A Policy Road-map that Works

The Kauffman Foundation has issued a new report that reviews the most effective public policy to support entrepreneurial development. Their findings:

...[W]e find that the strongest consensus supports streamlining of local regulatory approvals and limits on progressive taxation at the state and local levels. Several other local policies also should facilitate entrepreneurial growth: congestion pricing to relieve traffic congestion; investments in local schools, amenities, and transportation infrastructure; and limited recognition by states of non-compete clauses in business contracts. There is as yet little evidence to support the targeted government support of research, particular industries, or firms.

Or in other words -- cut taxes and get government out of the way.

Hats off to the folks at Kauffman on this one. They have not always seen it this way, having favored a more socialistic approach to entrepreneurship policy (i.e., government picks and controls the winners through tax and other policies) in the past.

Here is a link to the complete report.

Here is a link to the summary.