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New bill might boost business formation in Massachusetts

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Even while the national economy inches toward recovery, many states are still struggling to reduce unemployment rates. The unemployment rate in Massachusetts nudged up to 9.5 percent last month, after 8,000 jobs in the state were lost in December and January. Now, Wicked Local Plymouth news reports that Senate President Therese Murray has introduced legislation that might spark Massachusetts business growth. Murray says the bill aims to coordinate the economic development activities funded by the Commonwealth and create business-friendly environments that will boost business formation.

She feels the current economic development model is clearly falling short as unemployment rates continue to grow. The source quotes Murray saying she hopes such initiatives will “stimulate job growth and improve the ease with which businesses can operate in the markets they serve.”

One of the primary functions of the bill will be to study the feasibility of creating a state bank. Such an institution might create capital for lending that local startup businesses can use to launch businesses.

It seems entrepreneurs in Massachusetts and across the nation might be in need of increased access to startup funds – legislation recently proposed in Connecticut by Senator Dodd might reduce the number of angel investors in the country.

Future business owners might be well-advised to remember that business incorporation can help increase the chances of receiving startup loans as it indicates that a company is credible.