Senate investigates low level of entrepreneurship among young people

In addition to investigating low lending rates for small businesses, Congress has now begun to consider a lack of entrepreneurship among 20- to 30-year-olds.

This week, the Senate Committee on Small Business and Entrepreneurship convened to discuss the challenges young entrepreneurs face. The hearing included testimony from actress and radio host Monique Coleman, cupcake shop owners Katherine Kallinis and Sophie LaMontagne and Tim Kane, a senior fellow of the Kauffman Foundation, Campus Progress reports.

The witnesses identified several themes that hamper young people from starting their own small businesses, including a lack of access to capital, high levels of student debt, credit issues and a lack of business education and financial literacy among young people, the site writes.

Committee chair Senator Mary Landrieu expressed outrage that profitable businesses such as Georgetown Cupcake were still being denied loans by banks. According to the site, Landrieu said that if banks continued to deny new businesses loans, the Senate could “make their lives miserable.”

Some cities seem to be more amenable to young entrepreneurs, according to Under30CEO.com. New York City took the top spot, followed by San Francisco, Austin and Boston.