September 25,

ROMNEY CUTS RED TAPE TO HELP BAY STATE SMALL BUSINESSES

Executive Order creates small business advocate, eases regulatory burden for small biz

In another effort to stimulate job growth, Governor Romney today issued an Executive Order that creates a small business advocate within state government and calls for a review of administrative rules and regulations to ensure they do not have an adverse impact on small businesses.

“With nearly half of the Massachusetts workforce employed by small businesses, we can not have government creating regulatory mazes that hamper the growth of small businesses,” said Romney. “This Executive Order will protect and fortify the Commonwealth’s small businesses by giving them a voice in the regulatory process.”

Saying small businesses are the backbone of the Massachusetts economy, Romney’s Executive Order accomplishes the following:

• Designates a Small Business Advocate for the state;
• Requires that Cabinet Secretaries designate small business liaisons from among existing staff; and
• Mandates that state agencies that take any regulatory action that affects small business submit a small business impact statement for approval by the Executive Office for Administration and Finance to ensure it does not have a harmful impact.

Romney noted that small, independently owned businesses comprise 98 percent of the Commonwealth’s commercial enterprises and that nearly 50 percent of the employment in the Commonwealth is derived from small businesses. Between 1999 and 2000, small businesses added more than 84,000 jobs in Massachusetts – 72 percent of the total job growth for the Commonwealth.

“The numbers are clear,” said Romney. “Small businesses are not just apart of our economy. They are the engine of economic growth and innovation.”

The Bush Administration’s Small Business Administrator, Hector Barreto, praised Romney’s efforts on behalf of small businesses.

He said, “We salute the efforts of Governor Romney to reduce the regulatory barriers in Massachusetts so that small businesses can grow and succeed in the long term. By taking these steps, the state of Massachusetts will create an environment where small businesses can flourish.”

The Small Business Administration’s Chief Counsel for Advocacy, Thomas Sullivan, added, “Massachusetts small business owners have a friend in Governor Romney. By signing this Executive Order, he has given them a seat at the table when regulatory decisions are made. When their voice is heard, better decisions are made and that means more jobs and growth for Massachusetts.”

Gail Goodman, CEO of Roving Software, a small business in Waltham noted, “I want to thank Governor Romney for this action, and for appointing liaisons and advocacy officials in this administration. The impact of public regulation – permitting, consumer regulations and legislation – is often not reviewed for its impact on the small business owner. As anyone who’s started a business knows, money is tight and time is even tighter. The more government can work with small business and consider the impact of rule making on the entrepreneur, the healthier small businesses of Massachusetts will be, and the more they can contribute to the state’s economy.”

Today’s action is one of many steps Romney has taken to spur economic growth and job creation in the Bay State. Most recently, Romney introduced legislation, which will be filed shortly, to benefit all companies and all types of workers. Key components include:

• A targeted tax rebate to companies that create new jobs in biotechnology, life sciences and medical device manufacturing;
• New local aid for communities that create more housing paid for by a sales tax rebate on building materials;
• Career assistance for workers, such as non-degree tuition assistance loan program and grants to encourage training partnerships among community colleges, industry and career centers;
• Expansion of Statewide Technology Transfer Center at UMass to increase likelihood that technology developed at the school will have commercial application and lead to job creation;
• Doubling the Economic Opportunity Tax Credit from 5 to 10 percent for business development of brownfields; and
• Matching grants of up to $200,000 to revitalize urban centers, keeping jobs near housing and helping maintain the local tax base.

“In order to put Massachusetts back to work, the most important thing that government can do is to create the right environment for economic expansion and job growth,” said Romney. “This order is one important way we can bring economic development and jobs to Massachusetts.”