Culture of Entrepreneurship Gives Us Reasons for Optimism
By ROB FOWLER
President & CEO
Small Business Association of Michigan
SPECIAL TO MIBIZ CRYSTAL BALL 2010
We here at SBAM believe that the small business entrepreneurial sector is key to turning the economy around. Michigan needs to do a much better job cultivating our own growing companies, especially the rapidly-expanding, second-stage firms that provide much of our dynamic job growth. It's a strategy of "economic gardening." That's not to say we don't also need a "hunting" strategy of state agencies recruiting and attracting big firms from around the world. But it's not either/or — we need to garden and hunt at the same time.
This February, our Small Business Foundation of Michigan will release the fifth annual Entrepreneurial Score Card. The Score Card uses solid research data to provide insights on what, if anything, Michigan is doing right in growing entrepreneurs; and what areas we need to continue improving upon in the future.
Last year's Score Card showed some encouraging developments. Despite (or perhaps because of) the economic challenges, numerous communities and organizations had initiatives underway aimed at fostering increased entrepreneurship and public policy had begun to reflect the importance of entrepreneurship. I have every expectation that these trends will continue in our 2010 Score Card and perhaps give us more evidence that the state economy is beginning a much needed long-term transformation.
It's important to note that despite our current economic struggles, our state still has a lot going for it. For example, in previous Score Cards, Michigan scored very high in both Education and Workforce Preparedness and above average on Digital Connectivity. The state still has an outstanding post secondary education system and, overall, its workforce is well educated and prepared for the agility required by changing economic conditions. It is also a state with attractive places to live, work, raise a family and make money, as long as we provide the public policies that support a pro-growth/pro-investment business climate.
It will be difficult to improve Michigan's business climate unless our lawmakers avoid tax hikes and get the state budget under control. Genuine structural budget reform, not short term budget gimmicks, is essential. Many excellent reforms have been suggested, such as:
• Pool all healthcare plans for public employees
• Increase minimum retirement/years of service for all public employees to be eligible for retirement benefits
• Increase state employee and retiree healthcare premium co-pays to match their private sector counterparts
• Reform Public Act 312 to change arbitration standards for police and fire
• Reform the Urban Cooperation Act and two other similar acts to eliminate the requirement that when a service merger occurs, the higher wage and benefits must be paid
• Exempt government construction from prevailing wage statutes
• Require program efficiency studies in all government programs to eliminate waste
• Require all new teachers hired by a date certain in the future to have defined contribution, rather than defined benefit, retirement plans
• Move all administrative functions of local schools to the Intermediate School District, leaving local school boards with only academic and athletic functions
• Require that school districts competitively bid all non-core functions, including transportation, food service, and custodial work
• Reduce the number of school districts
• Privatize food service, mental health services and transportation in prisons
2010, as an election year, is our opportunity as voters to motivate candidates — from the new governor to members of the legislature — to demonstrate that they will pay more than just lip service to the needs of small business. This year is unique in that we will be electing new lawmakers during an economic transformation. We need to insist that they respond with creative policy ideas and a sound commitment to revitalizing our state.
Ultimately, I remain an optimist. In spite of all the challenges, this is a great time to be a Michigan small business owner.
