Opinions Forging Ahead The spirit of entrepreneurism is alive and well
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By Greg Main
President & CEO,
Michigan Economic Development Corp.
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October has been a stellar month for entrepreneurship in Michigan. When the president of the United States signs a law modeled in part after a program that started here, it’s a sign we are doing something right. The new State Small Business Credit Initiative, part of the Small Business Jobs Act newly enacted in Washington, is based on the Michigan Economic Development Corp. (MEDC)-originated Michigan Supplier Diversification Fund. That’s a program that has been using state resources to leverage private loans for manufacturers seeking to diversify into new markets.
An important feature of the new State Small Business Credit Initiative is the opportunity for states to apply for federal funds for programs that facilitate partnering with private lenders to extend credit to small businesses — assuming the states can come up with a minimum of $10 in new private lending for every $1 in federal funding. As a result, the $79.2 million funding commitment to Michigan under the program will grow tenfold to support $792 million in private lending. Nationwide, the program is expected to support $15 billion in additional private lending. Once again a solution developed in Michigan turns out to be the answer to the problem in a lot of other places.
Another boost to our ongoing effort to inspire people to get in touch with their “inner entrepreneur” was the announcement of $1.5 million in Regional Entrepreneurial Collaborative grants. This funding will go to foster business startups and establish support systems for entrepreneurs in 53 of the state’s 83 counties. Funding comes through Michigan’s No Worker Left Behind (NWLB) program. The organizations, projects and amounts awarded include:
Governor Granholm noted recently that nearly 80 percent of recommendations by the Council for Labor and Economic Growth (CLEG) to support and grow a state culture of entrepreneurship have been enacted. That culture is flourishing, with the state now ranking fifth nationally in the rate of increase of new firm entrants, a recognized marker of entrepreneurial activity.
Over the last decade, more than $51 million has been invested by the state in an entrepreneurial ecosystem designed to nurture small business growth, with MEDC driving the state’s entrepreneurship engine. The effort encompasses 15 SmartZones to incubate startup companies and commercialize technology. It also includes 12 regional Small Business and Technology Development Centers (SBTDCs) that serve as MEDC’s primary partners in small-business development. Today, the state’s entrepreneurial sector is thriving with 187,300 small businesses (employing 500 people or less) now accounting for an incredible 98.4 percent of the state’s employers.
Michigan has always been a great place for entrepreneurs. Names like Dow, Kellogg and Ford changed the world. Today, that spirit of entrepreneurship is alive and well. And the MEDC is ready and able to connect entrepreneurs to a vast network of university resources, business experts and investment funds ready to help transform an idea into a new product and a dream into a new company.