You don’t often hear economists tout assistance programs for moderate-income families as spurs to entrepreneurship, but Gareth Olds of Harvard Business School found that government-funded safety nets can have the effect of “reducing the risks of business ownership and relaxing credit constraints.” One program providing health insurance to children in moderate-income families boosted the rate of new-business creation, raised new companies’ chances of survival, and increased the self-employment rate by 23%. Olds tells Working Knowledge: “What I was seeing was reproducible and scientifically valid. It also just happened to be personally valid for me."
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