Can Reduced SMB Regulations Give Channel Partners a Lift?
As the U.S. struggles with the ongoing debt crisis, politicians of all stripes are putting forth a dizzying array of longer-term suggestions to fix the financial mess. Some of the ideas seem far-fetched. However, VARs and MSPs that serve the SMB technology market should pay attention to recent statements from U.S. Rep. Robert Dold (R-IL) about how aiding small businesses can help the economy.
As reported in the Chicago Daily Herald, Dold, himself part owner of a small pest control business, is recommending a five-step plan that includes reducing regulations placed on small businesses and changing the tax code to help small businesses create new jobs. Dold noted that there are 29 million small businesses in the U.S., and two-thirds of all hiring comes from them.
It is unlikely that the House and Senate will unite in the next couple of weeks to fully endorse a plan put forth by one Illinois congressman. However, Dold is hardly the only politician to recommend easing the financial strains placed on U.S. small businesses. In theory, the government wants to support SMBs in the creation of new full-time jobs. In reality, while the easing of tax and regulatory burdens on SMBs could stimulate some new hiring, it would more likely encourage more use of managed services providers, at least to start.
Ever mindful of maximizing the value of each dollar they spend, SMBs are going to look carefully at the value of new automated systems compared to the value of new employees, and in many cases find that new technology investments trump new personnel investments. Generally speaking, SMBs need the help of MSPs to select, implement, integrate and maintain IT investments.
Some may argue this usage of tax and regulatory breaks for SMBs violates their spirit, but closer examination shows that is not really the case. If a large number of SMBs start investing in new technology, that could well stimulate hiring in the IT sector, and MSPs need employees to meet customers needs, as well.
In addition, once SMBs get new systems up and running with the aid of MSPs and are enjoying the financial benefits they create, they may re-examine their need for new employees. Money spent on managed services is not spent in a vacuum, and MSPs can play a role in aiding the economy through their assistance of SMB clients.