It’s tough to find money out there if you’re running a small business or a startup, whether you’re trying to grow or just getting started. During today’s Megapanel with Karen Finney, Jimmy Williams and Susan Del Percio, we had a debate on the just-freshly-passed JOBS (Jumpstart Our Business Startup) Act. The act was hailed as a bi-partisan effort meant to help small businesses grow, hire and go public more quickly. Reaction to the bill has generally been positive, getting the thumbs up from many business groups, the Obama administration, and the Senate.
Here’s what we like about the JOBS Act: This is a good move towards improving investment networks for businesses, by expanding the number of available shareholders and the cap for money — it opens a few more doors for entrepreneurs who want to look for investment. Having a larger number of shareholders (1,000 instead of 500) gives access to more people (therefore, a wider network).
That means more money, better/faster problem-solving, and eventually, more growth opportunities for great new companies.
The governments’ role in this is important — it needs to create a healthy environment for capital formation, and this is a start. While the JOBS Act is by no means a silver bullet, we’re for anything that
a) improves ease of investment + b) creates higher-quality networks.
Why is that a good thing? We’re of the mindset that high quality networks have better answers, and solve problems faster, and more effectively. The new JOBS Act increases the ability of networks to function, which is inherently a positive step. Here’s our discussion from the show today:
What are your thoughts on the JOBS Act? If you’re a small business owner or entrepreneur, let us know what you think in the comments below, or on Twitter @DylanRatigan.