Where the Jobs Are: Entrepreneurship and the Soul of the American Economy
Four years after the end of the Great Recession, 23 million Americans remain unemployed, underemployed, or have left the workforce discouraged. Even worse, Washington policymakers seem out of ideas.
Where the Jobs Are: Entrepreneurship and the Soul of the American Economy shows how America can restore its great job-creation machine.
Recent research has demonstrated that virtually all net new job creation in the United States over the past thirty years has come from businesses less than a year oldtrue "start-ups." Start-up businesses create an average of three million new jobs each year, while existing businesses of any size or age shed a net average of about one million jobs annually.
Unfortunately, the vital signs of America's job-creating entrepreneurial economy are flashing red alert. After remaining remarkably consistent for decades, the rate of new business formation has declined significant in recent years, and the number of new jobs created by new firms is also falling.
In Where the Jobs Are, the authors recount the findings of a remarkable summer they spent traveling the country to meet and conduct roundtables with entrepreneurs in a dozen cities. More than 200 entrepreneurs participatedexplaining in specific and vividly personal terms the issues, frustrations, and obstacles that are undermining their efforts to launch new businesses, expand existing young firms, and create jobs. Those obstacles include a dangerously underperforming education system, self-defeating immigration policies that thwart the attraction and retention of the world's best talent, access to capital difficulties, a mounting regulatory burden, unnecessary tax complexity, and severe Washington-produced economic uncertainty.
- Explains how start-ups are different from existing businesses, large or small, and why they represent the engine of job creation
- Reveals how policymakers' failure to understand the unique nature and needs of start-ups has undermined efforts to stimulate the economy following the Great Recession
- Presents a detailed, innovative, and uniquely credible 30-point policy agenda based on what America's job creators said they urgently need
Engaging and informative, Where the Jobs Are reveals with unprecedented precision and clarity the major obstacles undermining the fragile economic recovery, and provides a vitally important game plan to unleash the job-creating capacity of the entrepreneurial economy and put a beleaguered nation back to work.
Preface Rob Nichols xiii
Chapter 1 America's Jobs Emergency 1
Chapter 2 Not Just Small Businesses . . . New 15
Chapter 3 On the Road with America's Job Creators 23
Chapter 4 "Not Enough People with the Skills We Need" 31
Chapter 5 "Our Immigration Policies Are Insane" 53
Chapter 6 "Not All Good Ideas Get Funded Anymore" 73
Chapter 7 "Regulations Are Killing Us" 107
Chapter 8 "Tax Payments Can Be the Difference between Survival and Failure" 119
Chapter 9 "There's Too Much Uncertaintyand It's Washington's Fault" 131
Afterword Senator Jerry Moran (R-KS) Senator Mark Warner (D-VA) 183
Appendix Summary of Recommendations 187
About the Authors 235
JOHN DEARIE is Executive Vice President for Policy at the Financial Services Forum. Prior to joining the Forum in 2001, he spent nine years at the Federal Reserve Bank of New York, where he held positions in the banking studies, foreign exchange, and policy and analysis areas. His writing has appeared in the Wall Street Journal, Financial Times, Politico, American Banker, and China's Caijing magazine. Dearie lives with his wife and two children in Great Falls, Virginia.
COURTNEY GEDULDIG is Vice President of Global Regulatory Affairs at Standard & Poor's. Prior to joining S&P, she was managing director and head of federal government relations at the Financial Services Forum. Geduldig served as chief financial counsel to Senator Bob Corker (R-TN), handling a wide range of issues including financial markets, housing, banking, taxes, manufacturing, and international trade finance, and playing a key role in drafting and advising Senator Corker on the Dodd-Frank Wall Street Reform and Consumer Protection Act. She also spent two years as the deputy assistant secretary for banking and finance at the U.S. Treasury Department. Geduldig is a member of the Maryland State Bar and lives with her husband, son, and daughter in McLean, Virginia.
“Three years ago John Dearie and Courtney Geduldig, who both worked for the Financial Services Forum, which represents America’s biggest financial institutions, came up with an inspired idea. Why not ask entrepreneurs themselves what is going wrong? Both big multinationals and established small firms have lots of representatives in Washington, DC. Entrepreneurs are too busy inventing their companies to spend time lobbying. The pair organized meetings and conducted lots of polls. Across a vast and diverse country they heard the same message from everyone they asked: entrepreneurship is in a parlous state. And everyone pointed to the same problems. The result is a new book, “Where the Jobs Are”, which should be dropped onto the heads of America’s squabbling politicians.”
Where the Jobs Are
Entrepreneurship and the Soul of the American Economy
By John Dearie and Courtney Geduldig
September 16, 2013 - Hoboken, N.J. - Wiley is pleased to announce the publication of Where the Jobs Are: Entrepreneurship and the Soul of the American Economy, a provocative new book by John Dearie, Executive Vice President for Policy at the Financial Services Forum and Courtney Geduldig, currently Vice President of Global Regulatory Affairs at Standard & Poor’s Ratings Services.
More than four years after the end of the Great Recession, 24 million Americans – a full 15 percent of the workforce – remain unemployed, underemployed, or have left the workforce discouraged. At the current pace of job creation, America will not return to pre-recession employment levels until 2023.
With the hope of generating new policy alternatives, in April 2011 the co-authors – at the time, colleagues at the Financial Services Forum – launched an effort to understand the nature and scope of the damage to U.S. labor markets and, if possible, to identify new ways to enhance the economy's job-creating capacity. Shortly after they began their investigation, they learned of research that demonstrates how virtually all net new job creation in the United States over the past 30 years has come from true “startup” businesses less than a year old.
In Where the Jobs Are, the authors recount the findings of a remarkable summer they spent traveling the country to meet and conduct roundtables with entrepreneurs in 12 cities across America. More than 200 entrepreneurs participated in these events – from a web-based software company in Seattle to an industrial construction firm in Orlando, from a developer of bioscience technologies in Boston to a distributor of glow-in-the-dark fluorescent fish in Austin – explaining in specific and vividly personal terms the issues, frustrations, and obstacles that are undermining their efforts to launch new businesses, expand existing young firms, and create jobs.
Along the way, the authors also conducted dozens of meetings with business and entrepreneurship academics, leaders of start-up incubators and accelerators, venture capitalists, angel investors, community development organizations, and lending institutions. Working with the Kauffman Foundation and polling firm National Research, Inc., they also conducted a first-of-its-kind nationwide poll of more than 800 new and small business leaders during the week of September 19, 2011.
In Where the Jobs Are, the authors:
- Explain the differences between startups and existing businesses – large or small – and why startups represent the engine of job creation;
- Discuss policymakers’ need to understand the unique nature and needs of startups, to more effectively stimulate economic growth and job creation following the Great Recession;
- Assess the obstacles to new business formation and job creation identified by America’s entrepreneurs, including: an education system in need of reform; immigration policies that impede attracting and retaining the world’s best talent; difficulties in access to capital, regulatory challenges; tax complexity; and continuing economic uncertainty; and
- Present a detailed, innovative, and uniquely credible 30-point policy agenda based on whatAmerica’s job creators told the authors they urgently need.
Ground-breaking, fascinating, and informative, Where the Jobs Are reveals with unprecedented clarity the major obstacles undermining the fragile economic recovery and job creation, and provides a vitally important game plan to unleash the job-creating capacity of the entrepreneurial economy and put a beleaguered nation back to work.
WHERE THE JOBS ARE
Entrepreneurship and the Soul of the American Economy
By John Dearie and Courtney Geduldig
Available in hardcover and eBook formats