Kansas City, MO (PRWEB) June 11, 2014
State tax incentives – often used to attract or retain existing businesses – aren’t always the best way to stimulate economic growth. According to a new Entrepreneurship Policy Digest released today by the Kauffman Foundation, these programs, while sometimes economically justified, often overlook the businesses that create most new jobs – namely, new companies. The Policy Digest offers alternative strategies for states to either improve their existing incentive programs or boost job creation by fostering firm formation.
“States spend tens of billions of dollars each year trying to entice businesses to locate within their borders, but these policies often miss the real job creators: new and young businesses,” said Jason Wiens, policy engagement manager at the Kauffman Foundation. “Alternative economic development strategies exist that focus on entrepreneurial growth without incurring costly tax incentives.”
Culling ideas from Kauffman research and those developed at a recent Kauffman Foundation conference on state incentive programs, the Policy Digest offers the following strategies for how states can better foster entrepreneurship:
Stress Human Capital and Resource Awareness
Connect Entrepreneurs with Resources
The Kauffman Foundation’s Policy Digests consist of summaries of findings around relevant policy issues that will inform and educate policymakers. To read the entire Policy Digest on state incentives and to sign up to receive subsequent Digests, go to http://www.kauffman.org/policydigest.
About the Kauffman Foundation
The Ewing Marion Kauffman Foundation is a private, nonpartisan foundation that aims to foster economic independence by advancing educational achievement and entrepreneurial success. Founded by late entrepreneur and philanthropist Ewing Marion Kauffman, the Foundation is based in Kansas City, Mo., and has approximately $2 billion in assets. For more information, visit http://www.kauffman.org, and follow the Foundation on http://www.twitter.com/kauffmanfdn and http://www.facebook.com/kauffmanfdn.