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.
- The 5 worst things you could do for your roof
- 6 coolest things brewing in Arizona
- The virus that keeps head and neck cancers on the rise
- State Fair ‘Kid Reporter’ has all the angles covered
- 4 important things to know about timeshare maintenance fees
- Signs of delayed car crash injuries
- The truth about sports concussions
- The Alzheimer's epidemic: Facts you need to know
- The season is here, keep your Fantasy Football team strong all season
- 8 TV shows you can't miss this fall
- Football is here: 6 tips to make this your best season ever
- Gameday recipes and beers to match
- 6 reasons the Cardinals are driven to win the Super Bowl
- The Pac-12 football season nears kickoff
- Tips to get ready for a pain-free golf season
- Protect your family with these 7 home security features
- How to train like an Olympic swimmer
- 2016 Olympics: A guide to must-see TV events
- The bride's guide to feeling your best on your wedding day
- Deciding when you need knee surgery
- Celebrating Fourth of July is much cooler in these AZ towns
- Top ten road trip bathrooms in America
- Six things causing a pain in your neck
- 5 things to make your summer move easier
- Three elements of a strong timeshare exit guarantee
- 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.