Small Business: Rhode Island’s Economic Orphan - Jeff Deckman
Tuesday, November 02, 2021
For many years the state of Rhode Island was doing at least one thing right for small businesses. In a state that is deep blue and has its political decisions heavily influenced and even controlled by powerful public-sector unions and others, there are not nearly enough programs designed specifically to help small businesses. But Rhode Island’s Incumbent Worker Training Grant program was one of the most effective programs offered by the Department of Labor to help our small businesses.
That is until without warning they terminated the program in July of 2020, just as the state-initiated policies forced many small businesses to slow down and even shut down. They couldn’t have picked a worst time to cut such a highly effective program to the most vulnerable sector of our economy.
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Rhode Island’s economy is a small business economy.
According to the Small Business Association, 101,516 small businesses operate in Rhode Island. This represents a stunning 98.9% of the state’s total businesses. The same report states 229,974 Rhode Islanders are employed by small businesses, comprising 52.8% of the state’s total workforce.
The program to which I am referring offered 50% matching grants to small businesses to help pay for the training of incumbent workers to increase their skill levels in a wide variety of areas. The process was simple. A company would apply for the grant online within an hour. Once qualified they received a promise from the state to reimburse 50% of the cost of specific worker training programs once they were completed.
Upon completing the training and demonstrating proof of payment the 50% reimbursement would arrive within 6 to 8 weeks. While it was a struggle for many of these companies to pay for the initial training it still served as a highly effective way to train incumbent workers to perform better and produce more.
The program created a win/win/win for the worker, the small business, and the state. It increased the skills and eventually the paychecks of workers. It helped companies to grow by promoting from within instead of hiring from the outside- which builds worker loyalty and company stability. And it increased tax revenues coming into the state while reducing unemployment costs.
Frankly, it was one of the most effective and best administered small business programs in the state. But, perhaps the best part was that the grant program was funded by a tax on all businesses. The money was not coming from the general fund.
But those in power have decided to end the program, without warning and without providing any information on when, or if, it will be reinstated.
OK, So Now What?
It is time for the state to get serious about embracing its uniqueness as a small business state. It is time for someone to advocate for the small businesses. The Chambers should focus their resources and pool their members together to fight for the reinstatement of this program. Politicians who understand that small businesses drive their local community’s economies also need to take the lead and force the issue.
If Rhode Island continues to choke out the golden goose that is our economy we will not only stay at the bottom of the economic barrel but we will fall further into the abyss.
So here is the message for those in power: Restart the program. Give the small businesses what they are already paying for. Begin respecting those who are giving the most and receiving the least: 98.9% of the companies in the state and the 229,974 Rhode Island workers who depend upon them for their livelihood and futures.
If you don’t, then Rhode Island will become Detroit.
Jeffrey Deckman is a Rhode Island-based international award-winning innovator and author on 21st-century leadership mindsets, models, and methods.
