As America gears up for the next election, the nation’s focus might be on politics, but for the country’s entrepreneurs, the conversation is centered elsewhere. Across the United States, the entrepreneurial spirit is thriving, fueled by innovation, grit, and a desire to overcome the barriers hindering small businesses. A recent coast-to-coast road trip shed light on the state of entrepreneurship in America and the unique challenges facing business owners today.
The Road Trip: A Snapshot of American Entrepreneurship
The founder and CEO of Right to Start, a national nonprofit organization that champions entrepreneurship, embarked on a coast-to-coast road trip to meet entrepreneurs across the U.S. The journey spanned 15 cities and 13 states, ranging from the agricultural technology hubs of Fargo, North Dakota, to the high-tech founders in Detroit. The goal was simple: to understand the issues that matter most to the individuals behind America’s small businesses.
Despite the backdrop of a heated election season, national politics barely surfaced in the discussions. Instead, entrepreneurs were focused on local challenges and the practical realities of running a business.
Innovation in Every Corner
From the West Coast to the East, the energy of entrepreneurship was palpable. In Portland, Oregon, a vibrant shoe innovation district showcased the city’s creative potential. In Missoula, Montana, libraries were transformed into entrepreneurial hubs, providing spaces for aspiring business owners to collaborate. Even smaller cities like Erie, Pennsylvania, highlighted the power of community with initiatives like Erie’s Black Wall Street, a rising entrepreneurial ecosystem.
Each city offered unique examples of how small businesses are adapting and thriving in different industries, from Fresno’s farming innovations to Akron, Ohio’s new co-working spaces nestled in the heart of the tire district.
The Barriers Holding Entrepreneurs Back
While the entrepreneurial spirit was alive, it wasn’t without its frustrations. Entrepreneurs across the U.S. face a range of obstacles, many of which could be alleviated by government action. Common complaints centered around the difficulty of accessing capital, high childcare costs, and the lack of recognition for the unique struggles of small-business owners.
A yoga studio owner, for instance, shared her story of having to declare bankruptcy after the COVID-19 pandemic wiped out her customer base. Like many others, she found herself at the mercy of a system that felt like it was working against her, leaving her unable to secure a credit card for years to come.
The Surge in Entrepreneurship
Despite the hardships, entrepreneurship is booming across America. Data from GoDaddy’s research arm, Venture Forward, reveals that from 2020 to 2024, microbusinesses grew at a rapid pace. Rural areas saw an 18.9% increase in microbusinesses per 100 people, while urban and suburban areas followed close behind with 17.8% and 15.6% growth, respectively.
Notably, rural entrepreneurship outpaced both urban and suburban areas, growing at twice the rate of suburban areas and nearly 2.5 times the rate of urban regions in 2023-2024 alone. This surge is a testament to the resilience and determination of business owners across the nation.
Addressing the Challenges: What Policymakers Can Do
The road trip concluded in Washington, D.C., where the Right to Start CEO met with key policymakers, including the co-chairs of the U.S. House of Representatives Entrepreneurship Caucus. Three major recommendations emerged from these discussions to support entrepreneurs and stimulate further growth:
- Remove Unnecessary Barriers: Entrepreneurs are leading the way in revitalizing the American economy, but government regulations often act as roadblocks. Simplifying and streamlining regulatory processes is critical. For example, the Institute for Justice found that starting a bookstore in Newark, New Jersey, requires 74 steps, compared to 44 steps in cities like Seattle and Indianapolis. These hurdles are discouraging and unnecessary.
- Listen to Entrepreneurs: The voices of small-business owners are often drowned out in the political arena. It’s time to actively seek out their insights and include them in conversations about the country’s future economic landscape.
- Support Entrepreneurs Beyond Business: Entrepreneurs don’t just need help with business-related issues—they need support with the broader challenges of life. One business owner asked why child care costs couldn’t be deducted pre-tax, a question that has no easy answer but highlights the multifaceted struggles entrepreneurs face.
The Future of Entrepreneurship in America
Entrepreneurship is at the heart of the American Dream. While the journey to success may be fraught with challenges, the drive and determination of small-business owners is undeniable. As the U.S. moves forward, it’s vital that policymakers prioritize the needs of entrepreneurs to ensure that the nation’s entrepreneurial engine continues to grow and thrive.
Entrepreneurs are not just shaping the future of their businesses—they’re shaping the future of America itself. With the right support and resources, the next wave of innovation is already on its way.
