As U.S. states seek to empower entrepreneurs to drive the recovery, Missouri stands out as the first to pass a wide-ranging “Right to Start” bill that seeks to make the state more entrepreneur-friendly.
Entrepreneurship policy frameworks like Kauffman Foundation’s ‘America’s New Business Plan’ (ANBP), published in 2019 and refreshed in 2022, have set out detailed road maps for policymakers at all levels seeking to unlock entrepreneurship and remove the many barriers that hold people back from starting and growing businesses. ANBP covers four key areas affective entrepreneurs: access to opportunity, funding, knowledge and support.
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.
One state to embrace this model is Missouri. In a campaign led by Representative Travis Fitzwater, it recently passed the first Right to Start bill in the U.S. As explained by Rep. Fitzwater, “the bill comes from a belief that Missourians have a right to start a company and the state should be encouraging that behavior”.
The bill features:
- A ban on non-compete agreements.
- The establishment of the state Office for Entrepreneurship that according to Rep Fitzwater will be “devoted to building an environment in our state that encourages the citizens of Missouri to take that leap and start a business”.
- A requirement that 5% of state contracts go to businesses that are five years old or younger.
- A laddered increased in corporate taxes from 0% in year one, increasing 1% per year up to the full 4% for those who make it to year five and beyond.
- An Small Business Administration (SBA) lending provision allowing the state to help with loans for last mile funding for the purchase of existing and heritage Missouri businesses.
- One year deferral of tax filings for businesses with less than $5k income.
The Right to Start bill was first introduced to the Missouri House of Representatives in February 2021 and was passed in May 2021. It is now with the Missouri Senate. When it passed, Hwang described it as “the most comprehensive pro-entrepreneur state legislation proposed in memory … maybe ever”.
GEN’s Director for Global Community and Tulsa-based ecosystem builder Cecilia Wessinger commented that “Missouri has shifted support for starters, showing that legislatures can ecosystem build to foster environments not just for select segments and sectors”.
There is more work to be done to get the bill passed by senate and implemented, but this is an encouraging first example of a state legislature adopting the thoughtful and impactful recommendations of ANBP and Right to Start.