A Five Point Strategy for Job Creation
Entrepreneurs don't often do the things they do, for the
money. They often do it for the passion they have or simply to prove that they
can do it. Even though 500,000 new businesses starting each year (the number of
startups in 2010) seems like a big number, it is actually an all time low
during the recent past (2006 startups numbered 667,000).
"Why" you ask, "is this important?" Here is why; Businesses, less than five years old, have contributed all the net new jobs in the United States in the last decade. And most startup businesses have no employees. So, those that do are ever-so-much more important in our effort to dig our way out of this recession. While I would not be so bold to say that Entrepreneurism alone will return us to full employment ( 5%), it is certainly an important factor.
So, an interesting and important question might be; Why are new business startups off nearly 25 % from their all time high in 2006? and/or What needs to be done to restore the startup level to the 2006 high and beyond? and/or How do we go about greasing the sled for Entrepreneurs and Business Startups?
I believe that this five point strategy will go a long way to restoring the climate in this country that incentivizes not just Entrepreneurship but Successful Entrepreneurship (establishing a means of improving the 5 year success rate of startup from 30 to 50 percent).
1. Most money for startup business comes from the owner's savings which includes the equity of their home or retirement savings. Money, from home equity and/or retirement savings, has shrunk considerably since 2007, for reason I won't go into here. Considerable losses have occurred in those two areas since 2007. I suggest that we compensate for that difficulty by giving those who start businesses a TAX CREDIT up to $25,000 for money invested in a start-up business.
2. Reward those Entrepreneurs that are successful with a one-time 150% deduction for annual wages of new employees, during the first 5 years of operation.
3. Streamline and reorganize the US Patent office which now takes an average of over 3 years to approve a patent application. Begin by giving first time patent appliers a guaranteed 90 day up or down answer.
4. Reward Entrepreneurs that start businesses in the potential high-growth industries of tomorrow: health care, business services, leisure, construction, manufacturing and retail. Give all business startups, surviving the first year in those industries, a $25,000 grant to purchase needed equipment or software.
5. Provide TAX REBATES, up to $5000 a year for the first 5 years of Entrepreneurial activity involving a business with 5 employees or more, provided they can show evidence of investment in specified Entrepreneurial education.
I am calling this five point strategy, The Entrepreneurs R Us Job Recovery Strategy. If you feel this would benefit you or someone you know who is in a startup business situation or thinking of engaging in one please write us.