Best Practices

The State of Entrepreneurship

Published Feb 21, 2012 by Maria Meyers

Entrepreneurship is local.

It’s built from the ground up, relying on a local ecosystem that inspires entrepreneurs, supports startups and sustains small business growth. And a key to the vibrancy of those ecosystems and the local economies they support lies with state and local governments, reports the Kauffman Foundation.

Two of the Kauffman Foundation’s recent reports—"Startup Act for the States" and “License to Grow”—focus specifically on recommendations for state and local governments to create new companies and new jobs. "State Startup Act" lays out an agenda for state-level policymakers to foster entrepreneurship, and "License to Grow" showcases barriers to entrepreneurship imposed by state and local governments.

Those recommendations include, to highlight a few:

  • Reform occupational licensing, which acts as a barrier to entry for entrepreneurs who seek to provide services to consumers at the state and local levels through new business models at lower cost and/or higher quality.
  • Allow university faculty to retain licensing rights to the technologies they develop, without having to gain university approval, and/or to more rapidly move innovations from the laboratory to the marketplace.
  • Reduce state-level paperwork, time and effort required for firm formation.
  • Make state-level business shutdown and liability costs as low as possible, because not all new ventures succeed.

What are your thoughts about the Kauffman Foundation’s recommendations?