U.S. Needs to Unleash Startups and Empower Small Businesses, According to President's Jobs Council

The Obama administration, congress and the private sector must implement a comprehensive policy package to unleash startups and empower small businesses, according to a newly released report, Taking Action, Building Confidence, from the President's Council on Jobs and Competitiveness. The report outlines a three-phase approach to accelerate short-term job growth, while rebuilding long-term U.S. competitiveness:

• Catalyzing job growth by capturing "low hanging fruit" over the short-term;
• Focusing on broader ways to accelerate job creation while also lifting U.S. competitiveness over the next two to five years; and,
• Developing proposals on the broader factors influencing American competitiveness over the next five to 10 years.

To achieve this three-phase job creation approach, the council's work centered on developing a series of proposals that address the "U.S. jobs challenge." Council members were divided into seven working groups and tasked with identifying and prioritizing solutions to the challenge. During the development of the recommendations, the council also held an infrastructure summit, round-table discussions and "listening & action sessions" to receive public input on solutions for long-term job creation. Proposals were targeted at one of five policy areas:

• Measures to accelerate investment infrastructure and energy development projects — The council contends that investments into U.S. energy and infrastructure is a win-win for the country. Short-term, it creates well-paying, middle-class jobs; long-term, it enables a more productive economy. Key recommendations include leveraging and expanding existing public-private financing mechanisms, creating a national infrastructure financing organization and Mobilizing Private Sector Financing for Advanced Energy Technologies.
• A comprehensive package to ignite entrepreneurship and accelerate the growth of small businesses and high-growth firms — According to the report, startups and small firms are the key to U.S. job growth. Over the last three decades, high-growth enterprises have accounted for all the net new job creation in America. Key recommendations include streamlining SBA financing access and expanding programs to mentor entrepreneurs.
• A national investment initiative to boost inward investment in the United States — The Council recommends that the U.S. create a National Investment Initiative (NII) comprised of proposals aimed at attracting foreign and increasing domestic investment. The primary goal proposed for the NII is to attract one trillion dollars of foreign direct investment over the next four to five years.
• Ideas to simplify regulatory review and streamline project approvals — Several broad areas of regulatory reform are highlighted to speed the creation of jobs already in the "pipeline" including the reform of permitting processes, an improved FDA approval process and a streamlined patent process.
• Steps to develop the talent necessary to fill the almost three million unfilled jobs and meet future demands — According to the report, approximately three million job openings have remained unfilled due a lack of skilled workers. The council contends that the U.S. must focus on an "urgent" short-term talent agenda to "ease today's job woes," while developing a long-term agenda focused on long-term competitiveness. The report highlights several successful private-sector led initiatives including the "10,000 Engineers" initiative to graduate more U.S. engineers and "Right Skills Now" advanced manufacturing training in Minnesota.

The council touts the report's recommendations as nonpartisan and "don't depend on major legislative action or government funding". Read the report...