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Hey legislators: Don’t forget small businesses [1]

['More From Author', 'May', 'Adam Kado']

Date: 2023-05-01

Help us understand why, with a $17.5 billion budget surplus and the biggest spending proposal in state history, ongoing support for local entrepreneurs across Minnesota is nowhere to be found.

If not now, when?

Smaller businesses with fewer than 100 workers employ a third of the country’s workforce. Instead of just talking about how we are the backbone of communities, let’s make an ongoing investment to ensure people who want to launch and expand small businesses get the help they need.

Stable support creates stable businesses

One-time money is nice, like proposed in Gov. Tim Walz’s proposed budget, but it doesn’t create ongoing education and training programs people can depend on.

There is no shortage of people like us across the state who want to start their own businesses. But there is a waiting list for the kind of help necessary to turn a great idea and solid plan into a thriving business. That help includes accounting, bookkeeping, managing cash flow, inventory control, graphic design, social media setup, small loans, real estate expertise, technology and other technical skills that help ensure long-term success.

Just 1% of the ongoing budget surplus would provide the kind of support needed across the state. One percent. It seems like a more than reasonable investment to support growth in a third of the state’s workforce.

We know what works, build on it

We don’t need a new government program to get help to people in all corners of the state. The economic development agency already has a framework in place, and it allows nonprofits like the Neighborhood Development Center to do what they do best. The Neighborhood Development Center and groups like it all across the state have the experience, track record, cultural knowledge, trust and connections to reach serious local entrepreneurs.

And these organizations are efficient and use money wisely. For every dollar the Neighorhood Development Center invests, neighborhood economies get $40. We are grateful for the Neighborhood Development Center’s expertise as we continue to build our businesses. A small ongoing investment from the state would get this type of much-needed support to other entrepreneurs like us. When you build strong entrepreneurs, entrepreneurs build strong neighborhoods.

Help bootstrapped businesses grow

Entrepreneurs need legislators to do a better job balancing the needs of local, small businesses with the enormous support it provides larger companies. To date, most of the state’s economic development goes to businesses that often have other ways to get help. In general, those businesses get far more funding than small and micro businesses.

Entrepreneurs who are Black, American Indian and other people of color especially lose out under the state’s lopsided investments.

Just recently BioMADE asked the Minnesota Legislature for $100 million. This is on top of the $450 million the Minnesota-based nonprofit received earlier this month from the U.S. Department of Defense. With members like 3M, Cargill, Lockhead Martin and other household names, and the backing of the federal government, BioMADE is a good example of organizations that already have access to capital.

As small business owners who do not come from generational wealth, we have truly bootstrapped every aspect of our businesses. It’s disheartening to watch the state fund businesses that have other ways to grow. If this continues, soon there won’t be any hope for people who have the drive, passion and stomach for entrepreneurship.

Legislators and Walz have the perfect opportunity to give entrepreneurs a shot at prosperity.

Again, if not now, when?

Businesses like Slice and Ya-Sure Kombucha have a huge impact on communities. The ripple effect goes well beyond our front door. We’re this generation’s “Mom and Pop” shops that support individuals, families and communities for decades to come.

Now is the time to invest a tiny slice of Minnesota’s ongoing budget surplus in local entrepreneurs. Let’s ensure they can count on having the tools and resources needed to realize their dreams, whether those dreams take them to Lake Street or Lake Country.

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[1] Url: https://minnesotareformer.com/2023/05/01/hey-legislators-dont-forget-small-businesses/

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