{"id":13482,"date":"2012-03-20T13:46:00","date_gmt":"2012-03-20T17:46:00","guid":{"rendered":"http:\/\/cfif.org\/v\/freedom_line_blog\/?p=13482"},"modified":"2012-03-20T13:47:54","modified_gmt":"2012-03-20T17:47:54","slug":"real-job-creation-is-when-entrepreneurs-become-employers","status":"publish","type":"post","link":"https:\/\/cfif.org\/v\/freedom_line_blog\/13482\/real-job-creation-is-when-entrepreneurs-become-employers\/","title":{"rendered":"Real Job Creation is When Entrepreneurs Become Employers"},"content":{"rendered":"

The Kauffman Foundation for Entrepreneurship\u2019s newest report<\/a> on business creation rates across the United States offers some intriguing insights for policymakers.<\/p>\n

According to Robert Litan, the foundation\u2019s vice president of research and policy, \u201cThe Great Recession has pushed many individuals into business ownership due to high unemployment rates.\u201d\u00a0 \u201cHowever, economic uncertainty likely has made them more cautious, and they prefer to start sole proprietorships rather than more costly employer firms.\u00a0 This \u2018jobless entrepreneurship\u2019 trend negatively effects job creation and the larger economic recovery.\u201d<\/p>\n

No doubt, regulatory barriers and confiscatory rates of taxation are causing start-ups to make the same kind of cost-saving hiring decisions as larger, more established firms.\u00a0 Across nearly every industry these days companies are hiring people to independent contracts rather than salaries, converting many \u2018company men\u2019 into standalone consultants.<\/p>\n

While becoming an accidental entrepreneur may not be the first career choice of many people \u2013 and according to the Kauffman study the college educated cohort saw the steepest decline in their willingness to start their own business \u2013 the movement of millions of people into the ranks of the self-employed could have huge consequences for policymakers.<\/p>\n

For starters, this army of new business owners is much more likely to demand rollbacks of costly regulations and profit-killing tax rates on corporations.\u00a0 Your perspective changes when you go from receiving a paycheck to making a payroll.<\/p>\n

Remember, the people that lose a job and start a business are the people whom the government should want to help the most.\u00a0 They aren\u2019t looking for a hand-out or even a hand-up, just space to make a contribution that others in the free market will reward.<\/p>\n

This constituency is a natural growth area for the conservative movement.<\/p>\n

The best part about the Kauffman report<\/a> is that entrepreneurial activity can be found in important electoral pockets.\u00a0 Consider:<\/p>\n