▶ 0:17:46Chair Ernst: Hi call the committee on small business and entrepreneurship to order. I apologize for my tardiness. On july 4, 17 76, a group of patriotic americans delivered independence from british tyranny, they forged a new nation founded upon the self-evident truths that all are entitled to life, liberty, and the pursuit of happiness.
▶ 0:18:11Chair Ernst: As we approach the 250th anniversary of our nation, we should take time to reflect on a rich history. Our american story is one of courage, determination, and resilience. It is impossible to tell the story without the entrepreneurs and innovators who have driven the country forward, serving as the catalysts for freedom and prosperity. For 250 years, bold americans have conquered what was thought to be impossible.
▶ 0:18:43Chair Ernst: Americans curiosity led to a wave of transformative innovation with limited resources but limitless determination, pioneers turned constraints into opportunities. From the light bulb to the spinning wheel to agricultural advancements, our earliest innovators created the foundation of the society we know today. While american soldiers bravely fought in two world wars, american businesses of all sizes stepped up and lead the charge on the domestic front.
▶ 0:19:13Chair Ernst: Our businesses large and small mobilized to supply critical resources on the battlefield and fueled our economy at home. We kept the competitive american spirit going and channel that into flight. Less than 100 years after the wright brothers first took to the skies, american engineers and manufacturers made it possible to put a man on the moon. And I have to note the iowa connection here.
▶ 0:19:40Chair Ernst: When the wright brothers were kids, they actually lived in cedar rapids, iowa, where their father brought home an early iteration of a helicopter for them to play with. The brothers credited this is one of their inspirations for their own airplane. And now we stand at the forefront of technological innovation, unlocking a new digital frontier connecting nearly every corner of the globe .
▶ 0:20:07Chair Ernst: We turned big, impossible dreams into real-world breakthroughs in science, medicine, business, and finance. And there is still much more to come. Last summer, president trump chose the great state of violet to kick off iowa with the 250th celebration. He underscored iowa was role in the american story.
▶ 0:20:33Chair Ernst: Look no further than our iowa state fair where the creativity and entrepreneurship of our small businesses and farmers are on full display. As we continue to strive to fulfill our founders promise of a more prepared -- perfect union, I have no doubt america's small businesses and entrepreneurs will continue leading the way.
▶ 0:20:54Chair Ernst: Today we are kicking off our part of america's 250th birthday celebration by reflecting on our storied history in listening to folks from three states that have played pivotal roles in early american entrepreneurship. Massachusetts, new hampshire, and south carolina. Massachusetts embodies the american entrepreneurial spirit, starting with settlers arriving from england and building everything from scratch.
▶ 0:21:22Chair Ernst: New towns, small businesses where the catalyst for success. Nearby in new hampshire, a similar mindset emphasize innovation, self-reliance, and the pursuit of opportunity. As america progressed, new hampshire's and industrialization helped propel the entire nation forward.
▶ 0:21:43Chair Ernst: Down the coast in south carolina, charleston's small shops and merchant houses lined the streets in one of the busiest ports in colonial america. America 250 is a bipartisan organization established by congress to celebrate these unequal achievements. America's two 50th birthday is certainly cause for celebration and I'm excited to hear about america's 250 plans for this july 4.
▶ 0:22:12Chair Ernst: I'm grateful we are joined by our panel of witnesses. I look forward to hearing from them to see other states have contributed to the american economy over the past 250 years. And I now recognize ranking member markey for his opening statement.
▶ 0:22:33Sen. Markey: Thank you, madam chair, so much, and thanks to all the witnesses. From cobblestone streets to america's high-tech heights, massachusetts has been the nation's roadmap for revolution. From the american revolution 250 years ago to the revolutions of today in clean energy and biotech and health care and education, massachusetts is a pioneering state.
▶ 0:23:03Sen. Markey: The historic shop at lexington and concord has turned into lifesaving shots and arms to prevent covid-19 and new shots to cure alzheimer's. That is no accident. Massachusetts embodies the entrepreneurial spirit through our business plan. We attract the best and brightest from across the nation and across the world. We invest in opportunity and give entrepreneurs a reason to stay.
▶ 0:23:31Sen. Markey: Number three, we trade the healthiest and most educated workforce in the united states. Number four, we roll out the red carpet for every community to come to massachusetts. That is our business plan. It works. This plan is what makes massachusetts not just the baystate, but the brain state. Massachusetts is some to 17 of the fortune 500 companies.
▶ 0:23:59Sen. Markey: Have of which were founded by immigrants. But it is not just the giants that power our state, massachusetts is also home to more than 91,000, 91,000 immigrant entrepreneurs from boston to lowell to worcester and springfield, so many of the businesses that make our neighborhoods vibrant and strengthen our communities were started by immigrants.
▶ 0:24:24Sen. Markey: It is clear that across our country immigrants and minority owned businesses player important role in powering our economy, hispanic owned businesses contribute $800 billion to our economy. Aapi owned businesses employ millions each year. Black-owned businesses generated $249 billion in revenue in 2025 alone.
▶ 0:24:52Sen. Markey: And yet throughout our history, immigrants and minority groups have been forced to overcome discrimination and unjust policies. At the turn of the 20th century it was french canadians unable to get loans from english-speaking banks.
▶ 0:25:14Sen. Markey: Those immigrants came together to create a credit union which to this day continues to serve immigrants from asia, africa, latin america and northeast massachusetts and across the boundary into new hampshire. As we know, history doesn't repeat itself, but it often times rhymes.
▶ 0:25:37Sen. Markey: Today, the small business administration has put in place policies to deny loans to legal immigrants despite immigrants including those with temporary protected status are more likely to start a business than nativeborn citizens. Earlier this morning, the trump administration argued ending tps for haitians.
▶ 0:26:08Sen. Markey: 5000 are self-employed just in the state of massachusetts right now. This administration prefers to demonize immigrants and continue to campaign on contempt against communities of color rather than recognizing immigrant entrepreneurs have created the fabric of our communities and empowered our vitality for 250 years.
▶ 0:26:31Sen. Markey: So instead of celebrating this history the trump administration attempts to erase it from housing to employment to entrepreneurship, this administration is turning back the clock and ignoring the historic, systemic injustices that continue to exist today. Trump's executive order called restoring truth and sanity to american history directs agencies to remove content deemed to inappropriately disparage americans passed or living.
▶ 0:26:58Sen. Markey: That order is responsible for erasing the documentary that told the story of when megan and immigrant mill workers in lowell, massachusetts. Erased. Those mill workers were forced to work in hot and unsafe textile mills but organized for their rights. That documentary. As the birthplace of the american revolution, that is what massachusetts does.
▶ 0:27:28Sen. Markey: The industrial revolution was started in lowell, massachusetts , we need to tell its full story. We will continue to share our history and drive innovation and growth and history will have rhymes, but no reason unless we deal with reality thank you, madam chair.
▶ 0:27:48Chair Ernst: Thank you, ranking member romney want to extend a warm welcome to all of our witnesses today. I'm thankful you took time out of your busy schedules to join us here and share your expertise and insight with this committee. I now recognize senator scott to introduce our witness from south carolina.
▶ 0:28:09Senator Scott: Thank you chairwoman and wrecking member markey and members of the committee. It is my pleasure to introduce my dear friend cat dority who was with us and there is no one better to share the story of south carolina small businesses and highlight the role they continue to play in our amazing country.
▶ 0:28:32Senator Scott: In her nearly three decades of experience and you can look at her until she started at the young age of eight working in tourism and economic development , she has helped build a foundation that powers thousands of small businesses across the charleston area and far beyond. As the vice president of marketing, it cap helps to tell the stories of our cities rich history and culture and business community that we love.
▶ 0:29:02Senator Scott: In charleston alone, the city's growth and success has served as a national model for how culture , history, and entrepreneurship can work hand-in-hand. Most importantly, cat understands that behind every visitor is an opportunity for the small businesses that serve them both directly and indirectly across the supply chain.
▶ 0:29:25Senator Scott: Whether it is building hotel rooms, supporting local restaurants, or showcasing regional artisans, her work helps to ensure that charleston's success is shared nationwide. Beyond her role at explore charleston, she continued to give back by serving as president of the south carolina association of tourism regions serving the board of the south carolina restaurant and lodging association and mentoring the next generation of hospitality
▶ 0:29:55Senator Scott: Leaders at her alma mater, the college of charleston. When kids are looking for someplace to call home after high school, college of charleston or even charleston southern would be good choices for those kids. As we reflect on 200 50 years of american entrepreneurship, cat's work is a powerful reminder of the spirit of the american dream is alive and it is well on our main streets, in our small businesses, and in our
▶ 0:30:26Senator Scott: Communities nationwide. I'm grateful for her leadership and a very proud to call her my friend and I'm confident her testimony will offer valuable insight into how history, hospitality, and entrepreneurship continue to shape our american story. Thank you for being with us today. To the other witnesses, thank you for making the investment of your time and your expertise to showcase the greatest nation on god's green earth.
▶ 0:30:53Chair Ernst: Thank you, senator scott. I now recognize myself to introducems. Rosie rios, chair of america 250, the bipartisan congressional commission planning the 250th anniversary of the signing of the declaration of independence. She served as the 43rd treasurer of the united states, managing the bureau of engraving and printing and the U.S. mint. Prior to her presidential appointment, Ms.
▶ 0:31:21Chair Ernst: Rios was the managing director of investments for mcfarlane partners, a real estate investment management firm. Ms. rios holds a degree from harvard university and thank you again and I now recognize ranking member markey to introduce our other witnesses.
▶ 0:31:41Sen. Markey: I'm going to introduce one of the witnesses and senator shaheen is going to recognize together.
▶ 0:31:49Chair Ernst: There we go.
▶ 0:31:50Sen. Markey: I'm going to introduce liz sweet who serves as the executive director of the massachusetts immigrant and refugee advocacy coalition, an expert on immigration law and policy, liz has a record of more than 20 years of advocating for immigrants and refugees. She is a national expert on these issues and she is going to be an excellent witness here today. Thank you.
▶ 0:32:19Senator Shaheen: Thank you very much chair. I'm really pleased to introduce amanda grappone osmer, the president of grappone auto group in new hampshire, her great-grandparents started this business with a single gas station in concord, the family has grown the business to three dealerships in new hampshire, although she will give us a little bit more of that history when she speaks.
▶ 0:32:50Senator Shaheen: She is now the fourth-generation to own and operate grappone automotive and she graduated from the university of new hampshire and her sister used to work for me when I was governor, so I have known the grappone family for a long time and not just amanda, but herbal family has contributed significantly to the well-being at the state of new hampshire and we appreciate you for being here.
▶ 0:33:15Chair Ernst: Thank you, senator shaheen. To our witnesses, I would like to explain the lighting system in front of you. Three lights, green means go. Yellow means you are running out of time, and red means to wrap it up and conclude your remarks. I ask unanimous consent that the witnesses' full statements be included in the record. Without objection, so ordered.
▶ 0:33:43Chair Ernst: As your written testimony has been made part of the record, the committee asks you limit your oral remarks to five minutes and with that, Ms. rios, you are recognized for five minutes for your testimony.
▶ 0:33:54Ms. Rios: Thank you so much. Chair, ranking member, and distinguish members of the committee, thank you for your leadership and for the opportunity to testify today. My name is rosie rios and I had the honor of serving as the 34th treasurer of the united states and I serve as the chair of the U.S. semiquincentennial commission and senator shaheen is also a member of the commission.
▶ 0:34:24Ms. Rios: As treasurer of the united states I was the senior advisor to the secretary on community development, access to capital and funding. I was focused on promoting economic development and since then my passion continues to be focused on startup creation and growth.
▶ 0:34:44Ms. Rios: As the mother of a successful entrepreneur who is joining me today, my son joey, this is something that has personal significance so the jurisdiction of the committee is very near and dear to my heart. America 250 is the national nonpartisan effort charge to celebrate our anniversary in 2020 six, created by congress in 2016 comprised of 24 commissioners, eight of whom are from congress.
▶ 0:35:20Ms. Rios: Similarly, we have two republicans and two democrats and I'm proud to say that the congressional america 250 caucus is the largest bipartisan, bicameral caucus in the great history of this country. We were at 398 members, that was a few days ago. Today, we are at 401. The first time ever.
▶ 0:35:52Ms. Rios: Including 56 senators, our caucus continues to grow and I absolutely felt 500 in my sites. We hope to welcome our 500 caucus member now any day. I would like to express my gratitude and her team looks forward to working with you and your offices to connect constituents and celebrate america year-round.
▶ 0:36:32Ms. Rios: We call these programs are movement. They will connect americans at every level and connect to spectacles like the world cup in the olympics in los angeles and in addition to this movement we are planning for some unforgettable moments for the week of july 4. Part of our mission is to tell a more complete story of america and one important through line is our country's unique spirit of entrepreneurship.
▶ 0:36:58Ms. Rios: Paul revere, a boston silversmith and industrialist, build one of the early american manufacturing businesses while supporting the revolutionary cause. Robert mills from south carolina built a national practice and designed landmarks including the washington monument. This entrepreneurial spirit has been embedded in the american people from the very beginning and that same spirit is being tested. Nearly half of U.S.
▶ 0:37:27Ms. Rios: Adults received good opportunities saying they would not do so for fear they might fail. Only 20% of young workers believe it is a good time to find a quality job down sharply from a few years ago. Young americans are clearly anxious about their future but there is another way to look at this moment.
▶ 0:37:50Ms. Rios: There is a time of real opportunity to create something new because the fundamentals of starting something new are shifting in favor of builders. There have never been more pathways to access the capital and new technologies especially artificial intelligence or lowering the barriers to entry for founders. This is a moment that calls for more young americans to step forward and built, which is what my son has done.
▶ 0:38:16Ms. Rios: That is the idea behind recent america 250 initiative called america's start up, it is a national competition designed to engage undergraduate students across the country. They have an opportunity to pitch early-stage ventures with 10 finalists receiving $25,000 in non-diluted grant funding. In this pilot round we received proposals from nearly 200 accredited colleges and universities.
▶ 0:38:47Ms. Rios: The top proposals are currently being reviewed by the investor counsel that includes luminaries like apple cofounder steve wozniak and four-time super bowl winner joe montana. Top judges including tim draper sarah fryer, and chris larson. America start up is our way of introducing what it looks like. Delivering requires partnership.
▶ 0:39:23Ms. Rios: Since fiscal year 2019 congress has provided annual funding which we have supplemented and we have worked hard to be responsible stewards of those resources and on an inflation adjusted basis, america 250 is less than half of what was spent on of the bicentennial. We are grateful for congress's continuous support and we will be seeking additional funding through the fiscal year 2027 appropriations process.
▶ 0:39:51Ms. Rios: America 250 is just as much about the future as about the past and if you do that right not only will it commemorate 250 years of history it will inspire the next 250 years of american entrepreneurship. We have an entire after the firework strategy that will include the launch of america's startup all over again and perhaps again in 2027 as we look to the moment of the semiquincentennial to create a movement of inspiration in the years to come.
▶ 0:40:21Ms. Rios: Thank you and I look forward to your questions.
▶ 0:40:23Chair Ernst: Thank you. And next we will recognize Ms. sweet, you are recognized for five minutes for your testimony.
▶ 0:40:30Ms. Sweet: Thank you. Good afternoon, chair, ranking member, and all members of the committee. Thank you for the invitation. I service executive director of the massachusetts immigrant and refuges see --and refugee advocacy coalition or mira.
▶ 0:41:01Ms. Sweet: The coalition is the largest coalition in new england advocating for the rights and inclusion of immigrants and refugees who number more than one point 3 million in massachusetts. Throughout our history, immigrants have contributed to our prosperity and economic growth in massachusetts and nationally. All too often, new immigrants face barriers which often drive them toward greater creativity and founding small businesses to create their own opportunities.
▶ 0:41:33Ms. Sweet: In one recent analysis by the immigration research initiative they found that immigrants generate some 130 billion in output annually for the massachusetts economy. Currently in massachusetts, 28% of business owners are immigrants, which is higher than the national average of 21%. Foreign-born workers make up 1/5 of our workforce.
▶ 0:42:04Ms. Sweet: More than 91,000 immigrant entrepreneurs generate more than $3 billion of business income for massachusetts. In greater boston, immigrants own 40% of our main street businesses including more than half of all restaurants, 61% of nail salons and 80% of convenience stores. These businesses empower our main streets and attract people and resources to our cities and towns.
▶ 0:42:34Ms. Sweet: Massachusetts has long had a powerful draw on newcomers to america, the earliest colonizers came to massachusetts. The industrial wave brought large numbers of italian, russian, and polish immigrants and from the 1960's to the 1990's, massachusetts was one of seven states that attracted between 60% and 75% of all immigrants arriving to the united states each year.
▶ 0:43:02Ms. Sweet: These more recent waves of immigrants have brought people from asia, latin america, the caribbean, and africa and within each of these waves, immigrants have set up businesses and contributed to our economic competitiveness. Immigrants to massachusetts have throughout history identified opportunities and open to key businesses.
▶ 0:43:23Ms. Sweet: For example, in the time of the whaling industry in southern massachusetts, large numbers of cape verdean immigrants worked as whaling crewmembers and settled in new bedford. As the whaling industry declined , enterprising cape verdean's bought up the old whaling vessels and refitted them to become package ships.
▶ 0:43:46Ms. Sweet: Between 1960 and 1965, 40 1% of the package ships trading between new england and cape verdean islands were owned by cape verdean's contributing to our trade and growth. More recently, after they settled in chelsea, they opened their first retail store which then grew to hundreds of stores by the time of max's death in 1988.
▶ 0:44:16Ms. Sweet: That is not what we know as tjx companies, the framing abased fortune 500 firm that owns t.j. Maxx, home goods, and marshals. And more than half of the fortune 500 firms based in massachusetts were founded by at least one immigrant or child of immigrants. Of course, today in massachusetts we are home to a world-class, robust life-sciences ecosystem and a globally innovative health care and biotechnology sector.
▶ 0:44:44Ms. Sweet: This sector is also powered by immigrants who account for nearly 30%. Businesses founded and operated drive our prosperity and remain in our global economy. Immigrants bring creativity and innovation and their businesses add to our culture bringing new flavors and products and new perspectives that in rich assault.
▶ 0:45:17Ms. Sweet: This is truly our american story that waves of newcomers have arrived here identifying gaps and opportunities and building new businesses into the powerhouse globally. It is an engine upon which we all rely on and benefit where entrepreneurs can flourish.
▶ 0:45:44Chair Ernst: Thank you very much and next week will hear from Mrs. dority and you are recognized for your testimony.
▶ 0:45:54Mrs. Dority: Thank you. I appreciate the privilege to speak with you today. I'm the vice president of marketing for explore charleston, which is the destination marketing office representing over 800 businesses in the greater charleston area. Our state has been in baiting entrepreneurs since there was -- since before there was a united states of america.
▶ 0:46:20Mrs. Dority: South carolina's founders did not wait for permission, they looked at the land, the water, the clay beneath their feet and the communities around them and they created. That spirit is unbroken today and I want to take you annoyed brief tour of 250 years of entrepreneurs told not through spreadsheets, but through the things people have made with their hands.
▶ 0:46:41Mrs. Dority: Starting in the low country and home to senator scott for centuries women have woven sweetgrass baskets and a tradition brought from west africa. These are unbroken threat of entrepreneurship. Past generation to generation sold on the streets of charleston and along the highway of mount pleasant long before anyone used the word small business.
▶ 0:47:06Mrs. Dority: Today, master weavers contribute to that tradition and those baskets command hundreds of dollars apiece and I would invite you to make sure you view some of the ones on display at the african-american museum and the american history museum right here in D.C. this is living heritage and living commerce intertwined. In those -- no survey of south carolina entrepreneurship would not be complete without the pawleys island hammock.
▶ 0:47:35Mrs. Dority: It is one of the oldest continuously manufactured consumer products in the united states still handwoven by local craftspeople and a reminder that the most durable entrepreneurial ideas are often the simplest ones, see a problem, solve it well, and the market will find you for the next 120 years.
▶ 0:47:56Mrs. Dority: Traveling in linn to edgefield, south carolina in the early 1800s, the in line pottery tradition took root in the edgefield area, producing utilitarian stoneware that was functional, beautiful and distinctly south carolina. Enslaved artisans helped define this tradition. Potters continue working in that tradition.
▶ 0:48:25Mrs. Dority: From bondage came artistry and from artistry came commerce. In my home area of the pee dee region, a pharmacist mixed unusually spicy mineral spring water with ginger and created ginger ale and it is spicy, y'all. 120 years later, people still drive off the highway to find it. That is the old fashion, making something.
▶ 0:48:53Mrs. Dority: Today, that same spirit courses through producers like those on at a stone island stone grinding heirloom grits the way they were made before industrialization. For some coffee in the old english region, sourcing and roasting with the care of greens or name for the historic towns bringing the flavor of south carolina's heartland to tables across the country and fun fact,
▶ 0:49:25Mrs. Dority: This is the site of the longest siege fought during the revolutionary war. It was led by the patriot major general. This is a very invasive vine, bamboo. One of the persistent nuisances. There are crafts that are turning these vines into handmade goods.
▶ 0:49:52Mrs. Dority: That is pure south carolina ingenuity, take what the land gives you and when he gives you too much, make something of value. In the mennonite craftspeople bring generations of woodworking and agriculture traditions to the local economy. Quiet, persistent, but extraordinary in quality. Madam chair, what connects the sweetgrass basket? The applied skill and determination build something worth buying.
▶ 0:50:29Mrs. Dority: They want a federal government that recognizes the backbone of the american economy is built-in pottery sheds, and roadside stores and farm stables. I urge this committee to remember them and do all you can to support them. Thank you.
▶ 0:50:45Chair Ernst: Thank you, I think we all need a spicy ginger ale and one of those hammocks may be after today. Thank you. Mrs. grapponeosmer, you are recognized for five minutes.
▶ 0:51:00Mrs. Grappone Osmer: Chair, wrecking member, and distinguish movers of the committee, my name is amanda grappone osmer, on behalf of our team members, thank you for your service to our great country and for inviting me here today to tell you about the grappone automotive story. My paternal great great grandfathers emigrated from southern italy to the united states leaving behind not only grinding poverty and government depression, but most of their family members.
▶ 0:51:32Mrs. Grappone Osmer: They risked it all to make a better life in america. Their respective son and daughter are my great-grandparents. They came to this country around the turn of the 20th century, one a stonemason with the skilled trade to offer and the other a farmer. After moves from boston to new york city to vermont, they finally settled in concord, new hampshire, where they raised their seven surviving children.
▶ 0:51:57Mrs. Grappone Osmer: They have followed the granite for your, but stone cutting was a dangerous line of work and my grandmother had always wanted rocco to find a different way to support the family. Around 1920, she and her two eldest daughters went to work at a local factory making parts for ford model t's.
▶ 0:52:15Mrs. Grappone Osmer: Their savings and rocco's earnings in the stone shed and money made by the children who sold vegetables door to door amounted to enough to buy a single gas pump and they decided to take their chances on the automobile craze. Business was not as brisk as the prior owner led them to believe they would be. In fact, he had manufactured false receipts, but they persevered.
▶ 0:52:42Mrs. Grappone Osmer: They became servicing and selling cars, becoming an oldsmobile distributor in 19 27. My grandfather began working at grappone and sons in grade school and worked there gassing under greasing cars as he is to say for 79 years. My grandmother continued to report to the ford showroom every day until she was 98 years old.
▶ 0:53:03Mrs. Grappone Osmer: Their son, robert, my dad, spent a 60 year career at grappone until his retirement last year and after 28 years in the business, I begin the president of the company on the first of the year. We are 235 people strong and we are proud to partner with ford, mazda, and honda. Over the last century our business has gone through many iterations and entrepreneurial spirit has gotten us to where we are and I have faith that will lead us soundly into the next century of business.
▶ 0:53:34Mrs. Grappone Osmer: The auto industry is dynamic and arguably is entrepreneurial and industry -- an industry as the country has ever produced. In no hampshire alone, there are 158 new car and truck dealers who employ almost 12,500 people. We generate more than $700 million in annual payroll together and support countless groups and nonprofit organizations.
▶ 0:54:01Mrs. Grappone Osmer: It's not an overstatement to say the word grappone is as tied to community support as selling cars and trucks. For many years we committed 5% of our annual net profit to charitable net causes. The presence of entrepreneurialism is the sign of a healthy business ecosystem. Entrepreneurs are by nature creative people and were created -- and were creativity exists, so does optimism and fear is not in the drivers seat.
▶ 0:54:28Mrs. Grappone Osmer: A long vision of mine is to give the team a sense of agency to understand how their contributions matter. It is important to our company that her team members feel a responsibility to give back to the community by buying and servicing their cars at grappone .
▶ 0:54:44Mrs. Grappone Osmer: When team members ask if they can build a kit car with a local highschooler host an event in our community space tg in person about the trade, I see the vision come to life and I'm proud that some of our team members have taken the brave step to have businesses of their own in addition to working their day jobs alongside me. The entrepreneurial spirit is alive and well at grappone automotive end is alive and well all across new hampshire.
▶ 0:55:09Mrs. Grappone Osmer: I went back to my alma mater monday, university of new hampshire, and toured facilities and on the other side of the campus I experience the olson advanced manufacturing center, a co-working facility that serves as a pipeline for trained, skilled workers to step into the manufacturing sector with practical knowledge and experience. We talked about how to adapt and learn and invent and share, all tools found in the entrepreneurial toolbox.
▶ 0:55:38Mrs. Grappone Osmer: My husband and I have three children and one is very interested in coming into the family business after he has finished college and seen some more of the world. I'm grateful my ancestors chose a life of curiosity and hard work. Because they chose that, the fifth generation of our family can care for our team, guests, and community with kindness and respect. Thank you very much for your time.
▶ 0:56:02Chair Ernst: Wonderful, thanks to all of our witnesses for your testimony. We will not go into questions and answers and I will recognize myself for five minutes for questions. We will start with you. In your testimony, you highlighted a number of small businesses that have deep historical significance in south carolina and to charlston and the broader economy in south
▶ 0:56:32Chair Ernst: Carolina. Can you talk about and strong from your experience with explore charlston and the college of charleston some more recent examples of small businesses that are really embodying south carolina's entrepreneurial spirit?
▶ 0:56:48Mrs. Dority: Absolutely. I think of several of our retailers on king street. We have some amazing stores like a fourth-generation store that features not only national jewelry brands, but they have created their own brand.
▶ 0:57:12Mrs. Dority: They have really done a great job of utilizing social media to sell their goods and e-commerce has helped so many of our businesses. Tiny tassel. Those of and just utilizing modern technology to really get their names out there and they are all social media darlings.
▶ 0:57:36Chair Ernst: That does seem to be the ways many small businesses have gone especially in rural areas to draw more revenue. Ms. rios, I was really excited, this was something that was unique to me hearing about your shark tank style way of doing business.
▶ 0:57:59Chair Ernst: It is a competition through america 250 which is designed to support and celebrate the next generation of entrepreneurs and you are providing students the opportunity to pitch their businesses and innovations to some of the nation's most successful business leaders and investors.
▶ 0:58:22Chair Ernst: So if you could talk a little bit more about that event and so in particular this event, there are many others that will be happening across the united states. Talk about that and how is america 250 then elevating entrepreneurs kind of it in mid-incredible milestone?
▶ 0:58:44Ms. Rios: Thank you so much for that wonderful question. America's startup is as much about the future as it is about the past and inspiring the next generation of leadership.
▶ 0:59:00Ms. Rios: We found a gallup poll that identified this cohort of 18 to 20 four-year-olds where it specifically said that group of folks are the most disconnected, the least patriotic and the most cynical of a generation they have seen in a while. It dawned on me what we are trying to accomplish at america 250 is trying to make as many americans feel this is the american dream all over again.
▶ 0:59:31Ms. Rios: My parents came from mexico in 19 58 and they landed in hayward, california and my dad was a seasonal migrant worker. My mom left an abusive relationship, my father returned to mexico, my mother stayed in this great country because we knew we would have a much better chance of succeeding if we stayed so with the help of our catholic village and on her own somehow she sent all nine of us off to college so for me this is more than personal.
▶ 1:00:04Ms. Rios: The concept of america start up is really to provide that generation, that very specific generation an opportunity for the brass ring and we focused on undergrads because when you look at start up capital usually doesn't follow the undergrads, usually follows graduate students, that is where the patents, the research, the work experiences but we because we knew that undergraduate cohort was that disconnected we wanted to focus on them and give them an opportunity that they would not have had otherwise.
▶ 1:00:33Ms. Rios: My partner from o'shaughnessy ventures is here today because he came up to me at a dinner and when I was speaking about america 250 he set I want to get involved and I will do anything. We brought in tim draper from draper ventures. He put the star and start up is one of our ventures and we created this pilot program that launched about six weeks ago.
▶ 1:00:57Ms. Rios: And then we are now down to the 30's, finalists, the actual taping of those 30 semifinal us to get to tennis this saturday at draper university where they will receive that $25,000 funding.
▶ 1:01:12Ms. Rios: If all goes as planned, we are going bigger even in the fall and we plan on inviting the president to be a judge, we think he would love this atmosphere and more than anything we want to inspire this next-generation to own their future, feel their future and do something about their future.
▶ 1:01:29Chair Ernst: That's amazing and I appreciate that very much and we look forward to hearing more about those finalists. Now I will recognize senator shaheen.
▶ 1:01:39Senator Shaheen: Thank you madam chair and senator markey, thank you for letting me bump you because I have to leave in just a few minutes but I did want to take a few minutes to thank all of you for being here, you are all such articulate and eloquent spokespeople for the role that immigrants have played not only in small businesses, but also in this country and the successful economy that we all enjoy today. I also want to thank you, Ms.
▶ 1:02:09Senator Shaheen: Rios, for your service and your work on the commission as you point out, there are a number of senators on that and it has been a joy to be able to serve. So I appreciate you working with me to get a woman on our currency. We still have work to do but we are not giving up. It is great to be able to welcome Ms.
▶ 1:02:33Senator Shaheen: Grappone osmer to the small business committee and I think all of you saw that she's got a wonderful book about her family called grappone automotive, the founding, which talks about what your family has done with the business.
▶ 1:02:53Senator Shaheen: What is interesting to me that only about 12% of family businesses survive the transition from second to third generation as you are probably aware, unh actually has a center that helps small business owners tried to figure out how to make that transition to the next generation and this committee has actually done hearing on that.
▶ 1:03:16Senator Shaheen: So, talk about how you are able to survive to be the fourth-generation and I loved your testimony where you talked about the fifth generation from the family. And also what did you find in your book that surprised you about the contribution of small businesses or your family business to new hampshire?
▶ 1:03:39Mrs. Grappone Osmer: I will take the first question first because I'm 52 and I cannot remember two questions in a row but I will remember the second one. The first one as I always think of myself on a continuum so I know that I wasn't the founder, I could never be the founder of grappone automotive and god help me I won't be the one to end grappone automotive.
▶ 1:04:03Mrs. Grappone Osmer: I'm somewhere in the middle so that is the responsibility of caring the mantle of the literal thousands of people who spend their lives dedicated to my family business prior to me. That is something I take very seriously and knowing that of our three kids at least one, maybe more will come into the business, that certainly puts a different sense of responsibility on making sure it is thriving and vibrant so when they calm and take it over and want to put their mark on it, they have something viable to step into.
▶ 1:04:34Mrs. Grappone Osmer: So, that is kind of what keeps me going and I just love people. I'm not a gearhead or a car person. If I never go to another new car show in my life, that will be soon enough. [laughter] no offense.
▶ 1:04:46Sen. Shaheen: We won't report that back. [laughter]
▶ 1:04:51Mrs. Grappone Osmer: I love what cars do for our economy and freedom and independence, but do I get excited when I hear a loud engine? No. The people, that is what keeps me back -- coming back. I always swore I would never be in the family business because I was not a car person but it turns out it is a people business all day long and I did forget the second question.
▶ 1:05:13Sen. Shaheen: The second question was whether there was anything that surprised you learning about your family and their contribution?
▶ 1:05:19Mrs. Grappone Osmer: Maybe not so much a surprise, I think I would have to think more about that question but what really did strike me in the research is that my great grandparents, much like the french canadians, could not get a loan to save their lives. One of the stories I tell it the very end of the book where they are about to buy the gas station is the president of the bank, Mr. dudley, went to their home to shake their hands and to meet them and just to see what is this family all about?
▶ 1:05:48Mrs. Grappone Osmer: I was like, man, I wish it were like that now. I forget -- I get that there is the scale of it and it is impossible to visit every customer who wants your business or to take a loan out, but just that notion that you could look someone in the eye and shake their hand and understand some -- enough about them to understand and trust they would pay you back. I wish that were real still. It is probably very much alive in certain places, but when it comes to getting a bank loan, that has not been my experience.
▶ 1:06:18Sen. Shaheen: Know, and it is particularly telling given that one of the biggest challenges small businesses have is that access to capital, which is so hard to come by. I know. I think there are a number of movies about those bankers who were able to do a handshake and provide the loan, which sadly we don't have any more. Thank you all again.
▶ 1:06:45Chair Ernst: Thank you, I will recognize ranking member markey for five minutes.
▶ 1:06:50Senator Markey: Thank you, I released a report on the small business impact of the trump administration's cruel and callous raids on immigrant communities and the findings are devastating. Dinan restaurants' sales fell by as much as 60% in chicago during operation midway blitz. Small businesses lost $81 million in revenue in minneapolis after operation metro surge.
▶ 1:07:17Senator Markey: Ice operations in orange county operation resulted in lost economic output over an eight week period. In massachusetts, almost a third of small businesses say that immigration enforcement has impacted them, over 40% of latino owned businesses in the commonwealth say they have been impacted by the I.c.e. Raids and the presence has made their staff afraid to go to work and customers afraid to go to the restaurants.
▶ 1:07:47Senator Markey: These anti-immigrant actions are unconscionable. If this administration were to go back and study history, they would see that immigrants made america the dynamic nation that it is today. Ms. sweet. Because of the trump administration's immigration tactics, what are you seeing that differs from past waves of prejudice against immigrants in america and would you agree that history shows that policies that welcome immigrants pave the way for our communities?
▶ 1:08:18Ms. Sweet: [inaudible] we are absolutely seeing an extraordinary chilling effect of this administration's immigration enforcement policies on our communities and as you point out, senator markey, it is on such a wide range of individuals and the immigrants themselves are afraid to sometimes send their children to
▶ 1:08:48Ms. Sweet: School, to even attend doctors appointments and certainly at times to show up to work for be in any public setting. And that includes immigrants who are here with lawful status because of the wide-ranging enforcement policies of this administration has pursued so the reality is that we are going to begin seeing more and more economic impacts.
▶ 1:09:13Ms. Sweet: We are going to begin seeing a downturn in some of these businesses we have been talking about that have been powered by immigrant owners and immigrant workers. And, you know, we are deeply concerned for what this is going to mean for our economy in particular sectors. Youth in about a massachusetts how much our health care sector depends on the contributions of immigrants from home health aides to nurses to doctors.
▶ 1:09:43Ms. Sweet: Our history does show that welcoming immigrants, giving immigrants a pathway to economic inclusion, a pathway to create those businesses and grow those businesses creates greater prosperity for all of us.
▶ 1:09:56Sen. Markey: Thank you, thank you so much. Refugees denied tps status, the nursing home system in massachusetts will collapse, so it is so tied to our economy. The committees witness from south carolina mentioned dave the potter, and enslaved potter from the 19th century. Because the potter made work well enslaved, he had no control of how or when or how much his work was sold.
▶ 1:10:29Sen. Markey: These million-dollar works did not benefit him or his current living descendants. As one descendant said, these pots are assets and families are going to use them to build generational wealth and our kids who are actually relatives are buying student loans. Why should this growth benefit other families and not ours question I want to thank Mrs.
▶ 1:10:50Sen. Markey: Dority for bringing this specific family delight because it highlights how past injustices in history live with us right to the present day, including the racial wealth gap because not all entrepreneur holes -- entre norse, patriotism means acknowledging our full history and working to address injustice.
▶ 1:11:18Sen. Markey: The museum of fine arts in massachusetts agreed to return two of dave's jars in its collection, recognizing the legacy trust as the legal owner finally. I'm very proud of the museum of fine art in boston and the restitution work, which is just the beginning of returning generational wealth, so thank you. Thank you, madam chair.
▶ 1:11:41Chair Ernst: And I will now recognize senator coons for five minutes.
▶ 1:11:46Senator Coons: Thank you to this panel and thank you, rosie, for your remarkable services treasurer, your generosity of spirit and the time you have spent in preparing for this in -- important semiquincentennial. I look forward to following up with you at this competition to see if there's any way I can be engaged or supportive.
▶ 1:12:08Senator Coons: As he well testified to, we are a nation of relentless dreamers, workers, innovators, folks who take a chance, and who are able to build generational wealth or who are just willing to put their shoulder to the wheel of making the american economy work and work better than where they came from, work better for their community and their future.
▶ 1:12:30Senator Coons: Every small business starts as an idea scribbled in a notebook or written down at a coffee table or kitchen table or in a conversation with a community banker that if successful ultimately turns into something lasting. Delaware was the first state to sign the constitution and I've been excited about this committee since I got here and excited to contribute to the success of small businesses in our country.
▶ 1:12:55Senator Coons: I'm from a family of entrepreneurs, my stepfather started a business in the basement with his father and I played a role in trying to help the second to third generation, third to fourth generation transition to actually succeed and I will tell you that a banker named jack riddle who works for community bank and delaware literally stood -- still does that. It is a small community bank. I make time when he comes to visit every year because I have seen him do it but you are right the vast majority of loans are no longer in that way.
▶ 1:13:24Senator Coons: But I do also think back to the time when my grandfather went to a local banker and it took five tries, but eventually he agreed and it produced a 70-year relationship. If I could, Ms. rios, you talked about ai, technology has always been a disruptive force. It has opened up new opportunities to take on incumbent technologies and it has been a key part of our economy. Back to the mills and dupont company along the banks.
▶ 1:13:58Senator Coons: How are emerging technologies in particular those powered by ai creating new opportunities and what should we be doing to help small business owners take advantage of the opportunities and manage the risks?
▶ 1:14:10Ms. Rios: I think the way you phrased that question is absolutely perfect and thank you again for your support along the way. Ai like any new technology is a double-edged sword. It has its benefits and risks and how do we now 18 years since I came to be part of the transition team, in those 18 years and five administrations later, it is amazing to see how a lot of these emerging technologies have disrupted
▶ 1:14:41Ms. Rios: Every step along the way. You think about what happened in 2007, it was the iphone that was the biggest disruptor of modern technology and modern history so to see what has happened since then with social media, to see what -- with any of the technologies, that includes cybersecurity. It is pretty fascinating. But that is the spirit of america.
▶ 1:15:12Ms. Rios: Ai is a fabulous tool, when used responsibly. We use artificial intelligence even in designing our own programming. How we think about our data, our research, is using ai.
▶ 1:15:30Ms. Rios: I do think as long as there are responsible guardrails in place, as long as there are educational opportunities, which we are also looking at, these educational components that have to be part of that journey to what it means to be a business owner -- one of our partners has even offered fellowships to provide those opportunities for understanding how to use technology in your
▶ 1:16:02Ms. Rios: Favor. And I think it is kind of late in the game. We have to think about being more responsible in providing that path forward. I see it as a blessing and a curse. I see it as the absolute opportunity if utilized responsibly.
▶ 1:16:18Sen. Coons: Every business leader I meet, I asked, how is ai impacting your business? A stunning array, large and small. Understanding positive consequences but also, as you say, responsible guardrails. Legislation is something we have not moved quickly enough on. Ms. sweet, forgive me.
▶ 1:16:48Sen. Coons: I may go on a minute or two here. My father did a lot of work with cap ovarian -- capo verdian fisherman. And was involved with some very hard by outs of families that were in some cases five generations of fishing from gloucester. Immigrants have been central to the success of entrepreneurship in the united states.
▶ 1:17:19Sen. Coons: What do you think we most need to do to help welcome and encourage immigrant entrepreneurs? Thank you for your work. It was an anchor to refugee resettlement programs in delaware. For a long time, my own church partnered with a synagogue to welcome refugees. And more recently, from the middle east.
▶ 1:17:47Sen. Coons: It has been challenging working through the impacts of refugee resettlement. Many of the refugees who came to my state were very eager to start businesses, very hard-working and wanted to contribute to our economy. What should we be doing to help?
▶ 1:18:06Ms. Sweet: There are so many ways we can support and continue to encourage. And I think that ranges from ensuring that we continue to be a welcoming country, that our leaders continue to express that immigrants are welcome and a part of the fabric of this country and this history we have all been speaking about.
▶ 1:18:31Ms. Sweet: There are many very real policy choices that would help facilitate economic and social inclusion, from ensuring that we have appropriate funding for services, so people can more quickly learn english, access to citizenship programs, and something that is very relevant to the work of this committee,
▶ 1:19:04Ms. Sweet: The reality including for inter-print -- immigrant entrepreneurs. The small business administration just announced a change in policy which is affecting the ability of green card holders to access sba instruments. This will have a detrimental impact on the entrepreneurs of today.
▶ 1:19:34Sen. Coons: That is an unfortunate policy change that I oppose. I have had staff who were the children of first generation immigrants. In some cases they left here to go back to delaware and start their entrepreneurship. I have imposed on your patience, madam chair.
▶ 1:20:01Sen. Coons: The sweetgrass baskets you spoke of were beautifully displayed at m event that I was at. I had been there many years ago, but we were visiting a new museum. Do you think opportunities like that -- there was a display of low country -- almost all african-american women.
▶ 1:20:30Sen. Coons: There has been some debate about the viability, desirability of small business programs focused on women entrepreneurs or minority entrepreneurs. Have you seen that succeed in charleston? Do you think it is part of how we, in the end, can help promote our tourism?
▶ 1:20:52Sen. Coons: Is it credible to say we need slightly different or a more attuned program for small business owners to get started who come from different backgrounds and have different resources in terms of access to credit or understanding the system, or whatever it is?
▶ 1:21:13Mrs. Dority: I mention tiny castle, a business of african-american and asian descent. It is getting mentions in magazines. I think of another african-american female-owned business, lilies. They do hot sauce and spices in the gullah tradition. And they make a favorite snack in our house.
▶ 1:21:40Mrs. Dority: I do see these businesses need very specific help that they might not have had otherwise. And that sees them through to now doing larger partnerships that get them the attention that they deserve as small business owners doing something really unique and based on their heritage.
▶ 1:22:03Sen. Coons: I have seen successful programming in my home state for veterans, for those who are older, for women, for minorities. I have seen that ultimately connected to programs who are available -- which are available for everybody. We have to find a way to make that successful.
▶ 1:22:24Mrs. Dority: I hope you ate well when you visited.
▶ 1:22:29Sen. Coons: I ate very well. Some would suggest too well. Senator scott -- a family business. What a great thing. What are the tax and regulatory and other challenges that we impose that maybe make it difficult for the second, third, or fourth generation? What is the value of a family business that goes from small to medium to large? Why does it matter?
▶ 1:23:02Sen. Coons: Why not just have tax rules that make it almost impossible to pass to the second or third generation?
▶ 1:23:10Mrs. Osmer: I don't understand tax law because it is so complicated. We cannot give you an intelligent answer. I will just say there are a lot of generations that have to be gone through to make sure you plan properly so your business does not disappear because of taxes that have to be paid from one generation to the next. To me, the value of a family business is its soul.
▶ 1:23:41Mrs. Osmer: I said earlier, I did not found grappone automotive. Every generation has to become the founder for that generation. For me, the through line has been constantly caring for community. My great grandmother, she had an enormous garden. She had seven kids. She had an enormous garden. And my grandfather would always tell the story.
▶ 1:24:10Mrs. Osmer: When people stopped by, neighbors in need, it was her heart and her mindset to help whoever came around. And as a business, that has shined through 102 years now, looking at, ok, we need to make money so we can pay our staff and pay our taxes, but how do we support the community along the way?
▶ 1:24:34Mrs. Osmer: I went from a mayoral -- minority shareholder position, and I could have -- I have not talked about this, but I sold two of the franchises in order to buy the others. I did not want to continue in the minority position forever. And bringing in a majority shareholder would've meant having to say goodbye to the company, is much as people have really good sales pitches when you interview them and they want to be your best friend and your partner.
▶ 1:25:03Mrs. Osmer: You have to understand what matters to you, the individual. For me, the entire mission statement is building relationships. And I just know, especially in an aggressive, competitive market like mine, it is really easy to slip away from what means the most because you can justify I have bills to pay. That is a slippery slope.
▶ 1:25:29Mrs. Osmer: For me, having to shrink the business but stay who we are -- that means a lot.
▶ 1:25:39Sen. Coons: When you have a multigenerational business, the name attaches and you earn a reputation. We bought every car we have had for 30 years from the same dealership. When I got my first car insurance, it was the same agent as my stepfather and his father. These multigenerational families earn a reputation. If it is positive or negative in a small town like where I am from -- you say, they will do right by you.
▶ 1:26:07Sen. Coons: If there is a problem, they will take care of it. You pay more for the service, but you know who you are dealing with. And I live in what was Mr. diver's home. They have done right by us. But I think that at the heart of community is reputation, where you are held accountable by your customers. Treat people well, and you are rewarded and respected.
▶ 1:26:39Sen. Coons: I appreciate your forbearance, madam chair. I appreciate all of you for taking the time to come and testify. Small business really is the heart of america. In some ways, this is our most important committee.
▶ 1:26:52Chair Ernst: Let the record reflect that chair ernst allowed senator coons an additional 10 minutes. [laughter] and well worth it. I do want to thank our witnesses today. Really extraordinary stories about what small business brings to this incredibly great nation. Ms. rios, thank you for serving on america's 250.
▶ 1:27:21Chair Ernst: I look forward to seeing so many of the celebrations as they come forward, and what we can do to further support our small businesses and entrepreneurs. And thank you to the other witnesses as well for sharing your own personal journeys and the journeys of folks you have been able to assist along the way. It is truly what makes our country great. Thank you so much for sharing your time with us today.
▶ 1:27:45Chair Ernst: I ask unanimous consent that the record of today's hearing remain open for two weeks for members to submit questions, revise and extend their remarks, and submit additional information into the record. Without objection, so ordered. With that, the committee on small business and entrepreneurship stands adjourned. Thank you to our witnesses.