Yesterday, members of the Senate Committee on Small Business and Entrepreneurship called for a hearing on the state of entrepreneurship in America, citing the need to support U.S. job creators at a period in time when new startup formation is slowing.
New firm establishments are the driving force in the U.S. economy, responsible for virtually all net new jobs created in the past three decades. Senators Jerry Moran from Kansas, Scott Brown from Massachusetts, and Marco Rubio from Florida requested the hearing in a letter to Chairwoman Mary Landrieu, citing America’s significant decline in international rankings of startup friendliness. “Once in the top five, the United States has dropped nine places in international rankings...in just four years,” the Senators wrote.
How are the Senators suggesting we regain our edge? With startup-friendly policies to encourage entrepreneurship and new firm foundation. Specifically, with Startup Act 2.0, a bipartisan bill introduced in both houses of Congress earlier this year, and co-sponsored by Senator Moran.
Startup Act 2.0 contains provisions to ease the way for foreign-born entrepreneurs to remain in the country after graduating from U.S. universities, so they can start their businesses on U.S. soil and create local jobs. It provides incentives to get R&D from our universities on the market. And it provides tax incentives that could encourage investment in startups to create new jobs, boosting startups in driving economic growth and employment. Engine has been a strong supporter of the policy measures proposed in Startup Act 2.0, with information and a tool for action here.
We encourage Chairwoman Landrieu to convene this hearing on entrepreneurship in America. Congress needs to hear from the founders and innovators driving the economy and creating the products that will keep America globally competitive.