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Look around and you will find a number of articles on the effects of the political stalemate / government shutdown on entrepreneurs. For “small businesses”, the effects are quite clear, mostly relating to government contracts (more than half the federal spending would go through federal contracts before the shutdown) and Small Business Administration (SBA) loans. In addition, with 62% of the SBA’s staff furloughed, all counseling is on hold until the government is back up and running. The suspension of these contracts, loans and services represents an immediate “brake” on the economy.
Each day, Innovation Daily checks the pulse of global innovation--courtesy of Innovation America. Here, we take a look at a handful of relevant stories it compiled last week.
Have you ever wondered how Richard Branson got his start as an entrepreneur? Or what inspired Marc Ecko to become a fashion mogul and serial entrepreneur. Personal lessons and insights from accomplished entrepreneurs are the basis of a new Khan Academy online interview series introduced recently by the Ewing Marion Kauffman Foundation.
Being born in Britain might explain my bias, but I find myself asking again whether we have overlooked the important leadership role of royalty in providing help from the top for bottom-up startup communities. I recently spoke with the Prince of Wales at St. James Palace in London and while he is from a different generation, I heard a man with his heart and mind fully in step with today’s unemployed youth and the path they must beat to create their own future as entrepreneurs.
As of the time this was posted, leaders in the U.S. House and Senate still have not come to an agreement to avoid a federal government shutdown for the first time since 1995. The following schedule of hearings is tentative at this point and could be altered or scrapped altogether. Stay tuned for updates.
As the debate rages on regarding whether a college education is worthwhile for young aspiring entrepreneurs, U.S. News & World Report has come out with a list of the country's top colleges and universities—including for students more interested in launching a new startup than learning about Social & Political Philosophy 101. And for the 17th straight year, Babson College was named the top school for entrepreneurship education.
With all the chatter around the Middle East, we welcome a guest post from Mike Ducker. Over the last two years, he has been the Entrepreneur-In-Residence for the U.S. State Department's Global Entrepreneurship Program (GEP) in Egypt, a project funded by USAID and centered on starting, growing and facilitating financing for Egyptian entrepreneurs. His observations show once more the remarkable similarities around the world in terms of how to support startups.
Today marks a new era in entrepreneurial finance as the measure in the 2012 JOBS Act (Jumpstart Our Business Start-ups Act) allowing “emerging growth” companies to ask accredited investors for equity investments publicly (e.g., through social media) without having to register the shares for public trading goes into effect.
If you Google 'government shutdown' and 'Congress' you should get a pretty fair picture of what the focal point is this week on Capitol Hill. Last week the Joint Economic Committee held a hearing called "The Economic Costs of Debt-Ceiling Brinkmanship." This week, the Senate Budget Committee explores a similar topic in "The Impact of Political Uncertainty on Jobs & the Economy." Meanwhile on the House side, Congressional Budget Office director Doug Elmendorf is scheduled to appear before the Budget Committee on the CBO's long-term outlook.
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