There has been much debate lately over the benefits and drawbacks of venture capital-backed firms being eligible to receive SBIR awards. This week, I take a look at the role that the VC industry has played in entrepreneurial growth.

Here is the lead:

There has been a lot written in the past few days on how to revive the Venture Capital (VC) industry in the U.S. However, we need to keep the bigger picture in mind and avoid making the mistake of equating new firm creation, job creation and economic recovery to the health of the VC industry. VC investments are only one component of the capital market for new firms. Policymakers’ efforts should focus on the larger entrepreneurial ecosystem, rather than just on the VC industry.

Now read the rest.