A bipartisan legislation has been introduced by Sens. Mark Warner, D-Va., and Jerry Moran, R-Kan to help the economy regain its vitality and lost strength. The legislation is going to foster small business formation and growth.
The Start-Up Act is expected to improveAmerica’s entrepreneurs’ condition in many ways. The Act primarily would
1) Increase small business investment,
2) Reduce regulatory burdens,
3) Retain entrepreneurial talent,
4) Further intensify university research commercialization, and
5) Encourage pro-growth policies at both state and local levels.
There has been strong belief that Small Businesses with lesser than 500 employees are responsible for new job creation. But, research of U.S. Census Bureau and Ewing Marion Kauffmann Foundation has proved that new businesses are actually the true source of job creation. Businesses that are less than a year old are responsible for new job creation. Such businesses contribute 3 million new jobs every year while existing firms eliminate 1 million jobs on an average.
It is not that existing small businesses should be undermined. They are also equally important. But only those policies should be introduced that accelerate prospects of economic growth and job creation as well as improve the circumstances of existing businesses. And it is found that if the target is job creation, policies that support new business formation should be targeted.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org