The global economy is propelled by the growth of small, young, high-growth companies. Typically created and driven by entrepreneurs, these companies are the primary source of new jobs.
States can improve their economic competitiveness by fostering entrepreneurship in high-impact sectors such as information technology, clean technology, health care, and biotechnology.
National surveys of entrepreneurs indicate that the five critical factors that state government can influence are:
- Diversity in sources of capital;
- An enabling culture;
- Strong local networks;
- Supportive infrastructure; and
- Entrepreneur-friendly government.