Say you want to be an entrepreneur. It’s not as easy as it once was because too many barriers stand between you and living the American dream of working for yourself; building a path to prosperity for you and the Americans you will ultimately employ. That was the message from Aneesh Chopra (CTO to the Obama White House) at the launch for Startup Virginia.
And, the Obama administration proposes to do something about it. The president announced the measures as part of his State of the Union Address last week.
Why the US Needs High Growth Businesses
High growth businesses are a critical element of a vital, growing economy. Obama said:
today’s entrepreneurs are tomorrow’s Fortune 500 companies and exemplify America’s competitive edge in ingenuity and innovation. That is why the President has tasked his administration with crafting policies that eliminate barriers to startup formation, drive investment to the best ideas, and accelerate the growth of young companies in the marketplace.
Entrepreneurship fuels innovations that not only create jobs, but improve our quality of life, extend our lives, and provide a rich fabric skirting our existence.
But, the US is losing the innovation race to countries like China and Israel. Supporting entrepreneurs is possibly the best way to regain our innovation edge.
But, high growth businesses fight an uphill battle.
On Tuesday, a bipartisan agreement to remove these barriers began its way through the bureaucracy that is Washington. Major provisions contained in this agreement are:
- Tax reductions for entrepreneurs in high growth industries
- Streamlining access to capital, especially through IPOs
- Creating an on-ramp for entrepreneurs
- Reduce barriers to high skill immigration into the US
The agreement is designed to take advantage of the “tectonic shifts” from print to digital media, from dirty to clean energy, and from volume to value healthcare systems — Chopra said in his address.
Chopra’s vision is one of increased collaboration between the market access provided by existing firms and the innovativeness of entrepreneurial ones. Mass marketing firms provide a vehicle for commercialization of innovations developed by entrepreneurs. Plus, these major firms provide insights into focus to guide innovation.