I 
117TH CONGRESS 
1ST SESSION H. R. 1345 
To require the Secretary of Commerce to conduct an assessment and analysis 
relating to the decline in the business formation rate in the United States. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 25, 2021 
Mr. HILL (for himself, Mr. FOSTER, Mr. SCHWEIKERT, Mrs. MURPHY of Flor-
ida, Mr. VEASEY, Mr. CHABOT, and Mr. EMMER) introduced the fol-
lowing bill; which was referred to the Committee on Energy and Com-
merce 
A BILL 
To require the Secretary of Commerce to conduct an assess-
ment and analysis relating to the decline in the business 
formation rate in the United States. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Enhancing Entrepre-
neurship for the 21st Century Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Recent research has demonstrated that— 
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(A) new businesses (commonly referred to 
as ‘‘startups’’)— 
(i) are disproportionately responsible 
for the innovations that drive economic 
growth; and 
(ii) account for virtually all net new 
job creation; 
(B) the rate of formation of United States 
businesses has fallen significantly in recent 
years; and 
(C) as determined by widely cited research, 
the decline in the rate described in subpara-
graph (B) is occurring in all 50 States, in all 
but a handful of 360 metro areas examined, 
and across a broad range of industry sectors. 
(2) Before policymakers can identify ways in 
which the decline in the rate described in paragraph 
(1)(B) may be counteracted, the underlying causes 
of the decline must be identified. 
(3) Economists have identified several factors 
that may explain the decline in the rate described in 
paragraph (1)(B), including— 
(A) demographic changes caused by an 
aging workforce and slowing population growth; 
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(B) increased industry concentration that 
may make it more difficult for new market en-
trants to compete with established companies; 
(C) increased risk-aversion following the fi-
nancial crisis and recession that occurred in 
2008 and 2009 and deterioration of household 
balance sheets; 
(D) difficulties relating to access to cap-
ital, particularly difficulties encountered by un-
derserved populations, women, and members of 
minority groups; 
(E) the concentration of venture capital in 
only a few cities; 
(F) record levels of student debt; and 
(G) inefficiencies or other difficulties relat-
ing to the commercialization of federally funded 
research and innovation. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) 
APPROPRIATE
COMMITTEES
OF
CON-
GRESS.—The term ‘‘appropriate committees of Con-
gress’’ means— 
(A) the Committee on Commerce, Science, 
and Transportation of the Senate; and 
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(B) the Committee on Energy and Com-
merce of the House of Representatives. 
(2) 
ENTREPRENEUR.—The 
term 
‘‘entre-
preneur’’ means an individual who founded, or is a 
member of a group that founded, a United States 
business. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Commerce. 
(4) UNITED
STATES
BUSINESS.—The term 
‘‘United States business’’ means a corporation, part-
nership, association, joint-stock company, business 
trust, unincorporated organization, or sole propri-
etorship that— 
(A) has its principal place of business in 
the United States; or 
(B) is organized under the laws of a State 
of the United States or a territory, possession, 
or commonwealth of the United States. 
SEC. 4. ASSESSMENT AND ANALYSIS. 
(a) ASSESSMENT AND ANALYSIS REQUIRED.—Not 
later than 2 years after the date of enactment of this Act, 
the Secretary, in consultation with the Director of the Bu-
reau of the Census and the Director of the Bureau of Eco-
nomic Analysis of the Department of Commerce, shall con-
duct an assessment and analysis regarding the reasons for 
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the state of the formation of new United States businesses 
during a period that— 
(1) the Secretary determines appropriate based 
on the data described in subsection (b)(1)(A); and 
(2) ends on March 13, 2020. 
(b) CONSIDERATIONS AND CONSULTATION.— 
(1) IN
GENERAL.—In conducting the assess-
ment and analysis required under subsection (a), the 
Secretary shall— 
(A) notwithstanding any other provision of 
Federal law, and subject to paragraph (2), re-
view data collected and maintained by— 
(i) the Bureau of the Census; 
(ii) the Bureau of Economic Analysis; 
(iii) the Bureau of Labor Statistics; 
(iv) the Small Business Administra-
tion; 
(v) the Department of the Treasury; 
(vi) the Board of Governors of the 
Federal Reserve System; and 
(vii) any other Federal or State agen-
cy, or public or private sector organization, 
that the Secretary determines appropriate; 
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(IV) the Chief Counsel of the Of-
fice of Advocacy of the Small Busi-
ness Administration; and 
(V) the Board of Governors of 
the Federal Reserve System; 
(ii) entrepreneurs, including entre-
preneurs who are women or members of 
minority groups, especially those entre-
preneurs who founded United States busi-
nesses that experienced rapid growth; and 
(iii) representatives from consumer, 
community, and entrepreneurship advocacy 
organizations. 
(2) CONFIDENTIALITY.—With respect to data 
reviewed by the Secretary under paragraph (1)(A), 
the Secretary shall ensure that the data is subject 
to the same confidentiality requirements and protec-
tions as the confidentiality requirements and protec-
tions of the agency or entity, as applicable, providing 
the data. 
(c) REPORT.—The Secretary shall submit to the ap-
propriate committees of Congress a report regarding the 
findings of the Secretary with respect to the assessment 
and analysis conducted under subsection (a). 
Æ 
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