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In the hopes to continue a much-needed conversation on how to revamp the economy, this week I would like to highlight another policy recommendation that emerged from the Kauffman Foundation’s State of Entrepreneurship address: reform immigration policy to attract migrants who want to start new companies and create jobs.
At a time when we need risk-takers to start companies and create jobs, we need to do everything we can to remove unnecessarily burdensome regulations that dampen entrepreneurship. A high-impact, low-cost reform would be to make some of the more onerous requirements of the Sarbanes-Oxley Act of 2002 optional. This would permit companies whose shareholders don’t feel that the benefits of “SOX” requirements outweigh compliance costs to access public capital more quickly and less expensively. This kind of access to capital is critical for the survival of young firms, which have accounted for all net job growth in the United States in the past two decades.
The unemployment pressure does not appear to abate. Layoffs continue every day and despite massive government intervention for economic recovery, there is little evidence of anything more than a slow, prolonged recovery. It is time to give a payroll tax holiday for young firms.
Haitians have received help from governments, the private sector and the philanthropic community around the world to deal with the awful devastation, but the long term goal of rebuilding a nation and constructing institutions from scratch will require sustained commitment to the country. I can’t think of a better group to enlist in this task than Haitian entrepreneurs. The needs of the businesses affected in this region are extraordinary, but so is their potential to become agents for restoration.
Last June, President Obama announced in Cairo, Egypt that the U.S. government will host a Summit on Entrepreneurship to identify how we can deepen ties between leaders, foundations, and entrepreneurs in the U.S. and Muslim communities around the world. Throughout April leading up to the April 26th summit, I will comment on the state of entrepreneurship in some of the nations participating which I will be attending in the hope of prompting further observations from readers.
This morning, President Obama addressed the Presidential Summit on Entrepreneurship organized by the Department of State and the Department of Commerce following his promise in Cairo last June. The event is designed to promote entrepreneurship in Africa, the Middle East, and South, Central and Southeast Asia as a tool for economic and development policy and to fulfill the President’s commitment to broaden and deepen ties between the United States and Muslim communities around the world.
Having focused last month on efforts to further entrepreneurship abroad leading up to the global Presidential Summit on Entrepreneurship, this week I wanted to focus squarely on the United States ahead of next month's Global Entrepreneurship Week Partners Forum convened at the Kauffman Foundation in Kansas City. Who are some of the leading players in 2010 driving America's startup culture and how does Global Entrepreneurship Week each November enable them to combine voices in underscoring to the American people how entrepreneurs built America?
Once again, entrepreneurial activity showed big in the United States. Last year was a tough year for entrepreneurs. We have experienced a deep recession, credit crunch and record unemployment rates. But although the odds were against them, new-business creation during the 2007-2009 recession years increased steadily year to year (e.g. 60,000 more starts per month in 2009 than in 2007) and 2009 became the year business startups reached their highest level in 14 years. The number of startups even exceeded the count during the peak of the 1999-2000 technology boom.
There has been a lot talk in the past year about job creation, entrepreneurship and economic recovery. Under the economic pressures, it became more important to than ever to examine closely how to unleash the entrepreneurial potential of various groups in society. We know for example that women are under-represented among business founders in high-tech and other high-growth fields despite their increasing participation in science and engineering. Fortunately, we are better prepared every day to inform policy. Today, I examine some of the most recent findings on the factors that affect the survival and growth of startups founded by women.
The spirit of entrepreneurship was alive and well at last week’s Presidential Summit on Entrepreneurship. The White House took a political risk in hosting a summit on “global” entrepreneurship in a climate when so many Americans, anxious about their local economy, are easily blinded to the vital role entrepreneurs play in building the stable economies overseas essential to our growing firms back home. The summit though was a foreign policy success and a solid statement of support for the role all entrepreneurs play in creating jobs and economic growth.
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