David
Keene: Political Pro Helping
Small Public Companies on Capitol Hill
If
there's a meaningful improvement in the business climate for
small publicly traded companies anytime soon, some pro-business
supporters think partial credit ought to go to David Keene at
the American Conservative Union.
As chairman of this
37-year-old advocacy group, with more than 1 million members,
Keene has been instrumental in making leading members of Congress
and key committee staff more aware of issues affecting the nation's
small business community.
"Keene is one
of the unsung heroes who is gradually making a difference in
the on-going fight against government regulation," says
Washington insider Jack Wynn, CEO of Jack Wynn & Co. and
chairman of the National Small Public Company Leadership Council.
"As head of America's premier conservative grassroots organization,
he is raising awareness, and that's the first step toward easing
the regulatory burden on companies."
Keene believes the
role of small business in the U.S. economy is largely taken for
granted and needs a champion to help remove the roadblocks that
have been put in front of them. Some of the country's most successful
corporations would never have gotten this far if, when they were
launched, they had faced the same regulatory gauntlet that exists
today, he says.
Keene, a Washington
veteran, has had a ringside seat to the policymaking process
since the early 1970s, when he worked in the Nixon Administration
helping identify issues vital to the nation's future. But Nixon
was just one of three presidents he has advised. He was a key
member of former President Ronald Reagan's campaign team in 1976,
served as national political director for former President George
Bush in the 1980s and today is very close to George W. Bush's
White House. Keene also served as a senior consultant to the
former Senate Republican leader Bob Dole in his presidential
campaigns.
Keene considers part
of his mission at the American Conservative Union as maintaining
a healthy skepticism of government regulation, especially as
it pertains to small business. But he has made it clear to companies
that the ACU won't serve as a lobbyist on their behalf. "We're
not beholding to any one company or industry, per se," he
says.
Rather, the ACU is
interested primarily in the public-policy implications of excessive
government regulations. "Our concern at the ACU is whether
government may be strangling in the cradle nascent companies
and ideas that otherwise could benefit large numbers of Americans,"
he says.
No one is government
set out to harm small business, Keene points out. The problem
is that government regulates to prevent the most egregious cases
of abuse and in the process, winds up hurting a lot of companies
running ethical businesses. "Government tends to be heavy-handed,
and if no one plays the role or arbitrator or questions the cost
of regulations, there is no balance. We are trying to provide
that balance."
"We've compiled a lot of anecdotal evidence that more small businesses are finding it increasingly difficult to raise capital, and that has long-term negative implications for the U.S. economy," says Keene.
Keene and the ACU aren't the only ones who share these concerns, of course. The challenges facing small publicly traded companies also are a major focus of the National Small Public Company Leadership Council, a Washington-based political action group organized to educate the White House and Congress for SEC reform. Keene was among several high-profile Washington insiders, including economic conservative leader Jack Kemp and Rep. J.C. Watts (R-OK) and Rep. Jennifer Dunn (R-WA), who used a recent Council meeting as a forum to promote SEC reform.
On June 26, the House Financial Services Subcommittee on Oversight and Investigations, chaired by Rep. Sue Kelly (R-NY), is holding a hearing entitled "The SEC's Role in Capital Formation," The theme of the hearing is small business access to the capital markets and whether the SEC is helping or hindering small public companies.
For his part, Keene is pushing for congressional hearings to explore the regulatory hurdles that small companies are being forced to clear just to raise the money they need to fund future growth. "The more difficult business climate is dampening innovation," he says. "We feel like we've made some progress, but there's a lot left to do."
Wynn thinks there is no one better suited for the job than Keene. "He's got the credibility and the know-how to reach all the constituents," he says. "I don't think there's any question that Keene will accomplish much of what he has set out to do. If that's the case, we all stand to benefit because of the enormous contribution small business makes to the whole economy."
