The Bipartisan Legislation That Is Balancing Power in America
Entrepreneurship and innovation built the United States. It is the dream of success that inspires people from all over the world to America with hopes of building a business, creating value, employing others and establishing financial independence. According to the U.S. Department of Labor, entrepreneurs drive the U.S. economy, accounting for the majority of our nation’s new job creation and innovations. The U.S. Small Business Administration reports that approximately 50 percent of the private workforce is employed by America’s 25.8 million small businesses. These businesses generate more than half of the nation’s gross domestic product and they continue to be the principal source of new jobs in the U.S. economy.
Historically, however, the majority of entrepreneurs have had little, if any, access to capital other than their own savings or possibly for the lucky few, more expensive bank loans. The traditional capital markets that are accessible by larger public companies have been unavailable for the large part to entrepreneurial spirits. This lack of capital can curtail growth, limit expansion, prevent hiring, hurt marketing and stall improvements in general business operations.
Bipartisan legislation however, that culminated in the Jumpstart Our Business Startups Act, more commonly known as The JOBS Act has begun to open up new avenues to cash, changing business as we know it. Entrepreneurs now have the ability to access capital thanks to the new regulations within the JOBS Act and the subsequent growth of Internet crowdfunding sites like CircleUp.com, Kickstarter.com and Indiegogo, for example.
“We are witnessing the democratization of capitalism,” says Sunny J. Barkats, Esq., who was recently named one of the top corporate securities and finance attorneys in New York for 2014 by Thompson Reuter’s subsidiary Super Lawyers™.
Mr. Barkats really understands what this new landscape means for both the entrepreneur and the potential investor and his knowledge is in high demand. “Today,” he says, “we ‘the people’ truly have access to capital that has, historically, only been available to limited numbers of fortunate people in our country. Now, however, equal opportunities abound for serious business people who have successfully grown their businesses and are ready for greater expansion to further develop their dreams into bigger realities.”
“For the first time, entrepreneurs are allowed to freely solicit capital and present their projects to a vast pool of participants on more equal footing. The gap between the 1% and the 99% is being bridged by new access to both capital for entrepreneurs, as well as the masses who now have the ability to gain from the potential upside of carefully selected equity investments in these companies,” says Mr. Barkats.
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