Maine’s economic woes are well documented. While metropolitan areas around the country reap the benefits of major capital investments from global companies, Maine has continued to lag.
The state’s economic output per worker ranks 48th in the nation, according to the University of Maine, and the dearth of highly skilled workers combined with an aging population has left many businesses struggling to find qualified employees.
There’s a lot people don’t know about how, exactly, to grow an economy, but a few things are clear: Research by universities and private companies leads to new products that can be sold; new businesses account for nearly all new job creation; and higher levels of education are associated with increased entrepreneurial activity.
Maine has a great need to cultivate its culture of innovation.
The state has an important organization, the Maine Technology Institute, that provides funding to help people turn their ideas into products and businesses. It recently announced $45 million in new, voter-authorized funding, to be given through competitive grants, to help businesses upgrade their equipment, infrastructure and technology. In 2016, it invested $7.24 million in 150 “ innovative projects” across Maine.
Maine also has accelerator programs, such as Venture Hall in Portland, which connects entrepreneurs across various industries with each other, while also offering mentoring, potential corporate partnerships and grant funding.
In the Bangor area, there’s UpStart Maine, with a variety of programs: a business pitch competition, entrepreneurial accelerators, a business incubator and a coworking space.
These investments are key to jumpstarting entrepreneurial efforts. But there could be more.
It’s a tricky balance: Maine doesn’t want to invest in entrepreneurial efforts that aren’t likely to succeed long term and haven’t gotten to a stage where they can prove themselves. But unless entrepreneurs are already wealthy, it can be difficult for them to get to that point of proving themselves.
There is one way for Maine to help: Make sure the funding entrepreneurs are competing for will fill a real need.
A report commissioned for the Maine Department of Economic and Community Development in 2016 described how the state has difficulty supporting companies with 20 to 100 employees “as currently available support programs do not directly address the most critical needs of companies of this size,” such as a basic one: administrative assistance.
“For example, a company might need assistance navigating workers comp, assistance with healthcare decisions as they grow from 49 to 51 employees, marketing and branding guidance, grant writing assistance, and the like,” the report states.
Chad Walton, president of SnapSpace Solutions in Brewer, echoed that sentiment in a recent interview. He uses shipping containers to build cell towers, homes, office spaces and extra storage for clients, and has owned and operated a number of other businesses over the last 38 years.
“There’s no help on the front end, and that’s where businesses need it,” he said.
Research and development funding may be the biggest driver in helping Maine establish a culture of innovation, especially at its higher education institutions. But without an equal, or at least adequate, level of support for the other aspects of growing a business, Maine may continue to lag behind the nation for years to come.
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