Our nation’s success in the global economy starts in the states. States foster and encourage innovation, support industry sector clusters and champion linkages between private firms, academic institutions, federal research labs and the public sector.
An entrepreneurial culture helps create value, not simply capture value. While many states succeed at certain elements of economic growth strategies such as supporting basic research or securing public and private funding for economic development, the challenge remains bringing it all together in a sustainable ecosystem. The ecosystem should advance entrepreneurialism, start-ups, existing companies and job creation. It must also account for dynamic factors such as capital mobility, the Internet, social media, competition and globalization.
NGA Policy:
EDC-01. Commerce presents guiding principles for the federal role in economic development and commerce and outlines state perspectives on federal programs that support economic development and commerce. The most effective federal programs provide states with necessary flexibility to address their unique needs and competitive advantages, not a “one-size-fits-all” approach.
Committee Material:
- February 25, 2012 Governors Focus on Job Creation and Economic Growth at Winter Meeting. To complement NGA Chair Nebraska Gov. Dave Heineman’s year-long initiative, Growing State Economies, the nation’s governors discussed strategies to advance job creation, innovation and economic growth. Winter Meeting EDC Committee Videos
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March 23, 2010 Briefing with the Small Business Administration
The NGA Economic Development and Commerce Committee hosted a briefing for governors' staff with representatives from the Small Business Administration (SBA). Chief of Staff to the SBA Administrator Ana Ma and Deputy Assistant Administrator in the Office of Policy and Strategic Planning James Hammersley discussed SBA's proposals to further support small businesses including increases to the 7(a) and 504 loan limits; extensions of increased loan guarantees and reduced fees; and temporarily allowing refinancing of eligible commercial real estate mortgages into SBA 504 loans. The SBA representatives also highlighted the long-term goals of the SBA, which include support of exporting and cluster development. SBA's presentation
NGA Center for Best Practices Report:
State Strategies to Promote Angel Investment for Economic Growth February 12, 2008: Governors are increasingly interested in entrepreneurship because of its key role in driving business innovation. While entrepreneurs face several common challenges, including developing business acumen and making connections with experts and mentors, often their greatest challenge is raising capital. Entrepreneurs' emerging technologies are frequently viewed as too risky for banks and private equity firms, yet many fledgling companies require more investment to grow than can be raised from friends and family. Angel investors are increasingly stepping in to fill this gap.
Additional Resources
