Entrepreneurship is a key driver of economic growth, with new businesses playing a crucial role in job creation and innovation. According to the National Bureau of Economic Research, almost all net job growth is generated by businesses started less than five years ago. Recognizing the importance of fostering entrepreneurship, governors across the United States are leading efforts to create a more startup-friendly environment in their states.
One notable example is Nevada, where Governor Joe Lombardo made history by passing a “Right to Start” law in 2023. This legislation aims to remove barriers and create opportunities for aspiring entrepreneurs. Similarly, Pennsylvania Governor Josh Shapiro issued an executive order to establish the Pennsylvania Office of Transformation & Opportunity, which focuses on streamlining government processes and supporting economic development initiatives.
The NGA Center for Best Practices recently hosted a webinar to discuss new state models for fostering entrepreneurship. Speakers included Victor Hwang, founder of Right to Start, and Jason Grill, Chief Government Affairs Officer at Right to Start. They highlighted the economic benefits of entrepreneurship and the need for policies that support small businesses. Hwang emphasized the importance of giving everyday entrepreneurs a voice in policymaking, as they often face challenges in starting and growing their businesses.
Right to Start advocates for policies that make it easier for entrepreneurs to navigate the business landscape. This includes dedicating a small percentage of government funding to new businesses, reducing registration costs and fees, and providing tax relief for young businesses. The organization has gained bipartisan support in several states and continues to push for legislative reforms that benefit entrepreneurs.
In Pennsylvania, the Office of Transformation and Opportunity is focused on eliminating red tape and encouraging business growth. Executive Deputy Secretary Steve D’Ettorre outlined the office’s goals, which include attracting out-of-state businesses, expediting permit reviews, and supporting small businesses through programs like Main Street Matters. The state aims to increase the number of startups in high-growth industries and create a more competitive and prosperous economy.
Nevada’s Office of Entrepreneurship, established under Governor Lombardo’s leadership, is also dedicated to supporting new businesses. Director Karsten Heise and Director of Strategic Programs Kyeema Peart highlighted the state’s efforts to cut red tape, collect data on small business activity, and engage with underserved communities. The office’s 3-phase approach focuses on community consultation, data assessment, and community deep dives to ensure that all stakeholders have a voice in Nevada’s entrepreneurial ecosystem.
Overall, governors are taking proactive steps to promote entrepreneurship and create a more favorable environment for startups. By implementing policies that support small businesses and remove barriers to entry, states can drive economic growth and create opportunities for aspiring entrepreneurs. The efforts of organizations like Right to Start and initiatives like the Pennsylvania Office of Transformation & Opportunity are paving the way for a more vibrant and dynamic entrepreneurial landscape in the United States.
