Innovative SMEs and new businesses are playing a significant role in driving the growth and creation of jobs for the American economy. In spite of being among the most adversely effected group of businesses during the economic crisis of 2008 -09, entrepreneurial ventures still hold the key to drive local economies into pre-crisis employment rates.
With an aim to help new businesses to optimize their full potential towards long-term growth and job generation, governments are taking necessary measures which nurture and stimulate entrepreneurship within each state. For example, the state of Indiana is taking proactive measures towards improving the quality of entrepreneurship study programs across various universities.
In addition to this, with an aim to increase Indiana jobs, the state government along with experts is performing studies which help fill the knowledge gap on how to create an entrepreneurial economy.
What Public Policies need to Address
Also, a varied number of challenges can hold back innovation and entrepreneurship, consequently impeding the economy’s ability to achieve its full employment potential.
To create a hot bed for entrepreneurs within your state, it is important that governments and policy makers address the following –
- Creating business environments which do not impose unnecessary burden on SMEs and new businesses.
- Designing relevant set of structural policies which help businesses sustain in the given government, system and market.
- Offering support in with respect to financing opportunities, access to knowledge and market networks, and infrastructure to manage intellectual assets.
- Most importantly, infrastructure with respect to education and finance which nurtures entrepreneurial human resources.
Leaving Behind the Past for a Competitive Future
It has been suggested time and again that successful business owners, public officials, industry experts and financers must synergize to design and execute effective strategies that help American evolve from its agrarian and industrial past into a more innovative and sustainable future.
Small and New Businesses in Indiana
Indiana for example is looking at ways to help stakeholders focus on contributing towards the faster growing smaller businesses, hereby directly contributing to the Indiana jobs market.
As off 5 years ago, the U.S Bureau of Labor Statistics suggested that out of all the employers in the United States, only about 10% of those have employee strength of over 20 people. Studies suggested that 85% of all the businesses in the state were micro businesses with employee strength of less than 20 people.
In addition to this, a basic Indiana job search also suggested that companies with high revenues and employment rates accounted for 33% of job growth while small businesses in Indiana were known to create about 67% of the new jobs. With a significant contribution such as this, the role of entrepreneurship in employment generation is quite evident. By creating stronger connections between academic institutions, research establishments and the business sector is a great way to promote new businesses.
Also by discouraging job retention in saturated sectors and encouraging shifts into businesses with high growth potential, the American economy can generate a nourishing environment for new businesses and new career opportunities.