In her role as Co-Chair of the Senate Entrepreneurship Caucus, Klobuchar has worked across the aisle to encourage innovation and strengthen the creation of new business

WATCH VIDEO OF OPENING REMARKS HERE

WASHINGTON — Today, at a Senate Commerce Committee hearing titled, “Betting on the Rest: Expanding American Entrepreneurship Outside Traditional Hubs,” U.S. Senator Amy Klobuchar (D-MN) highlighted the urgent need for Congress and the federal government to address the declining rate of entrepreneurship in the U.S. and help new businesses survive the pandemic. In her role as Co-Chair of the Senate Entrepreneurship Caucus, Klobuchar has worked across the aisle to encourage innovation and strengthen new business formation. 

In March 2020, Klobuchar introduced the New Business Preservation Act with Senators Chris Coons (D-DE), Tim Kaine (D-VA), and Angus King (I-ME) to create a new program at the Treasury Department that will partner with states to invest in promising new businesses alongside private investors in areas of the country that do not currently attract significant equity investment in new businesses. Special consideration will be given to businesses founded by women and persons of color, who face additional barriers in accessing investment capital.

The economic effects of the coronavirus pandemic have disproportionately harmed new businesses, which tend to have less cash on hand and are often poorly positioned to weather a drop-off in customer demand. 

In March, I introduced legislation called the New Business Preservation Act, with Senators Coons, Kaine and King to help new startups get the capital they need,” Klobuchar said at the hearing. 

“We're doing emergency legislation right now that's so necessary, but to look at a bill like this, because what it would do is it puts capital into the areas that we need it, it makes sure that we've found a way to do this legally through the states, and it makes sure that the money is going to areas that don't have all the startups and that we don't miss the next great entrepreneur just because they live in Bemidji, Minnesota instead of Silicon Valley. And what we know is that the more startups we can have, the more problems we're going to fix, and the more jobs we're going to create in this country,” Klobuchar continued. 

As Co-Chair of the Senate Entrepreneurship Caucus, Klobuchar has taken leadership to promote innovation and address the most pressing policy issues facing entrepreneurs.

In 2019, Klobuchar and Senator Tim Scott (R-SC) introduced the bipartisan Enhancing Entrepreneurship for the 21st Century Act. As recent research has demonstrated that rates of Entrepreneurship in the U.S. have fallen near a 40 year low, the Enhancing Entrepreneurship for the 21st Century Act would require the Secretary of Commerce to work with partners at all relevant government agencies to conduct a comprehensive study into the underlying factors driving the current “startup slump.”

Transcript of opening remarks at the Commerce hearing as given on December 14, 2020 here: 

Opening Remarks: 

KLOBUCHAR: Well thank you so much, Chairman Thune. Thank you, Ranking Member Schatz. Thank you as well to Chairman Wicker and also Senator Cantwell who I know knows a little bit about entrepreneurship. 

So I got involved in this because I live in our state, and right next door to South Dakota and started the Senate Entrepreneurship Caucus with Senator Tim Scott. And the reason we did that is because after the ‘08 downturn we realized there was a startup slump going on and we know that's how a lot of the jobs are created in our country. And one of the things we immediately knew -- and I think we all knew it just from our own experiences -- that over 70% of all the venture capital being concentrated in just three areas: that’s Silicon Valley, Boston and New York. 

And so what happens is too often promising startups aren't able to access the support they need, simply because of where they're located. And I think if there's any silver lining to this pandemic, it is perhaps that no matter where you are, you're going to be able to access employees and the like as more people are working remotely, but it's still a problem and we've seen it even more magnified as small businesses are closing at a faster rate than big ones. 

And so in March I introduced legislation called the New Business Preservation Act, with Senators Coons, Kaine and King to help new startups get the capital they need. And I actually think this is the perfect time as we go into the new year. We're doing emergency legislation right now that's so necessary, but to look at a bill like this, because what it would do is it puts capital into the areas that we need it, it makes sure that we've found a way to do this legally through the states, and it makes sure that the money is going to areas that don't have all the startups and that we don't miss the next great entrepreneur just because they live in Bemidji, Minnesota instead of Silicon Valley. And what we know is that the more startups we can have, the more problems we're going to fix, and the more jobs we're going to create in this country. 

So as we see the light at the end of the tunnel with the vaccine, I think it's a really good time for this committee in the coming months to look not just at my bill, but into all legislation that deals with how we can encourage entrepreneurship and startups. So thank you very much. Thank you Mr. Chairman, look forward to hearing from the witnesses.

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