Business Incubators and Job Creation
A House Committee on Small Business hearing earlier this week covered the topic of "Business Incubators and Their Role in Job Creation." Testifying before the committee was Dr. Robert Strom, Director of Research & Policy at the Ewing Marion Kauffman Foundation, who called the newfound attention "the silver lining to the economic crisis our country now faces."
Dr. Strom stressed the importance that new firms play in job creation and encouraged the committee to consider public policies "conducive to the birth and growth of new companies, regardless of where they begin," including:
- Immigration policies that welcome talented potential entrepreneurs and even favor those immigrants who plan to start innovative, new businesses in the U.S.;
- Regulatory frameworks that do not impose onerous compliance requirements on small businesses;
- Intellectual property laws that strike the right balance between giving sufficient incentives to inventors and imposing legal roadblocks to new entrants;
- Bankruptcy protection that mitigates the risks of business failure;
- Antitrust laws that allow for healthy competition;
- Marginal income tax rates that do not discourage entrepreneurial endeavors by minimizing their economic rewards; and
- Financial systems that offer access to both debt and equity capital for new firms.
Strom's testimony (below) and the rest of the hearing are available on the Committee's YouTube channel.