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	<title>Observer &#187; Startup America Stands No Chance Against the Great Recession</title>
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		<title>Observer &#187; Startup America Stands No Chance Against the Great Recession</title>
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		<title>Startup America Stands No Chance Against the Great Recession</title>

		<comments>http://observer.com/2011/01/startup-america-stands-no-chance-against-the-great-recession/#comments</comments>
		<pubDate>Mon, 31 Jan 2011 19:28:21 -0400</pubDate>
					<link>http://observer.com/2011/01/startup-america-stands-no-chance-against-the-great-recession/</link>
			<dc:creator>Mike Taylor</dc:creator>
				
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		<description><![CDATA[<p><img class="alignleft" src="http://nyoobserver.files.wordpress.com/2011/06/stateoftheunion.jpg?w=300&h=200" />As part of its spirited but confounding effort to "win the future," the Obama administration has announced <a href="http://www.whitehouse.gov/issues/startup-america">Startup America</a>, a program that aims to dampen the effects of our stumbling economy through the magic of state-sponsored ingenuity and entrepreneurship.</p>
<p>For starters, the U.S. Small Business Administration plans to match $2 billion in private sector investment over the next five years. That's a welcome contribution, but it'll hardly move the needle in a venture-capital market that <a href="http://bulletin.sciencebusiness.net/news/74726/US-venture-capitalists-look-to-2011-to-steady-the-ship">saw $21 billion in investment last year alone</a>. Fortunately, this year Intel Capital will be providing $200 million in new investments, and IBM will throw another $150 million at some startups.</p>
<p>Next, the government aims to enlist Brad Feld and TechStars to create 25,000 jobs by 2015. There are currently <a href="http://www.bls.gov/news.release/empsit.nr0.htm">14.5 million unemployed</a> in America.</p>
<p>And then there are the oft-promised green jobs:</p>
<blockquote><p>Our Nation's research agencies are actively engaged on this topic. Building on the success of last year's inaugural i6 Challenge, the Economic Development Administration will launch the $12M i6 Green Challenge in collaboration with research agencies focused on proof-of-concept centers that accelerate technology commercialization, regional economic development, and environmental sustainability.</p>
</blockquote>
<p>If it's anything like the <a href="http://www.commerce.gov/blog/2010/09/23/winners-i6-challenge-announced">i6 Challenge</a>, this initiative will provide a million or so dollars to a handful of organizations scattered around the U.S. The government is also taking suggestions for making it easier to start businesses.</p>
<p>There's always the off chance that the government will help a small-time firm become the next Google or Facebook, and <a href="http://www.nytimes.com/2010/09/12/business/12unboxed.html?_r=2&amp;adxnnl=1&amp;adxnnlx=1296494870-r4yG+dm7HTyS0YccM3+F1w">statistics support the notion</a> that startups are a major source of employment growth. Still, the scale on which the administration is operating makes it seem like it's much more interested in looking like it knows what a startup is than leveraging American entrepreneurship into a new American bull economy.</p>
<p>mtaylor [at] observer.com | <a href="http://twitter.com/mbrookstaylor">@mbrookstaylor</a></p>
]]></description>
		<content:encoded><![CDATA[<p><img class="alignleft" src="http://nyoobserver.files.wordpress.com/2011/06/stateoftheunion.jpg?w=300&h=200" />As part of its spirited but confounding effort to "win the future," the Obama administration has announced <a href="http://www.whitehouse.gov/issues/startup-america">Startup America</a>, a program that aims to dampen the effects of our stumbling economy through the magic of state-sponsored ingenuity and entrepreneurship.</p>
<p>For starters, the U.S. Small Business Administration plans to match $2 billion in private sector investment over the next five years. That's a welcome contribution, but it'll hardly move the needle in a venture-capital market that <a href="http://bulletin.sciencebusiness.net/news/74726/US-venture-capitalists-look-to-2011-to-steady-the-ship">saw $21 billion in investment last year alone</a>. Fortunately, this year Intel Capital will be providing $200 million in new investments, and IBM will throw another $150 million at some startups.</p>
<p>Next, the government aims to enlist Brad Feld and TechStars to create 25,000 jobs by 2015. There are currently <a href="http://www.bls.gov/news.release/empsit.nr0.htm">14.5 million unemployed</a> in America.</p>
<p>And then there are the oft-promised green jobs:</p>
<blockquote><p>Our Nation's research agencies are actively engaged on this topic. Building on the success of last year's inaugural i6 Challenge, the Economic Development Administration will launch the $12M i6 Green Challenge in collaboration with research agencies focused on proof-of-concept centers that accelerate technology commercialization, regional economic development, and environmental sustainability.</p>
</blockquote>
<p>If it's anything like the <a href="http://www.commerce.gov/blog/2010/09/23/winners-i6-challenge-announced">i6 Challenge</a>, this initiative will provide a million or so dollars to a handful of organizations scattered around the U.S. The government is also taking suggestions for making it easier to start businesses.</p>
<p>There's always the off chance that the government will help a small-time firm become the next Google or Facebook, and <a href="http://www.nytimes.com/2010/09/12/business/12unboxed.html?_r=2&amp;adxnnl=1&amp;adxnnlx=1296494870-r4yG+dm7HTyS0YccM3+F1w">statistics support the notion</a> that startups are a major source of employment growth. Still, the scale on which the administration is operating makes it seem like it's much more interested in looking like it knows what a startup is than leveraging American entrepreneurship into a new American bull economy.</p>
<p>mtaylor [at] observer.com | <a href="http://twitter.com/mbrookstaylor">@mbrookstaylor</a></p>
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