LANSING – The Small Business Association of Michigan on Monday released its new entrepreneurial legislative agenda to expand support and investment in small businesses.
The Entrepreneurial Policy Agenda is based in part on the findings of SBAM?s Small Business Foundation of Michigan?s recently issued fourth annual Entrepreneurship Score Card. The Score Card consists of 128 economic research metrics that are used to assess how well Michigan does compared to other states in supporting entrepreneurs.
This year?s report found that despite Michigan?s strengths (No. 1 in the nation in Industry R&D, No. 3 in Private Lending to Small Businesses, No. 5 in Net Firm Entrants Increase, No. 8 in Patents per Innovation Worker) it still lags behind other states in nurturing job-creating small businesses.
The Score Card shows that Michigan needs to do more to support positive Entrepreneurial Change, Entrepreneurial Dynamism and an improved Entrepreneurial Climate. However, the report also has encouraging signs of progress. Michigan has improved its national ranking in Entrepreneurial Change. Numerous organizations and communities have initiatives underway aimed at fostering increased entrepreneurship. Public policy discussions have begun to reflect the importance of growing our entrepreneurial economy. These, along with a host of other factors, are early signs that the state economy is beginning a much-needed long term transformation.
The agenda is grouped around five broad areas:
Increase Capital Available for Entrepreneurs
Rather than investing in basic research, focus state investments on companies that have the best plan to commercialize.
Broaden the focus of state investment beyond just four specific industries.
Revise the Strategic Economic Investment and Commercialization (SEIC) Board.
Support and expand the new Michigan Emerging Technology Fund.
Give serious consideration to grants as an alternative to loans.
Support the Michigan Invests! Fund.
Revise Angel Tax Credit to encourage more private investment in start-up companies.
Make Entrepreneurial Education a Higher State Priority
State government should strongly support Entrepreneurial Degree Programs at our universities and community colleges.
The state should ensure that entrepreneurial skills and education are incorporated into the curriculum for our K-12 schools.
The state should consider supporting a statewide center for Entrepreneurial Education.
Get University Research From the Lab to the Market
Change the Higher Education funding formula in the state budget to incentivize universities to get research out of the universities and into the market.
Elected officials should carefully consider the metrics used to measure university performance.
Consider a Michigan Tech-Transfer Office.
Use the Tax Structure to Incentivize Entrepreneurial Growth
Implement the R&D Transferable Tax Credit.
Establish a Rent Tax Credit for those who provide space for entrepreneurs.
Create a personal income tax credit for the health care coverage of a new business owner and their immediate family.
Allow for an income tax credit for any personal income used to start up a new business.
Expand the Small Business Alternative Profits Tax.
Reduce or eliminate the surcharge on the Michigan Business Tax (MBT).
The Role of Government: Limit the Burden of Regulation and Support Efforts to Better Assist Entrepreneurs
Realize the promise of the one-stop shop.
Support the critical role of the Michigan Economic Development Corporation (MEDC) and the Michigan Small Business Technology Development Centers (MI-SBTDC).
Carefully consider the impact of all administrative rules on entrepreneurs.
Carefully consider the impact of all new laws on entrepreneurs.
Work to Control the High Cost of Health Care Coverage.
For more information, click on SBAM.Org
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