CT Small Business Climate

I recently attended the 2010 Connecticut Gubernatorial Forum on Jobs, Innovation & Technology sponsored by the CT Technology Council. The event was held at GE’s edgelab (edgelab.ge.com) at the UCONN campus in Stamford. Both Democratic and Republican candidates (11 in all) participated. The format was a question and answer panel discussion. It was not a debate.

The audience was composed of representatives from the technology and business community. The intent of the forum was to hear each candidate’s position on the issues facing CT technology business. Specifically job growth, transportation, energy costs and in general, simply improving the business climate in CT via innovation and technology.

First a few stark quotes about the current state of CT business from various candidates:
1. CT is last (50 out of 50 states) in job retention
2. CT is 46 out of 50 states in small business growth
3. CT has the most expensive energy costs (76% above the National average)
4. CT is losing more young people than any other state
5. Only CT and Michigan have had 20 years of negative growth

The picture painted was bleak, especially considering that CT has a $3-$4 billion deficit looming in the coming years. All candidates were in agreement that the same-old way of doing business has failed and MUST change. They recognize that small companies are the engine of job growth in CT and that CT MUST get better at attracting and keeping business. It must create an environment where small business and innovation can flourish.

How can CT redefine itself? Few specifics offered, but some general themes emerged.

Create an atmosphere of consistency. Frequent legislation and tax code changes in CT has created an atmosphere of uncertainty. Candidates stated that CT companies do not feel they can not place any credibility in a 5 or 10 year-plan. One example was the favorable tax climate to attract and grow media and movie business in CT. Unfortunately this was followed in just a few years by a turn-around in policy.

Many candidates stressed the need for the Governor to be more open and proactive in attracting business. Become an effective partner with the business company. One way of accomplishing this is to combine the more than 220 State Agencies and then streamline their operations. This was considered essential however due to its disruptive nature in displacing workers very difficult to achieve.

Leverage the many Universities in the state to create a culture of innovation. The success of the Yale and biopharma industry or the GE edgelab and UCONN relationship were cited as success stories. All except one candidate wanted to expand the funding of the very successful Connecticut Innovations quasi-state agency to start-up new tech businesses.

So whoever is elected as the next Governor of CT will face a huge set of challenges but could really make a difference.