Editor’s note: This is the latest installment in “Raising the Bar” — a new series of essays and blog posts authored by North Carolina nonprofit leaders highlighting ways in which North Carolina public investments are falling short and where and how they can be improved.
The past few years have brought a major shift in how the state of North Carolina approaches economic development. Legislation passed in 2014 eliminated the state’s seven economic development partnerships, and replaced them with eight Partnership for Prosperity Zones. These zones were placed under the umbrella of a new public-private partnership to manage North Carolina’s economic development efforts.
The establishment of the public-private partnership signaled a new direction for economic development in North Carolina, one that is focused more on the attraction and retention of high-growth, innovation-focused, large employers and not as much on the businesses on Main Street.
This new direction was reinforced in the state budget. The Fiscal Year 2014 budget enacted major funding cuts to nonprofit community economic development organizations, organizations which play a critical role in ensuring that jobs and investment reach our most under-served and distressed communities. This is particularly true as the state’s economic development structure focuses more on business attraction and retention, and less on local economic development. The Support Center was included in these budget cuts, along with the Institute for Minority Economic Development, the Association of Community Development Corporations, the Indian Economic Development Initiative, the Community Development Initiative, and others.
Gov. Pat McCrory’s 2015-2017 biennium budget continues down this path. The Governor’s job creation proposals speak much about entrepreneurship and investing in innovation. He proposes $15 million annually for the Venture Multiplier Fund, to increase investment in early-stage companies, and $2.5 million annually for the Rallying Investors and Skilled Entrepreneurs program, which would recruit investors and entrepreneurs to the state. A $5 million appropriation for the One North Carolina Small Business Program would also invest in high-growth, high-tech small businesses.
All of these programs, though they are geared toward entrepreneurs and small businesses, do not address the capital or training needs of “Main Street” businesses—the local small businesses that are the backbone of economies in communities across the state. Read more