Promoting Entrepreneurship as a Way to Grow the Economy

<p>As the U.S. economy struggles to build and sustain momentum in the aftermath of the Great Recession, one strategy that warrants greater attention by policymakers is entrepreneurship development.  As discussed in a previous post, there is some debate about the extent to which new, small firms drive job creation relative to existing, larger companies.  There is much evidence to suggest that small firms, particularly ones in growth-oriented sectors, can create lots of jobs.  However, the benefits and contributions of small businesses to the economy extend beyond job creation.  For example, self-employment ventures typically do not produce large numbers of jobs, but they enable individuals to provide a valued good or service, earn a living, pay taxes, and meaningfully participate in the economy.</p> <p>A previous post highlights what some U.S. cities are doing to promote entrepreneurial development.   One strategy being used by New York City is to target and address some of the challenges that immigrant entrepreneurs face in starting and growing a business.  A recent report commissioned by the Partnership for a New American Economy suggests that a focus on immigrant entrepreneurs could yield a significant payoff in terms of boosting the economy.  The report documents the sizeable impact on the U.S. economy that immigrant-owned businesses generate.  This economic impact has increased over time much more rapidly than that of firms owned by native-born individuals.  For example, during the last decade the income of immigrant-owned firms increased by more than 60 percent compared to only 14 percent for native-owned firms.  Other key findings from [...]</p>