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The Policy Dialogue on Entrepreneurship Informs and connects thought leaders looking to understand policies that help entrepreneurs start companies, create jobs and strengthen the economy. Sign up to receive our weekly update!
Last week, Rep. Sam Graves (R-MO), the Chairman of the House Small Business Committee, made headlines when he proposed nearly $100 million in cuts to the U.S. Small Business Administration’s FY 2012 budget.
This week, Federal Reserve Chairman Ben Bernanke delivered his semiannual monetary update to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services. The prospect of higher commodity prices has the potential of squeezing business owners’ profitability at a most inopportune time – when otherwise the economy itself is starting to get some traction.
Innovation is the lifeblood for many entrepreneurial ventures. As William Baumol has written, innovative inventors help to push our economies forward in “revolutionary” ways, helping us to stay competitive and bring new ideas to the marketplace.
When making long-term investments, either on physical capital or for research and development, businesses need certainty from Washington. When President Obama signed the “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010” (H.R. 4853) on December 17, 2010, among its many provisions, he reauthorized the Research & Experimentation Tax Credit, which is more commonly known as the R&D tax credit.
On March 16, the House Republican leadership hosted a forum on job creation with business leaders from across the country discussing the obstacles to growing their companies. Majority Leader Eric Cantor said, “We believe that you need to listen to those who are willing to take a risk and bet on America.” He added that we should ensure that we best position our country for entrepreneurship. Speaker of the House John Boehner said that many Americans continue to ask, “Where are the jobs?”
On March 9, the Senate Small Business and Entrepreneurship Committee reviewed the “SBIR/STTR Reauthorization Act of 2011” (S.493). It would reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs for the next eight years.
America needs more startups, especially those which might someday grow into high-impact, high-growth firms. Despite adding over one million net new jobs in 2010, the U.S. has over 7 million fewer nonfarm payroll employees today than at the end of 2007 when the recession began. Research from the Kauffman Foundation and others support this notion, with startups accounting for most of the net new jobs in the economy and adding new vitality to the marketplace.
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