We at iSelect believe entrepreneurs are the single greatest force for economic growth in American history. No government program, or monetary incentive, or trade deal is going to outperform the efforts of everyday people, starting companies, hiring others and driving prosperity in their local communities.
But not all growth is created equal. Research has shown us that the key threshold is 4%. If we can get economic growth to 4% annually, the related economic spin-off will drive down costs in healthcare, education, etc, while improving economic resilience and encouraging new business formation. That’s the point, economists tell us, when existing businesses start looking for new markets and begin looking to startup companies for new ideas.
It’s the tipping point for economic growth.
But policy alone will never get us there. Frankly, short of 4% growth that’s driven by entrepreneurs, no other public policy can close the gap. That’s why we need to support our entrepreneurs, by funding their startups, buying their products and helping turn their dreams into realities.
Mr. Carl Schramm, past president of the Kauffman Foundation, agrees with me, writing in The Wall Street Journal on November 15:
“New firms are the country’s principal generator of new jobs. Data from the Kauffman Foundation suggest companies less than five years old create more than 80% of new jobs every year. While the nation seems more enthusiastic than ever about the promise of entrepreneurship, fewer than 500,000 new businesses were started in 2015. That is a disastrous 30% decline from 2008. In eight years more than a million new companies have “gone missing” from the economy. This absence accounts for an estimated seven to 10 million jobs that, had they existed, could have provided employment for every one of the nation’s discouraged workers. Simply put, the U.S. will never reach full employment without more startups.”
Our mission at iSelect is to remove every barrier we can on this path to 4%, helping startups make a real difference in our economy.
We’re tackling the first big barrier, bringing more capital to address the $8 billion shortfall in early stage investing that we currently have in this country. But that’s just step one. There are many other barriers on our mind as well—finding customers, nurturing talent, developing new business communities, etc—and we intend to systematically work through each and every one of them to help this market succeed. You are part of this effort through your investment, advocacy, and support.
Ten years from now, we expect to look back and appreciate how entrepreneurs changed the course of our economy. This is an exciting opportunity in front of us.