As the House rushed to put the $819 billion economic stimulus package in place, Congress may be overlooking one of the most critical components to creating new jobs: entrepreneurs.
The stimulus package is chock-full of plans to stimulate job creation though public works and projects. However, a study by Grant Thornton recently released to the US Department of Commerce Economic Development Administration reports that investing in business incubators, which support young companies and entrepreneurs, is a more effective strategy for creating jobs.
And the numbers are staggering. Here is a look at what a government investment of $10,000 accomplishes in different sectors:
Business incubators create jobs at an expense as low as $144 per job -- almost 10 times less than road and transportation projects, which typically cost more than $1,200.
This data, while surprising to some, supports what we’ve always believed here at Growthink: That the American entrepreneurship isn’t just one piece, but the most important piece of our economy.
If you're looking to start your own business, you need to learn the main components of a business plan before you start. Keep that in mind before you begin putting your plan together.
Related post: President Obama and Entrepreneurship