Anyone who’s read our research knows by now that we believe the single most important factor for “turning the economy around” is the creation of private sector jobs. Consumer spending, home prices, pretty much every area of the economy awaits the spark inherent in private sector job growth. Further, the US economy is currently bifurcated between large companies with access to capital and small ones without that lifeline (discussed in our recent quarterly letter, found here). We recently read an essay by Vivek Wadhwa, a “tech entrepreneur, academic, researcher and writer” that furthered that argument and expanded our understanding of the importance start-up companies play in our economy.
The final paragraph of his essay hits the nail on the head: “Simply put, if we are serious about lifting the economy out of its rut, we need to focus all of our energy on helping entrepreneurs. Provide them with the incentives (tax breaks and seed financing); education; and infrastructure. And gear public policy—like patent-protection laws—toward the startups. Let’s not bet on the companies that are too big to fail or too clumsy to innovate.”
Link to the full article:
hat tip: FrontLineThoughts.com