Listening to the discussion of the new JOBS Act, I am of two minds.
First, lets get rid of the idea that it's a jobs bill in the usual sense. What it really is, is a "company formation" bill that proceeds on the assumption that if we create more companies we will create more jobs. This hypothesis comes from Kauffman Foundation research that says most jobs are created by new companies--specifically companies less than five years old.
In the last two years, this hasn't been proven true, as many new companies can't afford to hire, or--more important--don't really need to hire when they can collaborate, outsource, or automate. In the last two years, again, according to Kauffman, many startups have been solopreneurs. Of course. Either there wasn’t enough money for them to hire additional workers, or these entrepreneurs were really laid-off workers with no great idea of how to scale a company but wanted to create jobs for themselves. So as usual, the data itself isn’t clean.
To read the full, original article click on this link: The JOBS Act: Misconceptions And Motives Behind Crowdfunding For Startups | Fast Company
