The Disconnect in Economic Development Strategies

Given the clear evidence of small businesses as primary job creators, it's perplexing that 100% of job creation efforts in Idaho are centered on big business attraction and retention. This approach overlooks the sector responsible for the majority of new jobs and economic dynamism.

Governor Brad Little has touted Idaho's job growth and economic performance, stating in a recent press release: "Other states' economies are lagging while Idaho's job market and economy keeps surging ahead. Why? Because employers and businesses see what Idaho has to offer – lower taxes, fewer regulations, an enthusiastic workforce, and a high quality of life."

However, this statement fails to acknowledge the true drivers of this growth - Idaho's small businesses. The focus on attracting large out-of-state employers through tax incentives and other perks may actually be counterproductive, as it diverts resources and support away from homegrown small businesses that are more likely to create sustainable, long-term job growth.

Potential for Greater Growth

One can only imagine the potential boost to Idaho's economy if the state invested more budget and resources into supporting its small business sector. Given that small firms are already responsible for 55% of private sector employment and 79% of net job creation in Idaho while receiving minimal state support, a more balanced approach to economic development could yield significant dividends.

Targeted programs to support entrepreneurship, improve access to capital for small businesses, and provide technical assistance and training could accelerate small business formation and growth. This, in turn, would likely lead to even more robust job creation and economic expansion.