State Entrepreneurship Policies and Programs

Abstract

Reports the results of a study to create an inventory of state policies and programs that support entrepreneurship in order to track changes in the policy environment, to acknowledge states' contribution to a pro-entrepreneurial environment, and to identify further research areas.The inventory was based on existing research on state policies and programs and a survey conducted by the National Governor's Association and the National Conference of State Legislatures. The survey respondents included 36 states, one territory, and 22 state legislators from 16 states. State entrepreneurial policies are reported in five categories: general perspective of entrepreneurship, tax and regulatory climate, access to capital, entrepreneurship education, and intellectual capital.The results indicate that current state efforts to support an entrepreneurial economy are mixed. States viewing entrepreneurs as a part of their economy tend to adopt policies and programs supportive of an entrepreneurial economy. States are taking a more macro-economic approach to taxation and regulation policy that provides less focus on the needs of startups. Although access to capital is critical for entrepreneurs, most state assistance is in the form of loans. States are focusing more on increasing the supply of capital than on working with entrepreneurs to address investor concerns about business planning and management. States have made progress implementing procedures for regulating marketable securities. State support for education supporting entrepreneurship is greater at the post-secondary level than at the elementary and secondary levels. States are recognizing the contribution of universities and related institutions to an economy dependent on innovation and technology. Policy recommendations based on this survey are found in Nurturing Entrepreneurial Growth in State Economies, by Rubel and Palladino, National Governors' Association, 2000.