Here’s the reality today: two out of three new American
jobs are created by companies less than five years old. Small
and medium-sized enterprises (SMEs) are powerful — indeed
essential — engines of economic growth and job creation, not
to mention tax revenue.

Unfortunately, not enough SMEs are geared toward competing
internationally, despite the vast potential that exists in many
global markets.

One of the great, largely untold economic stories of our
time is the mutual dependency between America’s multinational
corporations and small and medium-sized enterprises. Today,
large U.S.-based global businesses directly employ 22 million
Americans and support more than 41 million additional American
jobs through their supply chains. That’s nearly one in three
American workers.

Ironically, too much of our national discussion about job
creation and tax policy separates small businesses from big,
public multinationals. Most state governments, which are on the
front lines of attracting and retaining key businesses, are
better equipped to recognize this mutual dependency and create
policies conducive to growth across the board.

Governors can provide invaluable leadership in this regard,
given the levers they have to attract investment and connect
local companies to overseas markets. And this is about more
than states competing for business relocations and expansions.
Such initiatives are fine, as far as they go. Instead, we urge
each state to make the most of its unique competitive
advantages.

One state that has done a good job in this area is Texas,
which over the last five years has been responsible for 80
percent of America’s new private sector jobs. At a time when
some other states have increased taxes, added more government
bureaucracy and placed onerous restrictions on development,
Texas has created an environment that is decidedly pro-business
and pro-global trade.

In fact, small businesses in the Lone Star State accounted
for about $70 billion in exports last year, helping Texas
continue to lead the nation in export trade — something the
state has done for nine consecutive years.

Other states could enjoy similar success, we believe, by
organizing SME global competitiveness councils that tap into
the golden triangle of business, government and civil society.
These councils could include leaders of SMEs, larger companies,
unions, area business councils, consulting firms and financial
institutions.

We think state competitiveness councils could act as a
bridge between SMEs and those with overseas experience,
including business consultants and leaders of U.S.-based
international companies.

We’re also confident that U.S.-based multinationals could
help SMEs expand globally. After all, SMEs are key partners of
large companies, and most corporate leaders know they can’t be
successful without their partners succeeding, too. That’s one
reason the Coca-Cola Co makes a point of introducing our
customers and other partners to high-level business contacts
worldwide. In addition, SMEs could leverage the expertise of
retired large-company executives, many of whom would be willing
to help on a voluntary basis.

While the administration and Congress have teamed up on a
number of small business tax cuts, Washington may not
ultimately be in the best position to fix America’s
unemployment problem. We believe states can and should take the
lead in unleashing the global business potential of our SMEs
and entrepreneurs.

Consider this a call to action for state leaders and the
public. While we’re optimistic about America’s economic future
and entrust Washington to facilitate job growth, we believe
states could do more to create new jobs in the near-term by
thinking more strategically, playing to their strengths,
organizing global competitiveness councils and helping SMEs
flourish at home and abroad. And doing so requires no
additional funding or legislation.

It’s time to get behind our states and small businesses and
help them create the kind of future for America that they are
uniquely qualified and empowered to build.

(This column first appeared on the Great Debate blog at
Reuters.com here . Visit the blog here:
here )