Government Relations

Grow Minnesota! poised for
economic recovery

By David C. Olson

Minnesota can hope for significant new investment as businesses emerge from the recession, but the money will not flow automatically. Business owners across the state cite crucial items that must be addressed by policy-makers.

Holding the line on taxes remains a top priority if companies are to stay and expand in Minnesota. Other cost factors are also cause for immediate concern. Electricity rates in many parts of the state are becoming less competitive, and the environmental permitting process continues to be lengthy and costly for too many Minnesota businesses.

Directives for strengthening the state’s business environment were underscored in the annual findings of Grow Minnesota!, the distinctive private-sector initiative of the Minnesota Chamber of Commerce focused on job retention and creation. The program is conducted in partnership with more than 50 local chambers of commerce and private-sector economic development organizations across the state. Business leaders statewide conducted one-on-one conversations with owners or top-level managers of nearly 900 companies this past year.

The complete Grow Minnesota! annual report can be found at http://www.mnchamber.com/research_
economy/annualreport/index.cfm

Grow Minnesota! is focused more than ever on solving the everyday problems of business, especially as Minnesota prepares for the economic recovery. We are under no illusions that the economy will take off as quickly as it faltered. The demand for business assistance will be as strong as ever.

Especially noteworthy in 2009 was the distribution of $5.5 million in low-interest loans and grants to 90 small businesses in 62 communities through Grow Minnesota! and our local partners, thanks to a generous grant from the Pohlad Family Foundation. The loans and grants are designed to help these businesses survive the recession and be prepared to grow as it ends.

Grow Minnesota! started with the goal of thanking businesses for investing in Minnesota and finding out what we need to keep them here. Every Grow Minnesota! business retention visit includes an offer of assistance to the company to help it be more successful in Minnesota. Businesses also are asked what is needed in public policy to assure they will stay and grow in the state. While more than 4,000 business retention visits completed in six years is certainly impressive, more needs to be done to help our companies stay and grow here.

That reality spawned the creation of BusinessConnection, an electronic business assistance and referral network launched in conjunction with the Minnesota Department of Employment and Economic Development. The service is free to all companies and is intended to be a single entry point to help businesses connect with private and public resources to solve everyday business problems. It can be accessed online at www.mnbizconnect.com or by calling (888) MINN-BIZ (646-6249).

Minnesota’s economic recovery has begun and will continue through the coming year. But the message is clear. There is a new reality coming for businesses across our state, and now is the time for everyone – businesses as well as policy-makers – to understand the risks and mine the new opportunities. A big part of that is to create more businesses and have them be successful.

Grow Minnesota! and its statewide network of local partners accept the challenge to do everything we can to make sure that Minnesota is in strong position to excel in the international economy.

David Olson is president of the Minnesota Chamber of Commerce. For more information, visit the Web at www.mnchamber.com.