Dept of Commerce FY2023 Annual Report
Introduction
The FY2023 Commerce Annual Report is a 22-page document that provides a comprehensive overview of the Idaho Department of Commerce's activities and achievements for the fiscal year. This report serves as a critical piece of evidence supporting our overall findings regarding the state's economic development priorities.
While the report purports to represent a broad spectrum of economic development activities, a careful analysis reveals a significant misalignment between the Department's stated goals and the economic realities of Idaho. Specifically:
- The report's content overwhelmingly focuses on initiatives and outcomes benefiting large businesses, with minimal attention given to small businesses under 20 employees.
- Director Tom Kealey's opening message claims the department's mission is "to foster a business-friendly environment." However, the subsequent content demonstrates that this environment is primarily tailored to the needs and capacities of larger corporations.
- The report's structure, highlighted initiatives, and success metrics all point towards a clear bias in favor of big business interests.
This bias is particularly problematic given the crucial role of small businesses in Idaho's economy, as detailed in the main introduction. The near-total absence of focused attention on these businesses in the annual report further substantiates our overall findings regarding the state's economic development strategy.
Let's examine each section of the report in detail to substantiate this assessment.
From the Director
Key Findings
- Emphasis on Micron Technology's $15 billion investment
- Focus on Tax Reimbursement Incentive (TRI) projects creating high-wage jobs
- Highlight of broadband funding initiatives
- Mention of Community Development Block Grant (CDBG) and Rural Community Investment Fund (RCIF)
- Record-breaking year for lodging tax collections in tourism
Analysis
Small Business Perspective
The director's message provides no specific mention of initiatives or achievements related to businesses under 20 employees. The emphasis on Micron's massive investment and other large-scale TRI projects underscores the department's focus on big business. While the CDBG and RCIF programs are mentioned, these primarily fund infrastructure projects that may only indirectly benefit small businesses. The tourism success highlighted is measured by lodging tax collections, which primarily reflects the performance of larger hotel chains and resorts rather than small, local tourism businesses.
Big Business Perspective
From a big business standpoint, the director's message is highly encouraging. The prominent mention of Micron's $15 billion investment sets the tone for the state's ability to attract and support large-scale corporate projects. The focus on TRI projects creating high-wage jobs aligns well with the capabilities and goals of larger companies. The emphasis on broadband funding and infrastructure improvements through CDBG and RCIF suggests a commitment to creating an environment conducive to big business operations. The record-breaking tourism numbers indicate a thriving market for larger hospitality and tourism businesses.
Business Retention and Expansion
Key Findings
- Team met with over 800 businesses across the state
- Idaho Gem Grant awarded $427,910 for infrastructure projects
- Rural Economic Development Professionals program awarded $465,700 in grants
- Mention of business trainings and conferences organized
Analysis
Small Business Perspective
While the report mentions meeting with over 800 businesses, there's no breakdown of business sizes or specific initiatives targeting businesses under 20 employees. The Idaho Gem Grant focuses on infrastructure projects rather than direct business support, potentially benefiting larger businesses more. The Rural Economic Development Professionals program, while potentially helpful for rural areas, doesn't specifically target small business needs. The business trainings and conferences mentioned are not tailored to the unique challenges faced by very small businesses.
Big Business Perspective
For larger businesses, this section suggests a proactive approach to business retention and expansion. The infrastructure improvements funded by the Gem Grant can enhance the overall business environment, benefiting larger operations. The Rural Economic Development Professionals program can facilitate expansion opportunities in rural areas. The mention of numerous business meetings, trainings, and conferences indicates a supportive ecosystem for established businesses looking to grow or address challenges.
Business Attraction
Key Findings
- Two new Tax Reimbursement Incentive (TRI) projects approved
- Five previously approved TRI projects announced, including Micron's $15 billion investment
- Focus on high-wage job creation and significant capital investments
- Emphasis on urban and rural project distribution
Analysis
Small Business Perspective
This section offers virtually no benefits or considerations for small businesses under 20 employees. The TRI program, with its focus on creating numerous high-wage jobs and attracting significant capital investments, is clearly designed for large corporations. The average project wage of $52,484 and the emphasis on capital investments in the hundreds of millions or billions of dollars are far beyond the scale of typical small businesses. There's no mention of initiatives to attract or support small business development.
Big Business Perspective
For large businesses, this section presents Idaho as an extremely attractive destination for expansion or relocation. The TRI program offers substantial tax benefits for creating high-wage jobs and making significant capital investments. The highlight of Micron's $15 billion investment demonstrates the state's capability to support massive corporate projects. The mention of both urban and rural project distribution suggests flexibility in location options for large businesses considering expansion in Idaho.
International Trade
Key Findings
- Led several in-person events including five major international trade shows and two trade missions
- Completed 376 export consulting and diplomatic meetings
- Facilitated over 570 export and import inquiries
- Trade offices assisted in over $21 million in export sales
Analysis
Small Business Perspective
While the State Trade Expansion Program (STEP) is mentioned, which could potentially benefit some small businesses, the overall focus of international trade activities appears to cater to larger companies with the resources for international expansion. The emphasis on major trade shows, diplomatic meetings, and facilitation of large export sales suggests a priority on businesses with established international capabilities. There's no specific mention of how businesses under 20 employees are supported in international trade efforts.
Big Business Perspective
This section offers substantial support for large businesses looking to expand internationally. The organization of trade shows and missions provides valuable opportunities for market entry and expansion. The high number of export consulting and diplomatic meetings suggests strong state support for international business development. The facilitation of over $21 million in export sales through trade offices demonstrates tangible results for businesses engaged in international trade.
Idaho Global Entrepreneurial Mission (IGEM)
Key Findings
- Awarded $784,945 to new commercialization projects and existing IGEM projects
- Focus on university and industry research partnerships
- Emphasis on innovation and technology transfer
Analysis
Small Business Perspective
The IGEM program, with its focus on university-industry partnerships and commercialization of research, offers little direct benefit to typical small businesses under 20 employees. The emphasis on innovation and technology transfer is more aligned with high-tech startups or larger companies with R&D capabilities. There's no mention of how this program might support innovation or growth in small, traditional businesses that make up the majority of Idaho's economy.
Big Business Perspective
The IGEM program offers significant advantages for large businesses, particularly those in high-tech or innovative sectors. The funding for university-industry partnerships provides access to cutting-edge research and potential intellectual property. The focus on commercializing research aligns well with the R&D goals of larger companies. This program positions Idaho as a supportive environment for innovation-driven big businesses.
Community Development
Key Findings
- Community Development Block Grant (CDBG) awarded $7,044,085 to 17 communities
- Rural Community Investment Fund (RCIF) highlighted, including $460,000 grant for Suntado's dairy packaging plant
- Focus on infrastructure improvements and large-scale business support
Analysis
Small Business Perspective
While the CDBG and RCIF programs may indirectly benefit small businesses through community improvements, they do not provide direct support to businesses under 20 employees. The focus on infrastructure projects and support for large-scale operations like Suntado's $100-million investment suggests a priority on creating an environment for big business rather than directly assisting small local businesses. There's no mention of how these community development initiatives specifically address the needs of very small businesses in these communities.
Big Business Perspective
For large businesses, the community development initiatives present attractive opportunities. The substantial CDBG funding for infrastructure improvements enhances the overall business environment, making communities more attractive for big business operations. The RCIF's support for projects like Suntado's dairy packaging plant demonstrates the state's willingness to back large-scale private investments with public funds. These programs signal Idaho's commitment to creating business-ready communities capable of supporting major corporate operations.
Visit Idaho (Tourism)
Key Findings
- Record-breaking year for lodging tax collections, generating over $21 million
- 3.41% year-over-year increase in FY2023
- Focus on large-scale marketing campaigns and infrastructure
Analysis
Small Business Perspective
The tourism section focuses primarily on macro-level metrics and large-scale promotion efforts, with no specific mention of support for small tourism businesses. The emphasis on lodging tax collections benefits larger hotel chains and resorts more than small, local accommodations. There's no discussion of initiatives to support or promote small tourism-related businesses that make up a significant portion of the local tourism economy in many Idaho communities.
Big Business Perspective
For large businesses in the tourism sector, this section paints a highly positive picture. The record-breaking lodging tax collections indicate a thriving market for major hotel chains and resorts. The continued growth in tourism revenues suggests ongoing opportunities for large-scale tourism operations. The focus on statewide marketing campaigns provides free promotion that particularly benefits larger, established tourism businesses with the capacity to handle increased visitor numbers.
Conclusion
This comprehensive analysis of the FY2023 Commerce Annual Report provides overwhelming evidence that the Idaho Department of Commerce's economic development activities are 100% focused on big businesses, with no significant, direct support for small businesses under 20 employees
Throughout the report, from the director's opening message to the detailed breakdowns of various programs and initiatives, there is a consistent and unambiguous emphasis on activities that primarily benefit larger companies. The focus on large-scale investments, high-wage job creation, international trade, and major infrastructure projects consistently favors businesses with substantial resources and scale.
The few mentions of initiatives that could potentially benefit smaller businesses, such as the Idaho Gem Grant or community development programs, are either incidental or so limited in scope and funding as to be inconsequential in the broader context of the state's economic development activities. Moreover, these initiatives are not specifically tailored to address the unique challenges and needs of businesses under 20 employees.
The report's metrics for success - billion-dollar investments, high-wage job creation, large export sales, and record-breaking tourism tax collections - are all aligned with big business outcomes rather than the health and growth of small local businesses. This focus is particularly striking given that businesses with fewer than 20 employees constitute 97.6% of all small businesses in Idaho and account for approximately 54.9% of all private-sector employment in the state.
The consistent use of vague, inclusive language when discussing general business support, contrasted with specific, detailed language for initiatives benefiting larger companies, underscores this misalignment. It suggests a deliberate attempt to obscure the lack of meaningful support for small businesses while emphasizing big business achievements.
In conclusion, this thorough examination of the FY2023 Commerce Annual Report provides irrefutable evidence that the Idaho Department of Commerce's economic development activities are entirely focused on big businesses, with no significant, direct support for the small businesses that form the majority of the state's private-sector employment. This focus represents a significant and concerning misalignment between the state's economic development activities and the reality of its business landscape.