Current Entrepreneurship and Innovation Policies

McNair Project
Current Entrepreneurship and Innovation Policies
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Abstract

Out of the 7430 bills in total proposed in the 114th Congress of 2015-2017, there were 103 bills either related to entrepreneurship or innovation or containing the specific word, "entrepreneurship". Several of these bills have led to acts and policies that have had a significant impact on the present and future outlook of entrepreneurship and innovation in the United States.

Entrepreneurship

Federal Policy

Several policies affecting small businesses and entrepreneurship have been discussed in Congress. The following is a summary of some acts and policies that have a significant impact of entrepreneurship in the United States. For a comprehensive list of policies on entrepreneurship reports by the Senate Committee on Small Business and Entrepreneurship can be found here.

The Small Business Innovation Research (SBIR) program was introduced by the U.S. Congress in the early 1980's to enhance long term growth among small businesses. They offer grants to small businesses to financially boost the company's outlook and additionally assign the company's a sign of quality which consequently starts to attract further external investments.

The Jumpstart Our Business Startups (JOBS) Act of 2012 was enacted to provide looser security regulations for entrepreneurs and investors to allow for more funding and potential for success for startup businesses. Two specific provisions of the act are especially impactful for small businesses: Title II and Title IV. Title II indicates the increase in the number of potential investor that a company can communicate with in order to acquire funding. Title IV allows investors to put almost 10 times more funds into companies with much less restricted investing requirements.

The Small Business Administration (SBA) is an independent agency for the Federal Government that grows businesses and creates jobs by acting as the voice of small businesses. It serves to strengthen entrepreneurial ecosystems by providing financial assistance specifically to the many small businesses that do not qualify for bank loans.

State and Local Policy

State governments often match the federal SBIR grants given out to small businesses.

Public venture funds are given to several small businesses to promote entrepreneurship and financially back small businesses.

State and local governments often create a link between new businesses and research universities in the area.

Innovation

Under the The Innovation Promotion Act of 2015, companies will be allowed up to a 71% deduction of the lessor of either their taxable income or their innovation box profit. Qualified innovation property would include patents, inventions, formulas, processes, computer software, and possible other innovations.