We regularly read Brad Feld’s blog. He came and spoke to investors at the Excelerate Labs start up conference sponsored by Hyde Park Angels and the Polsky Center last summer. He gave a great speech about how to create a community of entrepreneurship. Feld has been successful over several companies, so he is a credible source when it comes to entrepreneurship. He wrote a column for CNNMoney, and we thought we would link to it on our blog.
8 Ways for the Government to Support Entrepreneurship
However, let’s think a bit smaller. Brad has a lot of ideas about the government in Washington DC. Instead of Federal government, substitute state and local government. Here are some examples of things the state or local government has control over to encourage entrepreneurs. Many piggyback exactly what Brad thought, just turned into more bite sized local pieces.
1. Stream line their procurement processes to make them entrepreneur friendly
2. Eliminate all taxes on gains from angel investing. Eliminate all taxes from gains on investing in funds that engage in angel investing.
3. Eliminate arcane regulations and rules the inhibit entrepreneurs. The University of Chicago Law School has an excellent series on that topic.
4. Eliminate all quotas from government purchases so that small entrepreneurial companies can compete
5. Create a Tax Increment Financing district so that rehabbers can rehab vacant buildings to provide cheap office space to incubators and small companies.
6. Eliminate as many government jobs as you can, and turn those functions over to private industry. Brad postulated 20%.
7. Use the government network to put entrepreneurs and customers together. The government can not only be a customer, but it can be a connector.
8. Encourage programs like Junior Achievement in the educational system. From Kindergarten on up, kids can run lemonade stands to real businesses.
No one has the market cornered on these kinds of ideas. What ideas would you have to turn the midwest into a thriving entrepreneurial center? Post them in the comments.