There was an article in the Times Union that focuses on how critical venture capital is to stimulating job creation. In New York State's capital district, the largest employers has been the various state government organizations, and if not the state, then large corporate organizations like GE. There has been a dearth or venture capital in the area, with the article pointing out that during 3 months earlier this year only one company received such capital, and the amount was only a fraction of what the rest of the state (and country) received. You can view the article here:
http://m.timesunion.com/tu/db_41998/contentdetail.htm?contentguid=baMlo6jA#
However, much like the article from the previous blog post, it is exactly these companies which are poised for job growth. Fueled by venture capital, these companies are able to expand rapidly and potentially turn into giants like Google or Facebook. How we encourage an influx of venture capital is not fully explored in the article, however one idea might be providing incentives or encouragement to draw such funds to the area. Many venture capital funds are unfamiliar with areas beyond their usual geographic area (say Boston, California, or even NYC). Perhaps governments or others could coordinate visits by representatives of these funds to areas like Albany, or even Detroit, so that they could see first hand the potential. Or perhaps venture capital could be incentivized by other means, like tax credits.
Venture capital is clearly important in creating jobs but how to attract more is less clear. Hopefully in the weeks and months ahead, there will be more ideas in how to bring this critical aspect of job creation to those places that need it.
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