Better Ways to Improve Occupational Health and Safety in Small to Medium Enterprises
What role can tax incentives, subsidies and grant programs play in a business?
The strengthening of the US economy in recent years has fostered many opportunities for ambitious entrepreneurs based on the increase in the number of small to medium-sized enterprises (SMEs). By 2022, the number of small businesses in the US will reach 33.2 million, comprising almost all (99.9 percent) of all businesses in the US. The growth in the number of small businesses in the US represents continued growth as it marks a 2.2 percent increase from last year and a total growth of 12.2 percent from 2017 to 2022. The numbers excluding self-employed workers who work as delivery and transport drivers, seasonal, temporary, contract and casual workers, street vendors, private home healthcare workers, legal and financial services, etc. Midsized businesses typically have fewer than 500 workers with revenues between $10 million and $1 billion.
Did you know that the average small business has about 11 employees? These numbers vary widely based on the economy, geographic location and business. The average woman-owned business has about eight workers compared to 12 for businesses run by men. The breakdown is similar for minority-owned businesses versus non-minority-owned businesses, with the former employing eight workers and about 11.5 for the latter, according to statistics from the US Small Business Administration (SBA). Preventing injury and illness at work is often difficult in SMEs because employers have limited resources, fail to understand the risk, cannot hire staff dedicated to these activities and often lack knowledge of the available resources. So why don’t the federal and state governments provide a financial incentive to improve the work environment and reduce risk? By reinvesting in SMEs to protect workers, the outcome will be more prosperous for business, society and the economy.
There are tax incentives, subsidies and grant programs available for businesses. These financial incentives encourage the creation and preservation of family wage jobs, especially in areas with high unemployment. But what about using these tools to help business owners improve their workplace to reduce occupational injuries and illnesses and lower operating costs? Tax incentives are codified exemptions, credits, deductions or exclusions that reduce a company’s tax liability to the state or federal government in exchange for making certain choices (for example, reducing its environmental footprint, increasing health benefits, supporting minorities, etc.). Business owners can use those funds to hire consultants to inspect job sites, create written programs, conduct exposure risk assessments and audits, provide training, purchase new equipment and investment in other aspects for business growth and development. Tax incentives are available for business energy investment and relief from major disasters but not for occupational safety and health.
