Entrepreneurship fosters job creation, discovery and innovation. It is the foundation upon what the US was built upon – hard work and inventive ideas. Entrepreneurs are responsible for making markets more efficient and increasing economic gains through innovation.
Unfortunately, the US is at a crossroads. Because of facing many challenges, entrepreneurship is rapidly declining and facing. There are more businesses leaving the industry than entering the industry and productivity improvements, job creation and innovation have slowed.
The reason the US suffers from these problems, which are divided into several different categories, is outlined below.
- Poor Tax Policies – The US government’s poor tax policies have increased the cost of capital, imposing higher taxes on entrepreneurs that are willing to take on risks. Additionally, the IRS has made our tax system complex and they impose high compliance costs on small businesses.
- Access to Capital – Banking practices and laws impede and restrict entrepreneurs’ access to much needed capital, which prevents them from growing their businesses to their full potential.
- Health Care – ObamaCare imposes expensive costs on companies that have 50 or more employees and the US health care system is already the most costly in the world.
- Regulatory Costs – Complex government regulations continue to increase, which have a disproportionate impact on small companies, ultimately stunting their growth.
- Energy and Environmental Laws – Energy and environmental regulations consistently increase the cost of energy, while limiting the development of energy resources.
- Labor and Employment Laws – Complex labor and employment laws raise the risk and cost of employing people in the US, which also reduces wages.
- Immigration Rules – The US immigration system makes it extremely difficult for companies to take advantage of employing talented foreign workers.
- Legal System – The US has a costly legal – the most expensive in the world, which is responsible for imposing high costs on small firms.
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