Individual States Plan to Encourage Entrepreneurship

Last week, we talked about how entrepreneurs, who serve a crucial role in growing an economy, have been shortchanged by the proposed stimulus package.

See our previous post: How Entrepreneurs are Key to Job Creation.

Now, as the Wall Street Journal reports, many individual states are planning to harness the energy of entrepreneurs in an effort to jumpstart the economy.

Maryland is tackling the issue head on by allocating over $70 million for programs to support small and minority owned businesses, and $15 million for heath insurance at such businesses.

The approach in Florida includes low interest rate loans for small businesses with less than 100 employees.  Loans up to $250,000, that would be purposed for everything from expansion to new salaries, would be available at a 2% interest rate.

In New Jersey, to spur expansion and hiring, a stimulus plan includes grants and tax incentives. $3,000 is available for small companies that hire an employee and keep them for a year.  Sales tax credits are being considered for capital investments that exceed $5,000.

Similar tax incentives are being considered in Colorado, Arizona, and Minnesota.

Such considerations at the state level are a step in the right direction, and signal recognition, at the government level, that entrepreneurs can and will play a significant role in reinvigorating the American economy.