The impact this change will have on entrepreneurs, the lifeblood of the U.S. economy, is significant. This new code will enable a company’s founders and employees holding stock, including that obtained upon exercise of options, to save up to millions of dollars in taxes upon a company achieving a successful liquidation event.
Risk-taking entrepreneurs and investors who create jobs through building businesses will be rewarded for their efforts with lessened tax burdens. In this case, the disruptive innovation is a line of tax code rather than software code.
Known as Sec. 1202, it’s a small-business stock capital gains exclusion that has actually been around since 1993 (with modifications over the years). But thanks to Congress’ recent vote to PERMANENTLY extend some major tax benefits, it is more powerful than it has ever been because it eliminates all ambiguity.
In essence, Sec. 1202 allows individual investors or entrepreneurs and their employees who put money into a qualifying corporation with aggregate gross assets not exceeding $50 million before and immediately after the stock issuance, and which does not engage in repurchasing any of their outstanding stock, to now enjoy a 100 percent tax break on the specific investment gain with no offset to the benefit from the Alternative Minimum Tax (AMT).
In what can be considered a historic day for startups, small businesses and entrepreneurs all across the United States, the Securities and Exchange Committee (SEC) voted 3 to 1 to approve the final rules for debt and equity crowdfunding (aka Regulation Crowdfunding) on Friday. In about 180 days, tech startups and Main Street businesses will be able to raise up to $1 million from their friends, followers, and community via SEC registered websites. There is a lot you need to know about the new rules, so let’s jump right in:
A similar economic impact assessment of University College Dublin launched last May showed the university and its students generate an annual economic impact of €1.3 billion in Ireland, and support about 9,000 jobs.
The G20 Young Entrepreneurs’ Alliance (G20 YEA) is a global network of young entrepreneurs and the organisations that support them. It was established to convene each year in advance of the G-20 Summit, with the aim of championing the importance of young entrepreneurs to the G20 member nations and to share examples and practices. The Alliance was officially created at the G20 Young Entrepreneurs Summit, Toronto, Canada, 2010.
G20 YEA Summit is being held each year since 2010. First meeting was held in Canada. France, Mexico, Russia, Australia Summits followed first one. Innovation and technology, investment and access to capital, education and coordinated support, government regulation and taxation, trade and globalization, entrepreneurship, culture and equality are the main topics of the summit.
TUGIAD took over the Presidency on behalf of Turkey in Sydney on July 2014. “Entrepreneurial Culture” framework will be discussed in detail within the sub-headings in Turkey Summit, 2015.
Beyond the gifts of nature, we are surrounded by creations that came from science. Yet, scientists are rarely the ones who make money from the advances that shape our world. While Silicon Valley creates billionaires before they turn 30, no Nobel Laureate has ever become a billionaire.
Steve Blank, often called one of the godfathers of Silicon Valley, wants to change that. After being approached by the biggest science-funding body in the US—the National Science Foundation (NSF)—he launched a program to train scientists to become entrepreneurs.
Entrepreneurship is that rare thing: political catnip, box office, classroom hit and economic imperative. So it ought to be possible to answer the simplest question of all: does such education work? Nobody knows.
Entrepreneurship can be hard to quantify. Quantifying the entrepreneurial energy of a community is particularly challenging. While booming communities will claim that they have waves of creative talent with inspiring business ideas ready to lift off, others fret about the lack of such talent, both those that start businesses and those with technical ability to work at them. When these companies innovate and challenge incumbent businesses, a more dynamic economy emerges that allocates resources more efficiently. A dynamic economy, with a higher rate of new firm entry than the 8% we currently see, creates more jobs, infuses markets with competition, and benefits society through a higher standard of living.
One group that has been shown to possess such entrepreneurial energy is immigrants. Throughout American business history, immigrant entrepreneurs have started businesses that have grown to become giants in their field and proven to be a competitive advantage in global competition.
The latest figures from the Kauffman Index: Startup Activity confirm that immigrants continue to be among the most entrepreneurially inclined individuals