From chapter seven of the 2011 Economic Report of the President of the USA & the Kauffman Foundation's series on job creation. Democrats historically look out for workers, while Republicans tend to look out for corporations. The problem is, entrepreneurs are neither and/or both at once. Large successful corporations usually invest in job eliminating cost cuts to reduce their exposure to employee entitlements, increase profits. Not so much in risk taking entrepreneurs. Overpaying union employees kills more large corporate jobs & guaranteeing them their safe job prevents them from becoming entrepreneurs. American companies in their first year of existence create 150 percent of new jobs in the U.S. How can that be? Easy, since existing firms lose jobs, across the board. Startups create an average of 3 million jobs. Existing firms lose an average of 1 million. You can have all the facts on your side, but if you don't have a lobbyist, the deck is stacked against you. Unlike big business and big labor, newly birthed firms will never be organized enough to lobby for their point of view in the halls of Congress. Startups will never have the capacity to throw fundraisers for incumbents in 2012. How could they, since next year's startups don't even exist yet? To understand the barriers to startups, put yourself in the shoes of a potential American entrepreneur. Half a million Americans start a new company each year. They typically hire five employees, in addition to themselves. At its heart, this startup leap is a choice between safe employment and risky adventure. While the myth that most startups fail dissuades many, the loss of stability, of steady pay, of health insurance, are not. But every ounce of policy that makes employment at a steady job even more of a comfort zone makes the startup choice less likely. Reduce small business exposure to employee entitlements & reward them for hiring employees. Improving small business access to credit, capital & encourage equity investments in small businesses. We need more SBA-backed loan approvals. We must reduce the taxes & regulations on small business.