Opening doors for Chicagoland entrepreneurs
I am bullish on Illinois and the Chicagoland region.
Our state has great people, and the region is rich with innovative entrepreneurs and a strong workforce. We are a transportation hub, supported by a world-class big city and sprawling suburbs. The small business communities across our region drive vibrant neighborhoods and create local opportunities.
The job market, however, is becoming more challenging across the country, and things are no different here. The impact of tariffs, oil prices, artificial intelligence, and economic uncertainty are only some of the factors which have increased the prospect of impending layoffs. Employers are cautious.
This is vastly different from a few years ago when businesses wanting to hire could not find qualified employees. So how can Illinois get in front of a difficult job market and support individuals at risk of losing their jobs? Our state could start by creating a Self-Employment Assistance Program (SEAP).
Opening new doors
Let’s encourage aspiring entrepreneurs to transform layoffs into opportunities. There are states which do not force individuals who have lost their jobs to forego unemployment benefits if they want to work full time on launching a business.
Illinois should not either.
Our policymakers should pass legislation that establishes a SEAP so that under certain circumstances, laid off workers can become entrepreneurs. This can foster economic development and help aspiring entrepreneurs follow their dreams in a difficult job market.
There should be guardrails around participation in a SEAP. For instance, folks must have more than an idea for a business. Rather, they should engage in entrepreneurship training, have meetings with business counselors through various nonprofits and put together a business plan after being accepted into the program. Participating entrepreneurs should also open their businesses in Illinois.
These requirements borrow from other laws which unleash the entrepreneurial spirit of people who have lost their jobs. The program will not extend the maximum number of weeks an individual can receive unemployment and should an entrepreneur’s business gross over the total sum they are allotted, their remaining unemployment benefits will cease.
Young entrepreneurs
Many college students are understandably concerned about their employment prospects after graduation. Indeed, young people are facing a formidable job market. Illinois is home to tremendous universities, and we should foster the entrepreneurial spirit of talented students ready to launch businesses while attending school.
Wisconsin waives the limited liability company (LLC) articles of organization filing fee for postsecondary student entrepreneurs. In June, Wisconsin also expanded the definition of a student entrepreneur to include 18-year-old high school students.
Policies encouraging young people to launch businesses, especially in the current economic climate, can boost our economy with the added benefit of keeping talent in our state. Illinois should follow our neighbor’s lead and do even more for the next generation of entrepreneurs.
Regulatory sandboxes
Entrepreneurs with innovative ideas can sometimes be stymied because of regulatory costs. Illinois should enact a regulatory sandbox, which will allow entrepreneurs to temporarily test products without navigating costly and burdensome regulations.
Nothing in the sandbox should negatively impact the health, safety, and welfare of Illinoisans. By providing space for entrepreneurs to test their products more freely, our state can support more entrepreneurs.
The economy is rapidly changing, and our state should be creative, nimble, and responsive. Illinois should lead the way by supporting entrepreneurs ready to build new businesses and spark the next wave of economic development.
• Elliot Richardson is president and co-founder of the Small Business Advocacy Council.