Startup America Looks to Washington
Obama's New Favorite Word
White House to Entrepreneurs: Start Your Engines
If you ask Startup America Chairman Steve Case what Washington can do to increase entrepreneurship to a level that will refuel the economy and reignite job growth, he has no shortage of ideas. For starters, Case believes the federal government must rethink immigration policies, tear down barriers that keep companies from going public, and increase available seed funding.
One of AOL’s cofounders and the current CEO of Revolution, Case discussed his committee’s recommendations at a youth entrepreneurship competition last night ahead of his meeting with President Obama next week in Pittsburgh. He expanded on the details of those recommendations during a phone conference today.
“One of the things that people are missing on both sides of the aisle in Congress and in the White House is that it's not just about focusing more on the private sector and focusing more on business—it’s about focusing on entrepreneurship,” he said at the National Youth Entrepreneurship Challenge in New York City. “That really is the key in terms of job creation and rescuing this country.”
Case noted that high-growth companies less than five years old have accounted for 40 million net new jobs over the last three decades, but said the climate for such businesses has become increasingly unfavorable since the turn of the millennium. In the last three years alone, the number of new businesses has fallen by 23 percent, and those that do launch, he says, are increasingly hesitant to go public.
“We want more companies to go public more quickly, because if they don’t have access to the public market, they usually get sold, and research shows 90 percent of job growth happens after companies go public,” he said. The committee plans to urge Congress to adjust several regulations that he says impose disproportionate burdens on small firms aiming for an initial public offering, like the Fair Disclosure Act.
Case will also push legislators to rethink U.S. immigration laws.
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