An important strategy for job growth in Wisconsin is increasing our support for high-potential entrepreneurs and the businesses they start and grow. Wisconsin's dedication to keeping our best and brightest talent and business growth opportunities within our borders is seeing some early positive results. But while we make progress, there is still much more we need to do to support entrepreneurial business growth in the state.
Other states throughout the United States are actively developing support and investment programs recognizing that almost all net new job growth comes from new companies. They are competing with Wisconsin to develop their entrepreneurial ecosystems to attract and retain talent and jobs to build industries and economies for the future.
Wisconsin had the fourth-best improvement in entrepreneurial activity in the nation in 2011, according to the Kauffman Foundation's annual index of entrepreneurial activity, moving Wisconsin from 47th to 40th in the performance of starting new businesses.
Wisconsin also dramatically improved its ability to incubate businesses, moving up to 29th among all states from 43rd in 2010, according to an annual competitiveness measure released by the Beacon Hill Institute.
While these improvements are solid indications of the improving climate in Wisconsin for new business starts, all measurements of our state's competitiveness identify the need for increasing the availability of much needed capital for seed, early and mid-stage companies. Gov. Scott Walker and legislators on both sides of the aisle recognize that we need a proactive, strategic and rapid approach to increasing this investment capital to spur high-growth, entrepreneurial business and job growth opportunities.
To accomplish that, the Wisconsin Economic Development Corp. is proposing for the coming legislative session early next year to repurpose a portion of unused investment tax credits previously authorized in a creative and high-impact way.
The Wisconsin Angel & Seed Acceleration Program - or ASAP! - will be leveraged with private-sector investments to significantly increase funding to talented entrepreneurs in a much more timely manner than what presently exists. Rather than grants, the leveraged co-investment from ASAP! will be in the form of equity with profits returned directly to the state. This will facilitate a much more efficient path to getting promising opportunities launched and growing.
WEDC will continue to pursue broad policy initiatives that in clude ASAP!, along with a venture capital-level strategy to support emerging early- and mid-stage companies by providing expansion capital for when companies have proved their products and markets and have begun ramping-up manufacturing and shipping goods to customers.
The WEDC, created last year through Walker's job growth initiative, has a comprehensive strategy for fostering start-ups and spurring investment in growth-oriented businesses, especially in high-tech and other high-potential industries, where accelerated job growth and high job multipliers are most likely to occur.
One tactic includes aggressively utilizing the successful Angel Investment and Venture Capital Tax Credit Programs to encourage investment into high-tech businesses that have strong growth potential. Since 2005, 195 entrepreneurial companies have been certified to receive tax credit for their investors. This has leveraged more than $163 million in private-sector investment into those companies creating over 900 new jobs in our state.
WEDC also utilizes the Technology Development Loan Program, which supports companies through their research and development and provides funds targeting the commercialization of innovative technology products. These programs, tied with others that support new and expanding businesses, have all helped to change the course in Wisconsin to a place where entrepreneurs can have confidence in starting and building companies for the future.
WEDC is taking other innovative steps to support new business growth, such as partnering with VETransfer, Inc., a one-of-its-kind incubator/accelerator based in Milwaukee to help Wisconsin veterans start businesses. WEDC is also developing plans to support technology accelerators to provide businesses model training and knowledge that entrepreneurs need to create a sustainable and profitable businesses.
Wisconsin is positioned for continued success for entrepreneurial growth. We have the entrepreneurial spirit. We have tremendous research and idea development through our academic systems. We have a growing angel investment community and entrepreneurial support network. We have the capability for innovative leadership through the WEDC and its partners throughout the state. And we have an improved business climate.
The time is right for Wisconsin to step up its investment in our innovative and high-potential entrepreneurs. The return potential is great through job creation, added tax base, growth in our state's GDP and financial return on investments made directly back to the state. The WEDC is taking a leadership role in making Wisconsin a great place to launch and grow innovative businesses. We look forward to collaborating with our partners throughout the state as we continue to make improvements in our business climate and realize our potential as a leader in creating opportunities for our citizens.
Paul Jadin is chief executive officer of the Wisconsin Economic Development Corp.
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