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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!
While programs and policies will tell, if his statements and actions so far are anything to go by, President Obama is shaping up to be the “entrepreneurship” President.
With Global Entrepreneurship Week initiative, the Kauffman Foundation has been promoting the appreciation of entrepreneurship around the world and energizing the young to become entrepreneurs.
Taxes influence decisions regarding hiring, financing structure, and ownership structure. Taxes also often affect the very decision to launch a business. Given these incentive effects, yet another important task for this Administration should be to question whether our taxes are helping or hindering entrepreneurially-driven economic growth.
I was alarmed last week to see the House introduce a health care overhaul bill with a measure to punish certain businesses that do not provide health insurance. Companies with payrolls exceeding $400,000 will have to pay a penalty equal to 8% of payroll. Companies with payrolls between $250,000 and $400,000 a year would pay between 6 and 2 percent, and only those with less than $250,000 would be exempt.
It is inevitable that a healthy economy will create new job opportunities, while also displacing existing jobs, as successful ventures survive and grow while others fail– even in good times. The process of job creation and economic growth relies on the constant “churning” of firms. Even so, new firms are responsible for the large majority of net new jobs in the U.S. From 1980-2005, firms less than five years old accounted for all net job growth in the country. This is why we need to approach labor rules carefully.
Many readers of this blog are familiar with the Kauffman Foundation and its work around the role of the entrepreneur as the chief agent for innovation, job creation and economic growth. Today, I would like to comment on another contribution of entrepreneurship to society- the expansion of human dignity.
The economic downturn has placed a new focus on how to generate more “job creators” in our economies and made the idea of a global celebration of entrepreneurship as a path back to positive growth rates especially relevant. This past Saturday marked the 100-day countdown to what is now the largest entrepreneurship event in the world, kicking off November 16th, 2009 - Global Entrepreneurship Week - and I am asking for your help.
As with any politically loaded term, any attempt at honest discussion of ‘regulation’ risks getting caught up in a web of assumptions and intellectual shortcuts. One common fallacy is to put government regulation (e.g. patent laws, health care, tax compliance regulations, etc.) on one end of a continuum in which innovation and entrepreneurship are the opposite policy preference. However, a new approach seems to be emerging in innovation discussions: that the freedom to innovate is not governed by how much or how little regulation innovators face, but how smart it is.
Last week, I highlighted the need for a smart regulation framework that doesn’t inhibit entrepreneurship. Today, I would like talk about liability litigation in more specificity. All businesses should be concerned about the inherent risk of bringing a new product or service to the market. However, entrepreneurship can suffer if liability litigation is pursued in ways that create too much uncertainty.
Before the August congressional recess, key Senators anticipated that an immigration reform bill will be ready for the Senate to consider this fall. Given that congressional action on immigration could start soon, it is time again to highlight why the U.S. needs a smart immigration reform that considers high-skilled immigrants’ contributions to the economy.
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