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.