[House Hearing, 116 Congress]
[From the U.S. Government Publishing Office]
FLIPPING THE SWITCH ON RURAL DIGITAL ENTREPRENEURSHIP
=======================================================================
HEARING
before the
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTEENTH CONGRESS
FIRST SESSION
__________
HEARING HELD
MARCH 13, 2019
__________
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 116-011
Available via the GPO Website: www.govinfo.gov
______
U.S. GOVERNMENT PUBLISHING OFFICE
35-340 WASHINGTON : 2019
HOUSE COMMITTEE ON SMALL BUSINESS
NYDIA VELAZQUEZ, New York, Chairwoman
ABBY FINKENAUER, Iowa
JARED GOLDEN, Maine
ANDY KIM, New Jersey
JASON CROW, Colorado
SHARICE DAVIDS, Kansas
JUDY CHU, California
MARC VEASEY, Texas
DWIGHT EVANS, Pennsylvania
BRAD SCHNEIDER, Illinois
ADRIANO ESPAILLAT, New York
ANTONIO DELGADO, New York
CHRISSY HOULAHAN, Pennsylvania
ANGIE CRAIG, Minnesota
STEVE CHABOT, Ohio, Ranking Member
AUMUA AMATA COLEMAN RADEWAGEN, American Samoa, Vice Ranking Member
TRENT KELLY, Mississippi
TROY BALDERSON, Ohio
KEVIN HERN, Oklahoma
JIM HAGEDORN, Minnesota
PETE STAUBER, Minnesota
TIM BURCHETT, Tennessee
ROSS SPANO, Florida
JOHN JOYCE, Pennsylvania
Adam Minehardt, Majority Staff Director
Melissa Jung, Majority Deputy Staff Director and Chief Counsel
Kevin Fitzpatrick, Staff Director
C O N T E N T S
OPENING STATEMENTS
Page
Hon. Nydia Velazquez............................................. 1
Hon. Steve Chabot................................................ 2
WITNESSES
Mr. Dana F. Connors, President & CEO, Maine State Chamber of
Commerce, Augusta, ME, testifying on behalf of the Maine State
Chamber........................................................ 5
Mr. Bill Ingersoll, Owner, Bikes, Trikes, and Quads, Sloansville,
NY............................................................. 6
Ms. Afton Stout, Owner, My Dinosaur Dreams, State Center, IA..... 8
Mr. Jake Ward, President, Connected Commerce Council, Washington,
DC............................................................. 10
APPENDIX
Prepared Statements:
Mr. Dana F. Connors, President & CEO, Maine State Chamber of
Commerce, Augusta, ME, testifying on behalf of the Maine
State Chamber.............................................. 31
Mr. Bill Ingersoll, Owner, Bikes, Trikes, and Quads,
Sloansville, NY............................................ 36
Ms. Afton Stout, Owner, My Dinosaur Dreams, State Center, IA. 40
Mr. Jake Ward, President, Connected Commerce Council,
Washington, DC............................................. 43
Questions for the Record:
None.
Answers for the Record:
None.
Additional Material for the Record:
Connected Commerce Council SME Research...................... 47
FLIPPING THE SWITCH ON RURAL DIGITAL ENTREPRENEURSHIP
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WEDNESDAY, MARCH 13, 2019
House of Representatives,
Committee on Small Business,
Washington, DC.
The committee met, pursuant to call, at 11:33 a.m., in Room
2360, Rayburn House Office Building. Hon. Nydia Velazquez
[chairwoman of the committee] presiding.
Present: Representatives Velazquez, Finkenauer, Kim,
Golden, Schneider, Delgado, Houlahan, Craig, Chabot, Balderson,
Hern, Hagedorn, Stauber, Burchett, Spano and Joyce.
Chairwoman VELAZQUEZ. Good morning. The committee will come
to order.
I thank everyone for joining us this morning, and I want to
especially thank the witnesses for being here today.
In today's economy, there is no doubt that digital
technology has revolutionized the way entrepreneurs are looking
to build, grow, and manage a successful business.
Whether it is utilizing the latest app to advertise a
product or engaging in the sharing economy by renting out a
work space online, these type of inventions have been a
catalyst for small businesses in just the last decade. In fact,
three out of four American small businesses utilize tech
platforms for sales, according to industry estimates. And, an
even higher amount use at least one digital platform to display
products and services, as well as advertise.
By harnessing the opportunities of digital platforms and
marketplaces, many small businesses and entrepreneurs are
experiencing growth and success. Look no further than the small
businesses testifying here today.
It is also no secret that some of our country's most
innovative ideas and successful small businesses are hatched
within our rural communities. Yet, in many rural areas
throughout this nation, the absence of reliable broadband
threatens to hold back an entire subset of entrepreneurs.
Approximately 14 million rural Americans and 1.2 million
Americans living on Tribal lands still lack mobile LTE
broadband at speeds of 10 megabytes per second. Put another
way, more than 30 percent of rural residents lack broadband,
compared to just 2 percent of urban residents. Among rural
tribal residents, the share increases to 66 percent.
The stories behind these numbers are of real entrepreneurs
whose ability to secure affordable capital, expand into new
markets, and hire workers, are all jeopardized without reliable
internet access.
So, it is important that any technological leap to 5G or
future investment in infrastructure from Congress secures
access to reliable broadband, no matter where in the U.S. the
next small business finds itself.
We cannot, however, encourage small businesses to adopt
today's digital platforms without simultaneously ensuring they
have the training and resources necessary to protect themselves
against cyberattacks and bad actors.
Therefore, today's conversation about expanding digital
opportunities for rural entrepreneurs must also consider how we
as members of this committee, can work to make it easier and
more affordable for the budding small business to not only
utilize digital technology, but be smart about not exposing
themselves to greater risks.
Government policies should also keep pace with
technological innovations and empower rural entrepreneurships
to look beyond geographic boundaries. In order to access new
markets and customers all over the world, small businesses need
policies that encourage digital growth, not hinder it.
Finding the right balance to expand the reach and
capabilities of rural entrepreneurs while also keeping them
safe is a priority for this committee.
It is my hope that today's discussion can help identify
ways to support and expand the number of businesses utilizing
digital platforms, particularly for those that are in more
rural communities.
With that, I thank each of the witnesses for joining us
today and I look forward to your testimony.
I now would like to yield to the Ranking Member, Mr.
Chabot, for his opening statement.
Mr. CHABOT. Thank you, Madam Chairwoman, and good morning
to all those that are here today. I want to thank the witnesses
especially for taking the time out of their busy work day to be
here with us.
And before I get into my truly stimulating and emotional
and inspiring opening statement on digital opportunities for
rural entrepreneurs, I would like to introduce, we have got
three students here shadowing me today, so if you three could
stand up. These three are from The Ohio State University. So we
appreciate them being here.
So they have seen us discuss NATO in Foreign Affairs. They
have seen us discuss VAWA, The Violence Against Women Act, and
amendments on transgender issues and a whole range of issues,
and so we are going to try to make the Small Business Committee
just as interesting here today, and I am sure we will succeed.
So I will get right into it. Here is my stimulating speech.
The use of digital technologies, including access to high
speed internet and online tools is gaining popularity in rural
areas because of the opportunities they create for small
businesses throughout the countryside. Increasingly, digital
tools and platforms form the foundation of success for the
modern day American small business. Small businesses that use
digital tools are more nimble, resourceful, and able to reach
more potential customers.
It is no surprise that digitally-powered businesses earn
twice the revenue and are three times more likely to create
jobs. And that is, after all, what this Committee is about;
trying to create more jobs for more Americans.
Unfortunately, there continues to be a lack of data about
the rural aspect of the small business economy. What we do
know, however, is that 27 percent of rural residents still do
not have access to a high-speed internet connection. In
addition to this lack of infrastructure, rural areas lack
skilled IT professionals to assist in the adoption of more
advanced digital technology. That is why this new report from
the U.S. Chamber of Commerce is so timely and important. The
Chamber surveyed over 5,000 small business owners across rural
American about the economic impact to the online tools and
technology on their businesses. Among other findings they
discovered that while the ecommerce ecosystem boosts sales and
reduces costs for rural small companies, such firms are
adopting digital tools at a pace much slower than their urban
counterparts.
The study also found that greater use of digital tools and
technology could increase greater economic potential for rural
small businesses across the country. With better access to
digital tools and technology, the Chamber's analysis shows
potential economic benefits in rural areas that is far
reaching. For example, the study projects that gross sales for
rural small firms could increase by more than 20 percent over
the next 3 years, the equivalent of $84.5 billion per year.
Such increases would also lead to an additional $46.9 billion
to the U.S. gross domestic product and create over 360,000, so
about a third of a million jobs.
I am looking forward to today's discussion and a further
examination of these numbers and hearing suggestions about how
we can increase the utilization of digital tools and
technologies. The goal, of course, is to unlock the vast
potential that is out there in the rural small businesses. And
again, Ms. Velazquez, thank you very much for holding this
hearing. I know that was pretty stimulating, and I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
And if committee members have an opening statement we would
ask that they be submitted for the record.
I would like to take a minute to explain the timing rules.
Each witness gets 5 minutes to testify and every member get 5
minutes for questioning. There is a lighting system to assist
you. The green light will be on when you begin, and the yellow
light means that there is 1 minute remaining. The red light
comes on when you are out of time, and I will ask that you
please try to stay within the timeframe.
I would now like to yield to Mr. Golden from Maine to
introduce our first witness.
Mr. GOLDEN. Thank you, Madam Chair.
I would like to introduce, I am very honored and happy to
introduce first Mr. Dana F. Connors. Mr. Connors is the
president of the Maine State Chamber of Commerce, where he
oversees a broad range of activities including advocacy
efforts, economic and workforce development initiatives in the
State of Maine, and a wide variety of member services for the
business community. He is a Maine native who received a
bachelor's degree in public management from the University of
Maine in 1965. And I would just say as someone who worked for 4
years in the Main state legislature, I worked closely with Mr.
Connors and his business advocacy inside the statehouse. He is
a class act. In an age that can sometimes be somewhat divisive
in our political world, this is exactly the kind of guy that
you want representing businesses before state legislatures and
Congress. He knows how to keep the focus on the business, on
the community, and in pulling people together. So just want to
thank you for that. You have always been someone that I look up
to very much, so thank you, sir. I look forward to hearing your
testimony.
Chairwoman VELAZQUEZ. I now recognize Mr. Delgado from New
York to introduce our second witness.
Mr. DELGADO. Thank you, Madam Chair. It is also my honor to
introduce our second witness, Mr. Bill Ingersoll. He was raised
in Sloansville in Schoharie County, which I just had a town
hall in this weekend. He grew up racing motocross. As the son
of a single mother, money was always tight. This led Bill and
his grandfather and business partner to begin buying and
selling ATVs and ATV parts to supplement the cost of racing. In
2008, Bill tragically suffered a severe spinal cord injury
which confined him to a wheelchair. The accident marked a
turning point in his life, catalyzing his eBay career and
leading him to start an ecommerce business. Since 2010, Bill
has been using his passion for motocross to sell ATV parts in
his eBay store, Bikes, Trikes, and Quads. I look forward to
hearing from Bill today. We had a greater conversation earlier
in my office and he has a lot of wonderful insights as to what
it means to be a business owner in a rural community like
Schoharie and how critically important it is for us to focus on
digital needs, particularly rural broadband. So thank you. I
appreciate the time.
Chairwoman VELAZQUEZ. Thank you, Mr. Delgado.
Now, I recognize Ms. Finkenauer from Iowa to introduce our
next witness.
Ms. FINKENAUER. Thank you, Madam Chair.
I am very excited to have an Iowan here today and introduce
Ms. Stout. Ms. Stout makes paper flowers from her home in State
Center, Iowa. She started her Etsy shop back in 2010 and began
gaining traction a few years later after her son was born.
Living with fibromyalgia, her creative business allows her to
do her work on her own schedule, which has benefitted her
family greatly. Ms. Stout sells through multiple platforms, as
well as through her own website. She manages every part of her
shop, and her husband helps out occasionally. She has many
international sales and hopes to be able to hire an employee
soon to give back to her community. We are very happy to have
you here and really look forward to your testimony today. Thank
you, Ms. Stout.
And I yield back.
Chairwoman VELAZQUEZ. Thank you.
Now I would like to yield to the Ranking Member, Mr.
Chabot.
Mr. CHABOT. Thank you, Madam Chair.
Today's final witness is Mr. Jake Ward, president of the
Connected Commerce Council, or 3C, a membership organization
for small businesses powered by digital. 3C works to provide
small businesses with access to the market's most effective
digital tools available, provides coaching to optimize growth
and efficiency, and works to cultivate a policy environment
that considers and respects the interests of small business.
Jake is the cofounder and former CEO of Application Developers
Alliance and Forward Strategies. We thank you for joining us
here today and look forward to your testimony.
And I yield back.
Chairwoman VELAZQUEZ. Thank you, Mr. Chabot.
Mr. Connors, you are recognized for 5 minutes.
STATEMENTS OF DANA F. CONNORS, PRESIDENT & CEO, MAINE STATE
CHAMBER OF COMMERCE; BILL INGERSOLL, OWNER, BIKES, TRIKES, AND
QUADS; AFTON STOUT, OWNER, MY DINOSAUR DREAMS; JAKE WARD,
PRESIDENT, CONNECTED COMMERCE COUNCIL
STATEMENT OF DANA F. CONNORS
Mr. CONNORS. Thank you. Chairwoman Velazquez, Ranking
Member Chabot, and distinguished members of the Small Business
Committee.
My name is Dana Connors. I am president of the Maine State
Chamber of Commerce, and I thank you, Madam Chair, for the
opportunity to appear before you today and for the privilege of
doing so. This is an extremely important issue for the state of
Maine, which is my perspective to this report, because it does
show what we anecdotally have become aware of but puts proof
behind the actual issue. And we are grateful for that
opportunity.
And while I am at it, I want to be sure to express my
appreciation to the Chamber, to NDP Analytics, as well as
Amazon and the team that came together to put this report
before you and to show the importance, the impact, and frankly,
the necessity that it creates for states like Maine that is
predominantly rural and small business. So I thank them for
that.
My job is as the good congressman from Maine, which we miss
in Maine and we are grateful that you are representing us in
Washington, we do miss you in our state capital, you, too, are
a class act, may I say. We, as you said, work hard to promote a
positive business environment in Maine, and in doing that we
represent a network of over 5,000 businesses of all sizes,
representing all sectors, and from all regions of the state. We
advocate on their behalf and we try to provide those types of
programs and partnerships that allow them to do what they do
best, which is to run their business and be successful at it.
You probably are aware somewhat of Maine because many of
you perhaps have vacationed there because we have 38 million to
40 million a year that come to our beautiful state, and that is
probably the reason our license plates bear the name ``
Vacationland.'' But I want you also to know that we are rich in
history. We have vibrant communities and we are unparalleled in
work ethic. And when people ask me about Maine and describe in
one word I say it is quality. Quality of our people, our place,
as well as our products. Our state is a fabulous place to
vacation. It is also a fabulous place to live and work.
You also need to know that our population is about
1,350,000 spread over 33,000 squares miles. And by the way,
that is the size of the rest of New England. You also need to
know that our population, 60 percent lives in the rural areas.
That makes us the most rural state in the country. But when you
look at the size of our business, you also need to take into
account that the Federal level describes small business as
under 500. Seventy-five percent of our businesses are under 10.
And when you consider we have 35,000 businesses, only 64 exceed
that 500. So we are the subject in so many ways of this report.
And that is why this report is so important to us because it
opens the door to opportunity, it provides a direction, and it
creates a necessity for us to move on it.
I would like to share with you that we have made progress.
We are rural, we are small, but this state has been, as you
have implied in your opening comments, moving in this
direction. There is a lot left to do but we are moving in the
right direction.
I want to give you a couple examples to bear this out. The
first is a woman who left New York City to come to Maine. She
did not go to Portland where most of our population is. It has
a great reputation as a foodie city. She chose our least
populated county in the state, Washington County. When she came
there about 10 to 14 years ago, there was no high-speed
broadband internet connection. But she made it her priority to
do just that. And today, because of that commitment in that
rural, most rural part of our state, I will give you two
examples to bear out. Cranberry Isle is a group of islands.
There are 141 people that live there. It is also now the
residence of a renowned artist who came there for vacation but
loved it like so many people do and wanted to move there. This
high-speed internet connection now provides him to sell his art
throughout the world and to live and work on Cranberry Isle.
There is another astrophysicist who lives on Roque Bluffs,
another very small community, probably 250 at max. This aero
physicist works with NASA, has connections to the University of
Phoenix, established it as vacation, but he, too, is there.
I can see I am running out of time and I barely got
started. I am hopeful that during the questions that it will
bear out how important this is, and the report builds the case
that in Maine it very certainly applies. And I hope the
questions will give me the opportunity to expand as I would
like to do. Thank you.
Chairwoman VELAZQUEZ. Thank you, Mr. Connors.
Mr. Ingersoll, you are now recognized for 5 minutes.
STATEMENT OF BILL INGERSOLL
Mr. INGERSOLL. Chairwoman Velazquez, Ranking Member Chabot,
members of the Committee, thank you for inviting me to
participate in this important hearing on how digital tools
improve rural entrepreneurship.
My name is Bill Ingersoll. I own Bikes, Trikes, and Quads,
a small business I started in rural Sloansville, New York. We
sell motocross and ATV equipment on eBay to customers around
the U.S. and increasingly around the world. I appreciate the
opportunity to share my experience son some of the tools that
make running my eBay business possible in rural America,
including rural broadband access, universal and reliable Postal
Service, and breaking down barriers through global trade.
I grew up racing motocross in upstate New York. My entire
life changed when I was injured in a motocross crash and left
paralyzed in 2008. After the accident, I could no longer work
construction or do many of the other things I had done
previously, but I was determined to move forward with my life.
My grandfather and I had always fixed up old ATVs as a hobby,
so I was looking for a way to turn that hobby into a business.
Not long after, I was trying to find some parts to modify an
ATV we had so that I could get around our property more easily.
I ended up tracking them down on eBay. The process was so easy
and convenient for me as a buyer that I began to look into
selling parts on eBay. We already had a large stock of parts
from ATVs and dirt bikes from years of racing so we decided to
give it a try. We opened our eBay store in 2010 and have been
selling since. I now have three employees and run my business
out of a warehouse on my property.
I often look back today, 10 years later, and wonder what
life might look like now without eBay and I really do not know.
Being 23 years old with minimal education in a poor rural area
never fostered good odds for an able-bodied person, let alone
someone who was now disabled. EBay and being able to run a
business online has given me a life that I may have not
otherwise enjoyed.
Living in rural upstate New York, I would not be able to
use eBay if I did not have access to high-speed internet and
affordable broadband. Unfortunately, broadband reliance and
even phone connectivity continue to be constant issues for our
company. Rural broadband is essential to ensuring that rural
small business owners and entrepreneurs can take advantage of
the latest technologies and reach customers around the world no
matter where they live in our country.
There used to be a few ATV dealers in my area who sold
locally but were not online. Unfortunately, none of them are in
business anymore. We need real investment in improving and
expanding our rural communications infrastructure so that
businesses like mine can take advantage of innovative tools and
marketplaces like eBay. Even though my store is online, I still
have to actually ship products to customers around the country
and around the globe. I rely heavily on the U.S. Postal Service
to reach my customers. Over 80 percent of our shipments go
through USPS. I understand there are proposals that would make
my package delivery to rural parts of the country like my
hometown nonessential. I cannot imagine how anyone could
consider small businesses like mine not essential by cutting
access to Postal Services or raising prices for rural package
delivery would be disastrous for rural small businesses. Most
people do not know that private shippers charge surcharges to
deliver to rural areas. If I had to rely only on private
shippers or if package services went up dramatically, my costs
would go through the roof. Like broadband, the U.S. Postal
Service is essential for all Americans no matter where they
live, and without it, rural small businesses will have a harder
time competing with giant ecommerce companies that have their
own warehouses and logistics networks. Small ecommerce
businesses depend on reliable, affordable, and universal Postal
Service.
On top of selling to our customers in the U.S., selling
globally has been key to our success. We have shipped thousands
of orders globally to some countries where ATVs are their prime
mode of transportation. Selling worldwide allowed us to reach
customers and realize new opportunities that we would have
otherwise not considered. These opportunities are a direct
result of conducting business online and never would have
existed before the internet. Small online businesses like mine
across the U.S. in rural and urban areas need trade policies
that cut red tape for low value shipments by supporting higher
de minimis thresholds throughout the world. That way, small
businesses like mine can truly take advantage of one of the
best things the internet has to offer, hundreds of millions of
buyers all over the world.
On behalf of rural businesses across the country, thank you
again for holding this important hearing. I look forward to
your questions.
Chairwoman VELAZQUEZ. Thank you, Mr. Ingersoll.
And now, Ms. Stout, you are recognized for 5 minutes.
STATEMENT OF AFTON STOUT
Ms. STOUT. Good morning. My name is Afton Stout and I am a
creative entrepreneur from rural Iowa. Before I begin, I want
to thank everybody who has been a part of me being here today,
my mom and my brother, and of course, my husband, Brian, and my
3-year-old son, Rhys. I also want to send a thank you to my
dad, who passed away in 2006 because I know he would be super
proud of me for being here today. Thank you, Chairwoman
Velazquez, and Ranking Member Chabot, and members of the
Committee for inviting me to speak with you today about my
creative business.
I was born and raised in eastern Montana, in an even more
isolated area than I live in now. My dad was diagnosed with
systemic lupus the year that I was born, and I believe that my
family's struggles with poverty have been a huge part of who I
am today. Growing up with limited means instilled a sense of
restraint when it comes to money and spending it wisely.
I have always been motivated by creating and selling,
starting out in small craft shows in my hometown of Glendive,
Montana. I can remember buying items from Etsy when I got my
first bank card, which was pretty exciting. I had always
planned to start a shop, despite being both intimidated and
inspired by the success of others. I assumed that living in a
small town would be a hardship for my creative ventures that I
would have to struggle to overcome. However, I am certainly not
alone in that space, as 27 percent of Etsy sellers are from
rural areas like mine. After graduating from the local college,
I worked two jobs and crafted on the side, selling through
local online groups to keep my mother and me afloat after my
Dad's life insurance ran out.
In 2013, my Mom remarried and I was able to kind of rethink
my life and decide what I wanted to do. My stepdad was a huge
help in getting me settled in Iowa, which I am super grateful
for. That same year, I met my husband and went on to marry him
in 2014. And for our wedding I handmade all of the flowers from
paper, which was kind of the spark that sent me on to my
entrepreneurial journey. For the first year of our marriage, I
made a few pieces of jewelry, some of which I did list on Etsy,
and after my son was born in 2015, I decided that I would stay
home with him and see if I could find a few more people who
were interested in handmade flowers for their weddings or
events. And from there, things just kind of took off.
Thanks to the internet, I am one of 2.1 million sellers on
Etsy, many of whom like me are able to run our creative
businesses from home, despite living in a rural area. This has
improved my quality of life immensely. I was diagnosed with
fibromyalgia in 2012, an illness that I have been fighting
since middle school, which ultimately led to me dropping out of
high school. I did not allow it to hold me back. I took my GED
a few months later and went to a local college to get my
associate's degree, and like many creative entrepreneurs, I did
not set out to become a full-time microbusiness owner, but I am
very, very happy that I am able to do this.
When I first started out, I started advertising on Facebook
and listed custom-order handmade flowers on Etsy. My first year
I had about $37,000 in sales, which I thought was absolutely
amazing. At the end of 2016, I started working with wooden
flowers and the business just kind of exploded from there.
After posting some of those on Etsy, my sales nearly tripled.
Starting out, most of my sales were online with roughly 10
percent being local, in-person sales. Since then I have had
customers from all over the world, including France and
Germany. With a platform like Etsy, I am able to ship beautiful
flowers made in Iowa to international buyers that truly value
my work.
Today, the bulk of my business is wedding related. I custom
dye and arrange wooden flowers to match wedding themes and
other events. I am able to work with very, very many lovely
people that I would never know or even reach without the
internet or online platforms like Etsy. I am making a push for
a bigger local presence, and even Etsy helps with that by
showing search results with local businesses closer to the top
of the search. I work 12-hour days during wedding season, but I
love what I do and I get to work with people who are absolutely
amazing.
I am proud to say that I am projected to be 80 percent
above where I was last year in views and sales, and I may have
to hire my husband to help me run things once my 3-year-old
starts preschool this fall. In 2016, my husband started staying
home full time with our toddler so that I could work full time
on my creative business. He has trauma-induced arthritis in
both of his feet from an injury back in 2010, so being able to
stay home has helped him out incredibly and vastly improved the
quality of life of all of us. Like 97 percent of Etsy sellers,
I run my shop from my home. In fact, we just finished building
a studio onto our house to increase productivity.
My creative business allows me to pursue my creative
passions in the comfort of my home, surrounded by my family.
And while my story is unique, this pathway to rural
entrepreneurship is not. There are over 2.1 million Etsy
sellers across the globe, and together, we sold $3.9 billion
goods in 2018.
And I am about to run out of time, so I would appreciate
any questions to follow up at the end of this. Thank you.
Chairwoman VELAZQUEZ. Thank you, Ms. Stout.
And now, Mr. Ward, you are recognized for 5 minutes.
STATEMENT OF JAKE WARD
Mr. WARD. Good morning.
Madam Chairwoman, Ranking Member Chabot, on behalf of
digitally-empowered small businesses across the country, thank
you for holding this important hearing.
I am coincidentally also a Maine native, and I want to
commend you for pulling together, though inadvertently, the
most Maine-centric panel in the history of Congress. It is not
often that small-town America gets a seat at the table, let
alone two of them. I am grateful for the opportunity.
My hometown of Greenville, Maine, is small. It is fewer
than 1,500 residents small. It is everybody knows everybody
else small. There are no chain stores or big companies. In my
hometown, every business is a small business. And those
businesses are the foundation of the town, the community, and
the local economy. That is the rule in rural America, not the
exception.
It is true that much has changed in rural America. Small
businesses are as important today as they have ever been. The
digital age has brought its share of challenges, but also
created many opportunities. Digital resources empower local
businesses to rise above and grow beyond their geographic
limitations and find customers around the world, where before
the next county would have seemed a world away.
I am here today to offer the support and help of the
Connected Commerce Council as this Committee works to unlock
the potential of America's small businesses. As the son of a
small business owner in a rural total in a rural state, it is
my hope that 3C can provide resources, education, and access
that helps rural small businesses realize their potential. It
is also my intention to work with policymakers anywhere,
including and especially members of this Committee to
accomplish our shared goal.
As we have already heard from this panel today, the
challenge of every small business is unique but their stories
are universal. Unleashing the potential of rural America
requires small businesses have access to four things--capital,
affordable broadband services, talent, and finally access to
affordable, secure, and scalable digital tools. It also
requires that we understand that the digital economy is a
different type of interconnected and interdependent economy
where the investment of global platforms have direct, tangible
local benefits that can be measured in new employees and
increased financial security.
In Congress and in many state capitals, debates on data
privacy, cybersecurity, and competition policy are underway
that will dramatically affect small businesses' ability to
succeed or even survive. If our data privacy laws focus only on
consumer protection and tech giants, they will fail to
recognize and preserve the importance of data and analytics
that enable small businesses to compete with larger, urban-
based companies on quality and price, rather than proximity and
size.
Cybersecurity policy that focuses on only the biggest
breaches and the gravest risks will leave small businesses in
the crosshairs of ransomware predators and hackers.
Competition regulators who focus only on company size will
miss the benefits that digital platforms and marketplaces
provide to 3C members and digitally-empowered small business
nationwide. Frankly, I am concerned we may lose the forest
through the trees and focus too much on the largest, most
prominent companies to the detriment of small businesses that
will ultimately pay the price if business models are
dramatically changed, costly regulation is enacted, or access
to essential tools is limited.
The reality of the digital economy for 3C members and
nearly 30 million small businesses like them is that they stand
on the shoulders of large companies to reach otherwise
unobtainable heights. Too often opportunity driven by
innovation is assumed rather than promoted and protected. Too
often we talk about small businesses rather than with small
businesses. I know under the leadership of this Committee that
will change.
If the Committee wishes to unless the potential of American
small businesses, you must make sure that this Congress and
state legislators do not limit access to the tools they need.
We must take great care to ensure that policies focused on the
largest companies do not inadvertently undermine small
businesses' opportunities. Your contribution to unleashing the
potential of all small businesses, including those in rural
America, can be your vigilant defense of small businesses'
access to the technology they need to succeed.
Thank you, again, for your attention to this important
subject and for security a seat at the table for America's
small businesses. I look forward to your questions.
Chairwoman VELAZQUEZ. Thank you, Mr. Ward, and all the
members, all the witnesses for sharing your stories and showing
us the challenges and the great potential that exists in
promoting economic opportunities in rural America. And that is
our responsibility. So I am very grateful for your testimony.
Mr. Connors, can you elaborate on the economic cost to
rural communities of not having high-quality, reliable
broadband?
Mr. CONNORS. Certainly, Madam Chair. I would not express
that in terms of dollars----
Chairwoman VELAZQUEZ. Is your mic on?
Mr. CONNORS. Thank you, Madam Chair. I would be pleased to
give that a response, not so much on the specificity of the
actual numbers of dollars. I mean, the report bears out very
effectively that with adequate access, $84 billion, 360,000 new
jobs is pretty significant, which represents a 20 percent
increase in business, that would certainly apply to us. We have
found that in our state advancements have been made but there
still remain 83,000 that do not have access. And that is based
upon the FCC standard of 25/3, at which there may be even more.
And I think what we are finding is that in our state, the
opportunities to address the two most important issues in our
state, and this is borne out by a report, an initiative that
was based upon a collaborative between three organizations, one
of which was a research organization, that 8 years ago we came
together and have continued that initiative. But 8 years ago
when the business community was surveyed and a poll was taken,
the response was--and the whole initiative called Making Maine
Work was to actually provide for the administration the
priorities. At that time we were in a recession, so you can
imagine it was all about tax incentive, those types of issues.
Today, the issues that are most important that will serve our
state and particularly the rural community is workforce, skill
and education, and broadband. They are our top two issues. The
business community has adopted and so has----
Chairwoman VELAZQUEZ. Mr. Connors, I would like to hear
also from Ms. Stout and Mr. Ingersoll.
Mr. CONNORS. Yep. I am sorry.
Chairwoman VELAZQUEZ. But we will have a second round.
Mr. CONNORS. Thank you.
Chairwoman VELAZQUEZ. And I just want to discuss the
workforce IT skills.
Ms. Stout and Mr. Ingersoll, can you speak to how broadband
limitations in rural communities have either stifled your
ability or your community's ability to grow and adapt to
digital commerce?
Mr. INGERSOLL. Even though that we have access in my area
to high-speed internet, the speeds are never accurate. They
claim a 7 megabyte service. We will average 4 to 5 megabytes.
But the other side to that is there are periods where I am
getting 1 megabyte and it is very difficult for my business to
operate like that. To call and set up a service call or
something to that degree, to get a repair person out, they will
give me a 2 week wait time to get the internet looked at. And
during that period I have to do things like, you know, I can
tether off of my cellphone occasionally. Cell service has
improved in my area to the point where that is viable but I am
already paying for a service that is not performing and it has
got a direct cost to my business.
Chairwoman VELAZQUEZ. Thank you.
Ms. Stout?
Ms. STOUT. Pretty much the same things that he touched on
are what I deal with also. We do not have a very reliable
service, and we do not have very many options where I live. So
you just kind of pick the best one that you can get and go off
of it. I end up using my cellphone also to maintain my business
contacts because I have to answer messages pretty frequently
because I work with brides who worry a lot, so I always need to
be in contact with people. And that is my main concern.
Chairwoman VELAZQUEZ. Thank you.
Mr. Ingersoll and Ms. Stout, have you had any type of
interaction with any of the programs of the Small Business
Administration, whether helping you put together a business
plan or helping you access lending?
Mr. INGERSOLL. I have had no contact.
Chairwoman VELAZQUEZ. Yes, Ms. Stout?
Ms. STOUT. I also have had no contact with them either.
Chairwoman VELAZQUEZ. Okay, thanks.
And Ms. Stout, as an entrepreneur--well, my time is almost
up so I will now recognize Mr. Balderson, Ranking Member of the
Subcommittee on Innovation and Workforce Development, for 5
minutes.
Mr. BALDERSON. Thank you, Madam Chair. But as the
Chairwoman, you can keep on going if you want to, so please do
not let me take that away from you.
Thank you, panel, for being here.
Mr. Ingersoll, this will probably be the first time this
has ever happened. I am sorry what happened to you. I raced
motocross. Just got done with the GNCC series. Then I decided
to run for Congress so my motorcycling racing days, both KTMs
450 and 200 have been sold and gone. But like you, the Madam
Chair talked about one of the questions I had for you.
Do you remember flex bars?
Mr. INGERSOLL. Mm-hmm.
Mr. BALDERSON. I was the first guy in the country to start
selling those online and going all over and that was back in
2005-2006 range. And I had a really challenging time. I live in
Appalachia, which is in rural Ohio is where I am actually from.
But I was going to ask you, you know, you had no hard time
getting access to broadband of any sort, or Ms. Stout? Because
I am shocked by that.
Mr. INGERSOLL. At the time of my injury was the first time
that we had access to broadband internet. That was 2008. You
know, it has improved over time to where it is more function
now, but I would say from 2008 until about 2015, it was very
difficult. It had a direct impact to my business because there
were days where we could not process orders because the
internet was down and I had not found workarounds for that.
Mr. BALDERSON. Okay. And you talked in your opening
statement about your United States Postal Service. And I
totally agree with you. Folks do not know about the private
carriers and what we had to do with that, and I am sure most of
you do but I attest to that also. They were very important to
me.
Ms. Stout, this question is for you. I mean, you had no
inconsistency or lack of broadband when you first started out,
or any issues at all?
Ms. STOUT. I do not really remember having a lot of issues
getting internet. It is mostly the reliability that is an
issue. Like I said, ours cuts out quite frequently, kind of on
a schedule almost. Like they almost plan it. So I kind of work
around that with my cellphone. But yeah, it was pretty easy to
get it. I am fairly new though so, I mean, 2015-ish, so.
Mr. BALDERSON. Okay. Madam Chair, I yield back the rest of
my time. Thank you.
Chairwoman VELAZQUEZ. The gentleman yields back.
And now we recognize the gentlelady from Iowa, Ms.
Finkenauer, Chairwoman of the Subcommittee on Rural
Development, Agricultural Trade, and Entrepreneurship.
Ms. FINKENAUER. Thank you, Madam Chair.
And this question is for Ms. Stout. Again, thank you so
much for being here today. Really happy to have you. And my
short time in Congress so far, just the last couple of months,
this Committee and myself have really been focused on reducing
barriers for entrepreneurs and looking at ways to ensure that
we have an environment where small businesses, especially in
rural areas, can create good paying jobs and also take care of
their families. One of the things I want to do is plan a
listening session within the district and talk to young folks
all across the district, figuring out ways that we can get,
again, more entrepreneurs. Make sure we are cutting down on
those barriers so that they are able to have what they need to
start and create good paying jobs so that we can keep Iowans in
Iowa and also bring some back home, which is incredibly
important to me as well.
One of the things though that I have already started to
hear when it comes to barriers for a young person to even start
a business and want to become an entrepreneur has to do with
some things like paid family leave and those issues where it is
incredibly important right now. You know, I know there are a
lot of ideas out there, and I will not take this Committee to
debate those, but I will say from my understanding they are
incredibly important from folks in Iowa and across the country,
and we need to make sure that our entrepreneurs are able to
have leave policies to be able to, again, start their business,
but also take care of their family.
And one of the things I also wanted to touch on, too, I
understand there are other barriers we look at with the
emergence of the digital economy that, you know, pros and cons
that go along with it with our cities and towns, also other
things, you know, health care, retirement benefits, student
loans, and broadband, for example, that folks are dealing with.
What are some of the barriers very specifically for you, Afton,
to becoming an entrepreneur and then what would you like to see
happen to encourage more young people to get involved and also
be able to take that next step to be an entrepreneur
themselves?
Ms. STOUT. Okay. That is a good question. A long question
and a lot of answers.
I would say first off my biggest issue so far has been
health care, which is very important for both my husband and I,
because we both have health issues. Luckily, we were on
government assistance previously before business started doing
so well. My husband was a barista and I was a pharmacy
technician and I quit to stay home with my son. But looking at
the healthcare marketplace was very overwhelming. I know there
is a lot of work that needs to be done with that. It was not
very realistic the quotes that I was getting for what I would
need to pay out of pocket to get insurance for my family. I did
look into other options outside of the marketplace then because
it just was far too expensive.
Another issue that has come up has been taxes to different
jurisdictions in different areas where now I know that Etsy
collects state sales tax for Iowa, so I do not have to worry
about that, which is very helpful. If we were to have to
collect, I know there are some bills that may require after a
certain threshold that they collect, we collect sales tax for
those outside states that we ship to. I think it is $100,000 or
so. But if we had to do that, that would make it very, very
hard for us to keep track of as a small business since I do all
of my own paperwork and everything. Next year I am actually
paying somebody to do my taxes for the first time. So exciting.
But yeah, I do all my own paperwork otherwise. So if I had to
keep track of taxes, otherwise I would definitely have to hire
somebody else, which is also another set of paperwork and
everything. So those are the two main things.
Things that would help, of course, are the internet issue,
making sure that we have reliable internet. Health care. Making
sure that health care is more affordable. And paid leave.
Luckily, I am in a very lucky situation where my husband has
gotten to stay home and take care of my son because otherwise,
I could not do what I was doing or what I am doing. So those
things are very important to me, and I am sure to others. Thank
you.
Ms. FINKENAUER. Well, I look forward to working on them.
And I look forward to having this conversation continuing. But
I know my time is about to expire and again, thank you so much,
all of you, for being here today, truly.
And with that, I yield back, Madam Chair.
Chairwoman VELAZQUEZ. The gentlelady yields back.
And now we recognize the Ranking Member, Mr. Chabot.
Mr. CHABOT. Thank you, Madam Chair. And I want to apologize
for having to leave. We are marking up the VAWA, the Violence
Against Women Act in Judiciary and I had an amendment that was
being called up so I had to go over and take care of that. So I
apologize.
Mr. Ward, let me start with you if I can. You mentioned the
importance of cybersecurity for small firs, at least in your
written testimony. I assume you probably talked about it in
your oral testimony as well. And I really could not agree more.
Would a nationwide network of counselors that are trained in
cybersecurity measures help small firms prepare for
cyberattacks? And additionally, would it be beneficial to offer
some sort of safe harbor to small firms that have been
victimized by a cyberattack so they are free to share that
information with the Federal Government to help strengthen the
Nation's entire cybersecurity network?
Mr. WARD. The short answer, sir, is yes, but this being
Congress I will give you the longer one.
The cyberattacks for small businesses are extinction-level
events. They will put companies out of business. The burden of
reporting is complex. Often, too complex for very small
businesses, for microbusinesses as it currently stands. I think
a national network is a really good idea. I think that safe
harbor is an essential idea. I want to congratulate you and
Madam Chairwoman for the introduction of 1648 and 1649, two
bills that are bipartisan in this environment is remarkable,
but also, they really go to the heart of the issue. They are
simple solutions to an otherwise complex burden. 3C is fully
behind both of those. In fact, we would be more than happy to
be part of the solution for 1649 and the network of training
that you have proposed.
Mr. CHABOT. Thank you. Well, in the spirit of
bipartisanship, the Chairwoman and I heard testimony about you
just mentioned it can be an existential event to a small
business if they have a cyberattack. Many literally go out of
business as a result of that. They go under. And so this
legislation should really help. And it is H.R. 1648 and H.R.
1649 as you mentioned, and Ms. Velazquez and I introduced it
together. So hopefully, we are going to make progress on that
in a bipartisan manner and maybe actually be able to help the
small business community tremendously.
Mr. WARD. Wonderful. We would love to help.
Mr. CHABOT. Thank you.
Mr. WARD. Thank you.
Mr. CHABOT. Mr. Ingersoll, I will go to you next if I
could.
Could you tell us about how your business kind of grew over
time? Was it to areas in New York, for example, and then maybe
across the country and then followed by, I guess, exporting
around the globe, I guess through eBay? Or did it more or less
all come at once? Or how did it unfold in your particular
instance?
Mr. INGERSOLL. Initially, I mean, being online you are
going to get a variety of customers to begin with. Certain
areas of the southwest, you know, and the southeast, they are
the primary areas that our sales come in from. The traffic that
eBay brings to my business and the visibility worldwide, it
allows me a lot of opportunities in these different markets
that if I was stuck to just my state or my county or my town,
those opportunities would not be there. So I was able to grow
my business completely off of the volume of sales I was getting
from eBay.
Mr. CHABOT. Very good. Thank you.
Ms. Stout, you mentioned that the minute you got on Etsy
your whole world changed. So what is next? Small businesses are
always at the forefront of what is next because they have to be
in order to compete with the larger companies that you compete
all the time with. Are there new technologies out there that
you see on the horizon or that you are already anticipating
that will allow you to continue to grow your business in the
future?
Ms. STOUT. Honestly, I am at a point in my business where I
do not want to grow any bigger.
Mr. CHABOT. Okay.
Ms. STOUT. Because I would have to hire help, and I do
not--I am happy being able to support my family and give back
to my community where I am at.
As far as new technology, I am not really sure. I have been
sticking with Etsy and Facebook pretty much and they have
helped me out a lot. They reach a very, very large audience of
people.
Mr. CHABOT. If it ain't broke, do not fix it; right?
Ms. STOUT. Right? Yeah. So I am happy where I am.
Mr. CHABOT. Excellent.
Ms. STOUT. So I have not really looked.
Mr. CHABOT. I am glad to see somebody happy where they are
at.
Ms. STOUT. Yeah, thank you.
Mr. CHABOT. Okay. And finally, Mr. Connors, it is tough to
get more rural than some parts of northern Maine. And I have a
two-part question. I will try to get it real quick because my
time has almost run out.
Do you happen to know the percentage of northern Mainers
that have access to high-speed internet and those that do not?
And secondly, with the advent of 5G technology and the way it
is transferring the way we all communicate, do you happen to
know what percentage of Maine has access to the 5G or 4 or 3
for that matter?
Mr. CONNORS. I am from northern Maine originally where I
was a city manager for years. I mentioned earlier in my
response that there are 83,000 individuals that do not have
access to broadband, and those are in the rural area
predominantly of our state. And when you go north, there are
pockets. That is the irony of this issue. Within that 83,000
without access, you will find that in certain places where you
least expect it, there is adequate service for that character
of whether it is the business or the individual. But I would
say a large percentage would be in my part of the state where I
came from.
Mr. CHABOT. Thank you very much.
My time has expired, Madam Chair. Thank you.
Chairwoman VELAZQUEZ. Yes, the gentleman's time has
expired.
And now we recognize Mr. Golden from Maine, Chairman of the
Subcommittee on Contracting and Infrastructure.
Mr. GOLDEN. Thank you, Madam Chair.
You know, Mr. Connors, I am sure that you have members back
home in Maine who run businesses very similar to Mr. Ingersoll
and Ms. Stout.
Mr. CONNORS. Yes.
Mr. GOLDEN. I see you nodding your head as they talk about
some of the opportunities and challenges that they face working
what they do.
You were commissioner of the Department of Maine
Transportation for a number of years. And through my time in
politics I have traveled around and talked to businesses. I
think we both agree normally I hear their top concerns in
Maine, infrastructure, workforce, high energy costs, and then
regulation falls into the mix. Just thinking about the way that
we fund our roads and bridges, which I know you are very
familiar with, I mean, we have got Federal highway, state
highway fund. We do some municipal stuff. Throw that into the
mix. Some bonding in Maine as you know. Would you agree that
broadband, or even access to faster internet in a lot of rural
areas of Maine has essentially become the economic highway of
the 21st century?
Mr. CONNORS. Absolutely.
Mr. GOLDEN. Just as critical?
Mr. CONNORS. Yeah, I mean, thank you for that opening
because I was commissioner for 11 years and I used to go around
the state preaching the gospel that highways and bridges and
transportation are the foundation of our economic system. And
the following comment would be, it costs a lot to build and
maintain but it costs a lot more not to. And you know what? The
very parallel between transportation and this issue is striking
because frankly, it has many of the same features, both in
terms of its impact, but it also has many of the similar
features in terms of how we resolve it. Those 83,000 that do
not have access, that answer is going to come about when we
share responsibilities, like when the Electrifying America took
place we were all at the table. When we are looking at this
issue, we need to be all at the table. And priorities will be
given to usage and those types of things, but I think your
point is spot on that I would say that in my opinion, while
infrastructure overall is extremely important to our state as
well as any state, broadband, high-speed internet connection is
the key to our future. It is borne out in this report. To me it
is parallel with transportation and does not deserve any other
priority than a top priority.
Mr. GOLDEN. Thank you very much. Knowing how important it
is to our economy and all the members of the Maine State
Chamber of Commerce, I am sure if you had the capital, if your
members could afford to build that infrastructure themselves
they would do it; correct?
Mr. CONNORS. Absolutely. And I think that is a point to be
made, is that our providers have done well. Bearing in mind the
characteristics of our state, how rural we are, how small
business we are and that type of thing, that they want to do it
but the return on investment is simply not there. And that is
why we need that partnership to develop it. When we do and when
we deal with the digital literacy, because not everyone is
aware of the incredible potential that exists, the value that
it brings. It has expanded fast and that is good, but there is
more to do. And I think the answer lies in all of us coming
together. And as you know, our governor has teed this up with
an expectation of major bond issues this year and the next
several years.
Mr. GOLDEN. And so as the state of Maine looks to put a
little bit of skin in the game----
Mr. CONNORS. Absolutely.
Mr. GOLDEN.--and taxpayers show us that they are willing to
make those investments in infrastructure, some Federal help
would be important?
Mr. CONNORS. Yes, it would. And I think that is the
relationship that we need to fix this issue.
Mr. GOLDEN. Thank you.
Mr. CONNORS. To address the issue.
Mr. GOLDEN. I appreciate that very much.
Just shifting gears very quickly with the last minute I
have left, since Mr. Ward is from Maine, I have to ask you a
question as well.
You touched on this a little bit. As Congress is looking
into privacy matters pertaining to the digital world and some
of the people that you work with, your business included, and
this includes in state legislatures. I am sure that you
probably are advocating on these issues around the country. As
we look into privacy regulation, would you support small
business exemptions? And if so, where is the trigger? At what
size does a company grow so large that we have to have some
regulation to make sure that consumers are being protected in
terms of their privacy in data and information?
Mr. WARD. Thank you, Congressman.
We are talking about data privacy. 3C generally opposes
carve out exemptions of any kind because frankly this is very
important. It is important that we get this right. Data has
been in the news a lot over the last several years, obviously.
But if you are able to put a small business exemption or carve
out into a piece of legislation, you are doing it because you
believe the burden is too high. That the compliance burden is
too high. And you are saying that the size of the company or
the size of their user base matters more than the privacy of a
smaller number of people, which frankly betrays the motives of
the regulation in the first place.
As a former Capitol Hill staffer and somebody who has been
doing this for a little while, my advice to both Congress and
to the state legislators would be to write a better bill. Do
the job. Write legislation and regulation that applies to
everybody. That raises the standard and the practice for
companies large and small but has a compliance burden and a
requirement of administration low enough that a two-person shop
could do it. If we can do that with our own taxes, we can do it
with data privacy.
Chairwoman VELAZQUEZ. The gentleman's time has expired.
And now I recognize the gentleman from Oklahoma, Mr. Hern,
Ranking Member of the Subcommittee on Economic Growth, Tax, and
Capital Access for 5 minutes.
Mr. HERN. Thank you, Madam Chairwoman.
I appreciate the opportunity to speak to you all today and
ask you questions, and thank you all so much for being here.
Especially thank you, Mr. Ingersoll, for your story, for what
you have done, how you have been successful, and truly you
realized the American dream. It is different for all of us, I
think you would agree.
As a business owner and job creator for over 34 years, I
know firsthand how difficult it is to quantify broadband access
into our rural communities and how valuable this access can be
to our small business. Again, as a lifelong small business
person, my goal is always try to keep government out of my way
so I can do the things that, you know, truly compete with one
another.
I only have one question, and I would like to ask each of
you the same question. So obviously the person who goes last
can get a real opportunity here. But when it comes to
broadband, all of us on this Committee are probably getting
asked whether this should be a government-driven project or a
private industry-driven project. Could you give me your
thoughts on that?
We will start with you, Mr. Connors.
Mr. CONNORS. In our state it has been privately driven. We
are at the point today where government at the state level has
recognized its value and the need to participate. And we would
look forward to having the Federal Government be a part of that
answer. I think it involves all of us. But to date, let me be
clear, it has been privately d riven almost entirely.
Mr. HERN. Okay. Mr. Ingersoll?
Mr. INGERSOLL. Where I am from, you know, it is private,
but I believe they are controlled monopolies. So the
telecommunications company that I deal with has really no
incentive to send someone to rural areas when they are having
issues with higher population centers. I see the internet as a
public utility, so whatever is going to provide the best
service to the people, I am all for it. I really do not have an
opinion one way or the other aside from that.
Mr. HERN. My assumption is being an entrepreneur yourself
that you would like to see two people compete in the area for
the same business of some sort?
Mr. INGERSOLL. Yeah. For sure.
Mr. HERN. To drive down cost and to drive up access?
Mr. INGERSOLL. More than anything, improve the quality of
service.
Mr. HERN. Sure.
Ms. Stout?
Ms. STOUT. Very similar to Mr. Ingersoll. I have a couple
of options for internet in my town and it is public driven. I
think the government could help. But yeah, definitely having
more competition would help and increasing the reliability, for
sure working on that, making sure there are certain standards
and they have to stick with what they say they are giving you
would help. Thank you.
Mr. HERN. You are welcome.
Mr. Ward?
Mr. WARD. I guess I have the advantage because I get to go
last?
Mr. HERN. Sure.
Mr. WARD. I think that a public-private partnership is
really the only solution when you are talking about both
controlled monopolies and natural monopolies. The technological
feasibility of the last mile is hard enough. It is even worse
when it has to go through 20 miles of forest to get to two
people. You cannot make that math work in an open market
purely. There has to be a partnership.
Mr. HERN. Very good.
Well, I thank each of you for this. I have listened to all
your testimony obviously since I have been here. Again, I
apologize, like the Chairman, there are so many Committee
hearings going on today. But thank you all so much, and it is
great to see, especially what you did from figuring out a way
to be successful, and that is an awesome story. And there is
nothing greater in this country than to have the opportunity to
start a job. I would challenge you to hire somebody though
because the world changes when you have employees.
Thank you so much. I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back, and now we
recognize Mr. Delgado from New York for 5 minutes.
Mr. DELGADO. Thank you, Madam Chair.
Mr. Ingersoll, thank you for taking the time from your
business in Sloansville to testify here today. It is great to
hear all that you have accomplished in the face of tragedy. The
Committee appreciates you sharing your story.
It is clear that reliable internet access is critically
important for someone like you to get online and reach your
customers, and I really agree wholeheartedly with the way you
framed the issue in terms of being a public utility. We know
that about 40 percent of rural Americans lack broadband
internet access, and 25 percent of my home district does not
have a broadband subscription. Clearly, we need rural
investment in broadband services, but it also strikes me, and
you spoke about this in your testimony, that like broadband, we
need universal, affordable Postal Service that ensures that
rural businesses can reach their customers. And so we spent a
bit of time talking a lot about the rural broadband piece, and
I would love to hear from you a bit more on the impact on rural
communities if the Postal Service was privatized.
Mr. INGERSOLL. I have concerns about it being prioritized
just because like right now with UPS, FedEx, and these other
carriers that are private companies, they charge rural
surcharges, fuel surcharges, and all these sorts of things to
deliver it to these rural areas. The post office makes it very
accessible, and if you want to keep the barrier of entry low
for ecommerce in general, the Postal Service is the only one
that is really going to provide that service where you can be
competitive with larger companies that have their own logistics
networks and their own deals with carriers to compete with a
bigger advantage over someone who is just starting out. So I
would say privatizing it would be a big concern to me because
rural America is going to be cut out of the deal. Or at the
very least you are going to increase the cost for people who
are already struggling.
Mr. DELGADO. So it would specifically hurt your business?
Mr. INGERSOLL. Yeah, it would specifically hurt me.
Mr. DELGADO. In terms of the overhead and the cost
increases.
You talked about controlled monopolies. Another insight
that I agree with. And the need to figure out how government
needs to play a role, whether it is in partnership with private
actors or otherwise, and specifically, given the fact that
rural communities time and time again, particularly as we lurch
toward privatization in almost every public sector, is leaving
specifically rural communities behind because they do not have
the population centers to incentivize private actors to make
the investment. And so while we might have access and have had
access for some time, as you note, since 2008, we see the
disproportionate disadvantages that the rural communities are
struggling with.
Could you speak a bit more about how the quality, or lack
thereof, of your broadband access has really impacted your
ability to conduct business?
Mr. INGERSOLL. Well, as ecommerce has evolved, buyer
expectations have increased. So it is much more of a priority
to process orders quickly and things like that. If your
internet goes down and you have no other way to process those
orders, it is going to negatively impact you. And as ecommerce
continues to grow, competition increases, people in more urban
areas with better access to internet are having a big advantage
over their rural competitors because of that. I think it is
essential to even the playing field in that regard.
Mr. DELGADO. Excellent. Thank you very much.
I yield back.
Mr. INGERSOLL. Thank you.
Chairwoman VELAZQUEZ. The gentleman yields back.
And Mr. Stauber, the gentleman from Minnesota, is
recognized for 5 minutes. He is the Ranking Member of the
Subcommittee eon Contracting and Infrastructure.
Mr. STAUBER. Thank you, Madam Chair. And to the witnesses,
thank you for your testimony.
I, too, am a small business owner for 28 years in rural
northern Minnesota, and so I understand what you are going
through and some of the concerns. One of the things, we talk
about broadband being deployed. What I have said is high-speed,
dependable internet is not a luxury anymore. It is an absolute
necessity. And rural America seems to be put on the back
burner.
Mr. Ward, I appreciate your comments about it has to be
that public-private partnership. Rural Minnesota, rural America
is left behind and it is not acceptable anymore. And so I hear
my colleagues from Colorado and Iowa saying the same thing. We
have a lot of support for deploying that broadband, and I love
the fact that you all have nodded your head when you understand
that competition is good for deploying that because competition
is good for the consumer and we know that for a variety of
reasons, dependable broadband is absolutely needed.
We can go in some of our rural areas that are just miles
apart the same value of a home, a resale of a home is going to
go higher when it has a dependable broadband and high-speed
service.
Mr. Ingersoll, you talked about the Postal Service and I
really appreciate that. In a time when everything is online and
digitalized, I think we forget how many people and industries
depend on dependable Postal Service, which make our experience
as consumers possible and help expand small businesses like
yours.
I have recently cosponsored a number of resolutions to
maintain important aspects of the Postal Service, such as door
delivery and 6-day mail service so that we can continue to
support small rural businesses across this Nation.
As Congress continues to discuss postal reform, what are
some of the biggest challenges you foresee should the Postal
Service become limited in rural areas? And please give me an
estimated annual cost to your business if the Postal Service
does not continue the 6-day service or limits its rural
delivery and pickups.
Mr. INGERSOLL. It would be tough for me to speak to an
exact number on that just because I do not know exactly what
percentage of my customers are in a rural area. Typically, the
nature of my business, you are going to get more of a rural
customer base than an urban customer base just because people
are not riding ATVs in cities.
But, I mean, overall, if you limit that, I am going to have
to stop using the Postal Service and, you know, spend more to
go with FedEx, UPS, someone that is going to offer delivery
that a customer is going to expect. Unfortunately, I do not set
the precedent for what a customer expects. Larger companies do
that negotiate their own deals with carriers. So it puts me at
a big disadvantage in comparison to----
Mr. STAUBER. Well, can you just give me an idea of the
amount of product you sell and send? Give the Committee an
idea, just a rough guess what it would cost if you had to add
those additional charges from other competitors.
Mr. INGERSOLL. Well, first off, we use a lot of the
priority and regional boxes, which are supplied by the Postal
Service. We send about 8,000 shipments a year with the Postal
Service. So the average cost of a box is around $1 if I had to
buy it, so there is $10,000 in costs. The next nearest carrier
that offers a comparable service to USPS and the flat rate
program is FedEx, and they are on average about $5 more per
shipment than Priority Mail. So five times $10,000 plus, you
know.
Mr. STAUBER. It would be a significant increase?
Mr. INGERSOLL. Yes.
Mr. STAUBER. Thank you very much.
And with my last 30 seconds here, Mr. Ward, you talked
about you have worked on The Hill, and you made a statement to
both the House and Senate, `` Then make a better bill.'' I can
assure you that is exactly why I ran, to make sure that rural
America, rural Minnesota, we matter. And I appreciate those
comments, and we are going to work that. And with your
testimony, your expertise, it helps us also. I want to thank
you all for taking your time and giving us your stories. And we
appreciate it.
Madam Chair, I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
And now we recognize the gentlelady from Pennsylvania, Ms.
Houlahan, for 5 minutes.
Ms. HOULAHAN. Thank you. Thank you, Madam Chair.
My name is Chrissy Houlahan. I am a small business and
entrepreneur person as well, and I have grown a lot of
businesses from the beginning and did online sales back in the
early 2000s of footwear and apparel, so I know the trials and
tribulations of trying to start up a business and trying to get
things into a box to where they are going across the country
with all of its ancillary problems. And my questions I guess
have to do a little bit for Mr. Ward, your conversation and
your testimony both orally and written, that had to do with an
emphasis on public and private partnerships for small
businesses to worry about things like cybersecurity and
cyberspace. And I was wondering if you could put a little bit
more meat on the bone of what you mean by a public and private
partnership and how those small businesses can be tapped into
being able to be safe and secure online.
Mr. WARD. Certainly. Thank you. I appreciate the question.
It is amazing how many small business owners are members of
Congress now, is it not? I think there is something that has to
do with the experience of starting your own business and
dealing with a myriad of problems at the same time.
It is beyond the pale to also ask small businesses to
consider how to pay the bills, how to deal with the logistics,
how to have a good idea, how to deal with their staff, and to
become IT experts. Right? And far too often the burden of
running a small business can become overwhelming if you do not
have answers. If you do not have somebody to turn to on
guidance.
On the issue of cybersecurity, I think most small
businesses would feel very alone indeed. One of the issues is
that ransomware, hacks, breaches, data theft generally, they
put small businesses completely out of business. They are
extinction-level events because they cost so much, but also
because the compliance required is far over the head of most
small business owners.
Ms. HOULAHAN. But what does a private-public partnership
look like?
Mr. WARD. So if the SBA, for example, were given more
resources and more guidance on how to make training available
and how to make the tools and resources available for small
businesses, we would be more likely to use them. Additionally,
there needs to be a safe harbor. There needs to be a place, a
way for small businesses to report hacks and breaches that does
not feel like it is going to be the end of their business. The
next piece I think that is essential is we have to find a way
to better fund prosecution of these hacks and data breaches. I
do not have the numbers directly in front of me but I believe
it is something like 1 percent of all cyberattacks are ever
reported, and less than 10 percent of those are ever intervened
or prosecuted. There are no deterrents. And without the public
enforcement, there is no private incentive. And so there needs
to be a better understanding between small businesses and the
SBA, Department of Commerce generally, DHS specifically, on how
they can work together to harden the target that is small
business datasets. Because cumulatively, that is valuable data,
but too often we pay attention to the large breaches--hotel
chains, retail stores--because it is bigger. It is more data.
Cumulatively, there is just as much data in the small business
community.
Ms. HOULAHAN. Thank you. And I appreciate your feedback.
And I have one question. I hate to keep coming back to the
USPS, the Postal Service thing because it is intriguing to me
as somebody who is in charge of operations and shipping and
logistics. But can you try to quantify the impact if you needed
to go to DHL or to FedEx and you were on longer able to use the
USPS as 80 percent of your shipments are going out of the USPS,
would you be able, Mr. Ingersoll, to talk about the impact on
the bottom line?
Mr. INGERSOLL. The effect that would have, it would make
what I do, it would not be a viable option any longer. The
problem is it is a lot of reproduction, Chinese parts, whereas
I sell OEM parts that are coming over, and they are already
within competition to us but the problem is if my costs
increase it would price me out completely. My customers are
typically lower income and they will not spend extra money for
the same thing they were used to purchasing before.
Ms. HOULAHAN. Thank you. And my last question has to do
with kind of the impact of women-owned businesses, and I am
interested in trying to understand from you, Ms. Stout, if you
can tell me a little bit about--I know the question was about
family leave, and I think you came back around appropriately to
health care as being probably the biggest issue. What would it
look like to feel like you were supported to be able to have a
small business in terms of access to healthcare quality,
affordable, accessible healthcare? What are the pressure points
for you right now as a small business owner?
Ms. STOUT. Thank you for the question. It is pretty in
depth, I think.
Ms. HOULAHAN. And I have 8 seconds left.
Ms. STOUT. There is a lot that goes on with it. I think
just having better options. It was very hard for me to navigate
when I was searching and looking for things to help support my
family once I realized that I was going to need to find another
solution.
Ms. HOULAHAN. And maybe what I can do since I am over time
is afterwards I can find you.
Ms. STOUT. Yes. Yes. Please follow up.
Ms. HOULAHAN. And learn from you. Yeah.
Ms. STOUT. I would love to answer.
Ms. HOULAHAN. I appreciate your time, all of you.
Ms. STOUT. Yes, of course. Thank you.
Ms. HOULAHAN. Thank you so much.
Chairwoman VELAZQUEZ. The gentlelady's time has expired.
And now we recognize Mr. Burchett from Tennessee.
Mr. BURCHETT. Thank you, Chairlady. And I appreciate you
all being here. I, myself, have done a little eBay. I think I
had over 1,000 transactions on eBay. Last week I sold a pair of
jeans, and I know when my daughter watches this when she gets
home from school that that money will probably be back out in
the economy before I can get home. So I am looking forward to
that.
As a matter of fact, when I was in the legislature in
Tennessee, I carried legislation for eBay. I did not profit
from it. It was not that type of a situation. It was just some
clarification in the law of where they were. But all the
questions really have been asked that I had, but this is sort
of a catchall, and I am always asking folks this, and I would
like just an honest answer. We can start down at the end.
Mr. Ingersoll, I ride a few bikes myself. Mine are all old
kick starters though. They are not electric starts or anything
quite as fancy as what you deal with. But I guess my catchall
question is, would you all be willing to explain any burdens
that you see that government is placing on small businesses
right now that if you could have changed overnight you would?
Yeah, go ahead. I want everybody to answer that, too, if they
could.
Mr. INGERSOLL. As far as the Federal Government, aside from
some of the tax policies not being formed around sales tax, the
thing about bringing opportunity to these rural areas is
keeping the barrier of entry low. And when you need to keep
track of 50 different sales tax, it becomes a real problem
because if you are starting out with $20,000 or $30,000 in
sales just trying to make a living or something like that and
you need to keep track of all that, you have to hire an
accountant, you may have to implement software to track it all.
And you do not want to make it more difficult than it needs to
be for someone to go out there and compete because if you are
going up against someone like Amazon, they have the resources
to handle that. A small company does not.
Mr. BURCHETT. Do any of the websites that you sell--I guess
you just sell primarily on eBay. Do they currently now take the
sales tax out for the states that are not brick and mortar in
your state or however?
Mr. INGERSOLL. I believe anyway that it is a marketplace
nexus.
Mr. BURCHETT. Okay.
Anybody else have problems?
Mr. WARD. I have several problems with the regulatory
burdens. But I think the primary burden that both state and
Federal Governments currently are placing on small businesses
that we can talk about today is uncertainty. Uncertainty for a
small business is fatal. Not knowing what the market looks
like, not knowing what access to tools or talent or broadband
will look like in 18 months makes it incredibly difficult to
plan. For large businesses, market uncertainty can be an
opportunity. For small businesses it is incredibly detrimental.
We need to figure this out sooner than later in order to
restore some level of sanity to the marketplace.
Mr. CONNORS. I would add to that, uncertainty clearly is an
issue, particularly as it relates to this effort. But for most
businesses, the companion piece would be predictability. There
is not a problem for most businesses to recognize you need to
be regulated, you need to address certain issues, but when
those areas or when those issues change or the regulations
around those issues change, that becomes a real problem. So
with uncertainty would also be the need for predictability
within any regulation.
Mr. BURCHETT. Right. I think something that troubled me was
you would find out after the fact.
Mr. CONNORS. Exactly.
Mr. BURCHETT. And it is very tough to retroactively pull
that back.
Mr. CONNORS. Yes.
Mr. BURCHETT. And it hurts the small businesses. Big
businesses, they have accountants and lobbyists and lawyers up
here and they can tell them exactly.
Mr. WARD. Something has happened over the last 5 to 10
years where we have developed in terms of a digital tool stack
for small businesses. Right? You can get your email through
Gmail. You can use Infusion Soft to do your CRM. You can use
Amazon as a marketplace or eBay as a marketplace. And some of
these other logistics groups. The price point for those tools
is as low as it is because of math that has been done at the
larger level. If you change that business model for larger tech
companies or even platforms generally, you also change the math
for the small business. So most of that burden is inadvertent.
Right? Nobody was aiming for small businesses. But if you aim
at the top of the interconnected digital economy, you are going
to hit the bottom.
Mr. BURCHETT. Thank you, all. I am out of time. And I
appreciate you all's entrepreneurship and being willing to roll
the device.
And ma'am, if you had been here, all these people got tax-
free status for a year but since you walked out you missed your
opportunity.
Thank you, Chairlady, for an excellently run meeting. Thank
you, ma'am.
Chairwoman VELAZQUEZ. The gentleman's time has expired.
We now recognize the gentlelady from Minnesota, Ms. Craig,
for 5 minutes.
Ms. CRAIG. Thank you so much, Chairwoman. And thanks to
each of you. Sorry, I have been in and out, too, but I am also
on the Transportation and Infrastructure Committee, so we are
working hard to have those conversations about how we can bring
rural broadband, high-speed internet to every single part of
America to help us revitalize and allow you to continue to
build those small businesses.
So a lot of the questions certainly have been asked today.
And Mr. Ingersoll, I wanted to just start with you. You have
talked about that rural broadband being essential to ensuring
the success of your small business. In our hearing here last
week, we focused on the relationship between broadband and the
potential larger infrastructure package that we are going to be
considering we certain hope. Such a package is likely to
support our existing Federal Recreational Trails Program, and
that helps fund the development and maintenance of many trails,
including ATV trails, which is very popular back in my home
state of Minnesota as well.
My question to you is then, what do you see as the most
viable path forward to get broadband out to our rural
communities and make that a reality? And if we are unsuccessful
in some of those areas, what does that do in terms of affecting
your business?
Mr. INGERSOLL. Well, I mean, anyone that does not have
access to the internet that they can, you know, if they cannot
easily navigate it or it is consistently down, they are not
going to feel comfortable shopping online. They are going to
look for other outlets for whatever they are trying to search
out because a lot of these rural communities, you have groups
of people who are not familiar enough with the internet yet to
have trust in it. They do not understand aspects of it. So I
think that reliable service would be the foundation of that.
And I think the future is ecommerce. So ensuring that everyone
has access to it in a similar manner is essential for any
business to grow in the business.
Ms. CRAIG. Thank you.
I worked for a big business for about 2 decades, two
different big businesses. And after that I ended up becoming a
senior advisor before being elected to Congress to a small
startup company. So I just want to say how much harder it is to
work for a small business than it is a large business in this
country. And I applaud you, Ms. Stout, for the work that you
did to build your business. It is wonderful.
Let me ask this question of both of you though. What would
you do different if you had to start this all over again? What
mistakes did you make and is there any advice to entrepreneurs
and small businesses? And how can we take that into account as
we look at either regulation or infrastructure decisions?
Mr. INGERSOLL. I would say initially I underestimated the
potential that marketplaces like eBay have. I was thinking much
smaller initially than I should have and long term it would
have benefitted me to realize that opportunity earlier. Outside
of that, there is not really much I would change as far as how
I operated and grew my business. The one thing though that
needs to be considered I think with policy is businesses have
shifted from being larger retail outlets to being very low
revenue, one to five person operations. And if policy is not
formed around that it is just going to push that opportunity to
larger companies and unless you want to work in a fulfillment
center, there is not going to be opportunity in these areas
that are going to be impacted.
Ms. CRAIG. Ms. Stout, do you have anything to add?
Ms. STOUT. Similarly to what Mr. Ingersoll said, I would
have started sooner if I would have known what I know now.
Things went a lot better than I expected also. And also, yes,
gearing more policy towards smaller businesses and not assuming
that we all want to be large businesses because some of us do
not. Some of us want to just support our families and
communities. And that would be very, very helpful. Thank you.
Ms. CRAIG. Thank you both for your story and for your
commitment to small business and the country. Thank you.
Madam Chairwoman, I yield back my time.
Chairwoman VELAZQUEZ. The gentlelady yields back.
And now we recognize the gentleman from Illinois, Mr.
Schneider, for 5 minutes.
Mr. SCHNEIDER. Thank you. And I want to thank the
Chairwoman for hosting this hearing, and as always, to thank
the witnesses for (a) your perseverance in staying here until
the end, and I appreciate you waiting, but more importantly,
for sharing your perspectives and experiences is critical.
We are talking about unlocking the potential of digital
economy in rural communities. I am also on the Ways and Means
Committee. Last week we had a hearing on infrastructure. And I
represent the northern suburbs of Chicago. Not a lot of rural.
But I understand how important rural broadband is and I made
the point there that we need to absolutely make rural broadband
part of whatever infrastructure conversation we have to empower
and make sure that not just small businesses but rural
communities can compete. But I also know from my experience
working with businesses large and small how important and how
wonderful small businesses are. I happen to think that I prefer
the small business world. I prefer being my own boss. And I was
thinking, Mr. Ingersoll, you mentioned with bigger, and coming
from Chicago I thought of Daniel Burnham, and I just looked up
the quote to make sure. But it is `` Make no little plans
because they otherwise have no magic to stir the soul.'' This
is what is about, is hopefully your businesses do stir your
soul, and in so doing, you and millions of others, 29 million
small businesses in the country, that is what can drive and
always has driven our economy. But we need to make sure we have
that access, the access to technology and the new successes.
But with those new successes there is also going to be
challenges. And one of the challenges which I know we have
talked about a bit is cybersecurity. Last Congress I was
fortunate, I was able with my colleagues to introduce the Small
Business Cybersecurity Enhancement Act, which will help
businesses address their gap in cybersecurity needs from
enhanced technology defenses to security awareness training.
And it is key because as you said, while maybe a smaller
business, it can be a gateway to a bigger breach. I do not care
if it affects millions or me alone, me alone is a big impact.
And for everyone who is affected that is true.
To our business owners, my question to you is what degree
do you keep cybersecurity concerns in mind as you look to
expand your business as you think about those big plans? How
are you addressing those vulnerabilities? And for Mr. Ward in
particular, how are groups like 3C working with members to
shore up these vulnerabilities and ensure everything from
payment platforms to consumer information are protected?
Mr. INGERSOLL. Me?
Mr. SCHNEIDER. Anyone? Yeah.
Mr. INGERSOLL. Using eBay is a big advantage because I do
not have to deal with storing that data or even handling it.
They are controlling that completely so that burden is entirely
off me. It is not even a concern.
Mr. SCHNEIDER. Great.
Ms. Stout?
Ms. STOUT. Very similar to Mr. Ingersoll, again. I mostly
work through Etsy and PayPal invoicing so I do not see any
secure information. It is all taken care of for me which is
very, very helpful. I would not want to have to deal with it.
Thank you.
Mr. SCHNEIDER. Before I go to Mr. Ward, Mr. Connors,
anything you want to add?
Mr. CONNORS. Well, I would add that it is a real concern to
businesses, needless to say. And we have tried to bring as much
information through Federal agencies and so forth to our state
to help educate and inform our businesses as to the
vulnerability, but also the things you can do to help address
it.
Mr. SCHNEIDER. Right. Great.
And Mr. Ward, I will give you the last word. Because we
talked earlier with the question of the public-private
partnerships. This is where I do believe industry, government,
educational institutions, groups like yours, can work to raise
the bar and give the security our small businesses need. So I
will leave you with the last word, the last minute.
Mr. WARD. I agree with that. So in reverse order, 3C is
relatively new to this space. We launched less than a year ago
but are growing pretty rapidly and cybersecurity training and
resources are at the top of the list we would like to deliver
to our small business members. Working with SBA and state
governments to hone those materials would be a welcomed
opportunity.
The biggest, the most often utilized tool for cybersecurity
is what you just heard here. It is the platforms that offer
secure data management, resources, and sort of take that burden
off the small business. What I am worried about particularly in
state legislative proposals right now, the California Consumer
Privacy Act, for example, takes away some of that protection by
classifying small businesses that cross over into compliance
requirements at 50,000 installs, for example. They then become
responsible for data sets. So if you are a realtor that has
50,000 names entered into a database, it does not matter that
you are storing it in a Google doc. You are now responsible for
that data and you cannot rely on a platform to hold your hand
through that process. So the long answer is--I am sorry, the
short answer is we are eager to help our members. Do you want
the long one?
Mr. SCHNEIDER. Thank you. I appreciate that. And before I
yield back, Madam Chairwoman, what I would like to add is we
are at the frontier. These are new opportunities. Our small
businesses are always at the frontier, whether it was the
Industrial Revolution or today with the digital revolution. But
there will always be unexpected surprises along the way. There
will be unintended consequences. Together, working together,
industry, policymakers, we have to find a way to ensure data
security, create the opportunities through rural broadband and
other digital access, and make sure that we are providing our
entrepreneurs, American businesses, the chance to grow the
American economy.
With that I yield back.
Chairwoman VELAZQUEZ. The gentleman's time has expired.
I want to take this opportunity to again thank all the
witnesses for taking time out of your busy schedule to be here
and share your stories, to bring to the halls of Congress the
importance of including small businesses, but especially rural
America. This is a bipartisan issue, and hopefully we all come
together and build a consensus around an important issue that
will unlock economic opportunities across the country.
Whether it is purchasing transnational flights or providing
distant telehealth services, the internet has completely
changed our society. Most of all, digital platforms have
changed the way entrepreneurs reach new and existing customers.
But without reliable broadband, these new opportunities and the
economic activity associated with them is severely hampered.
That is why we must ensure digital tools reach every American
wherever they call home.
I ask unanimous consent that members have 5 legislative
days to submit statements and supporting materials for the
record.
Without objection, so ordered.
And if there is no further business to come before the
committee, we are adjourned. Thank you.
[Whereupon, at 1:06 p.m., the committee was adjourned.]
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