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Obama's Small Business Administration Pick, Karen Gordon Mills, Hints At Agenda

December 22, 2008 RSS Feed Print

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After Obama solidified his victory over John McCain, I wrote that promoting "green jobs" would be one of the major thrusts of his policies as they pertain to the entrepreneurial sector--for good or bad. Friday's announcement that venture capitalist Karen Gordon Mills will head the SBA makes it more clear where Obama's priorities are.

Mills does not come from the "mom n' pop" small-business world. As Dawn Rivers Baker wrote on her blog, she represents the "high-growth gazelles." She co-founded New York's Solera Capital LLC, which makes late-stage investments in companies, and was there until 2007. As explained in one profile,

"Our operating philosophy is to invest about $15–20 million in each deal and take a controlling interest," notes Mills. "We like to be the capital that comes in to grow the business to the next level — build the next plant, make an acquisition, or expand the brand."

What companies has Solera been interested in? Yahoo identifies three standouts in its portfolio: The Little Clinic, which provides neighborhood-based physician assistants and advanced registered nurse practitioners, the organic food store Annie's, and Latina Media Ventures, publisher of Latina magazine.

Obama's pick of Mills might be intended as a play to tie his economic stimulus plan to the entrepreneurial sector of the economy. Mills comes from the world of high-growth, cutting-edge companies that Obama wants to be seen as benefiting from the "green economy" he wants to promote through infrastructure spending. Mills even mentioned "green start-ups" at the Friday press conference.

Does that mean a shift away from the concerns that entrepreneurs have about taxes and regulations and toward a more industrial-policy-like approach? Stay tuned.

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I retired from SBA in 1994 and now own a small business. SBA employees are good people who are hampered by grossly inadequate resources. My District covers most of South Texas. During my time, we were expected to visit a potential client before making a business loan. As time went forward, our travel budget was cut to the point it was not there. There was no way we could visit a client located outside of our immediate area.
For one brief period in the 80s, SBA received decent funding. During this time, we made sufficient wise loans that enabled SBA to be a self supporting agency. We even contributed funds to the treasury. Had this continued, SBA would have remained a net profit center for the government. But, despite all of the rethoric of support for small businesses, this did not continue.

Bob Ramos of TX 4:50PM February 28, 2009

This appointment really does look like a case of the federal government doing its bit for 20th century smoke-stack chasing, something that sort of makes sense when you take a good look at who Obama's advisors are. On the other hand, if the SBA chief starts to seriously neglect "real" small businesses in favor of the 4% that are high-growth entrepreneurial ventures, she (and the President) will definitely hear about it from the small business community.
Whether they listen and/or respond will be one of the major early tests of this administration from a small business policy point of view.

Dawn Rivers Baker of NY 10:13PM December 28, 2008

I am a small business owner in Portland,Oregon corporations are getting all of the breaks and bailouts.But the small business is what is keeping the economy going.Large corporations are closing laying off people every day ,while the small business try to keep on holding on.I own four daycare centers it is very hard to keep them going when public schools are taking are preschool and kindergarten and they are not even held to the same standards of the daycare centers.There are ninety five percents of the child cares in Oregon that is hurting.The only way to receive federal subsidy is one become a head start or two become a public entity .I met president elect Obama in february and spoke briefly on the situation for small business owners specifically head start and the wrap around services that I provide.

andrea bontemps of OR 3:48AM December 23, 2008