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Why the New Jobs Act Is Good for American Startups

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Why the New Jobs Act Is Good for American Startups

http://mashable.com/2011/12/07/jobs-act-startups/

Why the New Jobs Act Is Good for American Startups
1 day ago by Eric Koester 10

Eric Koester is the founder and COO of Zaarly, a mobile, real-time marketplace. Eric is a former securities lawyer who has testified before Congress on matters of startup and small business financing, immigration reform and business taxation. Normally, I become very skeptical when any politician introduces a “Jobs Act” bill. To begin with, the term is incredibly loaded. Secondly, what can the government really do to spur job growth? At best, it might hire more people for government jobs. At worst, we’ll encounter more red tape designed to make politicians look good. Yet, this time around I actually think there is potential to drive job growth through the Jobs Act, specifically via provisions targeted to help small businesses. Programs that help small businesses are the simplest and most cost-effective solutions to job creation. Research shows that adding jobs to the economy is not necessarily about getting IBM or Home Depot to hire more people. Neither are Fortune 1000 companies the real drivers of new job growth for our economy. Rather, studies indicate that new jobs come from small businesses, young companies with less than 500 employees. The good news? It looks like we’ve finally started valuing small business job creation.

Of Course We Support Small Businesses
You might remain skeptical. After all, everyone says he supports small businesses and entrepreneurs. Well, now is our chance to actually do something about it — and real Congressional legislation can help accomplish it. The economic uncertainty of the past few years has created a unique opportunity for regulatory reform that directly benefits small businesses, startups and entrepreneurs – the true engines behind job growth. Now is the time to make sure politicians know that they must act, not just talk. Making their way through Congress now, a series of pro-small business bills aim to provide more access to capital, small firm hiring and investment incentives, and a reduction in small regulatory burdens. As an entrepreneur and former startup lawyer who has advised hundreds of entrepreneurs and small businesses, I strongly support getting small businesses more capital so they can expand and create more jobs. However, there is always the risk that reforms could get bogged down by politics as usual: special interests and egos.

What’s At Stake?

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12/9/2011 8:16 PM

Why the New Jobs Act Is Good for American Startups

http://mashable.com/2011/12/07/jobs-act-startups/

The small business regulatory reforms boil down to a few simple goals: Increase access to capital for small businesses; reduce taxes on small businesses (in some cases only for the short-term) to spur hiring; reduce regulatory burdens on small businesses, and; encourage investment by small businesses in equipment and technology. By helping encourage private sector investment in small businesses and startups and reducing the burden for small businesses to hire, more jobs will result. And not just any jobs, but careers that pay well and help drive innovation. One key initiative would allocate crowdfunding for small businesses and startups. In crowdfunding, many people invest relatively small dollar amounts. That way, a business doesn’t rely on just one or two investors. SEE ALSO: HOW TO: Crowdsource Funds for Causes, Creativity and Startups Imagine the following scenario: Someone in your neighborhood wants to open a small grocery store. She can’t procure a loan, but must essentially go door-to-door to secure funding from 50 to 200 people in amounts ranging from $1,000 to $10,000 each. The entrepreneur can then open a truly community-owned grocery store. Through crowdfunding, tech companies can take advantage of this type of approach too, only transactions are digital and can come from all over the world. Additional reforms would extend payroll taxes for small businesses that hire previously unemployed individuals. Others would make it easier for small businesses to find investors, help people receiving unemployment benefits start their own businesses, and support entrepreneurs from abroad.

Reform Realities
These reforms will provide new opportunities for small business owners and drive local job growth in cities and communities around the country. Look no further than Detroit, a city making huge investments in small business and startup support. The city hopes to inspire the next generation of entrepreneurs and small business owners to build tomorrow’s great industries. Overall, the concept is simple: New companies create jobs. And that job creation wouldn’t be possible without forwardthinking investors, a strong community of early adopters and a country that supports new ventures. As our economy transitions, we need to find more ways to support these small business owners and individuals who are looking for a way to make a living. These reforms are a good start: They can help communities build small grocery

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12/9/2011 8:16 PM

Why the New Jobs Act Is Good for American Startups

http://mashable.com/2011/12/07/jobs-act-startups/

stores; they can support a laid-off graphics designer as he starts his own company; they can encourage a university student create his own job; and they will ultimately spur a new generation of entrepreneurs.

Get Involved. Show Your Support.
You’ll hear many politicians talking about job creation – it’s a quick and easy sound bite. However, the opportunity to actually spur job growth is right ahead of us. Each of us has patronized a small business, worked for a small business, used a product produced by a small business or even been a small business owner ourselves. In order to ensure that the Jobs Act does, in fact, address jobs – and not just politics – make sure you encourage your representatives to push these important small business reforms. Images courtesy of iStockphoto, quavondo, Flickr, matthileo Email Story Reprints

10 Comments

1.

Steven Lefkowitz Follow Lame 1 day ago Reply 0 Flag this comment

2.

Dana Leavy Follow What better way to encourage and create new jobs than to create new companies to supply them? Better access to funding, less taxation & regulations, and overall less roadblocks to starting a small biz. Bravo. 1 day ago Reply 0 Flag this comment Eric Harrington Follow I’d agree except this administration is about more regulations and more taxes – they are just in the fine print. 1 day ago Reply 0 Flag this comment

3.

Angelo Asignacion Follow I also believe that supporting our Small Businesses is a great way to create jobs! But being mixed with politics makes me think twice about its issues. I think it will be best if we ourslves will do our part for this small business reforms to make its course :) Go to Crumblrr! 1 day ago Reply 1 Flag this comment

4.

Brian Rich Follow

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12/9/2011 8:16 PM

Why the New Jobs Act Is Good for American Startups

http://mashable.com/2011/12/07/jobs-act-startups/

Great article! It’s inspiring and helpful to find thoughtful opinion on a hot-button political issue that avoids politics entirely. Very informative piece. 1 day ago Reply 0 Flag this comment

5.

callumsmithrru Follow We’ve got the right to choose… This is our life… Don’t pick our destiny.. You don’t know us, you don’t belong… We don’t want nothin’, not a thing from you… If that’s your best, your best won’t do… (Dee Snider). Only the return of the guild system will set us free, “there is not third course.” (Hilaire Belloc, The Servile State). 1 day ago Reply 0 Flag this comment

6.

Max West Follow More public works projects, more government intervention into private business, and more spending? Why is DC so out of touch with reality? 1 day ago Reply 1 Flag this comment

7.

Paulo Silveira Follow Normally, I become very skeptical when any politician introduces a “Jobs Act” bill. To begin with, the term is incredibly loaded. Secondly, what can the government really do to spur job growth? At best, it might hire more people for government jobs. At worst, we’ll encounter more red tape designed to make politicians look good. Yet, this time around I actually think there is potential to drive job growth through the Jobs Act, specifically via provisions targeted to help small businesses. Programs that help small businesses are the simplest and most cost-effective solutions to job creation. Research shows that adding jobs to the economy is not necessarily about getting IBM or Home Depot to hire more people. Neither are Fortune 1000 companies the real drivers of new job growth for our economy. Rather, studies indicate that new jobs come from small businesses, young companies with less than 500 employees. 1 day ago Reply 0 Flag this comment

8.

Eric Harrington Follow No. You need to remain skeptical when any politician introduces a “Jobs Act” bill – especially the one we have in office right now. He holds up one thing in one hand while holding something else behind his back in the other. Anyone who wants to “spread the wealth around” is no good for business or free markets. Don’t be fooled by the rico suave speeches Eric. 1 day ago Reply 0 Flag this comment

9.

Leonid Knyshov Follow Details? This is too high level. Why, specifically, is this act beneficial to me as a Silicon Valley entrepreneur. I don’t particularly care about tax credits.

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12/9/2011 8:16 PM

Why the New Jobs Act Is Good for American Startups

http://mashable.com/2011/12/07/jobs-act-startups/

1 day ago Reply 0 Flag this comment

5 of 5

12/9/2011 8:16 PM

Summary There is potential to drive job growth through the Jobs Act, specifically via provisions targeted to help small businesses. Programs that help small businesses are the simplest and most cost-effective solutions to job creation. Research shows that adding jobs to the economy is not necessarily about getting IBM or Home Depot to hire more people. Neither are Fortune 1000 companies the real drivers of new job growth for our economy. Rather, studies indicate that new jobs come from small businesses, young companies with less than 500 employees.

Description Overall, the concept is simple: New companies create jobs. And that job creation wouldn’t be possible without forward-thinking investors, a strong community of early adopters and a country that supports new ventures.

Tags: Crowdfunding, Crowdsourcing, Huge investments, Jobs Act, small business regulatory reforms

Posted by Harshida Patel

Dec 08, 2011 01:03 pm GMT Viewed 2549 times

Author: Eric Koester Source

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Tenuous Links Dec 08, 2011 01:15 pm GMT

Crowdsourcing could be the savour of the economy. With banks unwilling to lend the money requires to drive growth then maybe the small investor can help the recovery we need.

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