Small Firms

Targeted sectoral subsidies almost always a special interest boondoggle. And why does small business helps average citizen more than large?

On its face, "small" need not be better. To prioritize implies a loss relative to the unprioritized optimum, barring more information.

Small business is held back by the burden of its undiversified idiosyncratic risk. But I don't think the gov can do much about it.
-see background information here

Government can and should stimulate small business growth with general tax policies. How much and at the exclusiion of what is uncertain.

Generally, the government is not in a good position to pick winners/losers in the private sector, and I do not see a clear externality here.

Many "average" Americans work for large businesses. What is the point if this does not improve economic growth?

Small biz create and destroy lots of jobs, there is no reason to favor them at the expense of others
-see background information here

This could well be true, but I don't think we know. Meanwhile, favoring small businesses for job creation seems to be doubly misguided.
-see background information here

Maybe I am missing something but I see no particular reason why this sector should be favored.