This year, I decided to take the plunge and start my own small business. I’m skilled at sewing and baking, so I launched a home-based cottage business, combining both passions. I’m from Georgia, and my state’s straightforward cottage food laws, overseen by the Georgia Department of Agriculture, allowed me to bake from my kitchen and sell directly to consumers for a small fee and minimal startup costs. While I don’t plan to do this full-time, living in a state that simplifies starting such businesses for extra income or full-time entrepreneurship makes a significant difference. The application process was quick and free of unnecessary regulations.
According to Chamber of Commerce data, home-based businesses require minimal startup capital, enabling many entrepreneurs to self-finance. Of all U.S. businesses, 99.9% are small businesses, with 42% women-owned. Fifty percent of small businesses start at home, and 60% of businesses without employees operate from home.
The success of small businesses like mine in Georgia underscores the importance of policies that remove barriers and encourage entrepreneurship. Federal efforts to reduce taxes, deregulate, and expand healthcare access for small business owners and gig workers are steps in the right direction.
In the first quarter of President Donald Trump’s second term, Rep. David Kustoff reintroduced the Small Business Investment Act. This legislation would benefit investors and entrepreneurs by implementing a tiered tax break system for investors—encouraging investment in startups and fostering entrepreneurial innovation.
The Tax Cuts and Jobs Act of 2017 reduced small business tax liabilities, freeing up capital for reinvestment. Reauthorizing the act would support small businesses and entrepreneurs, promoting growth, innovation, and job creation.
Trump’s emphasis on deregulation encourages entrepreneurs to start businesses. In addition to that, I’m grateful to live in a state with business-friendly regulations. Implementing similar policies on the federal level would drive innovation and job creation by supporting startups and business growth.
The previous Trump administration aimed to reduce healthcare costs for small business owners by expanding the Healthcare Reimbursement Arrangement, providing employees with tax-free funds to purchase health insurance. In his second administration, President Trump has prioritized making healthcare pricing more transparent. Additionally, legislation in several states and at the federal level has been introduced to offer portable healthcare benefits for independent contractors. This supports gig workers who may not want to start a business but seek greater career autonomy while retaining access to affordable healthcare benefits.
Policymakers, entrepreneurs, and communities must work together to ensure that every American with a dream and a skillset has the opportunity to contribute to a thriving, dynamic economy.