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Indiana needs a shift in its focus on growing the economy. We must give higher priority to entrepreneurship, as distinct from traditional economic development, because some research shows that young businesses create virtually all job growth in America. Traditional economic development—the attraction and retention of well-established businesses—will always be a high priority. What government official wouldn’t celebrate bringing a major business to town?
I enjoyed that pleasure firsthand earlier in my career as a project manager focused on foreign direct investment at the Indiana Economic Development Corp., as director of international economic development for Develop Indy and the city of Indianapolis, and as an economic development specialist for the city of Noblesville. It’s enormously fulfilling to attract major businesses to the communities you serve and to increase job opportunities.
But traditional economic development, as valuable as it is, might not bring the jobs a particular individual or family needs or wants. I married a former U.S. Marine, whose job opportunities in Indiana required extensive travel, which didn’t fit our desire to start a family. So my husband founded a construction company, Zinc Contractors in Indianapolis, a certified Indiana veteran-owned small business enterprise. I founded Plaka & Associates, a consulting firm advancing both economic development and entrepreneurship for clients such as economic development organizations and chambers of commerce.
Together, we learned the advantages of starting and owning our own businesses. We are able to pursue our interests while enjoying a family life and lifestyle that fits our needs.
Together, we also understood the need to make entrepreneurship a higher priority in Indiana so it becomes easier to start new businesses and there are fewer unnecessary barriers in the way. That’s why I also became an ambassador for Right to Start, a national not-for-profit advancing entrepreneurship as a civic priority.
Entrepreneurship enables Hoosiers to define their own futures based on their personal or family needs and their skills, backgrounds and heritages. The challenge is to tear down barriers in the way. Government at the state and local levels has a crucial role to play in understanding the obstacles, including governmental fees and processes, that can discourage entrepreneurship and in ensuring that government spending serves as an appropriate catalyst to entrepreneurship.
In the first case, one can talk with entrepreneurs and aspiring ones to understand the obstacles that are most problematic. That’s a key priority for Right to Start, which now has representatives in 28 states, including Indiana, and focuses on listening to entrepreneurs to illuminate the obstacles and bring them to the attention of the public and policymakers.
In the second case, it’s especially important to understand how government spending, especially by the state, impacts entrepreneurship. We need to track the allocation of state contracts and workforce development funds, in particular, to see what role they play in encouraging or discouraging entrepreneurship. State contracts typically go to well-established companies with long-standing ties to government. That means young businesses are largely shut out.
Similarly, it’s vital to track the percentage of workforce development funding being used to support entities assisting individuals in new businesses or offering services to young businesses. Allocating as little as 5% of state contracts and 5% of workforce development funding to advance entrepreneurship can dramatically enhance the trajectories of new and young businesses.
State legislation to advance such tracking and related reporting—called the Right to Start Act—was introduced in the Legislature by Rep. Jake Teshka. I recently testified in support of it on behalf of the Indiana Technology and Innovation Association at a legislative committee hearing. The policy passed out of that committee. Unfortunately, it did not get a further vote in 2024. I look forward to further meetings and conversations with entrepreneurs, policymakers, leaders and stakeholders to share the value entrepreneurship brings to the Hoosier state.
Entrepreneurship is a win-win for Indiana. It should be a higher priority for all Hoosiers.•
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Zaugg is an entrepreneur and a Right to Start ambassador.
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