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Small businesses on Dalrymple Street in Greenock, Scotland

A small business, also called a mom and pop store by some in the United States, is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships. The legal definition of "small" varies by country and by industry, ranging from fewer than 15 employees under the Australian Fair Work Act 2009, 50 employees in the European Union,[2] and fewer than 500 employees to qualify for many U.S. Small Business Administration programs.^[1] Small businesses can also be classified according to other methods such as sales, assets, or net profits.

Small businesses are common in many countries, depending on the economic system in operation. Typical examples include: convenience stores, other small shops (such as a bakery or delicatessen), hairdressers, tradesmen, lawyers, accountants, restaurants, guest houses, photographers, small-scale manufacturing, and online business, such as web design and programming, etc.

Characteristics of small businesses[link]

Size definitions[link]

The legal definition of "small" varies by country and by industry. In the United States the Small Business Administration establishes small business size standards on an industry-by-industry basis, but generally specifies a small business as having fewer than 500 employees for manufacturing businesses and less than $7 million in annual receipts for most nonmanufacturing businesses.^[1] The definition can vary by circumstance – for example, a small business having fewer than 25 full-time equivalent employees with average annual wages below $50,000 qualifies for a tax credit under the healthcare reform bill Patient Protection and Affordable Care Act.^[2]

In the European Union, a small business generally has under 50 employees. However, in Australia, a small business is defined by the Fair Work Act 2009 as one with fewer than 15 employees. By comparison, a medium sized business or mid-sized business has under 500 employees in the US, 250 in the European Union and fewer than 200 in Australia.

In addition to number of employees, other methods used to classify small companies include annual sales (turnover), value of assets and net profit (balance sheet), alone or in a mixed definition. These criteria are followed by the European Union, for instance (headcount, turnover and balance sheet totals). Small businesses are usually not dominant in their field of operation.

The table below serves as a useful guide to business size nomenclature.

Business Size definitions

• Most cells reflect size not defined in relevant legislation • Some definitions are mulit-parameter, e.g., by industry, revenue, market share

Demographics[link]

According to a survey run in the United States among businesses having <500 employees in late 2010, about 50% of minute/micro-businesses are owned by women.^[3]

Franchise businesses[link]

Franchising is a way for small business owners to benefit from the economies of scale of the big corporation (franchiser). McDonald's restaurants, TrueValue hardware stores, and NAPA Auto Parts stores are examples of a franchise. The small business owner can leverage a strong brand name and purchasing power of the larger company while keeping their own investment affordable. However, some franchisees conclude that they suffer the "worst of both worlds" feeling they are too restricted by corporate mandates and lack true independence. However, in some chains, such as the aforementioned TrueValue and NAPA, franchises may have their own name alongside the franchise's name.

Advantages of small business[link]

A small business can be started at a very low cost and on a part-time basis. Small business is also well suited to internet marketing because it can easily serve specialized niches, something that would have been more difficult prior to the internet revolution which began in the late 1990s. Adapting to change is crucial in business and particularly small business; not being tied to any bureaucratic inertia, it is typically easier to respond to the marketplace quickly. Small business proprietors tend to be intimate with their customers and clients which results in greater accountability and maturity.

Independence is another advantage of owning a small business. One survey of small business owners showed that 38% of those who left their jobs at other companies said their main reason for leaving was that they wanted to be their own bosses.^{[citation needed]} Freedom to operate independently is a reward for small business owners. In addition, many people desire to make their own decisions, take their own risks, and reap the rewards of their efforts. Small business owners have the satisfaction of making their own decisions within the constraints imposed by economic and other environmental factors.^[4] However, entrepreneurs have to work very long hours and understand that ultimately their customers are their bosses.

Several organizations, in the United States, also provide help for the small business sector, such as the Internal Revenue Service's Small Business and Self-Employed One-Stop Resource.^[5]

Problems faced by small businesses[link]

Small businesses often face a variety of problems related to their size. A frequent cause of bankruptcy is undercapitalization. This is often a result of poor planning rather than economic conditions - it is common rule of thumb that the entrepreneur should have access to a sum of money at least equal to the projected revenue for the first year of business in addition to his anticipated expenses. For example, if the prospective owner thinks that he will generate $100,000 in revenues in the first year with $150,000 in start-up expenses, then he should have no less than $250,000 available. Failure to provide this level of funding for the company could leave the owner liable for all of the company's debt should he end up in bankruptcy court, under the theory of undercapitalization.

In addition to ensuring that the business has enough capital, the small business owner must also be mindful of contribution margin (sales minus variable costs). To break even, the business must be able to reach a level of sales where the contribution margin equals fixed costs. When they first start out, many small business owners underprice their products to a point where even at their maximum capacity, it would be impossible to break even. Cost controls or price increases often resolve this problem.

In the United States, some of the largest concerns of small business owners are insurance costs (such as liability and health), rising energy costs, taxes and tax compliance.^[6] In the United Kingdom and Australia, small business owners tend to be more concerned with excessive governmental red tape.^[7]

Another problem for many small businesses is termed the 'Entrepreneurial Myth' or E-Myth. The mythic assumption is that an expert in a given technical field will also be expert at running that kind of business. Additional business management skills are needed to keep a business running smoothly.

Still another problem for many small businesses is the capacity of much larger businesses to influence or sometimes determine their chances for success.

Small business bankruptcy[link]

When small business fails, the owner may file bankruptcy. In most cases this can be handled through a personal bankruptcy filing.^{[citation needed]} Corporations can file bankruptcy, but if it is out of business and valuable corporate assets are likely to be repossessed by secured creditors there is little advantage to going to the expense of a corporate bankruptcy.^{[citation needed]} Many states offer exemptions for small business assets so they can continue to operate during and after personal bankruptcy.^{[citation needed]} However, corporate assets are normally not exempt, hence it may be more difficult to continue operating an incorporated business if the owner files bankruptcy.^{[citation needed]}

Social Responsibility[link]

Small businesses can encounter several problems related to Corporate social responsibility due to characteristics inherent in their construction. Owners of small businesses often participate heavily in the day-to-day operations of their companies. This results in a lack of time for the owner to coordinate socially responsible efforts. ^[8] Additionally, a small business owner's expertise often falls outside the realm of socially responsible practices contributing to a lack of participation. Small businesses also face a form of peer pressure from larger forces in their respective industries making it difficult to oppose and work against industry expectations. ^[9] Furthermore, small businesses undergo stress from shareholder expectations. Because small businesses have more personal relationships with their patrons and local shareholders they must also be prepared to withstand closer scrutiny if they want to share in the benefits of committing to socially responsible practices or not. ^[10]

Job Quality[link]

While small businesses employ over half the workforce ^[11] and have been established as a main driving force behind job creation ^[12] the quality of the jobs these businesses create has been called into question. Small businesses generally employ individuals from the Secondary labor market. As a result, in the U.S. wages are 49% higher for employees of large firms.^[13] Additionally, many small businesses struggle or are unable to provide employees with benefits they would be given at larger firms. Research from the U.S. Small Business Administration indicates that employees of large firms are 17% more likely to receive benefits including salary, paid leave, paid holidays, bonuses, insurance, and retirement plans.^[14] Both lower wages and fewer benefits combine to create a job turnover rate among U.S. small businesses that is 3 times higher than large firms.^[15] Employees of small businesses also must adapt to the higher failure rate of small firms. In the U.S. 69% last at least 2 years, but this percentage drops to 51% for firms reaching 5 years in operation.^[16]

Benefits of Supporting Local Business[link]

By opening up new national level chain stores, the profits of locally owned businesses greatly decrease and many businesses end up failing and having to close. This creates an exponential effect. When one store closes, people lose their jobs, other businesses lose business from the failed business and so on. In many cases large firms displace just as many jobs as they create.^[17] Not only that but it also increases the costs of taxes. Instead of increasing a community’s revenue, big businesses actually shift money away from the community. Independent businesses depend on the many resources that a community can supply. They hire architects, contractors, hardware stores, interior designers, local advertisement agencies, accountants, business attorneys, and insurance companies. Local businesses also are more likely to supply locally produced products than chains, ultimately benefiting their community Large corporations on the other hand eliminate the need for local goods and services. >. [Milchen]

A lack of diversity can decrease the revenues in a community. When towns are interesting, they attract people from out of town. More personality and individuality can lead to more tourists, which, in turn leads to money placed directly into the community [Santa Fe Independent Business Report] ). The diversity of businesses is also important to the individuality of consumers. Oftentimes, independent retailers can adjust the products that they sell in order to fit the needs of their consumers and the unique tastes of their community. Local businesses are also more likely to support unique, new, and/or controversial products. Local bookstores can provide controversial books and can support small authors or local authors. The same idea helps out with local art and music. Bookstores and music shops are more likely to support local art and music than the mainstream stuff that large corporations provide.[Mitchell] Business chains decrease a community’s individuality because they ultimately choose what products reach their customers. This greatly narrows what products are available and shrinks diversity.

Marketing the small business[link]

This unreferenced section requires citations to ensure verifiability.

Finding new customers is the major challenge for Small business owners. Small businesses typically find themselves strapped for time but in order to create a continual stream of new business, they must work on marketing their business every day.

Common marketing techniques for small business include networking, word of mouth, customer referrals, yellow pages directories, television, radio, outdoor (roadside billboards), print, email marketing, and internet. Electronic media like TV can be quite expensive and is normally intended to create awareness of a product or service. Another means by which small businesses can advertise is through the use of “deal of the day” websites such as Groupon and Living Social. These Internet deals encourage new visitors to small businesses.

Example of keyword analysis based on market competition.

Many small business owners find internet marketing more affordable. Google AdWords and Yahoo! Search Marketing are two popular options of getting small business products or services in front of motivated Web searchers. Successful online small business marketers are also adept at utilizing the most relevant keywords in their site content. Advertising on niche sites can also be effective, but with the long tail of the internet, it can be time intensive to advertise on enough sites to garner an effective reach.

Creating a business Web site has become increasingly affordable with many do-it-yourself programs now available for beginners. A Web site can provide significant marketing exposure for small businesses when marketed through the Internet and other channels. Some popular services are WordPress, Joomla and Squarespace.

Social media has proven to be very useful in gaining additional exposure for many small businesses. Many small business owners use Facebook and Twitter as a way to reach out to their loyal customers to give them news about specials of the day or special coupons and generate repeat business. The relational nature of social media, along with its immediacy and 24-hour presence lend intimacy to the relationship small businesses can have with their customers, while making it more efficient for them to communicate with greater numbers. Facebook ads are also a very cost-effective way for small businesses to reach a targeted audience with a very specific message.

In addition to the social networking sites, blogs have become a highly effective way for small businesses to position themselves as experts on issues that are important to their customers. This can be done with a proprietary blog and/or by using a backlink strategy wherein the marketer comments on other blogs and leaves a link to the small business' own Web site.

A solid public relations strategy that utilizes speaking engagements, press releases, feature stories, events and sponsorships can also be a very cost-effective way to build a loyal following for a small business.

Contribution to the economy[link]

In the US, small business (less than 500 employees) accounts for around half the GDP and more than half the employment. ^[18] Regarding small business, the top job provider is those with fewer than 10 employees, and those with 10 or more but fewer than 20 employees comes in as the second, and those with 20 or more but fewer than 100 employees comes in as the third (interpolation of data from the following references).^[19] The most recent data shows firms with less than 20 employees account for slightly more than 18% of the employment.^[20] According to “The Family Business Review,” “There are approximately 17 million sole-proprietorships in the US. It can be argued that a sole-proprietorship (an unincorporated business owned by a single person) is a type of family business” and “there are 22 million small businesses (less than 500 employees) in the US and approximately 14,000 big businesses.” Also, it has been found that small businesses created the most new jobs in communities, “In 1979, David Birch published the first empirical evidence that small firms (fewer than 100 employees) created the most new jobs” and Edmiston claimed that “perhaps the greatest generator of interest in entrepreneurship and small business is the widely held belief that small businesses in the United States create most new jobs. The evidence suggests that small businesses indeed create a substantial majority of net new jobs in an average year.” Local businesses provide competition to each other and also challenge corporate giants.

Of the 5,369,068 employer firms in 1995, 78.8 percent had fewer than 10 employees, and 99.7 percent had fewer than 500 employees.^[21]

Sources of funding[link]

Small businesses in Biloela, Central Queensland, Australia, 1949

Small businesses use several sources available for start-up capital:^[22]

• Self-financing by the owner through cash, equity loan on his or her home, and or other assets.
• Loans from friends or relatives
• Grants from private foundations
• Personal savings
• Private stock issue
• Forming partnerships
• Angel investors
• Banks
• SME finance, including Collateral based lending and Venture capital, given sufficiently sound business venture plans

Some small businesses are further financed through credit card debt—usually a poor choice, given that the interest rate on credit cards is often several times the rate that would be paid on a line of credit or bank loan. Many owners seek a bank loan in the name of their business, however banks will usually insist on a personal guarantee by the business owner. In the United States, the Small Business Administration (SBA) runs several loan programs that may help a small business secure loans. In these programs, the SBA guarantees a portion of the loan to the issuing bank and thus relieves the bank of some of the risk of extending the loan to a small business. The SBA also requires business owners to pledge personal assets and sign as a personal guarantee for the loan.

The 8(a) Business Development Program assists in the development of small businesses owned and operated by African Americans, Hispanics, and Asians.^[23]

Canadian small businesses can take advantage of federally funded programs and services. See Federal financing for small businesses in Canada (grants and loans).

Business Networks and Advocacy Groups[link]

Small businesses often join or come together to form organizations to advocate for their causes or to achieve economies of scale that larger businesses benefit from, such as the opportunity to buy cheaper health insurance in bulk. These organizations include local or regional groups such as Chambers of Commerce, as well as national or international industry-specific organizations. Such groups often serve a dual purpose, as business networks to provide marketing and connect members to potential sales leads and suppliers, and also as advocacy groups, bringing together many small businesses to provide a stronger voice in regional or national politics.

Small Business Development Centers (SBDCs), operates in only 3 states, provide free and confidential counseling and low-cost training to small businesses.

The largest regional small business group in the United States is the Council of Smaller Enterprises, located in Greater Cleveland.^[24]

See also[link]

Business and economics portal

References[link]

• Birch, D. (1979). The job generation process. Unpublished Report, Massachusetts Institute of Technology, prepared for the Economic Development Administration of the U.S. Department of Commerce, Washington D.C.
• Birch, David (1987), Job Creation in America, How our smallest companies put the most people to work, The Free Press, New York
• Edmiston, Kelly. "The Role of Small and Large Businesses in Economic Development." Economic Review 1 (2010): 1-93. KansasCityFed.org. Web. 25 Oct. 2011.
• Shanker, Melissa Carey, and Joseph H. Astrachan. "Family Business Review." Sage Publication 9.2 (1996): 1-123. Print.
• Milchen, Jeff. "AMIBA | The Benefits of Doing Business Locally." AMIBA | The American Independent Business Alliance: Supporting Buy Local Campaigns and Local Independent Businesses across North America.
• Mitchell, Stacy. "AMIBA | The Multiplier Effect of Local Independent Business Ownership."AMIBA | The American Independent Business Alliance: Supporting Buy Local Campaigns and Local Independent Businesses across North America. Santa Fe Independent Business Report. Rep. Santa Fe Independent Business & Community Alliance, Nov. 2003.

External links[link]

• Business.usa.gov - One-stop shop for everything related to business in the USA
• [3] - AMIBA|American Independent Business Alliance

The neutrality of this article is disputed. Please see the discussion on the talk page. Please do not remove this message until the dispute is resolved. (December 2011)

Gerald Celente (born November 29, 1946) is an American trend forecaster,^[1][2] publisher of the Trends Journal, business consultant^[3] and author who makes predictions about the global financial markets and other events of historical importance. Celente has described himself as a "political atheist" and "citizen of the world".^[4] He has appeared as a guest on television news shows such as The Oprah Winfrey Show, The Today Show, Good Morning America, CBS Morning News, The Glenn Beck Show, NBC Nightly News, The Alex Jones Show and Russia Today.^[5][6][7]

Background[link]

Celente was born in The Bronx, New York City, New York. He had early political experience running a mayoral campaign in Yonkers, New York and served as executive assistant to the secretary of the New York State Senate, which Celente called the worst job he ever had.^[8] From 1973 to 1979 Celente traveled between Chicago and Washington D.C. as a government affairs specialist.^[8] In 1980 Celente founded The Trends Research Institute (at first called the Socio-Economic Research Institute of America), now located in Kingston, New York, publisher of the Trends Journal which forecasts and analyzes business, socioeconomic, political, and other trends.^[9]

Forecasting[link]

His forecasts since 1993 ^[10] have included predictions about terrorism, economic collapses and war. More recent forecasts involve fascism in the United States, food riots and tax revolts.^{[3][11][12][13][14][15]} Celente has long predicted global anti-Americanism, a failing economy and immigration woes in the U.S.^[11] In December 2007 Celente wrote, "Failing banks, busted brokerages, toppled corporate giants, bankrupt cities, states in default, foreign creditors cashing out of US securities ... whatever the spark, the stage is set for panic in the streets" and "Just as the Twin Towers collapsed from the top down, so too will the U.S. economy ... when the giant firms fall, they’ll crush the man on the street." He has also predicted tax revolts.^[16][17] In November 2008 Celente appeared on Fox Business Network and predicted economic depression, tax rebellions and food riots in the United States by 2012.^[18] Celente also predicted an "economic 9/11" and a "panic of 2008."^[19]

In 2009 Celente predicted turmoil which he described as "Obamageddon" and he was a popular guest on conservative cable-TV shows such as Fox News Sunday and Glenn Beck's television program.^[6] In April 2009 Celente wrote, "Wall Street controls our financial lives; the media manipulates our minds. These systems cannot be changed from within. There is no alternative. Without a revolution, these institutions will bankrupt the country, keep fighting failed wars, start new ones, and hold us in perpetual intellectual subjugation."^[20] He appeared on the Glenn Beck show and criticized the U.S. stimulus plan of 2009, calling government controlled capitalism "fascism" and saying shopping malls in the U.S. would become "ghost malls."^[21] Celente has said, "smaller communities, the smaller groups, the smaller states, the more self-sustaining communities, will 'weather the crisis in style' as big cities and hypertrophic suburbias descend into misery and conflict," and forecasts "a downsizing of America."^[14]

Revolution in the USA[link]

On Russia Today, he predicted that the USA would face a revolution.^[22]

Neosurvivalism[link]

Celente's website has stated that:

Predictions[link]

2009[link]

"The Crash of '09 was as dramatic as the crash of '29. The New Depression had begun." (Trends Journal, Summer 2008, pg. 12)

2010[link]

Some areas of the U.S. are experiencing resurgences in real estate values due to highly localized factors, and some investors profit from this. However, the rises will almost all stop and reverse with time, and the overall national trend in real estate values is downward. (T.J. Summer 08, pg. 8)

Ghost malls have become a common sight across America. Especially hard-hit are big chain stores (Sears, Home Depot, etc.). (T.J. Summer 08, pg. 8)

2011[link]

Developers have begun rehabbing some of the ghost malls for more productive uses. (T.J. Summer 08, pg. 9)

2012[link]

The economic policies of the U.S. government over the past few years have failed to fix America's fundamental problems and have merely papered over them and in fact made them worse. By 2012, the "American Empire" is collapsing. In the U.S., basic staple goods like quality food and water are too expensive for most people to afford,(T.J. Summer 08, pg. 1) and "food riots" happen across the country (T.J. Summer 09, pg.1). Major American cities look like disaster zones, and mass homelessness exists across the country. Crime is rampant, with much of it being directed at the rich. (T.J. Summer 08, pg. 1) Kidnappings and ransomings of rich people are on the rise. Average people fed up with big government, high taxes and out-of-control spending join tax revolts. (T.J. Summer 09, pg. 1) The world is also experiencing major environmental problems and "the blackest of plagues." The global financial system has also "melted down" and the situation is very bad outside the U.S.(T.J. Summer 08, pg. 1) The advanced industrial economies collapse first, and their sagging consumer spending drags down the export-based economies of emerging economies next.(T.J. Summer 09, pg. 2) The economy is as bad as it was during the Great Depression in many ways. In spite of all this, the U.S. government, power elites, and mainstream media continue to insist that the fundamentals of the world economy are sound, and that official policies can lead to a recovery. A growing number of average people, however, doubt this. (T.J. Summer 08, pg. 1)

While the Mayan and Hopi prophecies of global destruction do not come to pass, 2012 is indeed a watershed year that sees the death of an ailing and unsustainable global economic system and lifestyle and its replacement with something better. (T.J. Summer 08, pg. 2)

By 2012, Obama is viewed by most as a stale president who sold himself as a fresh, visionary candidate in 2008 and instead proved to be a servant of the big corporations and the military-industrial complex like his predecessors.(T.J. Summer 09, pg. 5) His economic policies only delayed disaster and in fact have made the situation worse: Expansionary monetary policy and the various government bailouts and stimulus programs create a "Bailout Bubble" that invariably bursts in a cataclysm for the U.S. and world economy.(T.J. Summer 09, pg. 11) Obama blames other factors for this and might have even tried to start a war by 2012 to distract attention from the domestic misery.(T.J. Summer 09, pg. 12) Obama's foreign policy has also failed to accomplish anything significant on the world stage, and Pakistan is a mess and the Afghan war continues to drag on without hope of conclusion.(T.J. Summer 09, pg. 12)

In the 2012 U.S. elections, online news sites, bloggers and independent journalists wield as much influence on voters as mainstream media outlets (TV, cable, magazines, newspapers) for the first time. This breaks the corporate and moneyed stranglehold on American politics and allows a third party to attain nation-level recognition. (T.J. Summer 08, pg. 5)

Broad future trends[link]

Americans will adapt to lower standards of living and will travel less, both on a daily basis and for vacations. Higher fuel costs, advances in telecommuting and an aging American population will push many more people to work from home or close to home. Walking-distance communities will be constructed and will become popular. (T.J. Summer 08, pg. 7)

Geographically isolated resort destinations like Las Vegas will wither due to higher fuel costs, lower American incomes and increased overseas competition while vacation spots closer to population centers will revive. (T.J. Summer 08, pg. 9)

Government-run lotteries, on the other hand, will thrive. (T.J. Summer 08, pg. 9)

In America and to a lesser extent overseas, consumer spending habits will be motivated out of fear and escapism. Businesses that capitalize upon this will succeed. (T.J. Summer 09, pg. 24)

Publications[link]

• Trend Tracking: The System to Profit from Today's Trends (1991), ISBN 978-0446392877
• Trends 2000: How to Prepare for and Profit from the Changes of the 21st Century (1997), ISBN 978-0446519014
• What Zizi Gave Honeyboy: A True Story about Love, Wisdom, and the Soul of America (2002), ISBN 978-0066212661

References[link]

External links[link]

• trendsresearch.com
• geraldcelente.com

Sam Graves
Member of the U.S. House of Representatives from Missouri's 6th district
Incumbent
Assumed office January 3, 2001
Preceded by	Pat Danner
Chairman of the House Small Business Committee
Incumbent
Assumed office January 3, 2011
Preceded by	Nydia Velázquez
Personal details
Born	(1963-11-07) November 7, 1963 (age 48) Tarkio, Missouri
Political party	Republican
Spouse(s)	Lesley Hickok
Residence	Tarkio, Missouri
Alma mater	University of Missouri
Occupation	farmer
Religion	Baptist

Samuel B. Graves, Jr. (born November 7, 1963) is the U.S. Representative for Missouri's 6th congressional district, serving since 2001. He is a member of the Republican Party. The district consists of Northwest Missouri and includes the portion of Kansas City north of the Missouri River and many northern suburbs.

Early life, education and career[link]

Sam Graves

Graves is a lifelong resident of Tarkio, a small city not far from the Iowa and Nebraska borders. He graduated from the University of Missouri in Columbia, Missouri. He is a former volunteer fireman and Eagle Scout. He is also a sixth-generation farmer.

Missouri Legislature[link]

Graves was elected to the Missouri House of Representatives in 1992. After only one term, he was elected to the Missouri Senate in 1994.

U.S. House of Representatives[link]

Committee assignments[link]

• Committee on Agriculture
  • Subcommittee on Conservation, Credit, Energy, and Research
  • Subcommittee on General Farm Commodities and Risk Management
• Committee on Small Business (Chairman)
• Committee on Transportation and Infrastructure
  • Subcommittee on Aviation
  • Subcommittee on Economic Development, Public Buildings, and Emergency Management
  • Subcommittee on Railroads, Pipelines, and Hazardous Materials

Political positions[link]

Following the economic crisis of Wall Street in September 2008, Graves voted against the proposed bailout of United States financial system, claiming that it neither "punished the wrongdoers nor adequately protected the innocent taxpayers, investors and retirees” caught in the Wall Street banking crisis."^[1]

Todd Graves controversy[link]

Graves is the brother of Todd Graves, former U.S. Attorney for the Western District of Missouri.^[2] In October 2008, U.S. Senator Kit Bond apologized to Todd Graves after a U.S. Justice Department report cited Bond forcing Graves out over a disagreement with Representative Graves.^[3] Following the report, U.S. Attorney General Michael Mukasey appointed a special prosecutor to investigate whether former U.S. Attorney General Alberto Gonzales and other officials involved in the firings of nine U.S. attorneys broke the law (dismissal of U.S. attorneys controversy).^[4]

Ethics investigation[link]

In 2009, the House Ethics Committee began inquiring whether or not Graves used his position on the Small Business Committee to invite Brooks Hurst, a longtime friend and a business partner of his wife, to testify at a committee hearing on the federal regulation of biodiesel and ethanol production. Graves had failed to mention the financial link between Hurst and Lesley Graves at the hearing, which dealt with federal subsidies for renewable fuels. A review by the independent Office of Congressional Ethics found "substantial reason to believe that an appearance of conflict of interest was created."^[5] Graves said in a statement, "I look forward to a quick review of the facts and answering any questions that the committee may have. I believe that a speedy review will show that all the rules of the House concerning testimony in front of the Small Business Committee were followed."^[6] The Office of Congressional Ethics referred the case to the House Ethics committee, which ended its own investigation in October, and released a report finding no ethical violations, as it asserted there was no standard in place for appearances like Hurst's.^[7][8]

Political campaigns[link]

Graves on the left with President George W. Bush at the Ford Kansas City Assembly Plant in Claycomo, Missouri on March 20, 2007

In 2000, Democratic U.S. Representative Pat Danner suddenly retired due to breast cancer. Graves filed within the short period of time left for filing. Graves faced Representative Danner's son, Steve Danner, a former State Senator, in the general election. Graves referred to Danner as a "tax and spend liberal" and won the race with 51% of the vote ^[9] largely by running up huge margins in the rural areas of the district. He was arguably helped by George W. Bush carrying the district in the 2000 presidential election. Graves easily won reelection in 2002,^[10] 2004,^[11] and 2006.^[12]

2008[link]

Graves faced a tougher reelection race in 2008 against Democratic nominee and former Kansas City Mayor Kay Barnes. He gained national attention early in the race for running an ad accusing Barnes of promoting "San Francisco values." It was initially considered one of the hottest races in the country. However, Graves won reelection fairly handily, taking 59 percent of the vote to Barnes's 37 percent. Because the district has historically not been considered safe for either party, elections in the district tend to be closely contested.

2010[link]

Graves defeated Democratic nominee Clint Hylton (an Excelsior Springs, Missouri insurance agent who owned a farm in Polo, Missouri) and write-in candidate Kyle Yarber.

References[link]

External links[link]

Wikimedia Commons has media related to: Sam Graves

• U.S. Congressman Sam Graves official U.S. House site
• Sam Graves for Congress official campaign site
• Biography at WhoRunsGov.com at The Washington Post
• Biography at the Biographical Directory of the United States Congress
• Voting record maintained by The Washington Post
• Biography, voting record, and interest group ratings at Project Vote Smart
• Congressional profile at GovTrack
• Congressional profile at OpenCongress
• Issue positions and quotes at On the Issues
• Financial information at OpenSecrets.org
• Staff salaries, trips and personal finance at LegiStorm.com
• Campaign finance reports and data at the Federal Election Commission
• Campaign contributions at the National Institute for Money in State Politics
• Appearances on C-SPAN programs
• Profile at SourceWatch
• Top PAC Donations to Grave's Campaign from Review Journal, 2002