have lessons to learn in them. And, if you remember, Goldilocks did find things that were just right because she kept looking. (Yes, there was some damage along the way.) Well, nothing is perfect.

What is your opinion?

How do you think we could build a better Texas for us all; something neighbors and businesses could live with and coexist? Maybe we can give whoever becomes governor some better ideas. I’m game are you? It might even help out other parts of the country or the world.

I want to thank Mr. Goswami for the invitation. I learned a lot and was inspired to raise some issues that I think need to be considered before we vote in November.

Are people tired of it? Some are. Almost five years is a long time to keep volunteers working together on an issue.

This interview story was not my first choice for 15 seconds of fame, but I was glad to be asked to respond as a business owner who offices next to the WalMart site and as Business Liaison Chair for Responsible Growth for Northcross (RG4N). I learned a lot in the process and so did people on both sides of the issue. Now, RG4N and I will wait and see how it goes. We could all live happily ever after or there could be more black empty holes and store fronts — including WalMart. I promise you, I will be watching closely.

I am glad I took part in the democratic process. It reassured me it is ok to dissent with anyone even if it is unpopular. It is a messy process. I may not agree with everyone on each side, but I will defend their right to speak and I expect them to defend mine. And, I saw this up close and personal.

There  is still a WalMart going in on streets that are not designed to handle the traffic, security issues must be paramount going forward because of homes and schools nearby, and air and water quality need to be addressed before it is too late.

Northcross Mall is now Northcross strip center. It was not doing well before, maybe it will do well now. Maybe it will all work out.

Some good things happened. Neighbors met neighbors from other neighborhoods and worked with them to have a say about a future that seemed pre-destined because of the powers in charge. Neighbors worked directly with the people behind the independent businesses that make our area unique. They saw them as people who were just as interested and committed to  the health and well being of our area as they were. Equally important, finally the City of Austin recognized us as a united group, the Northcross IBIZ, an Austin Independent Business Investment Zone, that also had rights and that they had responsibilities to protect. (Read my related post and another related post by the  Austinist.)

Being a business owner not just about sales and the bottom line. It  is also being an activist for your community and your business — even in tough times.

Next time someone asks “will you serve? “, say yes. It will change your life and the lives of others.

What are you doing to “serve”?