Entrepreneurship: The Way Ahead

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Steve Taplin. Challenges The paper outlines five major challenges that small business owners will face in the coming years. Small businesses continue to struggle in the economic downturn, and it will be important for policy leaders to get the economy moving again. Small businesses will be a large part of that, as entrepreneurs will spur new innovation and employment in the coming years. These firms will continue to be the job generators that we have become accustomed to.


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With that said, industries will recover from the downturn in different ways, and some industries have clearly been hit harder this time than in past business cycles. Business conditions have a fundamental impact on entrepreneurial activity, and small business owners frequently cite tax and regulatory policies as a concern.

Moving forward, it will be important for policymakers to consider the impact of taxes and regulations on small business owners and would-be entrepreneurs. Health insurance premiums have risen substantially in this decade.

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The Kaiser Family Foundation reports that the cost of employee-sponsored health insurance plans has increased percent since It is also well-documented that employees at smaller firms are less likely to be offered health care coverage. Finding ways to control the cost of providing health insurance to employees and increasing coverage will remain a priority for our national and state leaders.

Small businesses must compete forlabor with their larger counterparts. This is more dif- ficult in light of the disparity in total compensation, especially benefits, and the result is greater employee turnover. Demographic trends in the coming years might also exacerbate these challenges.

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American businesses face competitors on a number of fronts, both at home and abroad. The U.

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There are also some structural disadvantages that work to make our products less competitive, and many companies have reduced their costs by outsourcing some processes and tasks abroad. Opportunities The paper also discusses five opportunities that small businesses will hopefully pursue in the next decade.

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There are strong linkages between innovation and new firm formation, and policymakers fully understand that risk-taking entrepreneurs have positive impacts on regional economic development. Such innovations are vital to our economic growth, and they will provide the tools to make our economy more competitive in an increasingly globalized marketplace.

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One of the strengths in our current economic climate is the export sector, and international trade represents an opportunity for small businesses. Historically, many small business owners have not been proactive about trading with foreign partners. While

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