ALEC Policy Champions: Missouri Sen. Travis Fitzwater and Rep. Alex Riley Increase Entrepreneurial Opportunity in the Show Me State

ALEC is proud to recognize Missouri State Senator Travis Fitzwater and State Representative Alex Riley as ALEC Policy Champions for their work championing pro-entrepreneurship and pro-small business policy in Missouri. Sponsored by Sen. Fitzwater in the Senate and by Rep. Riley in the House, SB 894 was signed by Governor Mike Parson after it received strong bipartisan support in both legislative chambers.

As Sen. Fitzwater explains, the bill “makes advancing startup businesses and young companies a statewide priority and provides essential tools to maximize that potential for the benefit of all Missourians.” To do this, the bill tackles both the resource and regulation problems holding entrepreneurs back.

Consistent with the ALEC model Right to Start Act (featured in our Essential Policy Solutions for 2024), the bill’s first section focuses on creating resources for people looking to start a new business. It creates the Office of Entrepreneurship with the specific goal of promoting policies and initiatives to support Missouri entrepreneurs with less than ten employees.

The second section of the bill aligns with the ALEC model Universal Regulatory Sandbox Act (another one of our Essential Policy Solutions for 2024) to create a “sandbox” program to foster innovation. Administered and supervised by the Regulatory Relief Office, the program temporarily waives certain regulations to allow businesses to offer new products or services that would otherwise be restricted. Strict reporting requirements help mitigate health and safety concerns to ensure consumers and the public are not harmed.

SB 894’s reforms address issues close to people’s hearts. Data shows Americans want to work for themselves, with 62% of Americans preferring to be their own boss, if possible. However, 92% of voters also believe it is difficult to create a new business, and over 15 million new businesses have not opened due barriers like high regulatory loads.

When states reduce barriers to entrepreneurship, there are statewide benefits. According to the Goldwater Institute, “for every one percentage point increase in the rate of entrepreneurship in a state, there is a two percent decline in poverty.”

States looking to follow Missouri’s lead can turn to ALEC’s Right to Start Act and Universal Regulatory Sandbox Act. The Right to Start Act creates the Office of Entrepreneurship to promote pro-entrepreneurial policies and assist young businesses, including by eliminating first-year licensing and registration fees and by encouraging 5% of state contracts, workforce development funding, and economic development funding to go to new, young businesses.

ALEC’s Universal Regulatory Sandbox Act creates a program allowing individuals and businesses to trial innovative products or services by temporarily bypassing specific laws and regulations that hinder with their innovation. As with the Missouri law, the ALEC policy contains specific protections for consumer and public health and safety. It also allows the supervising office to identify state laws and regulations that can be repealed or suspended.

Congratulations to Missouri State Senator Travis Fitzwater and State Representative Alex Riley on the success of SB 894 and their efforts to champion entrepreneurial opportunity in the Show Me State.