This week has been designated as Global Entrepreneurship Week to honor the millions of small businesses that have generated jobs and strengthened communities. In order to celebrate, more than 24,000 partner organizations are holding events and activities in 130 countries to support and help entrepreneurs reach the next level. These events will help participants share ideas, connect with mentors, and potentially secure funding that will jump start their businesses.
This year, with the passing of the JOBS Act, much discussion has been revolving around crowdfunding and its role in supporting entrepreneurs. The JOBS Act will create opportunities for widespread participation in equity crowdfunding and help small and emerging growth companies to expand with fewer restrictions. Crowdfund investing reduces the obstacles of early stage investment and makes raising capital for small businesses much more efficient.
The primary hurdle that entrepreneurs currently face is access to capital – small businesses only receive one percent of all investment capital in the United States. With any hope, this will soon change, but it is important for entrepreneurs to understand what the passing of the JOBS Act and the new crowdfunding regulations imply for the future.
Find more information on the JOBS Act on our equity crowdfunding blog.