America's New Business Plan

Summary of Study

Bottom Line: Policymakers are taking entrepreneurs for granted. Yet entrepreneurs create nearly all the new jobs in the country and fuel innovation. Policymakers must reduce the barriers to entrepreneurship to foster innovation, job growth, and opportunity for all. Anyone with an entrepreneurial idea should have the opportunity, funding, knowledge, and support to turn it into a reality. America’s New Business Plan lays out a set of ideas for supporting and promoting entrepreneurship.

Entrepreneurship is deeply embedded in America. America itself was founded as a startup nation. Entrepreneurs have guided economic revolutions in agriculture, industry, technology, and service that have propelled standards of living upward. Contrary to popular conception, entrepreneurship is not about billionaires but about ordinary Americans having the opportunity to support themselves and their families and improve their communities.

Millions of Americans want the opportunity to shape their own destiny, start a business, and pursue the promise of a better life. More than 40% would quit their job and start a business in the next six months if they had the tools and resources they needed.

Businesses that are less than 5 years old create nearly all of the net new jobs in the American economy, including fueling net new job creation during economic downturns. Yet starting and building a business has become harder and rarer in most of America; the rate of new entrepreneurs has essentially been flat for the past 20 years.

Entrepreneurship is the answer to many of the economic challenges facing the country. Yet policymakers continually overlook the entrepreneurs they should champion. Many entrepreneurs do not feel that policymakers are fulfilling their role as active contributors.

America's New Business Plan lays out four topline steps as well as a series of substeps that policymakers should follow to become champions of entrepreneurs now. 

1) OPPORTUNITY -- A Level Playing Field and Less Red Tape.

  • Policymakers should prioritize the development of supportive ecosystems that help everyday Americans start businesses and they should cut red tape that holds people back.
  • Require an Entrepreneurship Impact Statement (EIS) for all new laws, regulations, and rules developed that affect businesses less than 5 years old.
  • Create a single list of all requirements to start any business and easy-to-read guides that walk entrepreneurs through the permitting process.
  • Establish a startup visa that authorizes foreign entrepreneurs to start businesses in the United States.
  • Restrict the use of noncompetes through outright bans or by shortening the maximum duration.
  • Replace licensing with less onerous forms of regulation, such as certifications or permits.

2) FUNDING -- Equal Access to the Right Kind of Capital Everywhere

  • Funding streams must extend beyond traditional recipients and reach deep into the heart of America to serve communities and populations that lack access to capital. 
  • Request that Congress make substantial funding available to states for strengthening the private financing of new businesses.
  • Develop state and local entrepreneurial capital catalyst grants.
  • Unleash online tools to drive alternative funding opportunities into the heartland.

3) KNOWLEDGE -- The Know-How to Start a Business

  • Develop inclusive entrepreneur support mechanisms.
  • Integrate entrepreneurship into K-16 education.
  • Develop an entrepreneurship corps, or “E-Corps,” to mentor and train entrepreneurs.
  • Foster pro-entrepreneur workforce education and training programs.
  • Ensure a strong current of new entrepreneurs and their employees by embedding real-world learning in classrooms.

4) SUPPORT -- The Ability for All to Take Risks

  • Ensure the next generation of entrepreneurs is not locked out of opportunities to improve their economic situations.
  • Provide health care options for early-stage entrepreneurs. 
  • Provide entrepreneurs relief from student loan debt.
  • Enable reach-back contributions to retirement savings plans.

Read the full study HERE

Feature Charticle

Net Job Creation By Firm Age, 2000-2018

Blue Line - Less than 5 years
Red Line - 5 to 9 years
Grey Line - 10-plus years

 

Start Us Up

Findings:

 

  • Businesses that are less than 5 years old create nearly all of the net new jobs in the American economy, including fueling net new job creation during economic downturns.

  • The rate of new entrepreneurs has essentially been flat for the past 20 years because starting a business has become harder and rarer. 

  • America’s New Business Plan lays out a set of ideas for supporting and promoting entrepreneurship, including increasing opportunity, funding, knowledge, and support.

Read the full study HERE