Hogan: Gov. Scott Walker’s budget helps support Wisconsin’s entrepreneurs

Mark R. Hogan

Gov. Scott Walker holds up two bags of Haribo candy during his announcement Thursday that the German-based company would be building its first North American manufacturing plant in southeast Wisconsin. Walker and his administration also is doing much to encourage entrepreneurship in the state.

When you think of Wisconsin companies such as Harley-Davidson, Kohler and SC Johnson, you think of businesses that have become household names and global leaders in their respective industries. What you may not think about is that these iconic companies, and many others, were founded generations ago by entrepreneurs who developed innovative products that forever changed the world.

Wisconsin’s rich legacy of entrepreneurship continues today, as companies such as Cellular Dynamics International, Promega, Logistics Health Inc. and Prolitec have grown from small startups to major corporations that now serve customers worldwide.

To help those companies and thousands more like them meet the new challenges of our ever-changing economy, it is imperative that Wisconsin’s next generation of innovators have access to the tools and resources they need to succeed. This is exactly what the state of Wisconsin — through the efforts of the Wisconsin Economic Development Corporation (WEDC), the University of Wisconsin System, the Wisconsin Technical College System and many others — focus on every day. Their efforts, along with those of our statewide partners including the private sector, are dedicated to building a climate that truly embraces and supports the state’s entrepreneurial spirit.

In his recent column, Journal Sentinel opinions editor David Haynes called upon Gov. Scott Walker to "be a cheerleader for entrepreneurs.” The reality is Wisconsin’s startups and small businesses have no greater champion than the governor, and when it comes to entrepreneurship, the Walker administration is doing much more than cheering from the sidelines.

DAVID HAYNES: Hey, Governor Walker: Be a cheerleader for start-ups

Through WEDC, for example, the state offers a suite of entrepreneurship resources to address the need for business planning assistance, startup loans, angel and venture funding, technology and product research and development, working capital, mentoring, seed funding and more.

In his column, Haynes suggests Walker should consider specific recommendations advocated by the Wisconsin Technology Council (WTC), one of WEDC’s key partners, aimed at boosting entrepreneurship. It is worth noting, however, that the WTC recommendations likely to have the most impact are already included in Walker’s 2017-'19 state budget, which was sent to lawmakers in February.

Included in the proposed budget, and at the top of WTC’s list, is the proposal to increase the cap on eligible investments for early-stage tax credits from $8 million to $12 million per qualified company. This change is expected to increase access to capital for the state’s emerging companies.

Haynes also echoes WTC’s call to increase the state’s investment in broadband improvements, particularly in northern Wisconsin. The governor’s budget proposal does just that, calling for a $34.5 million increase in spending for broadband programs over the next two years.

There also is a recommendation to remove barriers for startups, including professional and occupational licensing requirements. The governor’s budget calls for a 13-member panel to determine which occupational licenses are necessary to protect public health and safety, and which are barriers that could block would-be entrepreneurs.

Regarding investing in emerging clusters unique to Wisconsin, that is already taking place, as WEDC is one of the few state economic development agencies in the nation, with an entire division dedicated to developing strategies for the state’s key sectors. WEDC plays a leadership role in bringing together stakeholders in clusters, including water technology, energy, bioscience, aviation and aeronautics, advanced manufacturing, and food and beverage processing. Through that division, WEDC has invested significantly in centers of excellence for water technology, energy and cybersecurity, and has administered and expanded a successful fab labs program in schools throughout the state.

The state of Wisconsin is committed to supporting the entrepreneurs and innovators who are working to move our state and economy forward. By coming together as a community, we can foster an environment conducive to the success of bold thinkers and risk takers — those who are continuing the legacy of entrepreneurial success in Wisconsin.

Mark R. Hogan is secretary and CEO of the Wisconsin Economic Development Corporation.