ECOSOC YOUTH FORUM 2024 - Side Events Schedule -16 April.
How Big Businesses Dominate State Economic Development
1. Shortchanging
Small Business:
How Big Businesses Dominate State
Economic Development Incentives
Greg LeRoy ~ Good Jobs First
Lincoln Institute & Boston Federal Reserve
December 4, 2015 ~ Cambridge
2. Good Jobs First
Since 1998, a non-profit, non-partisan resource center
promoting accountability in economic development.
www.goodjobsfirst.org
www.goodjobsfirst.org/shortchanging
Acknowledgements
Thanks to the Surdna Foundation and the
Ewing Marion Kauffman Foundation.
All findings and policy conclusions are our own.
3. Are Incentives Fair
to Small Business?
Surge in “megadeals” since 2008
Post-recession credit crunch
“Economic war among states” on steroids
40 groups with 24,000 small business
members polled
4. In Search of A Level Playing Field
92%: incentive spending biased toward big
business (69% strongly)
79%: overspending on big deals, hurting
state finances (56%)
87%: small business interests in economic
development not effectively represented in
state capital (36%)
85%: incentives not meeting needs of
growing small businesses (36%)
5. “Shortchanging”
Program Selection
No or low barriers to entry:
Up to 10 jobs
Up to $100,000 Investment
Data available via Subsidy Tracker
www.goodjobsfirst.org/shortchanging
10. Definitions
Small
100 employees or less
AND
independent & local
AND
9 or < establishments
www.goodjobsfirst.org/shortchanging
Large
100 employees or more
OR
not independent & local
OR
>9 establishments