WASHINGTON, D.C. — Joint Economic Committee Vice Chairman Pat Tiberi (R-OH) chaired a committee hearing entitled “Encouraging Entrepreneurship: Growing Business, Not Bureaucracy” on Tuesday. At the hearing, JEC members examined the importance of entrepreneurship in generating economic growth and propelling job creation and explored solutions to fostering a competitive business environment.

Vice Chairman Tiberi explained the current direction of the labor market:

“It is our role as federal policymakers to foster a free-market economy in which Americans enjoy ample opportunities for employment, and we must not forget that the private sector is the true driver of economic growth. Government can’t tax and regulate its way to American prosperity.”

 Tim Kane, a fellow at Stanford’s Hoover Institute, illustrated the impact of declining dynamism in real terms:

“New companies create roughly 3 million jobs every year, while existing companies tend to shed one million jobs net. … The bottom line is that net job creation is literally nothing without startups.”

He went on to explain what he sees as the causes of the slow down:

“Taxes are more complex. Regulations are thicker. Employment law is more dangerous.”

Rev1 Ventures CEO Tom Walker described his experience helping startups succeed and offered ways for government to encourage entrepreneurs including a competitive grant process to spur public-private collaboration and intellectual property protections:

“One of the biggest threats to entrepreneurs and those that invest in them is adequately protecting the intellectual property of start-up companies, and also continuing to make the process more streamlined.”

White Castle Vice President and Ohio Restaurant Association Chairman Jamie Richardson, outlined a number of government imposed mandates that are hurting the restaurant industry:

Vice Chairman Tiberi concluded that government has a role in helping encourage entrepreneurship, but should refrain from picking winners and losers:

Watch the entire hearing here.