Each year the U.S. Chamber of Commerce Foundation analyzes
data to determine what states have done over the previous year to create jobs
and expand the economy. The analysis is
broken down into two parts, one that discusses what states should be doing and one that details what states are doing and then ranking the
states using a performance, data-driven model.
The Chamber calls the annual report, Enterprising
States, and provides a copy of the 2013 analysis HERE.
data to determine what states have done over the previous year to create jobs
and expand the economy. The analysis is
broken down into two parts, one that discusses what states should be doing and one that details what states are doing and then ranking the
states using a performance, data-driven model.
The Chamber calls the annual report, Enterprising
States, and provides a copy of the 2013 analysis HERE.
This year Enterprising
States focuses on the importance of supporting small business as a means of
economic development and job creation in the United States. Historically, small businesses have been the
country’s primary job creator, but following the latest recession these
economic engines have failed to return to their traditional roles. The Chamber warns that, “[p]olicymakers
ignore small business at their own peril and that of the economy.”
States focuses on the importance of supporting small business as a means of
economic development and job creation in the United States. Historically, small businesses have been the
country’s primary job creator, but following the latest recession these
economic engines have failed to return to their traditional roles. The Chamber warns that, “[p]olicymakers
ignore small business at their own peril and that of the economy.”
Last year, only 16% of small businesses added employees and
businesses five-years-old or younger now employ just 8% of the total work
force, which is a decrease of 33% over the past two decades. Small and new businesses continue to
struggle in the post-Great Recession economy for a number of reasons, including
significantly lower consumer spending and reduced lending by community
banks. These factors contribute to a
less than rosy outlook by small business owners. The U.S. Chamber surveyed small businesses in
January 2013 and found more than half expected business to be worse over the
next two years. This is more than twice
as high as the same survey revealed a year earlier. Lower optimism results in fewer new hires,
smaller investment and more defensive operations.
businesses five-years-old or younger now employ just 8% of the total work
force, which is a decrease of 33% over the past two decades. Small and new businesses continue to
struggle in the post-Great Recession economy for a number of reasons, including
significantly lower consumer spending and reduced lending by community
banks. These factors contribute to a
less than rosy outlook by small business owners. The U.S. Chamber surveyed small businesses in
January 2013 and found more than half expected business to be worse over the
next two years. This is more than twice
as high as the same survey revealed a year earlier. Lower optimism results in fewer new hires,
smaller investment and more defensive operations.
If small and new businesses are not adding jobs, what can
states do to encourage small and new business startups? The U.S. Chamber recognized ten initiatives
that appear to be working to support and grow small and new businesses in the
country.
states do to encourage small and new business startups? The U.S. Chamber recognized ten initiatives
that appear to be working to support and grow small and new businesses in the
country.
·
Business
plan competitions – identify and assist entrepreneurs turn ideas in start
ups.
Business
plan competitions – identify and assist entrepreneurs turn ideas in start
ups.
·
Accelerator
initiatives – programs that assist startups become stand-alone companies.
Accelerator
initiatives – programs that assist startups become stand-alone companies.
·
Economic
gardening initiatives – provide resources to existing firms so they can
expand.
Economic
gardening initiatives – provide resources to existing firms so they can
expand.
·
Ecosystem
initiatives – focus programs and projects on areas where a concentration of
like-mission companies exist.
Ecosystem
initiatives – focus programs and projects on areas where a concentration of
like-mission companies exist.
·
Workforce
development initiatives – help business train and locate qualified employees.
Workforce
development initiatives – help business train and locate qualified employees.
·
Seed and
venture capital – provides access to funding to help replace diminished
availability of bank loans.
Seed and
venture capital – provides access to funding to help replace diminished
availability of bank loans.
·
Networking
and collaboration initiatives – match small business with mentors in large
business and higher education.
Networking
and collaboration initiatives – match small business with mentors in large
business and higher education.
·
International
trade – reaching new global markets is vital for start ups and small
business
International
trade – reaching new global markets is vital for start ups and small
business
·
Streamlined
state administrative processes – efforts to eliminate rules, regulations
and uncertainty
Streamlined
state administrative processes – efforts to eliminate rules, regulations
and uncertainty
·
Broadband
investment – high speed online access is critical being competitive
Broadband
investment – high speed online access is critical being competitive
Thankfully, Arkansas utilizes many of these initiatives, but
unfortunately many lack sufficient funding to be fully implemented on a
statewide basis. A future blog post will
highlight what Arkansas is doing to support small and new businesses. For more information contact Michael Lindsey
at Michael@RogersLowell.com
unfortunately many lack sufficient funding to be fully implemented on a
statewide basis. A future blog post will
highlight what Arkansas is doing to support small and new businesses. For more information contact Michael Lindsey
at Michael@RogersLowell.com