2011 Enterprising States study released by US Chamber of Commerce June, 2011 highlights state-driven initiatives to:
- redesign government, including measures to deal with excessive debt levels that inhibit economic growth and job creation and
- implement forward-looking, enterprise-friendly initiatives with a primary goal of creating the conditions for job creation and future prosperity.
Download the full study (PDF)
Study excerpts:
Over a year and a half into the recovery, the condition of the American economy is far from satisfactory. Unemployment remains high, job creation meager, and American workforce participation has dropped to near record depths — the lowest rate in a quarter of a century. The U.S. will need to create 20 million jobs in this decade to recover from the 7 million lost in the Great Recession and 13 million needed for the country's growing population. Since the first Enterprising States study in 2010, 29 new governors have started their terms. Governors of every state, along with their legislative counterparts, are taking steps to grow their states' economies, create jobs and compete globally. They want to help businesses prosper, to produce an educated and skilled workforce, and to provide other essential services and infrastructure that foster the entrepreneurship and innovation that will lead to greater productivity and competitiveness.
In the past, states could look to Washington for assistance. Now, whatever the intentions or real achievements of the stimulus package, future increases in federal spending seems likely to be meager at best. This presents a new, and perhaps unprecedented, challenge for the states. With Washington effectively forced to the sidelines, states will now have to address fundamental economic issues relating to growth and employment on their own. Most will have to do so without significantly increasing their own spending.
For many states the short-term prognosis is dire. Altogether, 44 states and the District of Columbia are projecting budget shortfalls for 2012 amounting to $112 billion. The upcoming fiscal year, according to the Center on Budget and Policy Priorities, will be "one of the states' most difficult budget years on record.
Entrepreneurship and Innovation
Gone are the days of economic development organizations spending the majority of their time luring factories from other states. Businesses built from within a region are more likely to stay for the long term and to be integrated into the local economy, supporting more jobs. Recent research suggests that not only do small companies create the majority of jobs in the nation, younger small companies do. For this reason, states are rapidly increasing their investments in entrepreneurship and small business programs.
Most states are creating small business incubators and entrepreneurship programs, often integrated with university entrepreneurship curricula and designed to serve companies commercializing academic research from nearby universities. Incubators are now being linked into statewide networks to pool resources.
Washington's Place in the Rankings
1st Export Intensity
1st STEM Job Concentration
5th Small Business Survival Index
9th Economic Output per Job
9th Business Birth Rate
11th Median Family Income
11th STEM Job Growth
11th Business Tax Climate
15th College Affordability
16th Long-term Job Growth
16th Job Placement Efficiency
17th Educational Attainment
17th High Speed Broadband Intensity
17th Transportation Infrastructure Performance
18th High Speed Broadband Availability
19th High School Advanced Placement Intensity
20th Gross State Product Growth
22nd State and Local Tax Burden
Comments