(The Center Square) – Business owners from historically disadvantaged communities in Pennsylvania will soon have access to special grants meant to assist with start-up and expansion costs.
For some, however, there are better ways of achieving the same ends.
The Shapiro administration proposes designating and funding eligible organizations to act as technical assistance centers in each region of the state. These groups will then create “micro-grants” to help would-be entrepreneurs or those hoping to grow their operations.
Educational institutes and nonprofit community groups, including those focused on economic development, can apply to become an assistance center.
Barãta Bay, president of the African American Chamber of Commerce of Western Pennsylvania, said during a news conference Monday that launching a new business can be complex, and a helping hand will make a big difference.
“It’s a tough lift to figure out what you want to get into and how you can help your community thrive,” he said. “And so, I think that these resources going into these organizations that are going work with individuals to help them figure it out is going to create a ripple effect. That ripple effect is going to help them get started, lift them up, but also, it’s going to create jobs, much needed jobs in these communities.”
Frank Gamrat, executive director of the Allegheny Institute for Public Policy, told The Center Square he agrees with the sentiment that Pennsylvania must make it easier for small businesses to succeed and create jobs, but argues this isn’t a good way to do it.
“This is that whole picking winner and losers thing all over again,” he said. “The state has a horrible, horrible record of doing that, at least on the side of the state.”
The nonprofit institute researches economic policy impacts in the Pittsburgh region. Gamrat said that rather than designating middlemen – whose qualifications for handing out the money effectively may vary – the state should handle it themselves.
Or, more straightforward still, address the regulatory barriers that discourage entrepreneurs. He pointed to the administration’s licensing and permitting reform that’s slashed wait times from months to mere days for many professionals.
“Let’s look at those and start knocking them down and make it simpler for someone to start,” he said. “I don’t disagree with that sentiment but let’s cut the red tape.”
