How local governments can back the entrepreneurs building their regions' futures
Entrepreneurship is increasingly viewed as the most dependable source of broad-based economic gains. Nearly all net new jobs come from new companies and a 1% rise in entrepreneurial activity correlates with a 2% decline in poverty.
Post-pandemic growth — led by women, particularly women of color — shows investments in 'inclusive entrepreneurship' worked, but systemic barriers to capital, networks and opportunity still limit would-be founders.
A policy 'field guide' recommends redirecting 5% of procurement to firms under five years old, eliminating early registration fees, reforming noncompetes, strengthening libraries as entrepreneurial hubs, designating a clear entrepreneurship leader and elevating existing ecosystem efforts rather than duplicating them.
Entrepreneurship can sound like rich people's problems. In certain settings, talking about business starts and business growth all sounds like the cavorting of the well to do. A growing coalition says that's all wrong.
'Entrepreneurship is not just about starting companies,' said Victor Hwang. 'It's about enabling people to solve problems in their communities with innovation and drive.'
Hwang refined his bookish charm and pro-entrepreneurship pitch while an executive at the Kansas City-based Kauffman Foundation, which is widely credited for advancing the research and the field of new-business support. This work now gets called ecosystem building, or place-based, entrepreneur-led economic development.
Hwang's policy-focused Right to Start nonprofit has just kicked off a national campaign called America the Entrepreneurial, to put entrepreneurs at the center of next year's 250th anniversary of the founding of the United States. Hwang is also among my co-hosts of Builders Live, a monthly podcast on ecosystem building. Ahead of the Global Entrepreneurship Congress, in our most recent episode, alongside investor Brian Brackeen, we checked in on the most surefire policies Right to Start recommends for state and local officials.
Entrepreneurship is not a distraction from well-rounded and inclusive economic policy. It's increasingly recognized as the most dependable source of gains, including the following:
Nearly all net new jobs come from new companies
Every 1% increase in entrepreneurial activity in a county correlates with a 2% decline in poverty — and average household income increased by $500
41% of Americans say they'd launch a business if they could, but just 2% actually do
One key input of economic mobility is access to information about the programs and resources (a role we at Technically play)
Investments into what has been called 'inclusive entrepreneurship' in the 2000s and 2010s worked. Entrepreneurship has popped post-pandemic, led by women, especially women of color, but barriers remain.
'The reason I founded Right to Start was to change the narrative and the policies that limit entrepreneurship in this country,' Hwang said.
A checklist for policymakers to support entrepreneurship
Though more is to come, his Right to Start launched ' field guides ' for policymakers, at the local, state and federal levels. A few of their most common recommendations, mixed with a couple from Technical.ly's own reporting:
5% to start: 'Dedicate a small percentage of current funding to new entrepreneurs and young businesses, and track the impact…Redirect 5% of government procurement dollars to businesses under 5 years old.'
Identify an entrepreneurship leader: This could be an existing lead (like a commerce director), provided they truly prioritize entrepreneurship.
Zero barriers to launch: ' Reduce or eliminate registration costs and fees for new businesses in their critical early years,' relying financially on more established firms.
Separate new business from small, medium and large businesses: They need different things, and it is the 'new' that create the most positive economic outcomes.
Easy access: 'Strengthen local libraries as hubs of knowledge and digital tools for entrepreneurs.'
Noncompete reform: 'Unleash entrepreneurs who want to create new jobs by freeing them from unfair bans and noncompete restrictions.'
Support existing efforts: Most states and regions have existing 'ecosystem building' efforts. Rather than recreate them, elevate and redirect residents there.
This mirrors advice we've given mayors in the past. To support entrepreneurship: Remove barriers, invest in workforce, celebrate homegrown solutions and amplify the priority. (We've made more general tech policy recommendations too)
Entrepreneurs start alone, but don't grow without help
Many of these steps are intentionally modest. Hwang, though, has a far more ambitious plan: for entrepreneurship to be at the very center of all economic policy.
Brackeen, managing partner of Lightship Capital, echoed that idea.
'The barriers that exist for entrepreneurs, especially those from underrepresented communities, are systemic, and we need systemic change,' Brackeen said. 'It's not about handouts. It's about access — access to capital, access to networks and access to opportunity.'
The best economic policy doesn't pick industries, it supports entrepreneurs. Entrepreneurs don't pick places to start businesses, they pick places to live and then start businesses there. The Technical.ly ' Ecosystem Stack ' prioritizes both lifestyle issues (like housing) and amplifying these successes.
This works. According to new Technical.ly analysis, regions with a dedicated news outlet covering startups earn 60% more media coverage and, over a decade, grow their ecosystems twice as fast as similar peers.
The takeaway? Entrepreneurs may start alone, but their companies don't grow that way. Policy, platforms and narrative all shape what happens next.
'If we want more startups,' Hwang said, 'we need to fix the system so it doesn't favor big businesses at the expense of new ones.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Technical.ly
5 hours ago
- Technical.ly
How local governments can back the entrepreneurs building their regions' futures
Entrepreneurship is increasingly viewed as the most dependable source of broad-based economic gains. Nearly all net new jobs come from new companies and a 1% rise in entrepreneurial activity correlates with a 2% decline in poverty. Post-pandemic growth — led by women, particularly women of color — shows investments in 'inclusive entrepreneurship' worked, but systemic barriers to capital, networks and opportunity still limit would-be founders. A policy 'field guide' recommends redirecting 5% of procurement to firms under five years old, eliminating early registration fees, reforming noncompetes, strengthening libraries as entrepreneurial hubs, designating a clear entrepreneurship leader and elevating existing ecosystem efforts rather than duplicating them. Entrepreneurship can sound like rich people's problems. In certain settings, talking about business starts and business growth all sounds like the cavorting of the well to do. A growing coalition says that's all wrong. 'Entrepreneurship is not just about starting companies,' said Victor Hwang. 'It's about enabling people to solve problems in their communities with innovation and drive.' Hwang refined his bookish charm and pro-entrepreneurship pitch while an executive at the Kansas City-based Kauffman Foundation, which is widely credited for advancing the research and the field of new-business support. This work now gets called ecosystem building, or place-based, entrepreneur-led economic development. Hwang's policy-focused Right to Start nonprofit has just kicked off a national campaign called America the Entrepreneurial, to put entrepreneurs at the center of next year's 250th anniversary of the founding of the United States. Hwang is also among my co-hosts of Builders Live, a monthly podcast on ecosystem building. Ahead of the Global Entrepreneurship Congress, in our most recent episode, alongside investor Brian Brackeen, we checked in on the most surefire policies Right to Start recommends for state and local officials. Entrepreneurship is not a distraction from well-rounded and inclusive economic policy. It's increasingly recognized as the most dependable source of gains, including the following: Nearly all net new jobs come from new companies Every 1% increase in entrepreneurial activity in a county correlates with a 2% decline in poverty — and average household income increased by $500 41% of Americans say they'd launch a business if they could, but just 2% actually do One key input of economic mobility is access to information about the programs and resources (a role we at Technically play) Investments into what has been called 'inclusive entrepreneurship' in the 2000s and 2010s worked. Entrepreneurship has popped post-pandemic, led by women, especially women of color, but barriers remain. 'The reason I founded Right to Start was to change the narrative and the policies that limit entrepreneurship in this country,' Hwang said. A checklist for policymakers to support entrepreneurship Though more is to come, his Right to Start launched ' field guides ' for policymakers, at the local, state and federal levels. A few of their most common recommendations, mixed with a couple from own reporting: 5% to start: 'Dedicate a small percentage of current funding to new entrepreneurs and young businesses, and track the impact…Redirect 5% of government procurement dollars to businesses under 5 years old.' Identify an entrepreneurship leader: This could be an existing lead (like a commerce director), provided they truly prioritize entrepreneurship. Zero barriers to launch: ' Reduce or eliminate registration costs and fees for new businesses in their critical early years,' relying financially on more established firms. Separate new business from small, medium and large businesses: They need different things, and it is the 'new' that create the most positive economic outcomes. Easy access: 'Strengthen local libraries as hubs of knowledge and digital tools for entrepreneurs.' Noncompete reform: 'Unleash entrepreneurs who want to create new jobs by freeing them from unfair bans and noncompete restrictions.' Support existing efforts: Most states and regions have existing 'ecosystem building' efforts. Rather than recreate them, elevate and redirect residents there. This mirrors advice we've given mayors in the past. To support entrepreneurship: Remove barriers, invest in workforce, celebrate homegrown solutions and amplify the priority. (We've made more general tech policy recommendations too) Entrepreneurs start alone, but don't grow without help Many of these steps are intentionally modest. Hwang, though, has a far more ambitious plan: for entrepreneurship to be at the very center of all economic policy. Brackeen, managing partner of Lightship Capital, echoed that idea. 'The barriers that exist for entrepreneurs, especially those from underrepresented communities, are systemic, and we need systemic change,' Brackeen said. 'It's not about handouts. It's about access — access to capital, access to networks and access to opportunity.' The best economic policy doesn't pick industries, it supports entrepreneurs. Entrepreneurs don't pick places to start businesses, they pick places to live and then start businesses there. The ' Ecosystem Stack ' prioritizes both lifestyle issues (like housing) and amplifying these successes. This works. According to new analysis, regions with a dedicated news outlet covering startups earn 60% more media coverage and, over a decade, grow their ecosystems twice as fast as similar peers. The takeaway? Entrepreneurs may start alone, but their companies don't grow that way. Policy, platforms and narrative all shape what happens next. 'If we want more startups,' Hwang said, 'we need to fix the system so it doesn't favor big businesses at the expense of new ones.'
Technical.ly
3 days ago
- Technical.ly
Commerce Department nixes ‘safety' in NIST AI institute rebrand
President Trump's cabinet continues to overhaul federal programs and initiatives, with some recent AI-related moves hitting the Department of Commerce. Secretary Howard Lutnick announced that the AI Safety Institute will now be called the Center for AI Standards and Innovation (CAISI). In addition to removing 'safety' from the title of the agency, which was created under the Biden administration in 2023 to set AI standards and guidance, CAISI will pivot to focus more on national security risks and global competitiveness. 'For far too long, censorship and regulations have been used under the guise of national security. Innovators will no longer be limited by these standards,' Lutnick said in a press release. 'CAISI will evaluate and enhance U.S. innovation of these rapidly developing commercial AI systems while ensuring they remain secure to our national security standards.' The Commerce Department did not respond to request for comment, including to provide examples of 'censorship.' CAISI also houses a consortium, established in 2024, of more than 200 companies and organizations that was originally created to develop science-based safety standards for AI operation and design. The group, known as the US AI Safety Institute Consortium, includes several universities and startups from throughout the Mid-Atlantic. That group remains in operation following this announcement, but there are suspicions that it will shut down, according to a person with knowledge about the consortium. CAISI and the consortium's formation under the previous administration was spurred by an executive order by former President Joe Biden, which the Trump administration revoked during his early days in office. Priorities for this newly-renamed government body include plans to ink voluntary agreements with AI developers and companies that can pinpoint risks to national security. That strategy isn't entirely new. Under the Biden administration, the National Institute of Standards and Technology — the regulatory agency, housed under the Commerce Department, that hosts CAISI — signed memoranda of understanding to undergo AI safety research with US-based AI companies like OpenAI and Anthropic. In these new evaluations, CAISI will prioritize looking at use cases in cybersecurity and chemical weapons, per the release. CAISI leadership will also collaborate with the Department of Defense, Department of Homeland Security and intelligence agencies to 'conduct evaluations and assessments.' This move comes as states are grappling with how to regulate AI. Nearby Virginia did not follow through with passing blanket legislation regulating the technology, and House Republicans are torn over a federal budget provision that would ban states from regulating AI for a decade.
Technical.ly
3 days ago
- Technical.ly
Startup leaders kick off national ‘America the Entrepreneurial' campaign
A new initiative rooted in the aspirational goals of the Declaration of Independence places entrepreneurs at the forefront of the country's semiquincentennial celebration. In 1893, the United States was in the midst of an economic depression that contrasted gaudy, gilded-era wealth with struggling labor. Emerging communications technology mesmerized and threatened jobs, powering an insurgent populist political movement. Americans debated over the country's global role and confronted the vile stain of racial inequity, just a generation removed from a Civil War. That summer, New England professor Katharine Lee Bates took a wagon trip up Pike's Peak in Colorado. So moved by the view, and overcome by a sense of ideals amid a storm of unease, Bates wrote what would later become an enduring patriotic ballad: 'O beautiful for spacious skies / For amber waves of grain / For purple mountain majesties / Above the fruited plain!' This July 4 will mark 130 years since 'America the Beautiful' was first published. Right to Start founder Victor Hwang has another anniversary on his mind: To mark next year's 250th anniversary of the American Revolution, his national nonprofit launched on Thursday a new campaign: America the Entrepreneurial. 'The country we are in is different than the country we are told we are,' said Hwang, drawing from three cross-country road trips visiting entrepreneurs. (No bus was involved) 'It's a more hopeful one. More need that chance.' The campaign was announced in a crowded rooftop bar near the Indianapolis Convention Center, where Global Entrepreneurship Congress is being held in the United States for the first time since its founding in 2009. (Full disclosure, this reporter had four arancini and an extra shrimp cocktail.) Like Hwang's Right to Start, GEC is part of a suite of initiatives spun out of the Kansas City-based Kauffman Foundation, which funded a generation of pro-entrepreneurship research. Hwang was once a Kauffman vice president credited with championing much of 'field building' for what insiders call 'entrepreneurial ecosystem building.' Now he leads Right to Start, which is guiding policymakers on entrepreneurship-boosting policy — and moonlights as a podcast host. Hwang developed the new initiative with his board member and former White House policy advisor John Bridgeland, and it will be led by Right to Start's COO Kim Lane. 'America was made by builders, dreamers, and risk-takers,' Hwang said. 'Yet today we have a system that too often works against entrepreneurs.' The campaign outlines three key actions: Creating a level playing field: Tackling outdated regulations, inequitable access to capital, and procurement rules favoring large incumbents. Spreading entrepreneurial knowledge: Offering nationwide access to skills training, practical education, and community networks. Supporting entrepreneurial households: Advocating policies that ease healthcare, childcare, and financial burdens for entrepreneurs and their families. 'The most courageous startup the world has ever seen' To be clear, entrepreneurship is already booming in the United States, at least compared to pre-pandemic trends. That boom in business starts is being led by women, especially women of color. But Hwang, like his tribe of Kauffman-affiliated spinouts, thinks in terms of a much more sustained and complete change of economic development and policymaking at all levels. Sounds like a revolution. 'In 1776, America didn't just declare independence,' Hwang is credited with saying in a followup press release. 'America launched the most courageous startup the world has ever seen — a country conceived and dedicated to the promise of opportunity, enterprise, and self-determination.' The 'America the Entrepreneurial' campaign plans to mobilize more than 250,000 Americans in coalitions spanning all 50 states by the end of 2026. Engagement will be facilitated through local events, storytelling initiatives and a comprehensive toolkit available through the campaign's website, per the group. For Hwang, this initiative builds on decades of foundational work advocating entrepreneurship and ecosystem-building. He routinely cites two cornerstone bits of research: that new business drives all net new jobs and that every 1% increase in entrepreneurial activity in a state correlates with a 2% decline in poverty. 'This is effectively saying the whole country, all of society, should care about entrepreneurship and be involved in it,' Hwang told before the launch. 'We've been missing that message because it's effectively been a conversation amongst ourselves.' Entrepreneurship, Hwang argues, is more than just economic activity — it is central to America's identity and future. I've spoken with Hwang about 'America the Entrepreneurial' a half dozen times in the last couple months. Each time he says the name with an uplifting tone, raising his hand to match. At the launch he joked that he hears music when he does. 'If you want a strong America, you have to have strong entrepreneurship,' Hwang said. 'When the entrepreneurial spirit thrives, America thrives.'More details about the campaign are available at americatheentrepreneurial.o rg.
