In Testimony Before Congress, Small Business Economist Shares Good News on U.S. Entrepreneurship, Warns of Policies that Could Douse Startup Activity

By at 3 November, 2021, 10:11 am



Washington, D.C. – The U.S. House Committee on Small Business is exploring “Entrepreneurship in the New Economy” at a hearing today, and Small Business & Entrepreneurship Council (SBE Council) chief economist Raymond Keating will communicate a good news message of hope and optimism for U.S. entrepreneurship. The good news, however, comes with a warning, as anti-growth policies being pursued in Washington along with the dramatic drop in third quarter GDP as reported last week could put the brakes on many of these new business endeavors, according to Keating.

As noted by Keating in his written testimony on the tax increases, for example, being advanced by President Biden and his allies in Congress as part of the reconciliation package:

The policy focus needs to move away from counter-productive efforts to raise taxes, and instead look to providing substantive, permanent tax relief, in particular, reducing taxes that directly impact entrepreneurship and investment, namely, income, capital gains and death taxes. Again, it must be kept in mind that increased taxes on investors wind up being negatives for the entrepreneurs who need investment.

Keating delivered a similar message on regulatory policy – that is, there needs to be certainty and restraint in order for the economy to heal and recover, and for entrepreneurship to flourish. Moreover, access to global markets, workers and supplies, and getting a handle on inflation must be addressed to strengthen business confidence and enable the growth and success of startups.

Keating also noted the transformative and outsized role that technology has played, and is playing, in boosting entrepreneurship and in the growth of existing businesses:

Whether it be in terms of generating new products, improving and enhancing production, and/or expanding distribution (from marketing to delivery), technological advancements in such areas as computer, digital and broadband technologies, for example, have served to expand opportunities for entrepreneurs. Social media, for example, has served to create and transform businesses.

November is National Entrepreneurship Month, as declared by President Joe Biden. According to SBE Council president & CEO Karen Kerrigan, elected officials must back their declarations and love of entrepreneurs and entrepreneurship with positive actions that will help them succeed:

“President Biden and Congress need to focus on fixing the pain points of small businesses, not breaking things that are currently working. New entrepreneurs and existing business owners face a whole host of barriers and challenges – labor shortages, supply chain headaches, and higher costs for everything – and current tax and regulatory policies being aggressively pursued are making matters worse, which will further harm these businesses and local economies. This month, we are urging President Biden and his team to engage with entrepreneurs and small business owners to guide their policy agenda. The White House definitely needs reset on policy, and it needs to begin by talking with entrepreneurs and small business owners.”


Raymond J. Keating,

Karen Kerrigan,

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 27 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit for additional information. Twitter: @SBECouncil



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