Thinking Bigger Business News Update

Do Fledgling Entrepreneurs Need a Social Safety Net?

Could a stronger safety net encourage more talented people to become entrepreneurs?

That’s what the Ewing Marion Kauffman Foundation is exploring in its latest Entrepreneurial Policy Digest.

The digest found that giving entrepreneurs, or would-be entrepreneurs, help with health care or daycare could diminish some of the fundamental risks of entrepreneurship and lead more people to start businesses.

The Kauffman Foundation’s research shows that better health and social insurances create a more favorable environment for entrepreneurs to flourish.

Here are some of the key takeaways from the Entrepreneurial Policy Digest:

  • When there is diminished access to benefits like health insurance outside of typical employment, people are less likely to take a chance on entrepreneurship.
  • Social policies, like subsidized child care and reformed unemployment insurance help encourage entrepreneurs to take the risks of opening and working on budding businesses.
  • Millennials are struggling with their path towards entrepreneurship, in part because of issues like heavy student debt coupled with policies that create entry barriers, like occupational licensing and overly strong patent rights that favor larger and existing businesses.

You can read more about the Kauffman Foundation’s Entrepreneurial Policy Digest here: http://bit.ly/1RxoVSI