Although many of President Donald Trump’s cabinet and staff picks have been met with a mixed amount of resistance from Senate Democrats, his pick for the head of the Small Business Administration (SBA), Linda McMahon, proved to be an effective choice. After her successful 81-19 vote for confirmation, the former President and CEO of World Wrestling Entertainment (WWE) McMahon laid out several goals she seeks to accomplish in her role as SBA administrator. Among them is educating young entrepreneurs about money management and helping small businesses feel safer taking on the risks associated with expansion and hiring new employees.
“Job growth is a pillar of my campaign,” McMahon said during her confirmation hearing. The new SBA administrator noted that she has also met “kids in high school who don’t know how to balance a checkbook.” McMahon also explained that she wants to help educate young entrepreneurs to enter into business with more knowledge as a way to help prevent new businesses from failing. “I wanted to share my vast experience with others who are launching start-ups or looking to scale their businesses,” McMahon explained. She continued, “Through live events and webinars, we educate entrepreneurs about things like applying for a loan and developing a business plan.”
It is quite likely the new SBA administrator intends to include insurance acquisition as part of her educational goals for young entrepreneurs. Start-up companies headed by young entrepreneurs fail for a large number of reasons, some of which could be avoided by risk mitigation or certain types of insurance. A large number of businesses, such as new restaurants, service-based companies, and technology companies, can benefit from a few core insurance policies that cover a wide set of concerns. A Business Owners Policy, for example, will help protect many young businesses against property damage or loss, third party bodily injury, or customer complaints or lawsuits that could quickly eat into the limited resources of a new company.
As McMahon begins her role as head of the SBA, small business owners and young entrepreneurs will see how McMahon intends to realize the ideas she expressed to help small businesses survive in a tough market. As McMahon stated in her Senate confirmation hearing, part of her goal is to help small businesses learn how to survive. “Under-capitalization is the reason a lot of small companies fail,” McMahon said. “Having walked in those shoes, I absolutely understand that.”