Playbook offers insights that could help Puerto Rico guide entrepreneurs
Adopting the strategies in the Small Business Policy Playbook can help foster a more inclusive and resilient small business ecosystem.
The recently released Small Business Policy Playbook, developed by the Bipartisan Policy Center and Goldman Sachs 10,000 Small Businesses Voices, provides strategies to address challenges and unlock the potential of Puerto Rico’s entrepreneurial sector.
As Puerto Rico continues its economic recovery, small businesses remain a cornerstone of the island’s economy, driving employment and innovation, but they face significant hiring and retention challenges, often losing talent to larger companies offering better benefits. The playbook suggests expanding workforce training programs and improving access to workplace benefits.
“We are proud to partner with the Bipartisan Policy Center to provide lawmakers on both sides of the aisle with actionable policy solutions to help level the playing field for small businesses,” said John F.W. Rogers, executive vice president of Goldman Sachs. “Small businesses are the backbone of the American economy and will help fuel economic opportunity, growth and prosperity.”
In Puerto Rico, fostering partnerships between government, educational institutions and industry leaders is essential to creating targeted training programs, such as apprenticeships and upskilling workshops, to address gaps in tourism, manufacturing and technology.
Investing in childcare infrastructure is another key recommendation in the report. Expanding employer-provided childcare tax credits could help businesses retain talent and increase workforce participation.
Reducing business costs
High capital costs and complex tax structures are longstanding obstacles for small businesses in Puerto Rico. The playbook suggests expanding access to Small Business Investment Companies (SBICs) and creating microloan programs tailored to local needs to improve access to affordable financing.
Streamlining tax policies, modernizing tax codes and introducing targeted incentives like Section 179 expensing for equipment purchases could reduce compliance burdens and encourage business growth.
Digital tools and artificial intelligence present significant opportunities for Puerto Rico’s small businesses. The playbook emphasizes training entrepreneurs to adopt these technologies and expanding broadband access in rural areas to enable e-commerce, digital marketing and operational improvements.
Supporting innovation-focused initiatives, such as the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, tailored to Puerto Rico’s economic landscape, could boost renewable energy, medical technology and export-driven manufacturing.
Simplifying regulations
Regulatory complexity disproportionately affects Puerto Rico’s small businesses, particularly in Puerto Rico, where navigating local and federal compliance can be daunting. The playbook recommends appointing a dedicated advocate to streamline processes and enhance communication between businesses and policymakers.
User-friendly tools like compliance guides and centralized portals for regulatory updates could reduce the administrative burden, allowing entrepreneurs to focus on growth rather than paperwork.
