PHOENIX — U.S. Rep. David Schweikert, R-Scottsdale, warned a group of entrepreneurs Wednesday that established companies and their lobbyists will fight to keep startups’ innovations from disrupting their markets.
“Legacy manufacturers are scared to death of you because of the chaos the new economy is creating,” Schweikert said during a visit to Seed Spot, a Phoenix business incubator.
As examples, Schweikert said taxicab companies are trying to prevent ride-sharing programs from taking too much of their business, while the hotel industry is fighting airbnb.com, which connects travelers with short-term rentals offered by individuals.
Schweikert said such innovations are quickly creating a new economy based on peer-to-peer commerce, which involves sales of services or products without a middleman. Easy access to technology is making it possible for individuals to disrupt traditional businesses models in this way, he added.
“Because of your access to information now, literally the world’s library is in your hand,” Schweikert said. “But that speed, that access to ideas, the ability to create, is a real threat to incumbent organizations.”
Schweikert said the rollout of the federal Jumpstarting Our Business Startups Act, which became law in 2012 aims to make it easier for startups to get capital through different avenues such as crowdfunding, is being hampered by the “regulatory state.” Some of its provisions haven’t been rolled out while federal agencies review them, he noted.
“We’re literally two years later and many of the things that should have already been rolled out are still in rule-promulgation,” Schweikert said. “That’s now one of my threats, that I have to change the way the regulatory state slows down innovation.”
Courtney Klein, CEO and co-founder of Seed Spot, said crowdfunding will have a significant impact on how entrepreneurs can raise money.
“I think a part of it is a trajectory of how the industry’s changing,” Klein said. “When you think about how capital was traditionally raised, and now this whole notion of crowdfunding and what does that mean? What does that look like?”
Justin Rohner, founder of Seed Spot-based Agriscape Technologies and iAgriscape.com, which help people grow produce in their lawns and gardens and sell it to local markets, said Schweikert’s warning gave him pause.
“What lobbyists might be out there that might try and squash us through regulation that they might lobby for?'” Rohner said.
- Stretches and exercises for carpal tunnel syndrome
- The best Major League ballparks have their own personality
- Comparing the best regular seasons: The '96 Bulls and '16 Warriors
- 3 Arizona road trips and the vehicles to get you there
- Colon cancer is preventable. Check these signs and symptoms to stay healthy.
- 6 of the biggest skin cancer myths
- Affordable small home makeover ideas
- Locals helping locals: 6 success stories you need to know about
- Sunscreen facts that could save your life
- 6 energy saving hacks for your home
- 5 tips for choosing a company to end your timeshare
- Overlooked water tips to save you money
- 5 of the most adored gentlemen in professional sports today
- The real danger of sitting at your desk
- Most surprising NBA playoff performances of the last 40 years
- 11 classic baseball movies you must see again
- Finally getting rid of fat: 3 methods that actually work
- 4 reasons cancer survivors should focus on food
- 5 spring cleaning spots everyone forgets
- 5 reasons to look forward to watching the D-backs this season
- Common virus attributed to spike in head and neck cancers
- 5 signs it’s time to end your timeshare ownership
- 3 most overlooked ways to keep your home healthy
- 6 ways the air in your home could be making you sick
- CrossFit dangers: 5 common injuries and how to deal with them
- Today's radiation treatments offer better success, fewer side effects
- Tips to make watching TV on the patio even better
- What really happens when you donate to a community college?
- Sun and skin cancer: Separating fact from fiction
- 5 critical lifestyle changes for a healthy colon