(Washington, D.C.) – U.S. Senator David Vitter (R-La.), Chairman of the Senate Committee on Small Business and Entrepreneurship (SBC), today lauded a new report by the Kauffman Foundation that demonstrates outstanding growth and new business creation of startups within the last year.
“America has long been known around the world as a nation of dreamers, of risk takers, of hard workers—a nation of entrepreneurs, driving productivity, innovation, and competition in the global economy,” said Vitter. “As Chairman of the Senate Small Business Committee, I am encouraged by the recent uptick, and proud of the work we have done on a bipartisan basis to address some of the biggest issues small businesses face. We have passed legislation on a variety of issues that have had a real impact on entrepreneurs, from access to capital, technical assistance and training, research and development incentives, support for veterans who are starting businesses, to regulatory reforms.”
In today’s report entitled, “2016 Kauffman Index of Startup Activity,” the Kauffman Foundation found that rate of new entrepreneurs has increased by more than 15 percent from two years ago, contributing to the highest job creation number by new establishments since 2008 with 889,000 new jobs in the last quarter of 2015 alone. The report also found new entrepreneurs in the United States translates into approximately 550,000 new business owners each month during the year.
In June, Vitter held a hearing entitled, “America Without Entrepreneurs: The Consequences of Dwindling Startup Activity,” where Committee Members examined the historical trends in entrepreneurship, hearing testimony from witnesses with insight into why startup activity has declined in the past decade, particularly among millennials, and how to accelerate the gains of the last two years into the future so that we can reverse the overall long-term trends. Click here for more information.
Below are a few excerpts from Vitter’s forward to the report:
“As policymakers and leaders, we have a duty in ensuring that these entrepreneurs have the resources and support they need to make the leap of starting, creating jobs, and growing their businesses.
“As Chairman of the Senate Small Business Committee, I am encouraged by the recent uptick, and proud of the work we have done on a bipartisan basis to address some of the biggest issues small businesses face.
“I’ve made it a priority to hold hearings and raise awareness on what is happening in the everchanging startup world and have seen a remarkable level of participation by my fellow Senators, both Republican and Democrat, who recognize the importance of supporting America’s entrepreneurs through sound policy.
“For a small business, capital is king. It affects every aspect of entrepreneurship, from launch to long-term growth, and everything in between. I have heard directly from entrepreneurs and those assisting them, not only in my own state but across the country, that it is the limiting factor for entrepreneurs in making the leap with their businesses from the start-up to scale-up phase.
“As it grows, so do jobs and the economy; but a business cannot grow if it doesn’t have the working capital necessary to do so. This lack of capital can also have disastrous effects on communities, as those that don’t already have a vibrant entrepreneurial ecosystem experience difficulty in attracting new capital and spurring growth.
“Disadvantaged communities, in particular, can be trapped in an economic malaise, as the lack of available capital accentuates the already slow growth many of them experience, and makes it even harder for local entrepreneurs to address local needs and build the local support networks that are so vital to the entrepreneurs that follow.
“As technology continues to permeate every facet of our lives and our economy, we must position Americans to continue leading in innovation—because if we don’t do it, someone else in the world will.
“It is this driving principle that has animated the Committee’s central theme for the past year and a half and my final priority as Chairman— regulatory reform.
“In an era when nearly a third of private sector jobs require some form of government licensure and one of the most effective strategies in helping entrepreneurs succeed is providing support to them when dealing with the government, we should be turning a critical eye to what regulations are in place, and eliminating those that serve only as demoralizing impediments to entrepreneurs doing what they do best: creating jobs, growing our economy, and keeping the American Dream alive.
“Startup activity is key to the economic health and prosperity of America.
“Understanding what is happening to our country’s startups and entrepreneurs is essential to any policymaker hoping to accelerate and expand on the recent progress we have seen in entrepreneurial activity.
As a policymaker, it is my duty to ensure that we do all that we can to support entrepreneurs and create an environment where they can succeed.”