Fred Smith: Small Business Hobbled by Regulations, Work Rules; Restraints Threaten Entrepreneurial Sprit, U.S. Economic Growth

Smith praised the contributions of entrepreneurs to the globaleconomy, noting that the Small Business Administration reports:

-- Small businesses make up almost 98 percent of all U.S. employers.

-- Small business creates 65 percent or more of America's net new jobs.

-- Most of the more than 10.5 million minority- and women-owned businesses in the U.S. are small businesses.

-- Small businesses are 97 percent of America's exporters and produce 26 percent of all export value.

Entrepreneurs are breaking the traditional-workplace mold as theybuild their businesses and need more flexibility to successfullycompete in the global marketplace. The new workplace model comprises avariety of patterns, working from home, hours outside the nine-to-fiveroutine and contracting with other businesses, for example.

'Hamstrung by old rules'

"One problem is that while both the traditional and the moreinnovative work models are flourishing side by side, the definitionsand regulations governing them are built on the one employer-onepaycheck model," Smith said. "In short, the new players get hamstrungby old rules."

Smith's comments echoed a recent special report by the U.S.Chamber of Commerce titled Work, Entrepreneurship and Opportunity in21st Century America. "It is critical that the American economymaintain the freedom and flexibility that workers and companies needto adapt and excel in an ever-changing, competitive environment," thereport said.http://www.uschamber.com/publications/reports/0604entrepreneurial_workforce.htm?n=bl (Due to its length, this URL may need to becopied/pasted into your Internet browser's address field. Remove theextra space if one exists.)

Besides hurdles within the United States, international obstaclesrestrain both entrepreneurial and big-business economic growth, Smithsaid. Restrictive trade barriers, erected decades ago to protectnational interests, stifle external competition from large and smallcompanies, and create artificial market distortions.

In a FedEx-commissioned study of 2,100 small businesses, almost aquarter of respondents said that duties and taxes were a barrier totheir operating globally; about a fifth said that access to logisticaltools and resources was also a problem. "If these confusing customsregulations, duties and taxes are difficult for large companies, theyare excruciating for small ones," he said.

Smith urged conference participants and government officials to bemindful of small business when crafting regulations. "To encourage thegreatest economic growth, we must allow the American entrepreneurialspirit to flourish in every possible way."

FedEx solutions

FedEx offers technology and solutions that allow small businessesthe same global access as a Fortune 100 company. This includesFedEx(R) Global Trade Manager, which is a comprehensive resource onfedex.com that assists customers with shipping to and from variouscountries. FedEx Insight(R) proactively tracks the status of inbound,outbound and third-party shipments to provide package status summarieson shipments in a single report and pinpoints customs delays andoffers solutions to expedite deliveries.

FedEx Kinko's also provides a reliable, virtual office for smallbusinesses with more than 1,300 FedEx Kinko's Office and Print Centersacross the U.S. offering a full range of FedEx shipping services aswell as copying, printing, Internet access and more.

In April 2006, FedEx launched a new Small Business Resource Centeron fedex.com - www.fedex.com/smallbiz. The site features customizednavigation and content tailored to small business needs includingaccess to logistical tools and resources to help them compete intoday's global economy.

About FedEx Corp.

FedEx Corp. (NYSE: FDX) provides customers and businessesworldwide with a broad portfolio of transportation, e-commerce andbusiness services. With annual revenues of $32 billion, the companyoffers integrated business applications through operating companiescompeting collectively and managed collaboratively, under therespected FedEx brand. Consistently ranked among the world's mostadmired and trusted employers, FedEx inspires its more than 260,000employees and contractors to remain "absolutely, positively" focusedon safety, the highest ethical and professional standards and theneeds of their customers and communities. For more information, visitwww.fedex.com.

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