More State Economic Development Plays

One of the best ways for towns and states to foster real economic development is to support new small businesses, which create new jobs and generate wealth that stays largely within the local economy. Unfortunately, many potential small businesses never get off the ground. Possible entrepreneurs face seemingly endless obstacles in the form of red tape, complicated bureaucracy, and delays created by the very local governments that ought to be promoting the success of new ventures.

Reforming and streamlining the process required for new businesses to get started is an easy and inexpensive way to promote significant local growth. In Rhode Island, former Secretary of State Matt Brown led an effort to consolidate dozens of state applications for business licenses and permits into one "Master Application" with just a single fee payment to the state. The state's Business Fast Start Project, chaired by Brown, offers an optional "Master Application" service. Businesses owners who choose to participate can complete and submit business license applications through a single online form. (To open a restaurant in Providence without using the "Master Application" form, a prospective business owner has to complete 28 forms with 11 separate agencies, providing his or her name 22 times, the business address 25 times, and the business name 27 times.)

"We can make it easier for businesses in our state by creating a single application for business licenses and permits and providing the application online." -- Former Secretary of State Matt Brown, Rhode Island

Internet-based one-stop business resource centers have also been implemented by some leaders to help make the process of starting a small business less harrowing and more efficient. They never have lines and are never closed. Michigan and Washington state, as well as the District of Columbia, have easy-to-use websites that guide new entrepreneurs throught the process, answer frequently asked questions, and centralize and streamline the necessary applications. They help new businesses get off the ground, and help existing businesses save both time and money.

Resources for Action

Rhode Island's Business Fast Start Program
http://www.faststart.state.ri.us/

Washington, D.C.'s Business Resource Center
brc.dc.gov/index.asp

Washington state's Master License Service
www.dol.wa.gov/forms/700028.html

Michigan Timely Application and Permit Service
www.michigan.gov/mitaps

Ohio's 1st Stop Business Connection
http://www.odod.state.oh.us/Onestop/

Additional Reading

"Granholm Showcases Trailblazing Permitting Programs," Press Release, Michigan's Cabinet Action Plan, Office of the Governor, August 24, 2004
www.michigan.gov/cabinetplan/0,1607,7-176-24187-99463--,00.html

"Create a One-Stop Business License Center for California Businesses,"
http://cpr.ca.gov/report/cprrpt/issrec/
gg/bus/gg22.htm

Contacts

Office of the Secretary of State
Business Development Division
100 North Main St. 2nd Floor
Providence, RI 02903
(401) 222-2185
(401) 222-3890 (fax)
businessdevelopment@sec.state.ri.us

Office of the Mayor City of San Jose
801 North First Street
Room 600
San Jose, CA 95110
(408) 277-4237
(408) 277-3868 (fax)

Washington State Department of Licensing
405 Black Lake Blvd.
Building 2
Olympia, WA 98502
(360) 664-1400
MLS@dol.wa.gov

Katie Campbell
Progressive Policy Institute
600 Pennsylvania Avenue, SE, Suite 400
Washington, DC 20003
(202) 547-0001
(202) 544-5014 (fax)
kcampbell@ppionline.org