    [Public Papers of the Presidents of the United States: George W. Bush (2002, Book I)]
    [March 19, 2002]
    [Pages 433-439]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks at the Summit on Women Entrepreneurship in the 21st Century
    March 19, 2002

        Thank you all very much. Thank you for coming. Thank you very much.
    Gosh, thanks for the warm welcome. Elaine,
    thanks for your kind words. I'm proud of the job you're doing in my
    Cabinet. I appreciate your advice and counsel, I and appreciate the
    leadership you've shown at the U.S. Department of Labor.
        I want to thank those who organized this summit. I think it's a very
    important summit. I think it's important to advance the spirit of
    entrepreneurship and equality and opportunity for everybody who is
    fortunate enough to be an American. I'm honored to be with you, and I'm
    glad you invited me, because I believe small businesses are really
    important to the future of our country.
        I know small businesses are the path to success for many Americans,
    especially women, the newly arrived, minority Americans. Small
    businesses create jobs, and this is incredibly important for our economy
    at this time. Small businesses embody the American values of hard work,
    risktaking, and independence. And so, today I want to discuss with you a
    series of new policies to encourage and reward the work of America's
    small-business women and men.
        Before I do so, I want to thank some of the members of my team who
    are here. Hector Barreto, who is the head
    of the SBA, is with us today. And Hector, I want to thank you very much
    for coming. I understand the Secretary of Treasury was here, Paul
    O'Neill. He probably went back to work.
    That's a good sign. [Laughter] He heard the boss was coming, so he
    headed out of here--[laughter]--but I appreciate his leadership. Rosario
    Marin, who is the Treasurer of the United
    States, is here. Thank you, Rosario. I see my friend from the State of
    Arkansas, Tim Hutchinson. Thank you for
    coming, Senator. I appreciate you being here today.
        Not only do I want to thank you all for being here, but I know we've
    got some folks who are watching via satellite from Orlando. You might
    say hello to your Governor down there for me.
    [Laughter] Tell him to keep listening to Mother. [Laughter]
        St. Louis, Missouri--we've got some folks tuned in in St. Louis. I
    just was there last night and had a great trip to St. Louis. We've got
    some people from Little Rock, Tim, who are
    watching, and from Bangor, Maine, as well. So welcome via satellite to
    this important conference, and thank you all for listening.
        One of the things this summit recognizes is that there's been a
    fundamental change in our economy. When it comes to entrepreneurship and
    job creation, ours is an increasingly woman's world. The truth of the
    matter is--and the reason why I say that is, women-owned businesses are
    growing at twice the rate--2 times the rate of all other United States
    firms. That's a remarkable accomplishment for the United States of
    America. And the interesting other fact that I want to point out to
    people listening is that women firms now employ 7 million Americans.
        Small-business ownership is a great equalizer in America. The only
    connections you need are happy customers, a good business plan. The only
    credentials you need are good products. The only values you need is to
    be willing to take risk and to work hard. For millions of minorities and
    women and new Americans, small businesses provide a great chance to
    succeed in America, a chance to realize your dreams.
        For some women, a small business brings the satisfaction of success
    without having to go through the frustrations of corporate life. I
    suspect there are a lot of women entrepreneurs in this room and around
    the

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    country who tried out corporate life and found out--and agree with what
    this entrepreneur said. Nancy Miller put it
    this way: ``You succeed or fail based on your own abilities, not on
    politics or anybody else.'' She's got a pretty good point there. She
    talks about the freedom that comes with owning your own business. And
    it's so important that our country maintain that flame of freedom, the
    entrepreneurial spirit of America.
        What the other--and the reason I love the entrepreneurial spirit,
    because it provides people a chance to be creative, to build, to
    contribute, and to own.
        Being your own boss, as Sherrin Holder of
    Virginia describes it, brings a sense of pride and accomplishment, a
    sense of ownership, and a growing hope for success. She captures the
    feeling of every entrepreneur. You can advance yourself, and you can do
    good by doing so. As you succeed, you help others to succeed, first and
    foremost by providing somebody with a job.
        You can dream big dreams in America, and my job as the President is
    to make sure that if you've got a good idea, you can realize those
    dreams. And as importantly, when you're successful, you can pass on your
    assets to your children, if you so choose, or to anybody you desire to.
        The thing about America is that people--Americans have got to
    understand that everybody in our country has a stake in the success of
    small businesses, starting with the fact that small businesses create
    two-thirds of the new jobs created in America on any given year. It's
    really important for people to understand, as we're fighting a
    recession, if small businesses create two-thirds of the new jobs, it
    makes sense that any economic recovery strategy focus on small
    businesses. And that's what I want to talk about today.
        I do not believe the role of Government is to create wealth. That's
    not the role of Government. There are no guarantees in the free
    enterprise system. The role of Government is to create an environment
    that encourages risktaking, an environment that facilitates the flow of
    capital, and an environment in which people can realize their dreams.
    That's the role of Government, and that's exactly what I intend to do as
    the President.
        And it started right after I got sworn in as President, when I went
    before the Congress and insisted that they reduce the tax rates on
    everybody who pays taxes in America. And that tax cut came at the right
    time for our country. Make no mistake about it, the fact that we're
    willing to allow people to keep their own money stimulated demand. And
    when you stimulate demand, that then causes production increases. And
    when you increase production, you increase jobs. The tax cut came just
    at the time our economy was losing steam. It was an important part of
    the fact that our economy is beginning to rebound. And for those who
    think we ought to undo the tax cut, they've got a mighty high hurdle to
    cross: That's me.
        And here's the thing about the tax cut that I know was incredibly
    important for the future of our country. Most small businesses--let me
    put it this--many small businesses, many, many businesses are sole
    proprietorships or are limited partnerships and, therefore, do not pay
    corporate rate in income tax; they pay individual rates. And therefore,
    by cutting all rates, what we did was provide cashflow to the small
    businesses of America. The tax reduction plan was important for small-
    business growth and activity. The more businesses--the more cashflow a
    small-business owner has in her pocket, the more likely it is the
    business will succeed and expand and create more jobs. This tax cut not
    only happened at the right time; it was really good for small businesses
    in America.
        A lot of us in Washington didn't feel like that was enough, and so
    we fought for an economic stimulus plan, which I'm proud to report I was
    able to sign in the Rose Garden a couple of weekends ago. And with the
    help of both Republicans and

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    Democrats, the plan made it to my desk. It is a plan that says we're
    going to help people whose lives were affected because of the attacks of
    9/11 by extending unemployment benefits. But it also recognized that
    people don't want an unemployment check; they want a permanent paycheck.
    And therefore, we created additional stimulus, mainly encouraging people
    to invest in plant and equipment. If you encourage people to invest in
    plant and equipment, that will help those who are the immediate
    employer, but also those who manufacture the equipment or manufacture
    the--or construct the plant will also have employment. So it's a ripple
    effect in our economy. And so I was pleased to sign that bill, and it's
    going to help, in my judgment, not only in the short term but in the
    out-years as well.
        And we're seeing some encouraging signs of recovery, but I want to
    tell you something. I'm not a numbers cruncher, I'm not one of these
    bean counters, but I don't believe the economy is strong enough to say
    that we've recovered. I worry about the fact there are too many people
    in our country still looking for work. And if people who want to work
    can't find work, we've got to keep moving on the subject of economic
    security and economic recovery, and that's what I want to talk to you
    about today.
        Again, I'll repeat, if the small-business sector creates two-thirds
    of the new jobs in America, it makes a lot of sense to focus on how to
    stimulate small-business growth. So I want to talk to you about some of
    my plans to do so, starting with this. And basically, the summary is,
    that we're going to lift unfair regulatory burdens; we're going to
    encourage additional cashflow; and we're going to work to make sure that
    American entrepreneurs have got access to Government contracting.
        Because the economic stimulus package only had a 3-year life to it,
    I believe Congress ought to pass additional incentives for small
    businesses to invest in plant and equipment, incentives beyond the
    incentives in the economic stimulus package. As you know, annual tax
    deductions are limited to a certain amount of money on an annual basis
    for small businesses, and the size of the purchase is relatively small.
    I think we ought to increase the size of the purchase of plant and
    equipment as well as increase the annual deductions for small businesses
    in order to enhance cashflow, which will make it easier for people to
    find more jobs in America.
        Secondly, the complexity of the Tax Code is a tremendous burden on
    small business. And we must simplify it. It's an interesting fact I ran
    into: 9 out of 10 small businesses owned by women have fewer than 5
    employees. And the amount of time people spend over trying to figure out
    a complicated tax system is enormous. It is a--frankly, not that good a
    use of your time. [Laughter]
        I talked to Secretary O'Neill about this
    very subject. I'm going to share it with you. One, I instructed him to
    report on ways that the Treasury Department can simplify the Tax Code on
    small businesses as quickly as possible. I will give you one idea--not
    an idea, one thing we're going to do immediately by--a revenue rule,
    it's called. And Paul, I promise you, is the kind of fellow that, when
    he's asked to do something, he'll get it done quickly. And I've asked
    him to do this. [Laughter]
        Service businesses with gross revenues of under $10 million will be
    able to use the cash accounting method of accounting, as opposed to
    accrual method of accounting. Simply put, that will eradicate a lot of
    time spent on trying to figure out the accrual method of accounting. It
    simplifies the accounting process for small businesses, which will be a
    timesaver and a moneysaver and will help create more jobs by simplifying
    the regulatory burden on small businesses. We're going to get this done
    quickly.

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        Although what I'm about to tell you won't have an immediate effect
    on job creation, it is an important part of any small-business owner's
    plan or strategy, and it's this: We've eliminated the death tax as a
    result of the new tax reform. However, because of a--I guess you would
    call it a quirk in the law, the death tax would not be totally
    eliminated in the year 2011. We must make the repeal of the death tax
    permanent. I call upon Congress to do this immediately. It is unfair,
    patently unfair, for a--any entrepreneur--but a woman entrepreneur to
    develop her own business and have that business taxed twice as she tries
    to leave her assets to whomever she chooses. It is not fair.
        There are a lot of Federal regulations that complicate the lives of
    small-business people all across the country. The SBA has calculated
    that the hidden costs of regulations to businesses with fewer than 20
    workers--and it's this--it comes down to $7,000 per worker. That's a lot
    of money, particularly if you're trying to figure out ways to expand
    your employment base. And this is a drag on our economy. Hidden costs
    are a drag on the U.S. economy.
        And so today I want to make sure people understand that we're going
    to do everything we can to clean up the regulatory burdens on small
    businesses, starting with this: Every agency--already it's under current
    law--but every agency is required to analyze the impact of new
    regulations on small businesses before issuing them. That's an important
    law. The problem is, it's oftentimes being ignored. The law is on the
    books; the regulators don't care that the law is on the books. From this
    day forward, they will care that the law is on the books.
        Mitch Daniels, who heads the
    Office of Management and Budget, will not accept regulations that do not
    calculate the cost on American small businesses. We want to enforce the
    law. It is a good law to have a cost benefit analysis of any regulation
    on small business. If regulations provide a hidden cost on small
    businesses, which provide a drag on our economy, and if we're trying to
    stimulate our economy, one way to do so is to enforce the law which says
    that we will not have costly regulations on small businesses in America.
    And that's what we're going to do.
        Furthermore, if you've got a problem with regulations, if there are
    nettlesome regulations which are costly for you to operate your
    business, that you don't think makes any sense, I urge you to get on the
    Internet and wire the OMB your problem, so we can analyze it. Now,
    here's who you--if you want to write this down, here it is. [Laughter]
    Gosh, it seems like a lot of people are getting ready to write it down.
    [Laughter] I'm not surprised: www.whitehouse.gov--wait a minute, it's
    getting better--/omb/inforeg, and wire them in. I talked to
    Mitch before I came over here; I said,
    ``Mitch, I just can't stand up here and say you're going to get rid of
    regulations and ask people to call in or write in. Give us some place to
    send the information.'' And I said, ``If I stand up here in front of the
    women entrepreneurs of America and somebody e-mails in, you better
    respond''--[laughter]--www.whitehouse.gov/omb/inforeg.
        Fifth, I am proposing measures to make health care more available. I
    understand the drag on small businesses. It is hard for you to attract
    good workers; it is hard for you to keep good workers if your health
    care costs are going sky-high. I understand that.
        There was a lady who wrote in. She said, ``I have 12 employees, and
    I was canceled 3 times by my insurance company in 2001. And the reason
    they gave me is that they are no longer going to be writing small-group
    plans.'' Perhaps that's happened to some of you all out here as well.
    ``If we could get into a larger pool where we could get access to lower
    premiums, then I could insure more people and hire some more people.''
        I think that's a universal complaint all across America. And that's
    why I strongly

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    support association health plans. That means that small businesses will
    be able to pool together and spread their risk across a larger employee
    base. It makes no sense, no sense in America, to isolate small
    businesses as little health care islands unto themselves. We must have
    association health plans. I know the Senator strongly supports that, and Congress ought to support
    them.
        And here's the way they will work. It means a family restaurant or a
    local hardware store can insure their workers, say, through the National
    Federation of Independent Businesses or the National Restaurant
    Association. It allows association groups to write health care plans
    across jurisdictional boundaries to the benefit--to the benefit not only
    of the small-business owner but to the benefit of those who work for
    small businesses.
        And finally, Government contracting must be more open and more fair
    to small businesses. I believe--I know Government contracting, if wisely
    done, can help us achieve a grand national goal, which is more ownership
    in more communities all across America. But you know as well as I do
    that there are some large hurdles for small businesses. One is, that--
    and the main one is that agencies sometimes, many times, only let huge
    contracts with massive requirements, and they tend to go to the same
    group of large corporate bidders. Around--the term of art in Washington
    is called bundling. It effectively excludes small businesses, and we
    need to do something about that.
        Again, I talked to Mitch about
    this, and I want him to examine--he understands, like I understand, the
    capacity for our Government to encourage entrepreneurial growth, the
    capacity for our Government to stimulate small-business ownership in all
    communities across America. And so one of the things we're going to do
    is, we're going to examine the Federal Government's contracting
    policies, to make sure that they encourage competition as opposed to
    exclude competition, to make sure that the process is open, to make sure
    the process helps achieve a noble objective, which is more ownership in
    our country. And wherever possible, we're going to insist that we break
    down large Federal contracts so that small-business owners have got a
    fair shot at Federal contracting.
        The Government can provide an environment that will encourage
    risktaking, and I believe, when we do these, it will encourage
    risktaking. There are no guarantees in the free enterprise system, as
    you all know. But we can make the system more open and more inviting. We
    can encourage people to take risk, and that's exactly what we're going
    to do in this administration. It is important for the economic security
    of the United States of America.
        Not only am I concerned about economic security; I'm also concerned
    about our national security. And I want to share some thoughts with you
    about my thinking about our national security.
        First, I know there are many from New York City here who suffered
    mightily on September the 11th. And I want to say how much I appreciate
    that city showing not only our Nation but the world what it means to be
    resolute and tough and determined to succeed. Not only watching how New
    Yorkers responded but seeing how our Nation responded leads me to
    conclude that the enemy didn't understand who they were dealing with.
    You see, they thought we were so materialistic and so self-absorbed that
    the only thing I was going to do was sue them. [Laughter] They were
    wrong. They were wrong.
        My most important job is to protect innocent lives in America. My
    most important job is to protect the homeland, and we've got a strategy
    in place to deal with a bioterrorist attack. We've got a first-
    responders strategy. We're doing a better job of buttoning up our
    borders. We want to know who's coming in and why they're here and when
    they're leaving. We've got to do a better job.

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        But I want to tell you all that the best way to achieve the
    objective of securing the homeland is to chase the killers down,
    wherever they try to hide, and bring them to justice. And I want to
    assure you, that's what's going to happen. And it's going to take a
    while, but the good news is, the American people are patient. I believe
    the American people understand the difficulty that lies ahead. I know
    the United States military does, and I'm so proud of the way they have
    accomplished the mission so far.
        I gave a speech in Washington a while ago--and once you're over 55,
    everything is a while ago--[laughter]--I can't remember if it was a week
    or 2 weeks but, nevertheless, a while ago--[laughter]--that said the
    first phase in the war against terror is over with. And that first phase
    was upholding the doctrine that said, if you harbor a terrorist or feed
    a terrorist or hide a terrorist, you're just as guilty as those who came
    and murdered innocent Americans and others from around the world. And
    the Taliban found out exactly what this great Nation meant. They're no
    longer in business.
        The way I viewed--I was so proud of our country, because we sought
    not revenge but justice. That's what we seek. And we didn't go to
    Afghanistan as conquerors; we arrived as liberators. As Elaine
    Chao mentioned, this week, for the first
    time, many young girls will be going to school. I am so proud of our
    country. I am proud of our military. I am proud of the children who have
    raised millions of dollars for Afghan children. I'm proud of the
    compassion of our country. We've showed the world that not only will we
    seek justice; we've showed the world that we will seek a better society
    for citizens, starting in Afghanistan, by ridding them from the clutches
    of one of the most barbaric, backward regimes history has ever known.
        But there's more to do, and as leaders in your communities, it is
    important for me to share this with you. Anytime Al Qaida bunches up,
    we're going to get them. They did so in the Shahi-Kot Mountain Range,
    and they now regret that. Because you see, there are still thousands of
    these trained killers around. And I want to tell you--I cannot make it
    any more plain than this--they hate America, and the reason they hate
    America is because we're free. We're a free society. They can't stand
    the thought of the President of the United States coming to speak to
    women who own their own business.
        These are people who are irrational, and we will treat them like the
    international criminals they are by keeping them on the run. So the
    second phase, my fellow Americans, of this war is to deny them
    sanctuary. Anywhere they try to light, we will disrupt them. We will be
    patient; we'll be deliberate. But I can assure you, we'll be determined.
        I have submitted a budget that significantly raises the defense
    spending. And the reason I did was because I want those who risk their
    lives on behalf of Americans to get the best pay, the best equipment,
    the best training possible. I recognize--I recognize that the price of
    freedom is high. But as far as I'm concerned, it is never too high.
        The world watches us. The world tests, or really looks at, our will.
    They want to know whether or not we're people who just talk or people
    who are willing to lead. And they're going to find out we're a nation
    that--when somebody attacks our values and murders our citizens and
    still wants to do so, they will find that we are a strong, resolute,
    determined, and united people, much to the chagrin--much to the chagrin
    of terrorist networks around the world. The more firm we are, the more
    likely it is the world will follow. And the more firm and determined we
    are, the more likely it is that we will achieve lasting peace.
        My dream for the world is lasting peace. I want our children to grow
    up in a peaceful world, a world in which freedom, at its very center, is
    the most important value. And we can achieve that. There is no doubt

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    in my mind, as the United States remains firm and strong and achieves
    our clearly stated objectives, that we have a chance to solve problems
    that many never think could be solved around the world and leave behind
    such a wonderful legacy, not only for our own children but for children
    of every country. And at the same time, we have an opportunity at home
    to show the world the true face of America, the heart and soul of the
    American people.
        I want to thank very much Suzanne Tufts
    for being here today. She is the president and CEO of American Woman's
    Economic Development Corporation. Right after the enemy attacked,
    Suzanne and her organization moved quickly to help small businesses
    affected by the attack, primarily women-owned businesses, to help them,
    obviously, deal with the shock to their businesses but also help them
    get back on their feet. It is this kind of compassion and care and
    concern for a neighbor that is the true strength of the country.
        Listen, we're a great military power, and that's good. [Laughter]
    But the true strength of America is not in the halls of Government; it's
    in the hearts and the souls of our citizens. The thing that makes our
    country so unique is that we're people that have heard the universal
    call to love a neighbor like you'd like to be loved yourself.
        I'm asked all the time by people, ``What can I do to help in the war
    against terror?'' And the answer is: If you want to stand up to evil, do
    something good for a neighbor in need; if you want to stand up squarely
    in the face of evil, show somebody you love them. And those don't have
    to be magnificent acts of love; they can be small acts of generosity
    which, in their total, help define America for the rest of the world.
    Just walking across the street to a lonely shut-in is, in itself, part
    of the defiance to evil--or mentoring a child, or thanking a teacher, or
    generosity with your checkbook, or using your time and talents for your
    church or synagogue or mosque to help people who are hopeless in our
    society.
        Out of this incredible evil done to America, I see great good. I see
    not only the good of lasting world peace; I see a nation that is more
    compassionate and hopeful, a nation that understands that by adhering to
    the admonition to love a neighbor just like you'd like to be loved
    yourself, we set a clear example of what's possible in other places
    around the world.
        I have been not only amazed, I have been so gladdened by what I've
    seen and heard about America in the face of this tragedy. Not only are
    we determined to seek justice; we're determined to right wrongs, to help
    heal souls, and to help people in need.
        It is such an honor to be the President of a country that embraces
    the entrepreneurial spirit for all. But more importantly, it's an honor
    to be the President of a country full of decent and heartfelt and
    compassionate Americans.
        God bless.

    Note: The President spoke at 11:10 a.m. in the Atrium Ballroom at the
    Ronald Reagan Building and International Trade Center. In his remarks,
    he referred to Gov. Jeb Bush of Florida.