It goes without saying that job creation is vital to a healthy economy. As 2016 is an election year, there will be talk from every political angle about ways to improve the economy through putting people to work. Unemployment is a problem that not only affects the individual, but has a profound effect on the economy as a whole. A Gallup poll found that Americans believe that creating jobs is a major factor in improving the economy. The concept of job creation may conjure images of massive multinational corporations but, in reality, startups create the most American jobs.
Numerous articles and studies have highlighted the importance of startups in creating jobs. According to Forbes, “65% of the net new jobs are created by small businesses, while 1 million jobs are cut each year by large corporations.” A study conducted by the Kauffman Foundation found that “net job growth occurs in the U.S. economy only through startup firms.” The value of startups to an economy is undeniable and it becomes worthwhile to evaluate what can make a startup successful.
On the path to success, a common hurdle for startups is obtaining capital. Startups often do not possess the resources that large corporations enjoy, which makes getting off the ground difficult. In an article providing keys to success for startups, Forbes dispenses some common sense advice. Beginning a startup requires patience, an unrelenting work ethic, and boundless ambition. In light of recent Securities and Exchange Commission (SEC) changes, one of Forbes’ keys to startup success becomes even more interesting. Forbes believes that a successful startup should familiarize itself with the crowdfunding community. With the implementation of Regulation A+, there has never been a better time for startups to engage in crowdfunding.
Considering the important role startups play in a strong economy, investing in those startups becomes a critical catalyst for economic growth. For decades this opportunity was limited to “accredited investors,” or individuals who earn over $200,000 in income or possess $1 million in assets, not including their primary residence. Simply put, the game has changed with the implementation of Regulation A+. Non-accredited investors, who make up 99% of the population, now have the opportunity to invest in companies that will change the world. With these investments, startups now have access to capital from everyday investors, who have the opportunity to invest in a project they believe in and believe will be successful. Regulation A+ allows startups to take the next step forward and has the potential to create countless jobs along the way.
The path for a startup is anything but smooth. The road to success is frequently riddled with adversity and a successful startup effectively navigates through rough times with tenacity, ambition, and by constructing a cohesive team. In the past, securing capital has proven to be an insurmountable obstacle for many startups. Regulation A+ has the potential to make obtaining capital simpler, increasing the chances of a startup’s success. Everyday investors, startups, and the United States’ job market all stand to benefit exponentially from the implementation of Regulation A+.