In a recent hearing, Congresswoman Beth Van Duyne emphasized the pivotal role that private equity investments can play in supporting small businesses across the country. The event, titled "Investing in America: How Private Equity Empowers Main Street," highlighted how these financial resources can propel growth and innovation among small enterprises, particularly in underserved markets.
Van Duyne, who serves as Chair of the Small Business Subcommittee on Economic Growth, Tax, and Capital Access, articulated the importance of removing barriers that can hinder access to vital funding sources. "Today’s hearing about how private equity is playing an increasingly valuable role in supplying capital, financing, and expertise to our small businesses lays the groundwork for Congress to act on removing barriers and regulations," she noted. Her insights are particularly relevant for small business owners seeking new avenues for growth in an increasingly competitive landscape.
One of the key speakers at the hearing, Jordan Bastable, brought a unique perspective from his private equity firm, focusing on Texas-based small businesses. "When you look at where our company is based—Dallas, St. Louis, and Fargo—they’re not traditional finance hubs," he explained. Bastable emphasized that emerging markets in regions like Texas offer rich opportunities for investment. "It’s unbelievable, the number of opportunities that are seeking capital and just do not have access to capital in those parts of the markets," he said.
Private equity investment is particularly beneficial for small businesses looking to expand their operations or improve efficiency. With this financial support, businesses can gain access to necessary resources that may not have been previously available. For instance, Bastable indicated that such investments allow small businesses to establish long-term relationships with capital providers who share their growth ambitions, creating a synergy that is essential for success.
Rep. Bresnahan, representing Pennsylvania’s 8th Congressional District, reinforced the importance of this conversation by sharing a specific success story. He highlighted how a local manufacturing company has leveraged private equity to onshore operations, leading to a planned workforce increase of over 30% in the coming year. This kind of investment not only generates jobs but also enhances the local economy—an imperative for small business owners looking to create a sustainable business model that feeds into their community.
However, the journey is not without challenges. During the hearing, a representative from a manufacturing company remarked on the ongoing struggle to remain competitive with overseas production costs. "The only reason that we do not manufacture something in America is simply because we cannot compete with what it costs us to produce it here versus what it would cost us to produce it overseas," she explained. Despite these obstacles, the partnership with private equity aims to improve operational efficiencies, making domestic production more feasible. "Now we can confidently make those investments that we need to make to expand our product line and bring those products back," she added.
As small business owners consider the implications of private equity investments, several key takeaways stand out. First, being aware of the potential for increased capital and resources could empower them to pursue growth strategies that might have seemed unattainable. Furthermore, understanding how private equity can foster relationships based on shared values can create opportunities for growth tailored to local needs.
In navigating this landscape, small business owners should also weigh the challenges associated with private equity funding. As evidenced by the discussions at the hearing, issues such as competition with international production can pose significant hurdles. However, knowledge of the funding landscape, coupled with strategic partnerships, can empower these businesses to overcome obstacles and thrive.
The hearing has laid the foundation for continued discussions on optimizing the role of private equity in small business growth. As Congress looks to remove regulatory barriers, the potential for a flourishing, well-supported small business sector remains within reach. For further details on the proceedings, you can watch the full hearing here and access additional insights from the original press release at this link.
Image Via BizSugar
