MACE Enterprising States 2013 - Delore Zimmerman


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Delore Zimmerman of Praxis Strategy Group gave this presentation to the Mid-America Chamber Executives on 5/8/13.

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  • The 5 key policy areas for the project
  • We have often framed business climate using the acronym DURT
  • MACE Enterprising States 2013 - Delore Zimmerman

    1. 1. Enterprising States 2013Getting Down to Small BusinessMid-America Association of Chamber ExecutivesMay 8, 2013
    2. 2. Economic research, strategy & development companythat works with leaders, innovators & entrepreneursto create more competitive communities & companiesDelore Zimmerman
    3. 3. ENTERPRISING STATES PROJECT1. Which state policies have the biggestimpact on creating jobs?2. Are there best practices that states areputting into action to create neweconomic opportunities andprosperity?
    4. 4. Small Business Startups Stalled0%5%10%15%20%25%19821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010U.S. Employment in Firms Five Years Old and YoungerSource: U.S. Small Business Administration, Office of Advocacy, from data provided by theU.S. Census Bureau, Business Dynamics Statistics
    5. 5. Small Business Outlook Low-40-2002040608010012014020032004200420052005200620062007200720082008200920092010201020112011201220122013113-2812-323-119Wells Fargo/Gallup Small Business IndexOwners Ratings of Current Situation and Future ExpectationsWells Fargo/Gallup Quarterly Small Business Index
    6. 6. U.S. Chamber BusinessOutlook Survey 16% of small businesses addedemployees in the past year 82% feel the U.S. economy is headed inthe wrong direction January 2013: 54% expect outlook to getworse over then next year, up from 24%the previous October
    7. 7. Employment by Business Size, U.S. EconomySelf-Employed (1)Stage 1 (2-9)Stage 2 (10-99employees)Stage 3 (100-499)Stage 4 (500+)051015202530354045501995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010NumberofJobsMillionsSource: National Establishment Time Series
    8. 8. Small Business Growth & Vigor Minority-owned businesses Immigrant-owned businesses Women-owned businesses Baby boomers Self-employed & solo entrepreneurs
    9. 9. Energy & All Other Sectors10.1%2.3%Energy Jobs All other Sectors2010-2012
    10. 10. States and Small BusinessAll states have policies and programs toencourage entrepreneurs and support smallbusiness 30% increase in program funding 2012-13 Most states have loosely integratedprograms but some havecomprehensive, policies and programsintended to create “ecosystems” Many states are focusing on high-growthpotential firms with job generating capacity
    11. 11. PoliciesThatProduceEntrepreneurship& InnovationTalent PipelineExports &InternationalTradeBusinessClimateInfrastructureStates Impact Economic Growth & JobCreation in 5 Key Policy Areas
    12. 12.  Moratoria on new rules andregulations Fast-track permitting Eliminate rules, regulations andstatutes that are job-killing Impact statements for newlyproposed rules and regulations “One-stop” offices for stategovernmentBusiness Climate: DURT BustingMany states are bringing businessleaders to the table to help withregulatory and policy reforms
    13. 13.  Tax credits for:o Investors in startup and expandingbusinesseso Hiring employeeso Businesses in targeted industries, centers Regulations tailored for targetedindustries, e.g. financial, energy, andvehiclesBusiness ClimateHighlights
    14. 14. Top Business Climate States144037201
    15. 15.  Focus on emerging growth companies, a.k.a.high-growth firms Economic gardening initiatives for expansionstage companies Technology-based economic developmentprograms; “ecosystem” initiatives Investment funding for startups and expansions University-business-government partnerships Business plan competitionsEntrepreneurship & InnovationBig shift towards entrepreneurship and growingexisting businesses.
    16. 16. Top Entrepreneurship & InnovationStates1527443842
    17. 17.  Expand access to broadband Target and incentivize specializedinfrastructure and equipment Upgrade ports & airports Establish state infrastructure banks andfunds Encourage Public Private Partnerships(PPP)InfrastructureSoutheastern states upgrading ports to trade withCentral and South America
    18. 18. Top Infrastructure States226421941
    19. 19.  Programs at colleges and universitiestailored to industry sectors and/or specificcompanies STEM initiatives – secondary andpostsecondary Middle-skill jobs that require less than a four-year degree InternshipsTalent PipelineEconomic development and workforce developmentsystems are becoming more integrated.
    20. 20. Top Talent Pipeline States136112210
    21. 21.  Training and support for companies todevelop their export skills and connect toforeign markets. Governors as international businessdiplomats –> door openers and deal closersto attract foreign companiesExports & International TradeSmall businesses are a major target for stateexport programs
    22. 22. Top Exports States2125122336
    23. 23.  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 tobuild local networks and internationalconnectionsTop Performing States
    24. 24. Top Performing States115101312
    25. 25. Conclusions After 4 YearsEach state has its own unique economicDNAA state can neither cut nor tax itself intocompetitiveness & prosperityTo simply proclaim an enterprise-friendlyenvironment is no longer adequate. A storymust be backedup by actions.
    26. 26. Using Enterprising StatesGovernor’s roundtable with businessleadersCustomized state reportPresentation at statewide chamber eventsor other business conferences
    27. 27. ACKNOWLEDGEMENTSDelore Zimmerman, Ph.D.Mark SchillMatthew LeiphonRyan AasheimZina KlapperJoel KotkinPresidentialFellow, ChapmanUniversity