On the Money

How the SBA's Linda McMahon intends to grow small businesses in the face of budget cuts

Engine of the Economy
Engine of the Economy

Who is your employer?

There is nearly a 1 in 2 chance it is a small business, with almost 58 million Americans being employed by one.

In fact, small businesses currently make up 99 percent of all American business, and are so important to the economy that there is a federal agency designed to promote them and their role in the economy.

However, many Americans do not understand the work the Small Business Administration (S.B.A.) is doing, and that is something new administrator, Linda McMahon is trying to change. She plans to roll out a new marketing campaign within the next year.

"Learning how to develop business plans, how to grow, how to pitch your business when you're trying to get investors, or to move into a different market and those are aspects of S.B.A. that are not as well known," McMahon, a former Republican Senate candidate from Connecticut and the former CEO of WWE, told CNBC's "On the Money" recently.

The main goals of the S.B.A. are capital, counseling, contracts and disaster relief.

"We try to encourage or at least guide entrepreneurs who may have services or products that could be bought by the federal government. The federal government is the largest purchaser of goods and services in the world," McMahon told CNBC's On The Money.

Those goals are being challenged, as the agency is facing a 5 percent budget cut. McMahon said the agency plans on doing some restructuring.

"What we have done is look inside S.B.A, and what I have found is there are some duplicative programs that we are going to be merging," she said.

McMahon's passion for small business comes from her experience growing WWE with her husband, Vince.

"Do something you know and do something you are passionate about because being an entrepreneur, when you're first starting out, you're often the CEO, but you're also the janitor. You might be keeping the books, you might be everything you need to do," McMahon advised.

That's what McMahon said she has done. "My husband and I always said we never went to work a day in our lives, because we really enjoyed what we did."

On the Money airs on CNBC Saturday at 5:30 am ET, or check listings for air times in local markets.