MACE Enterprising States 2013 - Delore Zimmerman
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Transcript of MACE Enterprising States 2013 - Delore Zimmerman
Enterprising States 2013Getting Down to Small Business
Mid-America Association of Chamber ExecutivesMay 8, 2013
Economic research, strategy & development company
that works with leaders, innovators & entrepreneursto create more competitive communities &
companies
Delore Zimmerman
ENTERPRISING STATES PROJECT
1. Which state policies have the biggest impact on creating jobs?
2. Are there best practices that states are putting into action to create new economic opportunities and prosperity?
www.freeenterprise.com/enterprisingstates
Small Business Startups Stalled
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
0%
5%
10%
15%
20%
25%
U.S. Employment in Firms Five Years Old and Younger
Source: U.S. Small Business Administration, Office of Advocacy, from data provided by the U.S. Census Bureau, Business Dynamics Statistics
Small Business Outlook Low
2003
2004
2005
2005
2006
2007
2008
2008
2009
2010
2011
2011
2012
-40-20
020406080
100120140
113
-28
12
-3
23
-11
9
Wells Fargo/Gallup Small Business IndexOwners' Ratings of Current Situation and Future Expectations
Wells Fargo/Gallup Quarterly Small Business Index
U.S. Chamber Business Outlook Survey
16% of small businesses added employees in the past year
82% feel the U.S. economy is headed in the wrong direction
January 2013: 54% expect outlook to get worse over then next year, up from 24% the previous October
Employment by Business Size, U.S. Economy
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
Self-Employed (1)
Stage 1 (2-9)
Stage 2 (10-99 employees)
Stage 3 (100-499)
Stage 4 (500+)
Num
ber
of Jo
bs
Source: National Establishment Time Series
Small Business Growth & Vigor
Minority-owned businesses Immigrant-owned businesses Women-owned businesses Baby boomers Self-employed & solo entrepreneurs
Energy & All Other Sectors
Energy Jobs All other Sectors
10.1%
2.3%
2010-2012
States and Small BusinessAll states have policies and programs to encourage entrepreneurs and support small business
30% increase in program funding 2012-13
Most states have loosely integrated programs but some have comprehensive, policies and programs intended to create “ecosystems”
Many states are focusing on high-growth potential firms with job generating capacity
Policies That Produc
e
Entrepreneurship &
Innovation
Talent Pipeline
Exports & International
Trade Business Climate
Infrastructure
States Impact Economic Growth & Job Creation in 5 Key Policy
Areas
Moratoria on new rules and regulations
Fast-track permitting Eliminate rules, regulations
and statutes that are job-killing
Impact statements for newly proposed rules and regulations
“One-stop” offices for state government
Business Climate: DURT Busting
Many states are bringing business leaders to the table to help with regulatory and policy
reforms
Tax credits for:o Investors in startup and expanding
businesseso Hiring employeeso Businesses in targeted industries,
e.g. data centers Regulations tailored for targeted
industries, e.g. financial, energy, and vehicles
Business Climate Highlights
Top Business Climate States14 4
037
20
1
Focus on emerging growth companies, a.k.a. high-growth firms
Economic gardening initiatives for expansion stage companies
Technology-based economic development programs; “ecosystem” initiatives
Investment funding for startups and expansions
University-business-government partnerships
Business plan competitions
Entrepreneurship & Innovation
Big shift towards entrepreneurship and growing existing businesses.
Top Entrepreneurship & Innovation States15 2
744
38
42
Expand access to broadband Target and incentivize specialized
infrastructure and equipment Upgrade ports & airports Establish state infrastructure banks
and funds Encourage Public Private Partnerships
(PPP)
Infrastructure
Southeastern states upgrading ports to trade with Central and South America
Top Infrastructure States22 6
42
19
41
Programs at colleges and universities tailored to industry sectors and/or specific companies
STEM initiatives – secondary and postsecondary
Middle-skill jobs that require less than a four-year degree
Internships
Talent Pipeline
Economic development and workforce development systems are becoming more
integrated.
Top Talent Pipeline States13 6
11
22
10
Training and support for companies to develop their export skills and connect to foreign markets.
Governors as international business diplomats –> door openers and deal closers to attract foreign companies
Exports & International Trade
Small businesses are a major target for state export programs
Top Exports States21 2
512
23
36
Energy industries Reasonable regulations and taxes A pro-growth culture and attitude Strong talent pool and training systems Sound fiscal policy that invests in the
basics - Governors providing high-level
leadership to build local networks and international connections
Top Performing States
Top Performing States
1 1510
13
12
Conclusions After 4 YearsEach state has its own unique
economic DNAA state can neither cut nor tax itself
into competitiveness & prosperityTo simply proclaim an enterprise-
friendly environment is no longer adequate. A story must be backedup by actions.
Using Enterprising StatesGovernor’s roundtable with business
leadersCustomized state reportPresentation at statewide chamber
events or other business conferences
ACKNOWLEDGEMENTS
Delore Zimmerman, Ph.D.Mark SchillMatthew LeiphonRyan AasheimZina Klapper
Joel Kotkin Presidential Fellow, Chapman University