SBA chief McMahon talks wrestling, taxes
Linda McMahon, the co-founder of wrestling entertainment company WWE Inc. and President Donald Trump’s pick to lead the Small Business Administration, was in Phoenix on Thursday on her tour of all 68 SBA district offices.
She used the occasion to promote the Republican tax overhaul now under consideration by Congress and to talk about her work with the SBA, which was created by Congress to assist small-business owners.
WWE is an international company that produces live events, licenses merchandise and has its own network. McMahon stepped down from the business in 2009 before launching bids for Congress in her home state of Connecticut.
Her husband, Vince McMahon, remains as CEO of the company and their daughter Stephanie McMahon works as chief brand officer. Stephanie’s husband, Paul Levesque, is an executive vice president with the company and performed as wrestler “Triple H.” The elder McMahons also have a son, Shane, who has been involved in the family business.
McMahon talked about taxes and a little about wrestling on Thursday.
She said small-business owners would see lower tax bills under the plan in Congress and that they could reinvest those savings into their operations.
“I haven’t talked to one who didn’t tell me they would reinvest those savings,” she said. “What you will find so often is they care so much for their employees. They would rather pay them more money and keep them.”
She acknowledged differences in the House and Senate plans but said that compromise would make a better deal.
“The process is correct that we are going through right now,” she said, adding that as a CEO, she found the only deals that last to be those where all sides worked a compromise.
The following is a portion of her interview, edited for space and clarity.
Question: Have you learned anything surprising about the SBA since your appointment?
Answer: “I believe SBA is the bestkept secret in the entire country. One of the things I found out when I came on board was people really think mostly of SBA as a source for loans instead of really understanding all of the mentoring and networking capabilities ... to help businesses.” Q: How is the economy affecting demand for SBA services?
A: “The improving economy has really given entrepreneurs a great deal of optimism. In terms of more starts for businesses, those starts are up. We are granting more loans than we were before . ... That is going to help the economy. Small businesses are the backbone of the economy.”
Q: What is different for entrepreneurs today vs. when you launched WWE?
A: “I’m not sure that entrepreneurs today face any kind of different challenges than ... 1982 when we were just getting launched. It is really always about access to capital, access to knowledge and information, how you are going to put your business together, how are you going to utilize cash, are you properly capitalized or not. Are you managing your cash flow? And then when you get to a certain point in your business, are you ready to expand. No business can stay at status quo. You have to grow, or you are going to start sliding back.” Q: Your favorite WWE wrestler?
A: “There is this one wrestler named Triple H that has a very special place in my heart.” Q: What’s the most important lesson you learned running an international company?
A: “When you are running an international organization, you have to really make sure that you understand the culture of the market. Cultures do change and cultures do matter in how goods and services are purchases and used. It is incumbent upon any business going in to a new environment, whether that’s international or whether that’s crossing state lines or whatever, to understand the marketplace. Because ultimately the only way your business can grow and thrive is if you are serving the marketplace properly.”