Connecticut in need of business formation aid to economy

The Bureau of Labor Statistics reports that sustained business formation rates will be essential to economic recovery. With this in mind, the state of Connecticut may be in dire need of startups soon.

The Connecticut Center of Economic Analysis recently recommended that more than $1 billion in unused research and development tax credits be reclaimed by the state to build and equip manufacturing, pharmaceutical and bioscience research that could create nearly 40,000 jobs, reports Forbes.

Nonetheless, experts have little hope that these initiatives will make a significant difference in recovering the economy. The center’s report says, “there is currently little prospect for a robust recovery in Connecticut’s economy.”

Some wonder if the funds wouldn’t be better spent in investing in business startups or offering incentives for venture capitalists to invest in SMBs. Legislation of this nature recently passed in Minnesota and state officials now have a much more optimistic outlook about recovery, reports the Star-Tribune.

Those who live in the Connecticut area may consider business incorporation in the state to boost its struggling economy. According to You Belong in Connecticut’s web page, the state offers entrepreneurs a low corporate income tax and a strong workforce pool.