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GROWING MAINE FROM WITHIN: The Small Business Initiative

“Growth from Within: The Democratic Plan for Promoting Small Business and Entrepreneurship.”


Remarks of Rep. Arthur Lerman, D-Augusta
September 10, 2004
Press Conference-Kennebec Tool & Die

Good morning, and welcome.

I want to thank Wick Johnson, the owner and president of Kennebec Tool & Die, who was so kind to host this event today. I can’t tell you how thrilled I am, to be standing here, in my hometown, after months of work on this Small Business initiative, with the honor of introducing this unveiling.

Seven months ago, House Majority Leader John Richardson, who served on the Business and Economic Development Committee, asked a group of about 15 House Democrats to sit with him and develop a Small Business Bill of Rights, and a plan for taking real action to help Maine’s small businesses with the way they do business in Maine.

What the Majority Leader knew, and what many of us who are small business people and legislators with experience in business knew, was that Maine’s economic future is tied to our ability to foster small business development. It is time to spawn the next generation of business people who will be the employers, community leaders, and philanthropists of the future.

We can try to attract IBM and other large employers – and sometimes that happens – but it is the people from Maine who are going to have the long term commitment to Maine, and it is Maine’s existing small businesses, and the new ones we help get on their feet, who will create the vast majority of new jobs and economic activity that will lead us to greater success as a state.

When the Majority Leader invited me to join his Working Group, he warned me: He said, This is not a study commission; this is a roll up your sleeves effort. We are going to come up with a real plan, followed up by actual legislation in January when the Legislature comes back into session. I said: “Sign me up.”

Rep. Richardson’s leadership as House Majority Leader has highlighted and furthered Democrats’ strong work on addressing the needs of Maine’s small businesses. He has made clear in his actions and in his words that the needs of Maine’s businesses, Maine’s economy, Maine’s workers and environment, are inextricably intertwined.

Now, it is my great pleasure and honor to introduce the House Majority Leader, Rep. John Richardson.

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Remarks of Rep. John Richardson, D-Brunswick
September 10, 2004
Press Conference-Kennebec Tool & Die


Thank you Arthur. And thank you, Wick, for letting us use your great facility as a backdrop for the unveiling of this important initiative for small business in Maine.

When a paper mill or other large employer lays off 70 workers in Maine, that is big news, and we see it on TV and read about it in the newspaper. But when a small retail operation lays off one employee, it doesn’t even make the local newspaper. And we certainly don’t hear about it when a service company that employs four people - and wants to hire a fifth - decides that it cannot do so, whether because of taxes, paperwork, health insurance, or other reasons.

We are here today to tell you that Small Business in Maine is big news. Small businesses are the backbone of Maine’s economy, and central to our way of life. From the mom-and-pop store to the fisherman or farmer to a local printer, to a machine parts manufacturer in Augusta, Maine is employed by small businesses, and by entrepreneurs.

The Working Group started with a couple of very simple notions:

One, that Maine’s economy depends on its small businesses. They employ the vast majority of us, and they are the ones creating the lion’s share of all new jobs in Maine.

Two, if every Mainer were given the tools to go into business for him or herself, we could harness our entrepreneurial spirit, help people reach their dreams, and boost our state’s economy.

And perhaps most importantly, three, Growth in Maine will come from within, not from outside.

So in February, I asked a group of Democratic legislators to join with me, and see what we can do to build on our strengths, and to remove barriers for Maine’s small businesses. We called our project “Growth from Within,” and we rolled up our sleeves. Our group of legislators included a farmer, business consultant, a mill worker, quite a few self-employed entrepreneurs, members of the Business Research and Economic Development Committee, and a lawyer, who believe it or not, is a business person who is part owner of his own firm.

What we found was that Maine is already doing a lot for small business, but is not necessarily coordinating its efforts. We found that our schools are teaching skills necessary for a trade, but not necessarily also teaching them how to best start and grow their small business. As we did our homework and compared notes, we came up with three broad goals for us to work on as a Legislature, and they are the three main points of the Action Plan:

1. Contain costs, reduce paperwork, and streamline the regulatory process.
2. Mobilize state resources on behalf of small businesses; and
3. Create an environment that fosters small business growth in Maine.

Within each of those three areas is a list of initiatives we believe will help Maine’s small businesses prosper. Reduce the cost of health care for small employers; ensure state agencies coordinate with each other and streamline paperwork, inspections, and the like; provide more seed capital to starting or expanding companies; and, teach entrepreneurship at the state’s community colleges.

We made a point in our deliberations of calling this a DRAFT Bill of Rights and a DRAFT Action Plan. That is because over the next few weeks we will be sharing them with business people in forums across the state and asking them for their feedback. We want to know what from our list is right on, and what is most helpful to them. We are also posting the Bill of Rights and the Action Plan our the House Democratic Office website so that people can read it and comment on it. I want to give you that web address, and I hope that people will visit: that address is www.legislature.maine.gov/housedems

Only after we hear from business people will we be able to finalize our plan, and turn it into legislation that we will take up in January when the Legislature reconvenes.

You may have noticed that every legislator standing up here with me today is a Democrat – that should be no surprise. In Maine, Democrats are the party of small business. We are the party that brought Dirigo Health and its promise of affordable health care for the self-employed and small businesses. Our Democratic Governor introduced and the Democratic Legislature passed Pine Tree Zones and online business permitting. We are the party that passed economic bond packages that invested in research and development, that serves as an incubator for many of Maine’s small businesses.

We know that what is good for Maine’s small businesses is good for Maine’s economy and its workers and its environment, we believe that we have set ourselves on a path to grow Maine’s businesses, and boost our economy. As we take this proposal across this state, it will become clear that by helping Maine’s small businesses, responsibly, we are helping all of us.

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Remarks of Rep. Stan Moody, D-Manchester
September 10, 2004
Press Conference-Kennebec Tool & Die


They say that “necessity is the mother of invention.” If ever there were a time to re-invent the Maine economy, it is now.

Over the past couple of months, I have talked with hundreds of people in my District, many of whom are approaching retirement age. They see the costs of government and health care rising beyond reason. And many of these folks are advising their kids and grandkids to leave Maine and seek their futures elsewhere.

“Growth-From-Within” is a new economic development strategy for Maine. It requires a change of mindset that would position Maine as a place where the welcome mat is rolled out for people with ideas and the will to turn them into results. It is an approach of building the economy of Maine from the bottom up – one entrepreneur at a time.

Here are a few suggestions of how to change that mindset:
· We can begin with our children in grade school, teaching them the fundamentals of building a creative economy through small business starts.
· We can expand entrepreneurship programs in our community colleges and University system to teach young people how to create a marketable business plan.
· We can offer incentives for the banking industry to provide matching seed capital funds for promising startups – perhaps through a creative application of unused loan loss reserves.
· We can institute a college loan forgiveness program for young graduates who go into business for themselves.
· We can offer a low-cost Dirigo Health Plan for the first three years of a certain number of new business starts.

The problem is not what to do or how to do it. It is one of focus. The quality of life in Maine is already a welcome setting for a new economy that encourages creativity and enterprise. But we can do more to promote Maine as the “Enterprise State.”

I wish to thank the leadership of the Democratic Caucus for providing me the forum for a concept very dear to my heart. It is my hope that Growth-From-Within will find a loud and receptive voice in the coming year.

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Remarks of Rep. Nancy E. Smith, D-Monmouth
September 10, 2004
Press Conference-Kennebec Tool & Die

For ten years now, I have been the co-owner of a small family-run business. I am thrilled to join and work with my colleagues on the Small Business Initiative being launched here today. In my position as a State Representative, I am very interested in what I can do to promote and grow small business here in Maine. My interest and experience are part of the reason I was appointed to the Legislature’s Business, Research & Economic Development Committee.

My husband and I run a diversified grass-based dairy farm in Monmouth. We work with our children and other family members to make the business a success. Many people forget that farms are small businesses. They are, and while Mother Nature and market pricing give us the most heartburn, we must fill out forms, pay taxes and figure out how to make ends meet each day like all other business owners. I know the weight and frustration of dealing with issues beyond our immediate control. I also know the satisfaction of getting a new client or putting another Mainer to work. Those are the accomplishments we need more of.

I am committed to working towards a concrete goal of getting every small business in Maine to add one new worker to their payroll. Whether through scrutinizing the costs of doing business in this state or addressing the complexity of bureaucracy—I believe we can get there. The people standing here today have some terrific ideas, but it is the small business owners of Maine we need to hear from. We need to learn about the day-to-day struggles holding them back from growing their businesses stronger. This isn’t about quick fixes, but truly about laying groundwork for real development of a great Maine resource----entrepreneurship.

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