A column by Mike Myer, executive editor of The Intelligencer/Wheeling News-Register
WHEELING, W.Va. — Who saw craft beer coming as a job creator in West Virginia?
Economic development, not just here but in most states, tends to be a jackpot affair with government picking winners and losers. That is, officials spend lots of time – and taxpayers’ money – trying to attract big businesses providing lots of jobs. That’s natural and not altogether inappropriate.
But small businesses really are the backbone of our economy. What about them?
Any entrepreneur who’s ever tried to establish or expand a small business knows the answer. By and large, the tax breaks big companies can expect aren’t extended to small business. No one talks about giving them help coping with the state and federal regulations that can be so frustrating and expensive they prompt many entrepreneurs to give up.
John Deskins, director of West Virginia University’s Bureau of Business and Economic Research, thinks that’s insane. He’s right.
Deskins, speaking Friday at the Legislative Lookahead event sponsored by The Associated Press in Charleston, thinks state policy should not be focused on allowing government to pick economic development winners and losers.
“Entrepreneurship is the key to diversification,” Deskins told journalists at the event. He’d prefer to attract 10 small businesses, each employing 75 people, than one big one with 750 openings, he added.
How to make it happen is the question.
Deskins’ recipe is simple: Provide tax relief and a balanced, fair tax structure for all businesses. Reduce the regulatory burden for all businesses. Be flexible enough in government to help all entrepreneurs quickly and meaningfully.
Back to craft beer: It really isn’t known yet how many jobs that industry is providing. We do know, however, that quite a few establishments have opened all over the state. That happened largely because legislators provided targeted relief from unnecessary regulations affecting small brewers.
Think about this: What happens if entrepreneurs come up with a dozen ideas for new businesses about which most of us haven’t thought?
Now we’re talking real growth and lots of new jobs – but only if the state’s tax and regulatory climate is attractive and only if entrepreneurs have faith government will do its best to help them, regardless of how officials judge prospects for the new ideas to be successful.
Are there a dozen ideas for new, creative businesses? Look at it this way: More than 1.8 million people live in West Virginia. Enough said.
Myer can be reached at: [email protected].
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