GROWING MAINE FROM WITHIN: The Small Business Initiative

Update from the Auburn Small Business Forum

Wednesday, September 29, The Munroe Inn, Auburn

One after another, participants in the breakfast meeting said that Maine needed to do more to reduce the burdens placed on small businesses. The increasing costs and requirements of insurance policies drew a great deal of comment, including workers compensation costs, and the difficulty of obtaining affordable health care coverage.

Elaine Hemenway of Payroll Management, Inc. in Auburn said, "today the state has been reduced to two workers compensation providers. We need competitive rates, that means we need competition amongst insurance companies. We need to bring the insurers back to the table." She also suggested that Maine Small businesses should be allowed to enter into purchasing agreements to lower costs and allow them to compete with larger companies.

Many business owners cited frustration with the mounting paperwork required to do business, as well as the financial burdens presented by taxes.

"I remember what it was like when I started," said Stephen Brown of Brown Goldsmiths and Co. "I remember doing my own taxes and those were hard years. We need to reduce taxes for start-up businesses in Maine."

Chip Morrison, president of the Androscoggin County Chamber of Commerce, thanked legislators for presenting the plan and for asking business people for feedback. He offered several suggestions for amending the plan.

"We need to increase Maine small businesses access to state contracts," he said. "Many small businesses are discouraged by the paperwork and even one look at the bonding requirements. We need to give Maine businesses preference when awarding state contracts."

Morrison also suggested that an economic impact statement accompany future legislation, which resonated many of the business people and some representatives.

Robert Murch, of Combined Management, Inc., said legislators should be more aware of unintended consequences from the legislation they pass.

"I represent over 100 small businesses and that means that I am able to see the cash flow at the heart of many small businesses and to see how little legislative changes can wreak havoc on small businesses," Murch said.

Participants praised the entrepreneurship training components in the plan, and several items calling for more coordination of existing state resources and requirements.

Linda Hartell, who owns several successful Maine businesses, including Richardson Hollow Mental Health in Lewiston, cited the headaches and financial costs she faced as a result of discrepancies in the different requirements imposed on her buildings by both state and municipal fire marshals.

Other business owners and community members attending the breakfast were: Kristen Phillips of Massage Therapy in Lewiston; Candace Sanborn of Encompass Marketing in Auburn; David Clough of the Enterprise Policy Group; Joseph Cronin of Federal Distributors, Inc. in Lewiston; Christos Gianopoulas of Greene; Stephen Brown of Brown Goldsmiths & Co. in Freeport, Marlee Turner of Brownfield Bed & Breakfast in Brownfield; Laurie-Anne Ouellette of Sweet Pea Designs in Lewiston; Roy Gedat of Norway; David Webster of VSA Arts of Maine in Portland; and Joe Miglaccio of the Maine Technology Institute.

Working Group members attending the forum were House Majority Leader John Richardson of Brunswick; Rep. Stan Moody of Manchester, Rep. David Lemoine of Old Orchard Beach; and Rep. Nancy Smith of Monmouth. Other area legislators in attendance were Sen. Peggy Rotundo of Androscoggin County; Rep. Sonya Sampson of Auburn; Rep. Deb Pelletier-Simpson of Auburn; Rep. Lillian O'Brien of Lewiston; and Rep. Elaine Makas of Lewiston.