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Sens. Moran, Brown and Rubio Request Hearing on Entrepreneurship in America

U.S. has dropped in startup rankings, but steps can be taken to reverse trends

WASHINGTON, D.C. – Today, several members of the U.S. Senate Committee on Small Business and Entrepreneurship asked Chairwoman Mary Landrieu (D-La.) to hold a hearing to examine the state of entrepreneurship in America and explore the steps Congress can take to better support America’s job creators. The request, made by U.S. Senators Jerry Moran (R-Kan.), Scott Brown (R-Mass.) and Marco Rubio (R-Fla.), all co-sponsors of Startup Act 2.0, notes the falling rate of new business creation in America and the United States’ recent decline in international rankings of startup friendliness.

“The state of entrepreneurship in America is not as strong and vibrant as history would suggest,” the Senators wrote in the letter to Chairwoman Landrieu. “Once in the top five, the United States has dropped nine places in international rankings of startup friendliness in just four years [and] this drop in startup friendliness coincides with efforts in many countries to change laws and policies to better support entrepreneurs. Thankfully, there are steps we can take to reverse these trends and once again make the United States the best place in the world to start and grow a business.:

Several such steps are found in Startup Act 2.0 – bipartisan legislation introduced in both houses of Congress this year. The bill aims to pick up where the JOBS Act left off by doing more to support entrepreneurs and jumpstart the economy through the creation and growth of new businesses. Data from the Kauffman Foundation shows that between 1980 and 2005, nearly all of the net new jobs created in the Unites States were created by companies less than five years old. In fact, new businesses have created an average of 3 million jobs each year.

The hearing request also notes bipartisan support for the provisions of Startup Act 2.0: “President Obama’s Council on Jobs and Competitiveness issued a series of recommendations in 2011 to encourage entrepreneurship and we have sponsored bipartisan legislation called Startup Act 2.0 that builds on the Jobs Council’s recommendations and other research to jump-start the economy through the creation and growth of new businesses."

Startup Act 2.0 makes changes to the tax code to encourage investment in startup companies. The bill also creates new opportunities for American-educated and entrepreneurial immigrants to remain in the United States where their talent and ideas can fuel economic growth and create jobs for Americans. Finally, Startup Act 2.0 seeks to ease regulatory burdens that make it more difficult for businesses to expand and create jobs. In addition to Sens. Moran, Rubio and Brown, the Senate bill is sponsored by Mark Warner (D-Va.), Chris Coons (D-Del.), and Roy Blunt (R-Mo.). The House companion bill was introduced by Reps. Michael Grimm (R-N.Y.), Loretta Sanchez (D-Calif.), Kevin Yoder (R-Kan.), Jared Polis (D-Colo.), Devin Nunes (R-Calif.), Russ Carnahan (D-Mo.) and Robert Dold (R-Ill.).

To learn more about Startup Act 2.0, click here.

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