Inc.: How Entrepreneurship Is Thriving Across the U.S. Insights from a coast-to-coast road trip to investigate the state of American entrepreneurship.

I’ve just completed a coast-to-coast road trip visiting entrepreneurs in cities large and small, from California to Washington, D.C. The purpose of this trip was to hear first-hand what issues are top of mind for entrepreneurs. In this election year, America should pay attention to these issues, as young businesses create virtually all net job growth.

As the founder and CEO of Right to Start, the national nonprofit organization championing entrepreneurship as a civic priority, it’s especially important for me to hear directly from entrepreneurs in their hometowns. What surprised me most on this trip was that, in this highly polarized election season, the topic of national politics was almost never discussed.

It’s not that entrepreneurs aren’t following national politics; it’s that they are focused on making progress on the ground, where political polarization usually seems like distant noise. There are other barriers to address, ones that are much more immediate and central to starting a business.

During the trip, I spoke with hundreds of entrepreneurs and supporters in 15 cities across 13 states. They include Fresno and Sacramento, California; Boise, Idaho; Portland, Oregon; Seattle; Missoula, Montana; Fargo, North Dakota; Minneapolis; Madison; Chicago; South Bend, Indiana; Detroit; Cleveland and Akron, Ohio; Erie, Pennsylvania; and Washington, D.C.

At every stop, the energy was inspiring. Every city had powerful stories — there are too many to mention them all. Here are just a few highlights: The shoe innovation district in Portland. The agricultural technology test farm in Fargo. Libraries transformed into entrepreneurial hubs in Missoula and Erie. The new co-working space in the heart of Akron’s tire district. And entrepreneurial ecosystems rising up, from Erie’s Black Wall Street to South Bend’s neighborhood renaissance, from Fresno’s farming innovators to Detroit’s high-tech founders.

What I learned is that the American Dream is very much alive, but achieving it is far more frustrating than it should be. As one entrepreneur said, “It feels so hard, and it shouldn’t.”

Part of the frustration is with the government — at all levels — which often seems more of a hindrance than a help. Another part comes from the broader “system,” which can feel like it’s “working against you.” Many entrepreneurs cited issues like the high cost or unavailability of child care, the difficulty in accessing capital, and the lack of recognition for the challenges small-business owners face.

One entrepreneur shared that she had started a yoga studio, but when the Covid-19 pandemic hit, her customers dwindled. She couldn’t afford the rent, and she had to declare bankruptcy. Now, she won’t be able to get a credit card for seven years.

Policymakers should acknowledge this sense of frustration and work to alleviate it, because it’s likely to grow. Despite the challenges many small-business owners faced during the pandemic, there has been a surge in entrepreneurship — not because starting a business became easier, but because of the disruption to our lives.

That surge has happened in urban, suburban, and rural areas across the nation. We see evidence of this from data made available by Venture Forward, the research arm of GoDaddy, which is a partner of Right to Start. That data reveals that from the first quarter of 2020 to the first quarter of 2024, the number of microbusinesses per 100 people grew across America by double digits in rural areas (18.9 percent), urban areas (17.8 percent), and suburban areas (15.6 percent).

In the last year alone (from the first quarter of 2023 to the first quarter of 2024), the number of microbusinesses per 100 people grew by 6.4 percent in rural areas, 3.2 percent in suburban areas, and 2.6 percent in urban areas. This data shows that entrepreneurship grew in rural areas at twice the pace of suburban areas, and nearly 2.5 times the pace of urban areas.

Given that pace, it’s likely that frustration will only grow, as more and more Americans try to start businesses and are faced with barriers that government can help solve. What can policymakers do? Here are three steps that I highlighted, on my arrival in Washington, D.C., where I met with the co-chairs of the U.S. House of Representatives Entrepreneurship Caucus — Congressmen Bill Foster (D-Illinois) and French Hill (R-Arkansas) — and Isabel Casillas Guzman, administrator of the U.S. Small Business Administration.

First, remove unnecessary obstacles at all levels of government. America is ready for a reboot, and entrepreneurs are leading the way. Examine the role of government and ask whether regulatory requirements can be simplified and clarified. A 2022 report by the Institute for Justice, for instance, found the process of opening a bookstore takes 74 steps in Newark, New Jersey; 46 in Atlanta; and 44 in Indianapolis, New Orleans, and Seattle. How can such a laborious process be justified?

Second, listen to entrepreneurs. They are the ones creating the jobs America needs. They’re often too busy starting and growing their businesses to be active in the civic landscape. Seek them out, as I have on this road trip, and listen to them.

Third, consider the broader needs of entrepreneurs. One entrepreneur asked me why she couldn’t be allowed to deduct all of her child care costs pre-tax. I didn’t have an easy answer, but it’s exactly the right question. How can government help — not just with starting a business, but with all the multifaceted challenges that come with it?

Entrepreneurs will build America’s future. Entrepreneurship is the heart of the American dream. Policymakers should advance it so that small business and job growth can accelerate.