noThe recently signed bill, part of a nationwide “right to start a business” movement that originated in Kansas City, will encourage entrepreneurs across Missouri, advocates said this week, reflecting broad public and bipartisan support for eliminating barriers for new entrepreneurs and overlooked business owners.
“Promoting entrepreneurship will boost Missouri’s economy,” said Republican Sen. Travis Fitzwater of Fulton, Missouri, a longtime supporter of the bill. First introduced in 2021“This new legislation makes the development of startups and young businesses a statewide priority and provides important tools to maximize their potential for the benefit of all Missourians.”
Missouri Republican Gov. Mike Parson on Tuesday introduced the Right to Start Act.SB 894 and 825) will take effect on August 28, 2024. The bill was passed with bipartisan support in the Missouri House and Senate in 2024, by a vote of 117-7 in the House and 31-1 in the Senate.
Right to start is a national initiative to promote entrepreneurship as a civic and community priority, led by economic growth expert Victor W. Hwang, formerly vice president of entrepreneurship at the Ewing Marion Kauffman Foundation.
Among the provisions of Missouri Right to Start Law:
- Creates an Office of Entrepreneurship within the Missouri Department of Economic Development to advance policies and initiatives that support the growth of entrepreneurship among Missouri businesses with fewer than 10 employees.
- Requires the Administrator to submit a report to the Missouri Legislature by June 30, 2026, and annually thereafter, that includes information on contracts awarded to businesses that have been in operation for less than three years.
- The Administrator, in coordination with the Office of Entrepreneurship, must make recommendations to the Legislature on improving access and resources for Missouri businesses that are less than three years old, including businesses owned by members of racial minority groups, women-owned businesses, and veteran-owned businesses.
MO Mentum
Missouri is the second state to sign a Right to Start Up Act and establish an Office of Start Up — Nevada He enacted the Right to Start Act and signed it into law. It is scheduled to be implemented in July 2023 with strong bipartisan support, but Fan emphasized that the Show Me State was the first to support the initiative, setting the stage for an even bigger impact.
In addition to Missouri and Nevada, Right to Start success stories include:
“It’s exciting to see momentum building nationwide around similar efforts to establish entrepreneurship offices across the state and support entrepreneurs,” said Hwang, Right to Start founder and CEO. “Missouri is the first state to implement such a Right to Start policy, and the passage of the Right to Start Act highlights the state’s national leadership in continuing to advance entrepreneurship at the state level.”
Multi-layered reform
Jason Grill, Right to Start’s chief government relations officer, said Right to Start’s policy recommendations and Right to Start legislation are being considered at the local, state and federal levels across the U.S.
“Elected, appointed and departmental officials are increasingly appreciating the economic impact and importance of entrepreneurship and the broad public support for it,” said Grill, a two-term Missouri House member and co-founder of the School of Soc (Soc 101) and other organizations. “They are committed to finding ways to reduce and eliminate the barriers to launching and revitalizing new, young businesses.”
click here To find out more about the key policy positions that Fan and Grill believe are driving Right to Start.
From the Archives: First-ever Right to Start a Business Act Bans Non-Competes and Establishes the Missouri Bureau of Entrepreneurship
One of Right to Start’s long-standing priorities is anti-competition reform, which frees entrepreneurs from unjust prohibitions and anti-competition restrictions, unleashing the power of entrepreneurs to create new jobs.
In April, the Biden administration announced new rules banning non-compete agreements, a move that Hwang and Right to Start applauded.
“These agreements have long been a major obstacle to entrepreneurs starting their own businesses, and the prohibition on non-competition clauses has always Right to Start Policy Priorities“New, young companies are Nearly all job gains In the United States, this decision will encourage new business creation and job growth. As the FTC stated, “This rule will help create more than 8,500 new businesses each year, raise worker wages, lower health care costs, and spur innovation.” In the long term, we support passing legislation banning non-compete clauses at both the national and state levels as the most durable and sustainable path forward. But for now, this rule is a major step forward for American entrepreneurship.”
