In 2013, the United States economy appeared to have at last emerged from the hangover of the Great Recession, with economic indicators picking up across the board and stock markets roaring ahead. For good reason, there is a great deal of optimism regarding economic growth. At the same time, perils lurk and several long-term challenges give cause for economic pessimism.
Few of these challenges—long-term budget deficits, entitlement spending, global competition, growing inequality, and middle-class stagnation, among many others—can be addressed or solved without sustained and broad-based economic growth. And that kind of growth will not come about without entrepreneurship: the formation and growth of new companies. Young firms and growing firms are a principal source of net job creation in the United States, and they also help drive productivity and innovation. The dynamism that has always been a hallmark of the American economy is, to a great extent, premised on a healthy state of entrepreneurship.
Click here for related video remarks and the accompanying Entrepreneurship Policy Digest brief.