The Small Business State Opinions 2010 Survey was conducted in February by the SMC Business Councils, a trade association in southwestern and central Pennsylvania that represents small businesses in the service, manufacturing and commercial sectors. SMC’s mission is to help Pennsylvania’s small businesses grow and prosper. [read more]

“The U.S. continues to depend on the health and ingenuity of its small business sector for the nation’s economic growth,” said Susan Walthall, acting chief counsel for Advocacy. “In today’s economic climate it is especially important for policymakers to keep small business concerns in mind as they formulate policy.”

In 2008, the U.S. saw an increase of 0.7 percent in GDP and a private sector employment decline of 0.7 percent. The U.S. profile also shows that:

• Small employers in the U.S. numbered 6 million in 2006 (latest date). There were also 20.8 million non-employers which increased to 21.7 million by 2007.
• Small businesses added 2.5 million net new jobs in 2005-2006. Overall, they employed 50.2 percent of the nation’s nonfarm private workforce in 2006.
• Businesses owned by women, and by Asian Americans, African Americans, Hispanic Americans, Hawaiians and Pacific Islanders all increased significantly over the most recent period for which Census data are available.
• As additional small business data becomes available over the coming months, they will be incorporated in a new edition of the state profiles to be issued in early 2010.

For more information and a complete copy of the state and territory small business profiles, visit the Office of Advocacy website at www.sba.gov/advo/research/profiles/.

Editor’s Note: Kathryn J. Tobias is the senior editor for the U.S. Small Business Administration, Office of Advocacy. The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed chief counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information visit www.sba.gov/advo, or call 202.205.6533.

“Solid business results that stand the test of time do so for one reason and one reason only: consistently excellent leadership,” said Quint Studer, author of Straight A Leadership: Alignment, Action, Accountability. “Products and services change with the demands of the market. Individual leaders come and go. The key is to create an organizational culture that ensures great leadership today and tomorrow,” said Studer.

In other words, you need a long-term fix, not a magic bullet or a trendy program du jour or a charismatic leader. You need a culture built on good, solid, time-tested leadership principles. Studer urges organizations to institute proven, across-the-board behaviors that don’t depend on particular individuals. The tried and true “best practices” he shares with his readers and clients—collectively called evidence-based leadership—enable companies of all types to create results that last.

These practices are not complicated. They’re simple, commonsense tactics that leaders can get their hands around and start doing right away. In fact, Studer says that if you implement these five “biggies,” you’ll see dramatic changes by the end of 2010.

1. Get rid of low performers.

Now. Yes, despite the layoff ax so many companies have wielded during the past year, low performers still work inside many organizations. And they are causing big problems.

Let’s say your employee Carol consistently comes in late, gets “headaches” every other (non-payday) Friday, and spends more time cheerily chatting up coworkers than she does working. Others will notice—and they will be resentful. But worse than merely  causing contention in the ranks, turning a blind eye to the “Carols” in your organization squelches profitability. Why? Because middle performers get pulled down to  the low-performer level, while high performers either disengage or leave.

“Too many of us give low performers a pass,” said Studer, whose remedy involves implementing  a  structured series of highmiddle- low performer conversations. “It’s easier not  to confront low performers, and trust me, a leader can find a thousand other things to do instead. But until you move them either up or out, your company will never  advance beyond short-term gains. The low performer is an anchor holding everyone else back. Make this the year you quit looking the other way.”

2. Accentuate the positive.

The next time you’re having lunch in a restaurant, listen in on the conversations at nearby tables. Chances are you’ll hear people griping about their workloads, difficult clients, annoying coworkers, or the ridiculousness of corporate policy. Everyone does it, but if they realized how harmful it is to their company, perhaps they’d think twice. The solution, Studer believes, is to hone the fine art of managing up. “Managing up means positioning your people, products, or company in a positive light,” said Studer, who teaches clients how to hardwire the technique into their corporate leadership practices.

“Managing up doesn’t just happen; you have to make it happen in a systematic way. Help employees understand what can happen when negativity is allowed to breed—good people quit and customers leave—and they’ll be more likely to stop doing it.”

3. Make a real connection with employees—every day.

Studer is a big proponent of what he calls “rounding for outcomes.” Like many of his tactics, this critical leader behavior reveals his health care industry roots. (Think of a doctor making her daily rounds to check on patients.) Rounding helps you to communicate openly with your employees, allowing you to regularly find out what is going well and what isn’t going well for them at the company. But remember says Studer, it’s not just empty “face time” it’s rounding for outcomes, which means the process has a serious purpose.

“In the business world, a CEO, VP, or department manager makes the rounds daily to check on the status of his employees,” Studer said. “Basically, you take an hour a day to touch base with employees, make a personal connection, recognize success, find out what’s going well, and determine what improvements can be made. Rounding is the heart and soul of building an emotional bank account with your employees because it shows them day in and day out that you care.”

Tom Henschke, SMC Insurance Agency President

(Pittsburgh, Pa.) – Tom Henschke, SMC Insurance Agency President, has been appointed Acting President of SMC Business Councils. As the premiere nonprofit trade association for smaller businesses in Pennsylvania, SMC Business Councils has thousands of members representing service, manufacturing, insurance and commercial sectors.

Henschke brings a strong employee benefit and financial services background to the association. For 13 years, Henschke has led the SMC Insurance Agency, an affiliate of SMC Business Councils. In addition to being instrumental in the growth of the insurance agency, Henschke was successful in integrating the mission of SMC Business Councils to increase membership by hundreds of companies.

“Tom’s strong business sense and dedication to SMC’s core mission of providing practicable and appropriate solutions through our services makes him an excellent choice for Acting President,” stated Cookie Driscoll, SMC Business Councils’ Chairperson of the Board.

Henschke earned a Bachelor’s degree in Finance from Pennsylvania State University, where he was a member of the National Honor Society and participant in the University Scholars Program. Additionally, he served as a Sergeant in the PA Army National Guard. Henschke is a member of the PA Alliance for Association Advancement, the National Association of Health Underwriters, and a volunteer Alumni mentor at Pennsylvania State University.

With offices located in both Pittsburgh and Harrisburg, SMC Business Councils offers business advocacy, information resources and business development opportunities, as well as an array of insurance products including employee health insurance.  The association has aided businesses in developing and fostering mutual interest initiatives for over 65 years.

About SMC Business Councils

SMC Business Councils is the premiere nonprofit trade association for smaller businesses in Pennsylvania. The association has thousands of members representing service, manufacturing, insurance and commercial sectors. Additional information on SMC Business Councils can be found on the Internet at www.smc.org. For additional questions regarding this press release, please contact Victoria Radabaugh at (717) 432-2468.