As governments at all levels around the world work to empower entrepreneurs and make their economies more entrepreneurial, there are increasing numbers of highly valuable tools to help U.S. policymakers prioritize what works. And while U.S. focused resources identify distinct challenges to be addressed, broader entrepreneurship policy frameworks internationally can also provide useful guidance on broader approaches to nurture entrepreneurship..
Most widely known in the U.S. is Kauffman Foundation’s ‘America’s New Business Plan’ (ANBP). This non-partisan plan, which was first published in 2019 and refreshed in 2022, focuses on creating a more inclusive economy by building a prepared workforce and concentrating on entrepreneur-focused economic development. Policy recommendations are provided for local, state and federal governments and are grouped into four parts:
- Access to opportunity to level the playing field and reduce barriers.
- Access to funding that takes a holistic approach, balancing the reality of debt and equity while encouraging new, innovative capital.
- Access to knowledge to equip Americans with the real-world skills necessary to be a successful entrepreneur or employee.
- Access to support to help more Americans take care of their families and address financial concerns that limit risk-taking.
Given it’s detailed analysis of the challenges that hold back U.S. entrepreneurs, America’s New Business Plan serves as a roadmap, providing a mix of top-level and highly detailed recommendations that policymakers at any level can implement. While the Plan does not seek to provide a comprehensive framework that covers all aspects of developing entrepreneurship policy, it is a highly valuable tool as it identifies the key barriers that are holding back entrepreneurship in the U.S. and provides targeted solutions.
Supporting ANBP, Victor Hwang’s Right to Start campaign - which is built on the belief that everyone has a right to pursue their entrepreneurial dreams - has published complimentary ‘field guides’ with further concrete steps that policymakers can take at a local, state and federal level. These provide targeted recommendations for legislation, policies and programs.
In Europe, a complementary publication has emerged in the form of the Startup Nations Standard, a set of practices put together by the European Commission in collaboration with the EU member states and the wider European startup community.
Circa 24 best practices are grouped in eight broad topics:
- Fast startup creation, smooth market entry
- Attracting and retaining talent
- Stock options
- Innovation in regulation
- Innovation procurement (including tech transfer policies)
- Access to finance
- Social inclusion, diversity and protecting democratic values
- Digital-first
In launching the Standard, the European Commission noted, “Startups in every corner of the EU need favourable and fair conditions to grow at every stage of their life cycle. Providing the best framework conditions can help the most promising and strategic startups stay and flourish in Europe, and grow to compete globally”. While some of these are policy areas reserved for federal government, it too can provide a useful framework to help U.S. policymakers work towards a shared vision of unlocking entrepreneurial growth country-wide.
While the Standard aligns with ANBP and the Right to Start Field Guides as a series of recommendations and best practices, U.S. policymakers can also gain significant insight from overarching entrepreneurship policy frameworks that many countries have adopted. UNCTAD’s Entrepreneurship Policy Framework and Implementation Guide is designed for developing countries but provides a strong foundation for effective entrepreneurship policymaking. Meanwhile, the OECD has conducted a detailed analysis of SME and entrepreneurship policy frameworks across its member states.
While no single Standard, manifesto, road map or toolkit is a silver bullet, collectively, these resources can help policymakers design a framework for effective entrepreneurship policymaking, prioritize the most pressing issues affecting entrepreneurs, and identify what works elsewhere.