What will help get America the jobs it needs is the perplexing issue faced now. The giveaway to those large corporations billions of dollars in anticipation of "new job creation" has been a folly. What is so surprising is the very backbone of American economic job creation is sitting on the doorstep looking in.
Historically it has been shown over and over that job creation occurs in the "hinterland", those areas across the U.S. that nurture and develop small business entrepreneurship. The towns, states, municipalities that work to help the new business owner prosper.
Entrepreneurs often start with him/herself and family with a new business idea or service. They operate on a shoestring, are forced economically to be right in their decisions much more often than wrong, or they fail.
As the business survives part time and full time jobs emerge to non family members. The cost for productive job creation is borne in small businesses by individuals, not government subsidies. Over 75% of all businesses in the U.S. have 5 or fewer employees. It is here the jobs will come. Many of the new businesses will fail but it is out of those who succeed that the next Microsoft, SAS, CaptiveAire will emerge. Generally all large corporations were created from the successful ideas of a small business entrepreneur whose idea arrived at the right time.
In order to have the right ideas, at the right times, there needs to be a concentration of small businesses trying to succeed. It's plain probability and statistics that if our country only has 1% of the population being entrepreneurial then the chances for a new success is limited compared to 5% of the population being entrepreneurial. Governments need to encourage new business development, not reward failure of large corporations by giving tax payer money to subsidize the wrong decisions.
Today one area that is really stepping up for new job creation is the retail downtown business incubators. Basically these are large, often historic buildings, which may have been abandoned as the manufacturing sector was exported overseas. These buildings are being saved for their historical significance, yet being revitalized to become a downtown business incubator for home based businesses, or advertising kiosks for smaller businesses.
Jobs are created by employing staff to maintain the stores, gathering small crafters, artists, entrepreneurs, business planners in one place to experiment with their products, and service ideas. New ideas and concepts appear daily as the amalgamation of many entrepreneurs in one building, spur new products and retailing methods. Outdated, soon to be destroyed buildings require architects, contractors, public permitting, plumbing and so many ancillary services just to open the doors. It is this energizing that occurs in the community that creates opportunities and hope in the citizens.
The visibility of success spurs on confidence in the community. The historic downtowns of America are leading the way back to employment and doing so without handouts from big government. Historic downtown governments need to not offer an anemic approach to encouraging local entrepreneurship from the citizens. They need to encourage new business models such as the downtown entrepreneurial incubator business concept. Keep the property taxes, permit fees, and commercial activity alive for the betterment of the community and the creation of much needed jobs.
Here is a video after the rehabilitation of an old cotton warehouse in Wake Forest, N.C. creating an entrepreneurial business incubator.