The Kauffman Foundation has created a "Startup Act" proposal to jump-start the ailing U.S. economy and increase job creation by accelerating the growth of startups and young businesses.
The Startup Act focuses the attention of citizens and policymakers on the central role that high-growth startups must play to assure continued U.S. economic strength. The benefits of startups are well-established: Virtually all of the growth in U.S. jobs has been driven by the formation of firms less than five years old, and these new firms have been disproportionately responsible for commercializing the cutting-edge innovations that characterize modern life.
The act was unveiled at the National Press Club in Washington on July 19, 2011, by Kauffman President and CEO Carl Schramm and Vice President of Research and Policy Robert Litan, followed by videotaped remarks from House Majority Leader Eric Cantor (R-VA) and Senator Jon Tester (D-MT).
The Startup Act references recent Kauffman data that found that while more firms than ever have been created each year since the last recession began, the numbers of new firms with employees continues to drop—and this is a trend that pre-dates the recession.
Specific changes in government policy that the Startup Act proposes include:
Job creation is a nonpartisan issue, and the Startup Act aims to educate policymakers on all sides of the political spectrum about the need for comprehensive legislation aimed at helping startups.
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