Non-Competes Can be Non-Starters, According to New Kauffman Policy Digest

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Digest offers insights into negative effects of non-competes and strategies to improve labor mobility and liberate entrepreneurs; Tweet this: New @KauffmanFDN policy digest says non-compete agreements hinder job creation & economic growth #entrepreneurship.

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The formation of new companies accounts for nearly all net new job creation, but state non-compete agreements – if strictly enforced – can make it harder for people to start those companies. According to a new Entrepreneurship Policy Digest released today by the Kauffman Foundation, state enforcement of non-compete agreements is restricting highly skilled workers from moving in and out of new jobs and/or from starting their own businesses, thus hindering job creation and economic growth.

The Policy Digest highlights the impacts of non-competes on individuals, firms and the economy and offers adjustments to current laws to improve mobility.

“The degree to which states enforce non-compete agreements can impact the economic growth of that state,” said Jason Wiens, policy director at the Kauffman Foundation. “Not only do non-competes limit entrepreneurship, they also restrict the movement of highly skilled workers. Minor changes to current laws could relieve restrictions on these entrepreneurs.”

Learn more here.

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, and follow the Foundation on and

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