Business

Some Small Business Owners Say They’re Seeing Improvement — No Thanks to D.C.

CNNMoney asked six small business owners (each with a different political tilt) a simple question: are you better off now than you were four years ago?

The answer was “yes” — but no thanks to the president or Congress. Most of the respondents told CNNMoney that their hard work, not anything from the White House, has kept them successful in this economy.

Sidney Brodsky, owner and chef of James Gerard Foods, told CNNMoney that his low point was in 2008 when he had to tell his 40 employees that there would be no Christmas bonuses.

Four years later, Brodsky has managed to turn things around for his business. He has expanded his customer base and can now afford to give his now-51 employees bonuses and raises.

Small Business Owners Say DC Hasnt Done Much to Help Their Businesses GrowJames Gerard Foods (Image courtesy: Sidney Brodsky via CNNMoney)

“The government did not have that much to do with it. I don’t see any policy they put in place that specifically helped us or our local economy,” Brodsky said.

Abi Mandelbaum, creator of YouVisit, a company that designs and creates virtual walking tours of college campuses, was having a hard time marketing his services back in 2008 because several universities had slashed their budgets.

Fast forward to 2012 and not only has YouVisit’s staff grown from five to 50 but the company has also expanded the number of its clients from about a dozen to 150.

“It would be a stretch to say whether the president’s been good or bad for my business,” Mandelbaum said.

And even when one of the business owners interviewed by CNNMoney was able to point to something from Washington that could’ve helped her business, she said it came with a downside.

“For example, Housing America Realtyin Los Angeles received a major boost in home sales from the emergency expansion of the first-time homebuyer credit,” CNNMoney’s Jose Pagliery explains.

“But co-owner Marissa Solis said her company, which buys homes at foreclosure auctions, had a difficult time re-selling some homes because of a new federal law protecting non-paying residents who refused to leave,” he adds.

Likewise, Susan Silberisen, president of BestIT, said Washington’s “help” wasn’t very helpful at all. For instance, although Silberisen says her business could have benefited from the 2009 Recovery Act (because, theoretically, there should be more people with cash), she says federal documentation requirements put a chokehold on time-sensitive deals.Small Business Owners Say DC Hasnt Done Much to Help Their Businesses Grow

“I’d love to say that some of the restructuring money made its way to us, but we didn’t see a dime of that,” Silberisen said.

But it wasn’t all bad for President Obama. One small business owner directly credits the president with helping her business. Nan Warshaw, co-owner of Bloodshot Records, says the $6,000 she received through a 2010 “Obamacare” tax credit helped keep her company afloat when things got really tough.

“I give him credit for turning the economy around,” she said. “It’s not something that can be turned around easily.”

However, Paul Butler, a British immigrant who runs a staff training company in California, begs to differ.

“I can’t put my finger on one thing and say, ‘Because Obama did this, it worked for us,’” Butler said.

Comments (31)

  • rfycom
    Posted on May 17, 2012 at 11:58am

    People just do like me. Find you self a rich man and stick your nose in his crack. He gives me $10 per hour and does not beat me. I got to think he will take care of me. I am sure giving him all of me.

    Report Post »  
    • IMCHRISTIAN
      Posted on May 17, 2012 at 2:32pm

      You have the right to find another job, start your own business if you think it is so easy or continue your education. Quick crying and enjoy life as life is short and eternity is forever.

      Report Post »  
  • JRook
    Posted on May 17, 2012 at 9:36am

    And if you ask those same small businesses, at least the ones in business during the ’90s they will tell you the only President that has helped them was Clinton.

    Report Post »  
    • Brannigans Law
      Posted on May 17, 2012 at 12:12pm

      Excellent use of the iIgnoratio elenchi fallacy. Keep ‘em coming jrook! Now that I can’t find just tim all over the place I’m left with your subjective comments for my daily humor fix.

      Report Post » Brannigans Law  
  • Magyar
    Posted on May 17, 2012 at 7:25am

    OWEbama on the links—-the best place for him.

    1) When he’s there, at least he’s NOT screwing WE THE PEOPLE further… and

    2) he has a chance to improve his GOD awful swing!

    Report Post »  
  • Individualism
    Posted on May 17, 2012 at 6:27am

    no thanks to Republicans or Democrats

    Report Post » Individualism  
  • wifezilla
    Posted on May 17, 2012 at 5:41am

    My business has grown over the past 2 years despite the government. My reward was a hefty tax bill far out of proportion to the modest profits made. Because of this I have been unable to expand like I wanted and wont be purchasing new equipment. I would also like to hire someone, but that would be an incredibly stupid move with Obama care looming over us all.

    Report Post » wifezilla  
  • bustedupvet
    Posted on May 17, 2012 at 1:27am

    After Romney beats Elbongo’s butt in November he can get his own small business. Cleaning up all the BS he’s spread across the country!! He can use them thar food stamps to feed Mooshell

    Report Post »  
    • Individualism
      Posted on May 17, 2012 at 6:29am

      No he will do the same-thing as Obama because Obama simply copied Romney’s policy in Massachusetts. he will lose, just research what company is counting the votes and who its owned by.

      Report Post » Individualism  
  • SFsuper49er
    Posted on May 17, 2012 at 12:34am

    Yes we will see improvement playing with numbers but oh that dreaded deficit of ours keeps a going up non stop..

    Report Post »  
  • Soul Leister
    Posted on May 16, 2012 at 11:37pm

    Hey, didn‘t the white kenyan say he was going to WORK TIRELESSLY to solve this nation’s problems??? Then why is he constantly fundraising, vacationing and fund raising… throw the bum out. He is a liar.

    Report Post » Soul Leister  
    • Stoic one
      Posted on May 16, 2012 at 11:58pm

      He is working hard, I can hear him here in greater Cincinnati….“FORE”

      (that is what you say when you hit a golf ball, right?)

      Report Post » Stoic one  
  • Max jones
    Posted on May 16, 2012 at 11:24pm

    Remember the soviet union? The black market was the most efficient retailer there, during its heyday. It seems communism needs racketeering just to survive.
    Actually, it sounds kinda fun, don’t it? Making the deals. Moving the contraband. Setting up the smuggling.. It’s really kinda romantic, ain’t it? Of course, there is the issue of the occasional murder, but that comes with the territory. Wow,… I can’t wait!!!
    I’m gonna go get some vodka. Celebrate.

    Report Post » Max jones  
  • Max jones
    Posted on May 16, 2012 at 11:08pm

    Laugh if you must, but in my neighborhood, we run on barter, for many kinds of commodities and hardware….Food stamps are a big currency, and usually at 2 for one. Yardwork is payed in tobacco or beer. Last week, I built a model airplane for a man who had a lawnmower I .wanted. I bought out the unsold merch from an estate sale and ran a yard sale for a week….Gave a lot of stuff away. I‘m just trying to get the hell out of this town I’m stuck in. The wife is already in Miami waiting on us to get down there. If her new job pans out we will this summer.
    I was just thinking that, in a way, this economy is inspirational!..I got to be retired for a short span, but now I’m hitting it hard again and really hustling to get to the next step,(I’m trying to get to Israel).
    Wish me Godspeed.

    Report Post » Max jones  
  • rickc34
    Posted on May 16, 2012 at 10:19pm

    Business succeds by sweat and tears and long hours but Obama wants to raise taxs from the fed while brown wants to raise it on the state side here in california. Niether seem to be pro business.

    Report Post »  
    • lovenfl3
      Posted on May 16, 2012 at 10:48pm

      Great comment Rick, I couldn’t agree more! Everything going on with this administration reminds me of Ayn Rand’s Atlas Shrugged. At some point we’ll all be standing around asking who is John Galt? This is a great portrayal of how this is all unfolding with this administration, and it’s not going to end well for anyone. http://www.youtube.com/watch?v=0t5bgM61ULc

      Report Post » lovenfl3  
  • just slap me
    Posted on May 16, 2012 at 10:14pm

    My company has prospered in this economy, thanks to very, VERY hard work. No help from the government, that’s for sure.
    Please visit my salon when you are in the Naples, Florida area, Raw Hair Organics, or visit my web-based retail site http://www.rawhairorganics.com
    We donate 10% of all profit to charity and non-profit organizations around the world.
    I believe 100% that by being dedicated to giving, no matter how much it hurts sometimes, and how scary it can be at times, has made all the difference in our success. GIVE, and you will GET, in ways far beyond money. Just TRY it.

    Report Post »  
  • Rayford
    Posted on May 16, 2012 at 10:07pm

    Possom,
    You are right. There are many many people in my area of CA that pretty much have to hustle each day to make money. There are many guys scrapping anything metal, roadside garage sales at major intersections. There are people selling chickens and eggs, puppies, goats and geese. I go to the store and people are selling tacos and tamales out of their vans.
    Lots of people are scouring yard sales for goodies to resell on ebay, the storage unit and auto impound auctions are getting top dollar as more people fight for the items.
    Swap meets are sold out and spill onto the neighboring streets and empty lots.
    People are doing auto repairs and other household repairs, undercutting the very businesses they used to work for.
    The people that have good jobs at the moment work for state or county govt, schools and in the medical field. ( although the local school districts have closed schools and laid off many workers)Retail stores are closing left and right. Mom and pops as well as big chain stores. There is so much empty commercial real estate, some 12 unit corner malls have 1 or 2 stores left. Large anchor stores are gone in many.

    CA is going into the toilet, now our governor wants to raise taxes some more.

    I gotta get outta here.

    Report Post »  
    • The Eradicator
      Posted on May 16, 2012 at 10:34pm

      Well, CA may be in bad shape, but the mid-south ain’t a whole lot better. True, the area is better off than CA, but apparently, we missed the “recovery” here as well. I know several folks in their 50′s and higher that are tired, have given up, and are no longer looking for that “career job”. Some of these folks could start up small businesses but they are tired and have given up on the system.

      In today’s economy, corporations are told to trim opex to the bare minimum. The folks at the top get richer and richer, while the middle income workers are working longer and harder than they are have before…and they AREN’T making anymore than they were two to three years ago.

      This is the new economy folks…Government involvement, Corp fat cats getting fatter, 25 to 50 year olds are working their @$$ off (with the mind set of “At least I’ve got a job”), under 25′s are more unemployed than ever, over 50′s are getting more and more frustrated, and lack of raises / benefits are growing (in jobs).

      According to the gov, unemployement is 8.1%. Ha. One thing we are not told about is the Labor Partcipation Rate. This is a true number and I ask you to look it up yourself. If they would be honest and count the folks that have dropped out and can work, we would be at 9.7%!! Job creation has been uber minimal since ‘09. It is the folks dropping out that is growing. Of course, The gov won’t count those folks, so it looks like the unemployment rate is actually decreasing.

      Report Post » The Eradicator  
    • Rayford
      Posted on May 16, 2012 at 11:15pm

      Eradicator,
      Along with no wage increases, the prices of food have gone up quite a bit, over 25-40% in most cases since this time last year. I am the grocery shopper in the house, I see it every day. Fuel ($4.39 as of today for cheap gas), electricity, cable, gas co, water has all gone up as well. Postage rates, UPS shipping with fuel surcharges has gone up, costing everyone that ships more money. Which is passed on to the customer.

      All at the same wages.

      I am one of the uncounted unemployed, or self employed if you call it that. I had a business that closed so no unemployment payments, or other gov dole. The govt does not count me or many people that support their families the same way.
      Its up to me to get up each day and bust my butt to make enough cash to not lose my home and pay the bills. I am able to send my kids to private school..our public schools are terrible.

      The 8 hour workday does not exist. Its more like 12-14 hours. 7 days a week sometimes, I work almost every weekend, and cannot spend time with my family or friends when they are off school and work.

      And for the turds on here, yes I have a tax ID number and pay state and Fed taxes. I do write off whatever I am able to.

      If anyone reading this is not working, figure something out to make cash, most Americans have lots of crap sitting on their shelves collecting dust, or extra cars, and other stuff you never touch..
      SELL IT and get some cash. its not doing any good on the shelf.

      Report Post »  
  • Snowleopard {gallery of cat folks}
    Posted on May 16, 2012 at 10:04pm

    Indeed, some small businesses can make it in spite of all big government under Obama does to crush the life out of them.

    Report Post » Snowleopard {gallery of cat folks}  
    • CatB
      Posted on May 16, 2012 at 10:36pm

      Imagine what would be possible WITHOUT Obama!

      OMG 2012 … LIBERTY!

      Report Post »  
  • horsefeathers99
    Posted on May 16, 2012 at 9:47pm

    People can do better without government intrusion.

    Oregon recieves 1.9 billion from the government to bailout a badly failing state heathcare program.
    A lot of the money goes to the many Virginia Garcia clinics for free service, helping out the many illegals in Oregon also.
    http://www.oregonlive.com/politics/index.ssf/2012/05/gov_john_kitzhaber_announces_1.html

    Report Post »  
  • possom
    Posted on May 16, 2012 at 9:30pm

    If it wasn‘t for under the counter job’s the unemployment rate here would be 53%. More and more people here are leaving the gov out of the loop and for good reason.

    Report Post » possom  
    • TSUNAMI-22
      Posted on May 16, 2012 at 9:43pm

      Damn right.

      Report Post »  
    • The-Monk
      Posted on May 16, 2012 at 10:08pm

      @TSUNAMI-22

      I applied for a job at a Latino computer shop last year. The owner and the lead tech interviewed me. After I answered all their questions I asked if this was a 1099 job. The lead tech asked, “What’s that?” I said it’s kind of like a W2. They both said at the same time, “What’s that?”

      I stood up, took back my resume and left. I never went back. You are more right than you know.

      Report Post » The-Monk  
    • The Eradicator
      Posted on May 16, 2012 at 10:18pm

      @The Monk

      Man, That is d@mn funny!…LMAO!!

      Report Post » The Eradicator  
    • Bryan B
      Posted on May 16, 2012 at 11:05pm

      @possom

      And the government is arresting people, and putting them in jail, for not have the proper license or permits.

      I see people try and start a small business, and here come the Sheriff or Police putten hand-cuffs on them, just because they didn’t have a license….

      Report Post » Bryan B  
    • Max jones
      Posted on May 16, 2012 at 11:57pm

      Yeah, its is probably time for a tax boycott. I so want to be like the ows people, but I don’t like them. filthy, filthy people. Now, I don’t make any money, but I support an income tax boycott. I guess i just want to return the liberal horsesh**t in kind.
      In truth, I’m at a loss. I don’t know what to do with the rest of my mortal existence. So…..I think I want to have some fun with it. I heard that the faa wants to keep model airplane flyers from flying with cameras on their r/c toys, so I will put them in my planes. I heard also that democrats are crazy, so i will inflame as many as I can. ha ha

      Report Post » Max jones  
    • Max jones
      Posted on May 17, 2012 at 3:06am

      Ahh east Texas(country livin) you commute a hundred miles to dallas or get something going where you live. A tractor and some implements=income. bigger tractor bigger bucks. buy and sell …flea markets in every little town. In a lot of ways the poorer folk have it better than the commuters. and its a lot more enjoyable. Fish, hunt. cut dead trees- sell firewood. get out of the cities before you can’t. I think getting along is all attitude.

      Report Post » Max jones  

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