Now that the Jumpstart Our Business Startups, or JOBS, Act has passed the U.S. Congress, it doesn't mean it's the solution to the country's unemployment and economic problems, said an executive on Wall Street. The legislation, which passed the House March 27, 2012, is a great start, but more is needed.
Duncan L. Niederauer, CEO of NYSE Euronext, which operates the NYSE, said the JOBS Act is a great first step on the road to economic recovery in the United States. However, Niederauer said that to get the country's workforce back to the state it was before the recent recession, about six million jobs need to be created and another four million jobs to account for increases in population growth.
According to the CEO, the JOBS Act will open the doors to new sources of capital for small businesses by creating eased regulatory measures. After it's signed into law by President Barack Obama, the JOBS Act will make it easier for small businesses to attract investors and comply with the country's securities laws. This is important because Niederauer said that 99 percent of all companies in the United States are small businesses.
He goes on to say that one of the problems with job growth in America is a company's inadequate access to capital. He said companies can't be created or expanded and create jobs without access to a steady stream of capital.
Niederauer said that the business community must also band together to turn the economy around. He said American's corporate leaders must join forces to spark economic growth. The Wall Street CEO pointed out that one of the aftermaths of the recession is a divided business climate with entrepreneurs on one side of the fence and bank executives on the other side.
In the end, many banks have been consolidated and personal connections between local bankers and local business owners have been partially severed.
Read more at Fortune.