Here's an interesting chart from the National Federation of Independent Business (via Economix) that breaks down each of the problems that small businesses cite, going back to 1986. You'll notice that only a minority - around 20 percent - says taxes are the biggest hindrance for them, and that percentage has remained about the same for the last decade. What are small business owners most worried about? What else? - low demand. And there's no easy policy cure for low demand.
Exactly how to address soft demand, though, is even more complicated and contentious than supply-side policies like cutting taxes or providing interest-free loans.