Archive for the ‘Ewing Marion Kauffman Foundation’ Category

How Local and State Governments Can Rev Up Business Creation

March 27, 2015 Comments off

How Local and State Governments Can Rev Up Business Creation
Source: Kauffman Foundation

The paper recommends that state and local governments adopt several strategies to refocus their entrepreneurship support efforts, including:

  • Facilitate catalytic events that bring entrepreneurs together to learn and connect.
  • Reinvent existing public venture funds in ways that distribute multiple small investments and involve local entrepreneurs in award selection.
  • Reorganize existing incubators along a holistic format that integrates incubated firms, other local startups and experienced local entrepreneurs.
  • Identify and celebrate successful local entrepreneurs.
  • Reexamine professional and occupational licensing with an eye toward lowering barriers for startups.
  • Simplify tax codes and payment systems.
  • Rethink non-compete agreements.
  • Streamline zoning and approval processes.
  • Welcome immigrants, who have been nearly twice as likely as native-born Americans to start businesses.
  • Track the progress of whatever strategies are implemented.

While this may conflict with the goals of politicians seeking quick results, the paper emphasizes that all of the recommended strategies require a long-term outlook in order to work.

Policy Innovations to Promote Immigrant Entrepreneurship

February 4, 2015 Comments off

Policy Innovations to Promote Immigrant Entrepreneurship
Source: Kauffman Foundation

The issue of immigration reform continues to simmer as policymakers look for common ground on discussions such as improvements to the existing visa system and enhanced border security. Recently, a Wall Street Journal article referenced a report that showed an increase in the number of immigrant entrepreneurs running “Main Street businesses.”

However, according to a new Entrepreneurship Policy Digest released last week by the Kauffman Foundation that summarizes several current immigration policy ideas, it remains difficult for immigrants to bring their entrepreneurial ideas to reality in America.

Legal barriers to immigrant entrepreneurship result in lost jobs, lost innovation and lost growth in the United States.

Immigrant Entrepreneurs: A Path to U.S. Economic Growth looks at policy ideas at the federal, state and local levels for how to capture the economic benefits and growth that come from entrepreneurial immigrants,

Sources of Economic Hope: Women’s Entrepreneurship

December 10, 2014 Comments off

Sources of Economic Hope: Women’s Entrepreneurship
Source: Ewing Marion Kauffman Foundation

In 1948, the gap in labor force participation between American men and women was 54 percentage points—only one-third of American women were officially counted as in the labor force. Nearly seven decades later, the gap has narrowed considerably as women have entered the labor force en masse, and as men have experienced steady declines. As of August 2014, about 57 percent of women were counted as labor force participants, and the gap between men and women had narrowed to only 13 percentage points.

Occupational Licensing Can Crimp Entrepreneurship, According to Latest Kauffman Policy Digest

December 5, 2014 Comments off

Occupational Licensing Can Crimp Entrepreneurship, According to Latest Kauffman Policy Digest
Source: Ewing Marion Kauffman Foundation

High rates of new business creation are the sign of a dynamic economy in which barriers to entrepreneurship are low.

However, according to a new Entrepreneurship Policy Digest released today by the Kauffman Foundation, increasing licensing regulations in certain professions have the effect of building barriers to innovations and opening new businesses.

The Policy Digest states that nearly 29 percent of jobs now require a government-issued license, which is an increase from 40 years ago when just 10 percent were licensed. These requirements lead to a decreased supply of practitioners and reduce competition.

The Digest looks at different forms of occupational regulation, highlights the requirements to obtain a license, and offers recommendations to reduce barriers to entrepreneurship, including:

  • Replace licensing with a less onerous form of regulation where public health is not seriously threatened.
  • Reform licensing boards to give greater representation to non-licensed practitioners.
  • Create public committees to evaluate licensing boards, provide independent analysis of newly proposed licensure requirements, and make recommendations to lawmakers.
  • Establish mutual recognition of other state licenses to improve worker mobility and, thereby, boost economic dynamism.

eMed eBook Series

September 18, 2014 Comments off

eMed eBook Series
Source: Ewing Marion Kauffman Foundation

Sign up for the Kauffman Foundation’s eMed eBook series featuring insights from healthcare entrepreneurs who share their real-world experiences with other founders making their way in the healthcare space.

The ongoing series will address topics that matter to healthcare entrepreneurs – approaches and solutions that will help break through to their customers (whether they’re hospitals, insurance companies, patients or beyond).

The eBook content is sourced from stories told every week on eMed, the home for healthcare entrepreneurship.

Entrepreneurship’s Role in Economic Development

June 26, 2014 Comments off

Entrepreneurship’s Role in Economic Development
Source: Ewing Marion Kauffman Foundation

For decades, one of the principal state and local economic development tools has been tax incentives. Every state offers incentives in one form or another to retain business and attract businesses from other states. According to one survey, 95 percent of U.S. municipalities also use such incentives.

Some policymakers have expressed a desire to end this practice but feel stuck in an arms race. They fear they cannot unilaterally forgo incentives because others use them, so they create ever-increasing incentive packages in an effort to compete.

Although some incentives may be economically justified in terms of jobs and productivity, in the midst of an arms race it’s difficult to tell what is and is not effective in creating jobs.

One thing that is known is that this practice costs taxpayers billions of dollars each year. Estimates put the annual cost near $70 billion. Moreover, incentives targeting existing companies miss the economy’s real engine of job creation: new and young businesses, which create nearly all net new jobs in the United States, a fact that also holds true at the state and city level.

New Kauffman Policy Digest Offers States Policy Alternatives that Spur Entrepreneurial Growth

June 12, 2014 Comments off

New Kauffman Policy Digest Offers States Policy Alternatives that Spur Entrepreneurial Growth
Source: Ewing Marion Kauffman Foundation

State tax incentives – often used to attract or retain existing businesses – aren’t always the best way to stimulate economic growth.

According to a new Entrepreneurship Policy Digest released today by the Kauffman Foundation, these programs, while sometimes economically justified, often overlook the businesses that create most new jobs – namely, new companies.

The Policy Digest offers alternative strategies for states to either improve their existing incentive programs or boost job creation by fostering firm formation.

“States spend tens of billions of dollars each year trying to entice businesses to locate within their borders, but these policies often miss the real job creators: new and young businesses,” said Jason Wiens, policy engagement manager at the Kauffman Foundation. “Alternative economic development strategies exist that focus on entrepreneurial growth without incurring costly tax incentives.”