WASHINGTON, D.C. — After leaving a job, some people may be interested in starting their own business, but trying to become your own boss can be challenging when unemployment assistance requirements include evidence of trying to get a new job as an employee.
Two lawmakers on Capitol Hill are teaming up on a bipartisan bill to support small entrepreneurs by giving them more time to focus on getting their businesses off the ground.
What You Need To Know
- A new proposed law would help entrepreneurs by giving them more time to focus on their start-ups
- The bipartisan bill was introduced by two Ohio lawmakers
- Only eight states currently offer self-employment assistance programs
Reps. Mike Carey, R-Ohio, and Greg Landsman, D-Ohio, introduced the NO BOSS Act, which would encourage states to offer self-employment assistance programs. Such programs allow entrepreneurs to collect unemployment benefits without applying for new jobs.
Cincinnati -based business owner Brit Cochran said such a program would have been helpful when she launched her beauty boutique, Launch Party, in 2019. Cochran worked part time as a makeup artist for four years after the business opened to supplement her income, but said getting pandemic unemployment assistance in 2020 helped her focus full-time on her start-up during a crucial period.
“Becoming our own boss, I mean, opening a business, there are so many things that you have to learn, from financials to social media to marketing to opening a store or getting permits,” Cochran said. “There is just an enormous amount of things to learn, that it takes time. It takes time to do all that. And it feels like a very upward hill if you're doing that while you're also looking for work or even going to a job. That hill is just steeper, longer.”
Only eight states offer unemployment for assistance for entrepreneurs that does not require actively looking for another job: Delaware, Mississippi, New Hampshire, New Jersey, New York, Oregon, Pennsylvania and Rhode Island.
“So we wanted to open it up so all 50 states could use this program. This really stemmed from a meeting that we had with small business owners in our district just a few months ago,” said Rep. Carey.
Carey and Landsman both emphasized bipartisan support for the bill.
“You get better ideas and ultimately better results, when you work in a bipartisan way. And so, Mike Carey and I have done several bills together this Congress, including this one,” Landsman said.
Oregon was the first state to launch a self-employment assistance program in 1985. Its program is considered a model for other states to follow.
“We've had it pretty much since the beginning, and it's been really successful in Oregon,” said David Gerstenfeld, director of the Oregon Employment Department. “Now that it's existed for a number of decades, I think there's interest in encouraging more states to experiment.”
The NO BOSS Act would improve existing self-employment program regulations by removing the “likely to exhaust benefits” provision, which prevents many unemployed workers from participating in this program and implies that entrepreneurship should only be for those who are unlikely to find any other job. It would also ensure applicants are meeting the required deadlines.
Carey and Landsman said they hoped the bill would inspire more entrepreneurs launch their own businesses.