This phenomenon is fueled by five realities: First, new and young businesses create virtually all net job growth in America; second, entrepreneurship benefits everyone, as research shows that for every 1 percent increase in the U.S. entrepreneurship rate, the poverty rate decreases by 2 percent; third, new businesses grow GDP and increase community wealth and lifetime incomes; fourth, they create homegrown jobs and diversify goods and services; and fifth, entrepreneurship has almost universal support across the political spectrum.
The breadth of that support is clear from a recent survey conducted by a bipartisan team of pollsters for our organization, Right to Start: Fully 94 percent of American voters agree that “it is important to America’s future that citizens have a fair opportunity to start and grow their own business.” That near-unanimity crosses party lines, with 95 percent of Republicans, 95 percent of independents and 92 percent of Democrats agreeing. What other issue unites Americans in this way?
An office of entrepreneurship or similar entity or official ensures that there is a dedicated leader at the state level who eats, breathes and sleeps entrepreneurial issues. General responsibilities include coordinating policies affecting entrepreneurs, working to cut red tape and streamline government processes, tracking data on entrepreneurship and government contracts, expanding access for new and young businesses to government contracts, and issuing an annual state-of-entrepreneurship report.
Some offices of entrepreneurship have been created by state policy and legislation; others are the result of executive or department action. Nevada led the way with enactment in July 2023 of the nation’s first Right to Start Act, creating an office of entrepreneurship within the Governor’s Office of Economic Development; Missouri enacted its own Right to Start Act in 2024.
Colorado, Kansas, Michigan and New Mexico have each created by executive or department action an office of entrepreneurship or otherwise designated a director for entrepreneurship. Before taking office, Indiana’s new governor, Mike Braun, announced his plans for a major restructuring of his state’s executive branch including the creation of an Office of Entrepreneurship and Innovation within the Department of Commerce.
It's vital that there be offices of entrepreneurship or other designated officials leading statewide efforts to streamline processes, cut red tape and remove unnecessary barriers to starting and growing a business. Our survey found that 43 percent of voters have thought about starting a new business, but only half of them (21 percent) have tried. Fifty-four percent of Black voters have thought about starting a business, as have 50 percent of Hispanic voters and 40 percent of white voters.
Ironically, America experienced a surge in startups in the wake of the COVID-19 pandemic, but that was out of necessity, due to life disruptions and not because starting a business was any easier. Barriers to business creation are a reality would-be entrepreneurs are painfully aware of. Ninety-two percent of voters think it is difficult to start and grow a new business, according to our survey. That’s another assessment that crosses partisan lines: 94 percent of Republicans, 93 percent of independents and 92 percent of Democrats.
What then can offices of entrepreneurship and other leaders do to make processes streamlined and remove unnecessary barriers to economic growth?
First, listen to entrepreneurs. They are the ones creating the most net new jobs America needs, and they are present in every community. They know what governmental self-inflicted wounds are holding them and their prospective businesses back.
Second, remove unnecessary obstacles and burdensome early fees at all levels of government. Examine the role of government and ask whether regulatory requirements or fees can be simplified, clarified or eliminated. Why do governments have a multitude of fees for a new business when they are just getting started and can barely afford rent and payroll? Entrepreneurs and small businesses need every resource available to them to start, grow and obtain customers.
Third, consider the broader needs of entrepreneurs. It’s not only government processes and obstacles that get in the way. Entrepreneurs also cite issues like the high cost or unavailability of child care, the difficulty of accessing capital and the lack of recognition for the challenges small business owners face.
These challenges can be tackled best when an office of entrepreneurship or other designated official is charged with simplifying and streamlining the process of starting and growing a business, coordinating policies and cutting red tape. It’s an impactful first step along the path to enabling every aspiring entrepreneur to start and grow a business for the benefit of their communities and their state.
Jason Grill is chief government affairs officer at Right to Start, a national nonprofit organization championing entrepreneurship as a civic priority.
Governing’s opinion columns reflect the views of their authors and not necessarily those of Governing’s editors or management.
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