Nurturing Start-ups

August 12, 2011

A recent Wall Street Journal summarized a new set of ideas (from The Kauffman Foundation) to assist job-creating companies: easier access to early-stage capital, lower taxes for long-term capital gains, regulatory reform, and more.  There is a slight misconception embedded in the conventional wisdom about those “job-creating companies:”  jobs are created mostly by new businesses, which start out small, as opposed to the more common short-hand of “small businesses.”

With early-stage activity at its lowest level since 1977, it’d be a good time for ideas like the aforementioned to help restore a favorable and predictable business environment that provides the right incentives for new business formation – for entrepreneurs and their sources of capital.

Few Businesses Sprout, With Even Fewer Jobs - WSJ, 11/18/10

One more reason to spur entrepreneurial activity during a downturn:  over half the companies on the F500 were started during a recession or bear market.

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