Is the third time really the charm? A bipartisan group—U.S. Senators Jerry Moran (R-Kan.) and Mark Warner (D-Va.), along with Chris Coons (D-Del.) and Roy Blunt (R-Mo.)—recently introduced Startup Act 3.0, aiming to revitalize the economy by making it easier to start and grow new firms.
It creates both Entrepreneur and STEM Visas for highly-educated and entrepreneurial immigrants to stay in the United States where their talent and new ideas can fuel economic growth and create American jobs. The legislation also modifies the tax code to encourage investment in new businesses, accelerates the commercialization of university research that can lead to new ventures, and seeks to improve the regulatory process.
Research shows that for close to three decades, companies less than five years old have created almost all net new jobs in America – averaging about three million jobs each year. Additionally, immigrants to the United States have a long history of creating businesses in America. Of the current Fortune 500 companies – including Apple, Google and eBay – more than 40 percent were founded by a first- or second-generation American. These American companies employ more than 10 million people. Both American and foreign-born entrepreneurs are needed to jumpstart the economy through the creation and growth of new businesses.
Many of the principles included in Startup Act 3.0 are based on the research and analysis by the Ewing Marion Kauffman Foundation, and have been endorsed by President Obama’s Council on Jobs and Competitiveness.
“Kauffman Foundation research has highlighted the economic importance of new and young firms – they create jobs, introduce innovations, and drive economic growth,” said Dane Stangler, acting director of Research & Policy at the Kauffman Foundation. “Yet they continue to face many barriers to entry and growth, which policymakers can help address. Our research suggests that improving access to capital, creating new pathways for immigrant entrepreneurs, and regulatory reform will help address these barriers."
Startup Act 3.0 includes the following provisions:
'The Real World' Meets Startup World in Kansas City
Measuring the Impact of a Startup Visa