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Entrepreneurial Stimulus At The Local Level

Posted on Saturday, Mar 21st 2009

By Guest Author Greg Gianforte

Sramana’s recent Forbes article on how to stimulate entrepreneurship and rebuild the economy reminded me of some legislation in Montana that I helped sponsor.

Essentially, the legislation would have provided a preferential capital gain rate for gains associated with stock and options held in companies located in Montana, held by employees in those companies. Although it didn’t pass here, other states are adopting a similar approach. Something like this could also be done on a national level to encourage entrepreneurs and angel investors and reward them for early-stage risks.

In addition to tax incentives, I’m a big proponent of microloan programs. The Bootstrap Montana Loan Program just marked its first year; we awarded seven loans across Montana for a total of $20,000. The program is designed to provide funds, networking and mentorship to rural Montana entrepreneurs.

Tax breaks and funding will only get you so far. Regardless of the state of the economy, I always advocate the principles of bootstrapping for entrepreneurs.

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I am not sure what to infer from this post however, I guess $20K is a too little money for funding/loan for an entrepreneur.

Does your proposition provides anything other than loan?

Can you describe a specific success story where you providing loan helped a budding entrepreneur a great way?

Any such success story will help people to get an affirmation that it works even if total $20K is given as loan for 7 people !

Santanu Saturday, March 21, 2009 at 12:34 PM PT

Santanu, You should read Michelle Munson’s story. She did her venture with $20k in seed funding from her dad. Entrepreneurs who know how to bootstrap and are willing to do so, can go a long way with very little money. That’s the thesis of my upcoming book, Bootstrapping – Weapon of Mass Reconstruction.

Sramana Mitra Saturday, March 21, 2009 at 7:14 PM PT