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While the American people remain concerned about the direction of our country and the state of our economy, a growing consensus has emerged in support of policies that encourage private sector and entrepreneurial growth.
In the most recent poll that the Kauffman Foundation conducted as part of its regular research it does on economic growth and entrepreneurship, 34% of Americans say the economy is headed in the right direction, while 54% say it is off on the wrong track. In addition, they remain skeptical about their personal economic situation, and they do not think that the economy is recovering. 54% of Americans say the U.S. economy is not beginning to recover, while one-third believe that it is.
A plurality says that the economic stimulus has helped the economy. However, the Kauffman poll reveals what type of policies Americans really want put forward to stimulate the economy.
The American people want to cut tax rates on payrolls and businesses and reform the health care system as a means of stimulating the economy and producing economic growth. They also want the government to adopt policies that do not increase the deficit or debt.
Americans believe that sustainable economic growth comes more from private sector jobs than from public sector jobs. While one-quarter say that economic growth in the past ten years has come more from the public sector than the private sector, half say that growth has come more from the private sector. This emphasizes the need for policies that support private sector growth, as 71% think we will go through a period of long-term, higher unemployment.
Americans have shown a strong desire for policies that make it easier to start a business, as 85% think this is important. They believe that businesses first and foremost should be socially responsible and create jobs. They also believe that entrepreneurs and big business are most important to job creation in the United States, while government and scientists are less important.
A majority would like the government to do more to encourage entrepreneurship. They believe that tax cuts generally and incentives for small business, followed by less red tape, will encourage entrepreneurial activity. 83% of Americans believe that our economy has been and will continue to be built by entrepreneurs. Seventy-three percent believe that only with entrepreneurship can we have a sustained recovery from our economic crisis.
In response to these sentiments, the Obama Administration has taken steps to promote entrepreneurship and make entrepreneurial activity a central part of their efforts to revitalize and grow the economy. Recently, the Commerce Department Secretary Gary Locke announced the establishment of the Office of Innovation and Entrepreneurship, which will help leverage the entire federal government on behalf of promoting entrepreneurship in America.
This is especially important given that new businesses, which according to the Bureau of Labor Statistics accounted for 14% of hiring between 1993 and 2008, are declining. Business start-ups fell 14% from the third quarter of 2007 to the third quarter of 2008, and the 187,000 businesses launched in that quarter were the fewest in a quarter since 1995, according to an article in yesterday's Wall Street Journal.
In short, the American people are looking for new policies to grow the economy, and the Obama Administration is responding. They want pro-growth, entrepreneurial policies that are fiscally prudent, do not increase the deficit, and offer real incentives for businesses to create the kind of jobs that America desperately needs.
Kauffman Foundation President Carl Schramm has just announced the formation of an entrepreneurship initiative, which Mr. Schramm has said "is aimed at giving entrepreneurs, and those who support them, a unified voice to raise awareness about the important role entrepreneurs play in the economy and society. [It] will provide a platform for business owners of all sizes to educate policymakers about the issues they face and what can help them, and those who follow in their footsteps, to be more successful."
And it shouldn't be surprising given the feelings of the American electorate and the absence of such a movement, that close to 20% of the American people and over 15% of entrepreneurs say that they are willing to consider joining the movement, creating a force of potentially hundreds of thousands of people or more to advance the interests of entrepreneurship.
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