Small Busness - NH's Secret Economic Development Weapon

I was interested to read a SeacoastOnline.com article today that was referred in the NHBR News Browser.

Jennifer Feals quotes Stephen Norton, executive director of the New Hampshire Center for Public Policy Studies, who said state leaders and residents need to understand some myths about the state – Specifically that small business accounts for 22% of the States residents - suggesting that large business employs the rest.

Data suggests that this is a dangerously misleading statement as small business accounts for slightly more than 60% of the state employment, and with state and local government accounting for slightly more than 10% more (87,006 according to the 2008 census), this leaves big business with a net of less than 30%. Steve's figures suggest the reverse.

We do agree that "this has lasting implications for thinking about economic development and how we prepare to recover."

Devoting economic development resources in pursuit and development of large business is a mistake as we compete with larger states with much larger budgets. Small and entrepreneurial business development is NH's secret weapon. Nationally, small business has historically created over 82% of all net new jobs. They grow locally and hire locally. The trouble is, they are not visible. It is not news when one small business hires one or two new employees - where it is news when a large business hires 50. However, when 1,000 small businesses each hire one employee - we see a significant impact.

We should do everything possible to foster small and entrepreneurial development. Here is an area where relatively small investments can indeed product large benefits.

After all, what could be more entrepreneurial than "Live Free or Die."