As the national economy gets back on track, entrepreneurs may find the moment is ripe to start a tech-related business. The Silicon Valley Leadership Group’s Annual CEO Business Climate Survey from SVB Financial Group indicates that business conditions are quickly improving for tech companies.
According to the survey, 304 U.S.-based early stage technology firms are planning on making new hires in 2010. These businesses have less than $5 million in annual revenue, but they feel confident that the market is growing enough to demand increased employment.
This may be good not just for business owners but also for the overall economy. The Silicon Valley Leadership Group reports that venture capital-backed technology groups significantly contribute to job creation. With the lingering 9.7 percent unemployment rate, increased tech business formation could spur national recovery.
In light of tech-minded entrepreneurs’ optimism and the potential benefits a boost in new tech firms could offer the country, the SVB advises funders to increase contributions to tech startups. They also encourage the government to consider beneficial tax policies for these companies as the survey found that federal taxes were a leading issue for tech startup owners.
To capitalize on corporate tax breaks and take advantage of this tech-friendly moment, entrepreneurs might consider business incorporation to get their technological ventures off on the right foot.