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Rice Subcommittee Examines The Role Of Innovative Small Businesses In The Economy

Washington, Apr 18 -

WASHINGTON, D.C. – House Small Business Subcommittee on Economic Growth, Tax and Capital Access Chairman Tom Rice (R-SC) today led a hearing on the role that innovative small businesses play in creating jobs, and how Washington can help spur more entrepreneurship.

According to the Kauffman Foundation, fast growing young innovative businesses account for less than 1 percent of all companies, yet generate roughly 10 percent of new jobs in any given year. This hearing was the first in a series that will examine how to bolster America’s competitiveness and propel economic growth through innovation and entrepreneurship.

“Research repeatedly demonstrates the integral role of innovation in catapulting economic growth.” said Chairman Rice. “We saw the benefits of economic growth driven by innovation during the 90’s with the expansion of the Internet. At a time of sluggish economic progress today, Washington must focus on creating a pro-startup environment, one that unleashes innovation as a mechanism for job creation. This hearing provided a valuable dialogue for our Committee about what conditions are necessary to attract and encourage innovative entrepreneurs and high-tech companies. This is an issue that the Small Business Committee will make a priority during this 113th Congress.”

Materials for the hearing are posted on the House Small Business Committee’s website HERE.

Notable Testimony:

Jack Roach, Director of Southeastern Institute of Manufacturing and Technology in Florence, SC said, “Historically, innovation has created the bulk of American jobs, and we believe it will most certainly be the force that creates jobs tomorrow. We also believe that creativity and innovation are critical to the success of business, industry, and the economy.”

Julie Lenzer Kirk, Co-Chair of Startup Maryland in Columbia, MD said, “Communities, by way of grassroots efforts and strategic public/private partnerships, can increase the probability of success and drive greater outcomes in revenue growth and job creation by encouraging connections, promoting and celebrating a culture of entrepreneurship, and facilitating access to needed capital.”

Steve Johnson, President and CEO of CreatiVasc in Greenville, SC said, “Innovation is the key to economic growth because it is how we can compete in a global marketplace.  It is also how we create good, high-paying jobs here at home.  But for innovation to succeed, there must be adequate capital to mature these inventions from the lab to the market.”

Michael D. McGeary, Co-Founder of Engine Advocacy in San Francisco, CA said, “Our own research has found that employment in science, technology, engineering, and mathematics, or STEM, occupations has been continually robust, gaining 27 jobs for every 1 job gain in all other occupations between 2002 and 2011. These jobs have boosted local communities as well; for every job created in the high-tech sector, 4.3 additional jobs are projected to be created in the local goods and services economy, including barbers, lawyers, and health care professionals. Startups are small by definition, but their impact across the U.S. economy is enormous.”

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