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IfRepublicanswant to win the 2026 midterms, they need to take a close look at America’s small businesses.
TheWhite Housecertainly has.This week, the White House launched National Small Business Week to celebrate their contribution to the economy and to jobs.
But small business owners will also hold the key to who wins, and who loses, this November.
There are more than36.8 million small businessesin the U.S., if we count companies with 500 employees or fewer.
TRUMP SHOULD MEET WITH MAIN STREET BUSINESSMEN.THEY DESERVE IT
Here are some basic stats regarding their importance to theU.S.economy:
- They employ 46% of the private sector workforce.That’s more than 62 million jobs.
- More than 96% have fewer than 10 employees, from grocery stores and laundromats to doctors, lawyers and accountants.• They created upwards of 20.7 million jobs between 1996 and 2024.
- They are prime drivers ofinnovationin the U.S.economy, with companies of 5-9 employees holding more patents per employee than any other entity.
- They are prime drivers of the U.S.reindustrialization movement.According to the nonprofit organization SCORE, approximately 98% of all U.S.manufacturers employ fewer than 500 employees.
But here are some hard truths about what it takes to be a small business owner:
GOP TAX LEADERS: US SMALL BUSINESSES COULD PAY MORE TAX THAN SMALL BUSINESSES DO IN CHINA IF TRUMP CUTS EXPIRE
According to the Tax Foundation, federal, state andlocal taxeseat up 20-30% of the earned income of small business owners.
In addition, twenty-five percent spend more than $10,000 a year ontax and regulatory compliance.A small business owner spends, on average, 200 to 300 hours per year on compliance tasks.That’s the equivalent of 32 full business days.
Small businesses were big beneficiaries of Trump’s Big Beautiful Bill and would be big losers if Democrats yank those benefits away.
On the other hand, small businesses were big beneficiaries of Trump’sBig Beautiful Bill andwould be big losers if Democrats yank those benefits away.For example, the bill boosted investment by raising the Section 179 expensing cap to $2.5 million, and restoring 100% bonus depreciation for equipment.The bill also made permanent the 20% Qualified Business Income (QBI) deduction, preventing tax hikes for pass-through entities.If Democrats repeal any of those reforms as part of their “tax the rich” campaign, the consequences for small businesses’ bottom line could be devastating.
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Any observer would say that this is a ready-made GOP constituency, yet its political leanings have been largely ignored.A recent Stanford study shows that people who owned businesses were more likely to vote Republican by nearly 18 percentage points, compared to people who did not run their own businesses.Most importantly, their experiences operating small businesses directly affect their broader political views.
A recent Stanford study shows that people who owned businesses were more likely to vote Republican by nearly 18 percentage points.(Rawpixel/Getty Images)
Hit them with high taxes, and they’ll gravitate toward the Republican column when it’s time to vote.Promise them relief from overtaxation, overregulation and shoplifters (whom leftist Democrats praise as “microlooters”), and they’ll listen.
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That built-in Republican bias doesn’t just includerestaurant ownersin New York City worried about what Mayor Mamdani has planned for them, or beauty salon and gas station proprietors from Los Angeles to Memphis and Washington, D.C.The Stanford study found that doctors who own their own practices are between 2.5 and 5 percentage points more likely to register as Republicans, and are between 3.5 and 6 percentage points more likely to donate to Republican candidates.
The professor who ran the study was shocked at how little research there’s been on this influential group of voters.“This is a really important group in the economy that no one is looking at,” he says.
job growthin the U.S.over the last 25 years.In addition, Hispanics make up one out of every four new businesses in America.By mobilizing small business owners, Republicans can also extend their inroads in getting Hispanics to vote in the GOP column.
The key steps forward between now and November should include:
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- Mobilizing an information campaign aimed specifically at founders and small business owners, underlining howsmall businesses have benefited fromTrump’s tax policies — and how they will be decimated if Democrats get their way in the new Congress starting in January 2027.
- Showing how the GOP understands the great American tradition small businesses represent, and how it supports the startup founder culture and mindset that spawn great businesses.
- Demonstrating that the interests of small business owners — male and female, Black, White and everything in between — are part and parcel of what the new Republican Party represents.
History shows that greatpolitical partiesaren’t built on ideologies or political programs.They are built on a coalition of shared interests.The “golden age” Trump talks about isn’t just for Silicon Valley billionaires and the Magnificent 7.It’s about the founders and entrepreneurs scattered across every corner of the country, who need a president who understands their needs and vision — and a political party that supports them both.
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