Harvard Business School’s Josh Lerner, an expert on entrepreneurial finance, has largely good things to say about recent steps out of Washing D.C. to strengthen small business growth.
But the Obama administration has gone wrong on some key policy directions, Lerner says, steps that could seriously undermine the best of intentions.
For example, the administration is focused on the idea of loosening up bank credit to fund expansion. Yes, that would help many small businesses, but not the ones that create jobs — the object of this exercise. Lerner points out that very young companies — say less than 5 years old — are the biggest job creators. A 25-year-old small business is more likely cutting than hiring. Actions to help venture capitalists and angel investors, who are also hampered these days, would better serve start-ups.
To read the full, original article click on this link: What Obama Doesn't Understand About Entrepreneurs and Jobs | The View from Harvard Business | BNET
Author: Sean Silverthorne