Startups are responsible for nearly all new net job creation and almost 20 percent of gross job creation in America, according to a new Entrepreneurship Policy Digest released by the Kauffman Foundation.
Still, according to U.S. Census data, startup activity has declined since the late 1970s, when new companies made up 16 percent of all firms, compared to just 8 percent in 2011. The Entrepreneurship Policy Digest is recommending strategies to help policymakers decrease that trend.
“Especially with the declining startup rate, there is an opportunity for lawmakers at the federal, state and local level to improve conditions for business creation,” said Jason Wiens, policy director at the Kauffman Foundation, in a release. “From advancing education at the local level to creating visas for immigrant entrepreneurs at the federal level, our new Policy Digest offers several strategies that could help spur job growth via entrepreneurship.”
Other suggested strategies in the digest include removing regulatory barriers to growth, simplifying tax codes and payment systems, and encouraging competition and labor mobility.