“Startup America”
The Obama Administration announced on Monday, January 31st that it had created a new initiative called “Startup America”: A project aimed at helping start up businesses and ambitious entrepreneurs create jobs in emerging markets during a time when financing is especially difficult to come by. The initiative brings together entrepreneurs, corporations, universities, foundations, and other financial leaders of the country to foster growth in the startup sector. According to the white house official website, the goals of this program are the following:
- Expand access to capital for high-growth startups throughout the country;
- Expand entrepreneurship education and mentorship programs that empower more Americans not just to get a job, but to create jobs;
- Strengthen commercialization of the about $148 billion in annual federally-funded research and development, which can generate innovative startups and entirely new industries;
- Identify and remove unnecessary barriers to high-growth startups; and
- Expand collaborations between large companies and startups.
These are good goals. I’m glad to see the government taking notice of the impossibility of starting up a business in today’s market. And while its good to see the government taking action, these goals make me slightly concerned about the narrow focus the initiative appears to be taking. It seems to me that the intended target of “Startup America” are inventors and entrepreneurs attempting to create new industries, products, and services. This is of course a vital part of the puzzle if we are to push the economy forward, but unfortunately that leaves out a lot of aspiring business owners.
Currently, venture capital firms and other big business investors are seeking out and targeting emerging markets and other small business entrepreneurs interested in changing the world. This government initiative appears to reinforce the importance of these investments, but I’m having a hard time finding a specific course of action that will be taken to achieve the listed goals. I want to believe that this is within the governments power to see through, but I am skeptical of exactly how this will play out. On top of that, I’m concerned that there are many small businesses that will not have an opportunity to capitalize on this initiative, despite the importance or potential success of those businesses. Individuals interested in starting restaurants, or retail stores, or other new businesses in established industries.
Independently owned businesses provide a huge benefit to the local economy regardless of the innovation level apparent in the startup’s business plan. Why should the government limit their helpful hand to emerging entrepreneurs and ignore the less innovative, but no less ambitious individuals interested in starting a business of their own? These business continue to struggle to find capital to start up their business or keep it going. While we are pleased that the government has acknowledged a problem in the startup sector, we hope they will broaden the scope of their goals to include all individuals attempting to create a business and jobs in our marketplace.
For those individuals unable to secure capital with the government despite their ambitious “Startup America” initiative, we suggest you visit the small business starter. The small business starter is a website devoted to helping entrepreneurs put together the pieces to start a business, including some funding sources, and other resources to help small business owners.
