Global Entrepreneurship Week

February 15, 2017

Andrew Chira

Economic Officer

U.S. Embassy Seoul

Entrepreneurship in the United States

Startups are Vital to Economic Growth

New Companies created more than 65 percent of net new jobs in the United States over the past two decades. Startups in high-tech hubs like Austin account for over 40 percent of new jobs each year

Overview of U.S. Entrepreneurial Ecosystem

The United States is one of the most entrepreneurial countries in the world.

High rates of entrepreneurship by women and older individuals

Hundreds of startup incubators, accelerators, and clusters are located across the country.

Not One Size Fits All: The United States has a variety of ecosystems with different characteristics.

Federal government programs Role of state and local governments Government facilitates entrepreneurial activity in the United

States, but the private sector plays a huge role, especially in financing.

U.S. Federal Support for Small Businesses

Small Business Administration (SBA) is the lead U.S. government agency supporting entrepreneurs and small businesses.

Small Business Development Centers (SBDC)

Small Business Investment Company (SBIC)

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR)

https://www.sba.gov/

Small Business Development Centers (SBDCs)

63 Lead SBDCs – at least one in every state

A network of more than 900 service locations.

SBDCs help small businesses with setting up and managing a business, obtaining financing, engaging in international trade, and resolving problems.

SBDCs also provide assistance to small businesses applying for Small Business Innovation and Research (SBIR) grants from federal agencies

https://www.sba.gov/offices/headquarters/osbdc/about-us

Small Business Investment Company (SBIC)

SBIC invests in privately owned investment firms that make investments in small companies.

Provides $4 billion per year to help bridge the gap between entrepreneurs’ need for capital and traditional sources of financing in the form of matching funds.

Companies that have benefited from SBIC financing include:

Apple, Intel, Costco, FedEx, Outback Steakhouse, and many others

https://www.sba.gov/category/lender-navigation/sba-loan-programs/sbic-program-0

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR)

Funds small businesses to commercialize federal R&D

11 participating federal agencies

Since 1982, SBIR/STTR has awarded $38 billion and attracted another $65 billion in venture capital

145,000 awards granted

Average 10 new patents per day

Companies that have benefited from SBIR/STTR include:

Qualcomm, Symantec, iRobot, and many others

https://www.sbir.gov/

U.S. Support for Foreign Investment - SelectUSA

Mission: Promote business investment in the United States Location: in Washington and in U.S. Embassies and Consulates around the world Key SelectUSA Services Offered to International Firms:

Information and Counseling

Connections

Ombudsman Assistance

http://selectusa.commerce.gov/

Visas for Foreign Entrepreneurs

U.S. Citizenship and Immigration Service (USCIS) web portal to help foreign entrepreneurs get information about:

Visa categories

Application process

Resources

http://www.uscis.gov/eir

U.S. Embassy webpage: http://seoul.usembassy.gov/index.html

Infrastructure for Opportunity

The U.S. Federal Government helps to create the essential Infrastructure of Opportunity for Entrepreneurs

Issuing patents that protect intellectual property

Making investment in local economic development

Collecting and disseminating data to inform better decision

making

Expanding access to broadband

Helping companies reach international customers

Protecting a free and open Internet

State and Local Governments

Every state and many local governments have economic development agencies dedicated to assisting new and established businesses start, grow, and succeed. Services provided by these agencies typically include:

Start up advice, training, and resources

Financial assistance with loans, grants, and tax-exempt bonds

Business location and site selection assistance

Employee recruitment and training assistance

https://www.sba.gov/content/economic-development-agencies

Researching States and Clusters

www.clustermapping.us Cluster Mapping tool and

registry

www.stateincentives.org State Business Incentives

Database

www.statebook.com StateBook International

Clusters Initiative

The U.S. Small Business Administration is investing in 58 regional innovation clusters throughout the US. https://www.sba.gov/sba-clusters

Cluster Mapping

An online tool for researching clusters in the United States by region and industry http://www.clustermapping.us/ “ The U.S. Cluster Mapping Project is used by governments, economic developers, and businesses to understand and shape the competitive landscape for a wide range of industries.”

-U.S. Secretary of Commerce Penny Pritzker

Private Sector Support for Entrepreneurs

Hundreds of business incubators and accelerators operate in the United States.

International Business Innovation Associates (InBIA)

http://www.nbia.org/

The National Venture Capital Association

http://nvca.org/

NVCA Member List:

http://nvca.org/about-nvca/members/

Incubators, Accelerators, and Competitions

Hundreds of business incubators and accelerators operate in the United States.

The International Business Innovation Associates (InBIA) is a leading organization advancing business incubation and entrepreneurship with over 2000 member in 60 countries, including 1400 in the United States

http://www.nbia.org/

Venture Capital

Over 50% of companies that held initial public offerings were prior recipients of venture capital funding

In 2015, U.S. venture capital firms raised over $28 billion for 236 funds, 93 of which were new funds.

The National Venture Capital Association is a leading trade organization with nearly 400 member firms

http://nvca.org/

NVCA Member List:

http://nvca.org/about-nvca/members/

Questions?

Thank You!