Conclusion: The Absolute Focus on Big Business in Idaho's Economic Development Strategy

Our comprehensive analysis of Idaho's economic development strategies, policies, and programs, employing a rigorous dual-perspective methodology, has revealed a reality that exceeds our initial expectations. While we anticipated an extreme bias towards large corporations, we did not expect to find an absolute, 100% focus on big business, completely excluding small businesses from the state's economic development efforts. This finding is particularly noteworthy given the rarity of such absolutes in policymaking. Despite our concerted efforts to find any evidence to the contrary, our analysis conclusively demonstrates a 100% focus on big business, without even a fraction of a percent dedicated to small business support.

The Complete Big Business Monopoly

Throughout our examination of key documents, including the FY2023 Commerce Annual Report, the FY2022-2025 Strategic Plan, the Business Incentive Manual, and various program-specific reports, we consistently found an exclusive focus on initiatives that cater to large enterprises. This manifests in several critical ways:

• Program Design: From the Tax Reimbursement Incentive (TRI) to the Rural Community Investment Fund (RCIF), programs are structured with thresholds and requirements that completely exclude small businesses, particularly those with fewer than 20 employees.
• Resource Allocation: The state is investing significant resources, including at least $14.6 million in direct tax credits through the TRI program alone, in strategies that solely benefit large corporations.
• Metrics of Success: The state consistently measures success in terms that exclusively favor big business outcomes - billion-dollar investments, high-wage job creation, and large export sales - rather than indicators that reflect the health of the broader business ecosystem.
• Misuse of Terminology: Programs like the Idaho Global Entrepreneurial Mission (IGEM), despite its name, show no evidence of fostering entrepreneurship or supporting small businesses.
• Broadband Strategy: The Idaho Broadband Strategic Plan, while presented as benefiting all Idahoans, primarily serves as a sophisticated pitch for corporate expansion and relocation, potentially at the expense of small, local businesses in rural communities.

The Stark Contrast with Economic Reality

This absolute focus on big business stands in stark contrast to Idaho's economic reality, where businesses with fewer than 20 employees constitute 97.6% of all businesses and account for 54.9% of private-sector employment. The complete exclusion of this vital sector represents not just an oversight but a fundamental misalignment with the state's economic drivers.

The Failure of Current Strategies

Our analysis, supported by research from the Mercatus Center, suggests that Idaho's current approach is not only ineffective but potentially harmful:

• Ineffective Incentives: Studies show that in 75-98% of cases, subsidies and incentives do not influence a company's location or expansion decisions, rendering most of these programs ineffective.
• Economic Distortions: These strategies often lead to market distortions, inefficient resource allocation, and a regressive wealth transfer from average taxpayers to large corporations.
• Opportunity Costs: The state completely neglects opportunities to support innovation and growth among small businesses by focusing resources exclusively on attracting and retaining large corporations.
• Wage Disparities: The current approach exacerbates the substantial wage gap between small and large businesses, with employees in large businesses earning nearly 70% more on average.
• Skills Importation: Many high-paying jobs created by subsidized corporations are often filled by out-of-state workers rather than Idaho residents, creating a deceptive narrative about job creation and potentially driving up local costs of living.

The Completely Neglected Entrepreneurship Pillar

Perhaps most alarmingly, our analysis reveals a total absence of support for the entrepreneurship pillar of economic development. This neglect creates a precarious "two-legged stool" approach to economic development, lacking the stability and dynamism that a strong entrepreneurial ecosystem provides.

Implications and Call to Action

The findings of this comprehensive analysis demand urgent action. Idaho must fundamentally reevaluate its economic development strategy to create a more balanced approach that supports businesses of all sizes. This should include:

• Developing targeted programs to support small businesses and entrepreneurs
• Reallocating resources from ineffective big business incentives to broader economic development initiatives
• Implementing transparent reporting and accountability measures for all economic development programs
• Investing in local workforce development to bridge the skills gap and reduce reliance on out-of-state talent
• Creating policies to address the wage gap between small and large businesses
• Reconsidering the broadband strategy to ensure it benefits small, local businesses and preserves the character of rural communities

By addressing these issues, Idaho can create a more balanced, sustainable, and equitable economic future that truly serves all of its businesses and residents.