Where the Jobs Are: Entrepreneurship and the Soul of the American Economy

Praise for Where the Jobs Are "As a former entrepreneur myself, and having witnessed firsthand as Commerce Secretary just how competitive the global economy has become, I can attest that Where the Jobs Are delivers a message that is both uniquely credible and critically important. Dearie and Geduldig traveled the nation, meeting and talking with hundreds of American entrepreneurs, to convey the unvarnished and vividly personal insights and observations of America′s job creators. It is a fascinating narrative about the ambitions, frustrations, and challenges that all entrepreneurs must face. The authors also outline a detailed agenda of specific policy proposals based on what the nation′s entrepreneurs say they need to succeed. Anyone interested in a thriving American economy that competes globally, grows, and creates jobs and wealth for American workers and families should read and absorb the messages, ideas, and policy proposals in Where the Jobs Are . Nothing less than our nation′s economic future is at stake." —DONALD L. EVANS , former United States Secretary of Commerce "This book is a masterful achievement in labor economics. The first economists, with notable exceptions like Schumpeter and Baumol, never saw new firms as the cradle of the economy′s jobs. This book does the best job of correcting this incredible oversight by presenting powerful empirical data on why new firms are so critical to economic expansion and case studies of how misdirected policy holds back job creation. It is a very important contribution to the literature of economic growth, job creation, entrepreneurship, and public policy." —CARL J. SCHRAMM , former President and CEO of the Ewing Marion Kauffman Foundation, Professor at Syracuse University, and the Ciocca Professor of Innovation at UC Davis "Wake up, Washington! This book will grab your lapels, look you in the eye, and shout, ′Start–ups are responsible for all net job growth in America. It′s that simple.′ Using an innovative mix of hard data and myriad interviews of real job creators, Dearie and Geduldig demonstrate this fact and define a compelling policy framework to grow our nation′s employment and economy. They must be heard." —CHARLES M. VEST , President Emeritus of MIT and of the National Academy of Engineering

Foreword Norman R. Augustine ix Preface Rob Nichols xiii Introduction xvii Chapter 1 America′s Jobs Emergency 1 Chapter 2 Not Just Small Businesses . . . New 15 Chapter 3 On the Road with America′s Job Creators 23 Chapter 4 "Not Enough People with the Skills We Need" 31 Chapter 5 "Our Immigration Policies Are Insane" 53 Chapter 6 "Not All Good Ideas Get Funded Anymore" 73 Chapter 7 "Regulations Are Killing Us" 107 Chapter 8 "Tax Payments Can Be the Difference between Survival and Failure" 119 Chapter 9 "There′s Too Much Uncertainty—and It′s Washington′s Fault" 131 Conclusion 177 Afterword Senator Jerry Moran (R–KS) Senator Mark Warner (D–VA) 183 Appendix Summary of Recommendations 187 Notes 195 Acknowledgments 229 About the Authors 235 Index 237

JOHN DEARIE is Executive Vice President for Policy at the Financial Services Forum. Prior to joining the Forum in 2001, he spent nine years at the Federal Reserve Bank of New York, where he held positions in the banking studies, foreign exchange, and policy and analysis areas. His writing has appeared in the Wall Street Journal, Financial Times, Politico, American Banker , and China's Caijing magazine. Dearie lives with his wife and two children in Great Falls, Virginia. COURTNEY GEDULDIG is Vice President of Global Regulatory Affairs at Standard & Poor's. Prior to joining S&P, she was managing director and head of federal government relations at the Financial Services Forum. Geduldig served as chief financial counsel to Senator Bob Corker (R-TN), handling a wide range of issues including financial markets, housing, banking, taxes, manufacturing, and international trade finance, and playing a key role in drafting and advising Senator Corker on the Dodd-Frank Wall Street Reform and Consumer Protection Act. She also spent two years as the deputy assistant secretary for banking and finance at the U.S. Treasury Department. Geduldig is a member of the Maryland State Bar and lives with her husband, son, and daughter in McLean, Virginia.