Federal Role in Entrepreneurship

Chris EdwardsI testified to the U.S. Senate Committee on Small Business and Entrepreneurship yesterday. The focus ofthe hearing was Small Business Administration (SBA) subsidies for entrepreneurial education. The agency spends more than $300 million a year on these efforts. The SBA pays contractors in each state to run programs aimed at helping people start businesses.This is just a small part of the federal budget, but the hearing was the sort of oversight that congressional committees are supposed to perform. And this hearing included witnesses critical of the spending. So kudos to committee Chairman Ben Cardin and Ranking Member Rand Paul.My written testimony ishere. At the hearing, I discussed how, (1) these federal programs are not needed because the private sector fills the roles, and how, (2) slashing red tape is a better way to spur entrepreneurship.1) Government Spending Not NeededMany private efforts help startups and boost entrepreneurship:America has 335,000angel investors who are wealthy people that invest in startups. Angels are in every city and town in the nation and provide advice and guidance to entrepreneurs.The Kauffman Foundation spends $100 million a year on education and training for entrepreneurs. The PNC Foundation recently gave $16 million to create the National Center for Entrepreneurship at Howard University. Many private foundations fund entrepreneurship programs aimed at disadvantaged communities.The National Foundation f...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs