President Obama’s administration is moving away from crisis management to economy building, according to US Treasury Secretary Tim Geithner, and one key way to build the economy is to encourage start-ups, because young companies account for nearly all the net job creation in the US.
OK – easier said than done, but the US government has come up with a couple of ideas which could apply just as well over here.
One is for the government to provide $2 for every $1 of private capital committed to start-ups.
The second is to dramatically reduce the time it takes to process a patent. In the US they hope to get this down to one year from the current three.
Lastly, of course, the perennial ingredient for start-ups – money. The US government has got a number of firms including Intel, IBM, HP and Facebook to stump up over $400 million to back start-ups.
With George Osborne saying he expects the private sector to employ all the people he’s intending to kick out of the public sector, he’s going to need every new idea for fostering start-ups he can get.