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John Dearie - Where the Jobs Are: Entrepreneurship and the Soul of the American Economy

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A guide to ending Americas jobs emergency by accelerating the true engine of job creationstart-ups

Four years after the end of the Great Recession, 23 million Americans remain unemployed, underemployed, or have left the workforce discouraged. Even worse, Washington policymakers seem out of ideas.

Where the Jobs Are: Entrepreneurship and the Soul of the American Economy shows how America can restore its great job-creation machine.

Recent research has demonstrated that virtually all net new job creation in the United States over the past thirty years has come from businesses less than a year oldtrue start-ups. Start-up businesses create an average of three million new jobs each year, while existing businesses of any size or age shed a net average of about one million jobs annually.

Unfortunately, the vital signs of Americas job-creating entrepreneurial economy are flashing red alert. After remaining remarkably consistent for decades, the rate of new business formation has declined significant in recent years, and the number of new jobs created by new firms is also falling.

In Where the Jobs Are, the authors recount the findings of a remarkable summer they spent traveling the country to meet and conduct roundtables with entrepreneurs in a dozen cities. More than 200 entrepreneurs participatedexplaining in specific and vividly personal terms the issues, frustrations, and obstacles that are undermining their efforts to launch new businesses, expand existing young firms, and create jobs. Those obstacles include a dangerously underperforming education system, self-defeating immigration policies that thwart the attraction and retention of the worlds best talent, access to capital difficulties, a mounting regulatory burden, unnecessary tax complexity, and severe Washington-produced economic uncertainty.

  • Explains how start-ups are different from existing businesses, large or small, and why they represent the engine of job creation
  • Reveals how policymakers failure to understand the unique nature and needs of start-ups has undermined efforts to stimulate the economy following the Great Recession
  • Presents a detailed, innovative, and uniquely credible 30-point policy agenda based on what Americas job creators said they urgently need

Engaging and informative, Where the Jobs Are reveals with unprecedented precision and clarity the major obstacles undermining the fragile economic recovery, and provides a vitally important game plan to unleash the job-creating capacity of the entrepreneurial economy and put a beleaguered nation back to work.

John Dearie: author's other books


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About the Authors

John Dearie is Executive Vice President for Policy at the Financial Services Forum. Prior to joining the Forum in 2001, he spent nine years at the Federal Reserve Bank of New York, where he held positions in the Banking Studies, Foreign Exchange, and Policy and Analysis areas. His writing has appeared in the The Wall Street Journal, The Financial Times, Politico, American Banker , and Chinas Caijing Magazine. He lives with his wife and two children in Great Falls, Virginia.

Courtney Geduldig is Vice President of Global Regulatory Affairs at Standard & Poors. Prior to joining S&P, she was Managing Director and Head of Federal Government Relations at the Financial Services Forum. From March of 2008 to November of 2011, Courtney served as Chief Financial Counsel to Senator Bob Corker (R-TN), handling a wide range of issues including financial markets, housing, banking, taxes, manufacturing, international trade finance, and playing a key role in drafting and advising Senator Corker on the Dodd-Frank Wall Street Reform and Consumer Protection Act. She also spent two years as the Deputy Assistant Secretary for Banking and Finance at the U.S. Treasury Department. She is a member of the Maryland State Bar and lives with her husband, son, and daughter in McLean, Virginia.

Acknowledgments

This project began as a very simple if admittedly ambitious idea: contribute something new and significant to the increasingly urgent effort to put tens of millions of Americans left unemployed by the Great Recession back to work. Between original conception of the project and the completion of this book, we relied on the interest, guidance, and contributions of literally hundreds of people.

For their intellectual assistance and generosity, critical guidance, and hospitality we are enormously grateful to Carl Schramm, former President and CEO of the Ewing Marion Kauffman Foundation, now a professor at Syracuse University and the Carlyse Ciocca Professor of Innovation and Entrepreneurship at the University of California at Davis; Bob Litan, previously Vice President for Research and Policy at Kauffman and now Director of Research at Bloomberg Government; and Cameron Cushman, who remains at the Kauffman Foundation as Senior Advisor. We are also grateful to Bob for his contribution to our poll of more than 800 entrepreneurs, as well as his review of Chapter 2 of this book.

From our first conversations about our hope to develop new policy alternatives to accelerate job creation, Rob Nichols, President and CEO of the Financial Services Forum, understood the importance of what we had proposed. He was enthusiastic and generous in his encouragement throughout our summer project, and enormously accommodating of our ambition to write a book about what we had heard and learned from the nations entrepreneurs.

Special thanks to John F.W. Rogers for his vision and trust as we pursued this project.

Our deepest debt, of course, is to the more than 200 entrepreneurs who participated in our 12 roundtables. We thank them all for responding to our invitation to participate, for their time, their observations and insights, their candor and generosity, and, most especially, for what they do every daytaking the risks, both economic and personal, necessary to launch new businesses, expand those businesses, and create jobs, careers, and wealth for thousands of their fellow Americans. They, and millions of other entrepreneurs across the nation, are the true heroes of this book. Without them, there would be no net new job creation in the United States. This is their story, as told by them. We were privileged to meet them, to learn about their businesses, and to hear their observations and insights regarding the many challenges they confront on a daily basis. Most of all, we are honored to have the opportunity to bring their stories to the nation by way of our book. We are particularly grateful to those who have allowed us to use their comments and observations with attribution. Their remarkable and vividly personal expression of their ambitions, hopes, frustrations, and challenges not only adds remarkable clarity and credibility to the issues considered, but reminds us that business formation and job creation are about people and families, not just economic trends and statistics.

A number of people played a critical role in helping us identify and make contact with the entrepreneurs we invited to our roundtables, including Maria Gotch, President and CEO of the New York City Investment Fund; Tom Moebus and Helene Rude of the Levin Institute at the State University of New York; Kim Scheeler, President and CEO of the Greater Richmond Chamber of Commerce; Michael Rollins, President of the Greater Austin Chamber of Commerce; the Washington, DC, and Columbus, Ohio, offices of Congressman Pat Tiberi; Jerry Ross, Executive Director of the National Entrepreneur Center in Orlando, Florida; Bobbie Kilberg, President and CEO of the Northern Virginia Technology Council; Tim Rowe, founder and CEO of the Cambridge Innovation Center; Nancy Saucier, Director of New Venture Development at the University of Massachusetts, Lowell; David Verrill, Executive Director of the Center for Digital Business at MITs Sloan School of Management; Ted Ford, President and CEO of TechColumbus; Beth Flanagan, Director of the Memphis Medical Center; Kevin Roper of the University of Memphis; Nick Kistenmacher in the office of Senator Bob Corker; Jeff Marcell, President and CEO of enterpriseSeattle; Margo Shiroyama, Executive Director of Northwest Energy Angels; Sue Hesse, founder and CEO of Hesse Partners; and Alana Muller, President of Kauffman FastTrac.

Greg Hitt, Senior Vice President at Hill+Knowlton Strategies in Washington, DC, served as the moderator of our 12 roundtables, traveling with us across the country (including sitting in 100-degree heat on the tarmac in Kansas City, Missouri, for more than an hour in a plane with no air-conditioning) and presiding over our discussions with professionalism, consistency, patience, and humor. Along the way, he helped us focus our inquiry, process what we were hearing from our participating entrepreneurs, and formulate a number of our policy recommendations.

Very special thanks to John Duncan, our friend and mentor, who contributed in innumerable ways to the formulation, structure, and focus of our project, and also helped us formulate a number of our policy recommendations. Johns vast political and policy expertise, together with his sophisticated analysis of the profound technology-driven changes impacting American society and the U.S. economy, made him an invaluable discussion partner and sounding board throughout the project.

On July 20, 2011, we convened a discussion of noted economists at the Kauffman Foundation in Kansas City, Missouri, to discuss the state of U.S. labor markets following the Great Recession, as well as challenges to recovery. We appreciate the participation of Bob Litan and Tim Kane of Kauffman; Matthew Slaughter of the Tuck School of Business at Dartmouth College; Robert Lawrence of Harvard Universitys John F. Kennedy School of Government; Garett Jones of George Mason University; Ike Brannon of the George W. Bush Institute; and Diana Furchtgott-Roth of the Manhattan Institute. Their insights helped provide the broader economic context within which we were able to consider and make sense of what we heard at our other roundtables.

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