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Week of August 6 - 12, 2007 |
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Kauffman Foundation Updates Policy Roadmap As part of its efforts to advance entrepreneurship and innovation, the Kauffman Foundation released an updated version of its policy paper titled, On the Road to an Entrepreneurial Economy: A Research and Policy Guide. It addresses topics that impact entrepreneurship in the United States, including immigration reform, education policy, health care coverage, emerging energy technologies, intellectual property protections, litigation and regulatory reforms, and minority enterprises. The centerpiece of this initiative was a national policy summit conducted earlier this year during which the Foundation unveiled its initial version. The current document reflects comments received during several expert panels convened at the summit during EntrepreneurshipWeek USA. The updates in this new version include: more insights on how immigration policy affects the ability for skilled immigrants to contribute to the American economy and add jobs; two principles for patent law reform that could encourage innovation and protect entrepreneurs, and recommendations for enacting reform legislation currently in Congress; and, how rule-making improvement strategies could make regulatory decision-making more efficient and effective. Download a copy of On the Road to an Entrepreneurial Economy: A Research and Policy Guide. |
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The August 2007 issue of
Entrepreneur magazine contains the 13th annual listing of Entrepreneur’s
Hot 500, their listing of the 500 fastest growing firms in the US. This
year’s #1 is San Diego’s DivX, a digital video founded in 2000 and now
generating annual sales of nearly $60 million. The study also generates
some collective statistics on the Hot 500. Together, the firms generate
$12.6 billion in annual revenue. Collectively, the firms employed 2,807
people on their first day in business. In 2008, they project that they
will employ more than 58,000 people. In other ways, the Hot 500 founders
are a unique and blessed lot. Sixty-one percent had turned a profit by
their second year in business; 56% had earned their first million
dollars by this milestone. |
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Venture capitalists (VCs)
had a pretty good run in the second quarter of 2007 according to the
latest industry statistics. VC firms raised $7.2 billion in the 2nd
quarter—this number is a decline from 2006 but it continues a two-year
run of fairly steady and consistent fundraising results. Industry
observers note that they are enjoying “a healthy but prudent fundraising
environment.” Meanwhile, the long lagging market for initial public
offerings (IPOs) seems to be turning a corner. Twenty-six venture-backed
firms raised $4.7 billion in the IPO market during the second quarter.
This is a big jump (112%) from the same period in 2006. MetroPCS
Communications’ IPO was the biggest deal at $1.15 billion, making it the
third largest venture-backed IPO ever. While the IPO market improved,
the number and values of mergers and acquisitions (M&A) dropped.
Industry experts expect the M&A pace to pick up later in the year. |
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From Out-sourcing to In-sourcing
For the past few years,
outsourcing has been the hot trends for many information technology (IT)
firms and other service companies. In-sourcing---moving work to lower
cost locations in the US—might be poised to be the next big thing in IT.
A new study from the Information Technology Association of America (ITAA)
examines the case for domestic in-sourcing. The report contends that
there are huge opportunities to create IT-related jobs and businesses in
lower cost regions of the US. However, this job shift will not occur
without some changes in current education and immigration policies. The
report recommends improvements in science, technology, engineering and
mathematics (STEM) fields at all age levels. This step, along with other
education reforms, will help improve workforce quality across the US. It
also recommends that states and localities invest in IT infrastructure
to help make their regions more attractive locations for private sector
investments. Virginia’s new broadband strategy is touted as an
innovative initiative. The report concludes by noting that in-sourcing
offers an excellent opportunity to create new high-quality jobs in rural
America. |
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The National Dialogue on Entrepreneurship is an initiative of the Public Forum Institute made possible by a grant from the Kauffman Foundation of Kansas City. Through NDE-news, we bring you short summaries and analyses of various trends driving entrepreneurship around the world. Subscribe now to receive your weekly copy. Archived issues are available online. |
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National Dialogue on Entrepreneurship
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All
stories © 2007 The Public Forum Institute
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