New coalition seeks to reduce barriers for entrepreneurs in Indiana

Chambers of commerce and industry interest groups are often some of the most powerful and respected lobbyists in the Statehouse. Their influence has led to laws that have shaped Indiana into one of the most business-friendly states, according to several national rankings.

But leaders of a new state coalition see a gap in representation for entrepreneurs—in part because they are often too busy to be at the table—and want to provide a unified voice for policymaking.

In pursuit of making entrepreneurism more accessible, the Indiana Starters Coalition will seek to expand decision-makers’ understanding of the challenges facing new business owners. Guided by a network of entrepreneurs throughout the state, the coalition hopes to work with lawmakers and others to craft policy recommendations and guide educational events that reduce barriers for entrepreneurs.

“This grassroots effort—that brings the voice of the entrepreneur and the small-business owner to the forefront—is something that we’re missing,” said Nida Ansari, chief innovation officer at 16 Tech Innovation District, which is a member of the coalition’s steering committee.

Though Forbes named Indiana the second-best state in which to start a business, the new coalition’s manager, Courtney Zaugg, said Indiana still has work to do to improve the startup business environment.

The coalition is a state branch of the national nonprofit Right to Start, which says policy is tilted against entrepreneurs nationwide. The organization—launched in 2020 by serial entrepreneur, attorney and venture investor Victor Hwang—leans on research to support its argument that new business is the biggest driver of job growth, and it advocates Right to Start laws meant to reduce regulatory and financial barriers to entrepreneurship.

Indiana was selected as one of the group’s first state coalitions primarily due to relationships Right to Start officials already had here. In fact, Republican Rep. Jake Teshka of North Liberty introduced legislation in the 2024 General Assembly based on the Right to Start model.

A state coalition has also launched in Arkansas. Right to Start Chief Operating Officer Kim Lane said the Indiana and Arkansas coalitions will be used as examples for state branches the group plans to launch across the country.

“Our model is to work closely with people on the ground but let them drive the process based on what makes the most sense for their community,” she said.

The Indiana coalition said it plans to convene and learn about challenges and opportunities from entrepreneurs statewide and from all industries. Then coalition members will share those stories and recommend policies for civic leaders and lawmakers.

Right to Start advocates for equity and accessibility for entrepreneurs of all backgrounds. It argues that expanding opportunities for entrepreneurship can result in higher wages and, in turn, less poverty.

Reducing barriers could mean working on challenges that people in traditionally underrepresented demographic groups specifically encounter. Remedies could include targeting education to help young and aspiring entrepreneurs know what it’s like to start a business, Anari said.

Lane listed as broad barriers cumbersome permitting and licensing processes, government-support programs that just consume time, and difficulties securing capital. Those are “barriers [that] can be broken,” she said.

Two years ago, Right to Start crafted model legislation for states, based on its goals. The group’s efforts have led lawmakers in 15 states to introduce Right to Start laws; Nevada and Missouri have enacted them.

“Right to Start Acts are comprehensive policies that make it easier for people to start and grow new businesses,” the organization says on its website. “Each state or city can devise its own Right to Start approach to fit different circumstances.” The group offers a field guide for lawmakers. Among its recommendations:

◗ Redirect 5% of government procurement dollars to businesses under 5 years old.

◗ Redirect 5% of workforce training funding into helping Americans start businesses through local and online entrepreneurial-support organizations.

◗ Redirect 5% of economic development funding to bottom-up efforts that build entrepreneurial ecosystems.

◗ Designate a lead coordinator on policies affecting entrepreneurs across state government.

◗ Reduce or eliminate registration costs and fees for businesses in their crucial early years.

◗ Reduce or eliminate occupational licensing burdens and permits for businesses, including home-based ones.

◗ Allow businesses to defer state income tax deadlines and/or skip filing income taxes for a year if net income is below $5,000.

◗ Support transparent disclosure of online loan terms. Reform “confession of judgment” laws.

◗ Provide portable health care benefits for workers in transition who want to start a business.

◗ Offer self-employment assistance programs to help displaced workers use unemployment benefits to start a business.

Teshka’s Right to Start legislation died in a House committee last spring, although it had bipartisan support.

Rep. Wendy Dant Chesser, D-Jeffersonville, wrote in an IBJ Forefront column in February that Teshka’s legislation “would be a great start to reducing state regulatory burdens and creating opportunities. More would still need to be done, though, as the vast majority of the red tape encountered by startup and early-stage ventures are with local (city and county) processes. But we need to start somewhere.”

Teshka’s bill sought to establish a regulatory-relief office within the Indiana Economic Development Corp. and earmark a percentage of certain state funds and contracts for young businesses. It would have required a range of reports to track startup activity.

Advocates hope to bring the legislation back in 2025.

Partnerships are key to the coalition’s mission. Zaugg said the coalition is already in high-level conversations with higher education institutions, venture capital firms and other nonprofits about its goals.

“Success, to me, is having the coalition collaborate with various organizations and various state agencies and various policymakers to ensure that entrepreneurship can be an option for anyone in any geography in Indiana,” Zaugg said. “No matter what.”

While the Right to Start is providing a framework and financial support to the state group, a steering committee of startup-focused organizations will determine Indiana Starter Coalition’s charter, leadership structure and advocacy focuses.

16 Tech, which brands itself as an innovation district, is on the coalition’s steering committee, and Ansari said it is keenly aware of the challenges and needs of its surrounding neighborhoods on the northwest side of downtown. 16 Tech is home to 200 companies including startups and early-career entrepreneurs, which will inform its work on the coalition board, she said.

“Small business and entrepreneurship is a strong way to economically develop but also potentially start to own and develop generational wealth,” Ansari said. “Accessibility is a big part of why we do what we do.”

The next few months will be filled with a heavy dose of planning and infrastructure building, with a focus on what’s most beneficial to the stakeholders the coalition is attempting to serve.

In the meantime, entrepreneurs can join Right to Start’s digital community at weareallstarters.mn.co. The Facebook-esque platform connects business owners locally and across the country.•