On August 20, panelists from 12 small Michigan-based technology and marketing companies met with U.S. Representative John Dingell at Washtenaw Community College in Ann Arbor. The meeting purpose was to discuss the small business perspective of Michigan's technology issues and economic growth. It was great to personally hear that half of the companies are hiring. Not so great to hear -- many are having a hard time finding talent and our federal and state policies are expensive.
The co-hosts of the roundtable were Google, the Small Business Association of Michigan, the Michigan Small Business and Technology Development Center, and the Michigan chapter of SEMPO, a global non-profit organization for search engine and marketing professionals.
The roundtable's three strongest themes were:
- Michigan is a great place to start a business and we need to support our own businesses
- Savvy entry-level tech talent is hard to find
- Government needs to take some important actions
For some perspective, according to a recent White House National Economic Report on small businesses and entrepreneurs, 28 million small firms employ 60 million Americans, half of the private sector workforce. These small firms are heavily skewed towards technology-focused industries. The opinions of the leaders at the event are a reflection of a very large and important slice of the economy.
Michigan Is a Great Place to Start a Business
Overwhelmingly, small-sized companies (employees under 300) said Michigan offers many positives for entrepreneurs. There was a strong request for more promotion of the Mitten's great business benefits. Participants put low-cost real estate, quality engineering talent, creativity, and a family-friendly environment in the state's pro column. Not mentioned -- but important to note -- is three Michigan cities rank in the nationwide top 10 for growth in several sectors.
Yan Ness, CEO of Online Tech, asked Dingell for aid. "We need help with economic gardening, growing our home-grown Michigan businesses instead of wooing foreign business to come to Michigan. Michigan is a great place to work and live. I can tell you Silicon Valley is not compatible with raising a family," he shared.
Savvy Entry-level Tech Talent Is Hard to Find
Dingell agreed with Ness' assessment and said other markets admire Michigan's engineering talent. Yet, there was a persistent discussion theme about talent deficits in new professionals. Tom Beck, president of Enlighten, explained what many outlined, "We need talent with creative ability that understands the big picture and strategy. They also need to be able to work across disciplines. For example, a good new hire knows how to develop and design a website, program flash, and understand business."
Another issue mentioned at the end of the event is the lack of females in the technology fields. I was one of only two female industry representatives.
Government Needs to Take Some Important Actions
Policy was a hot topic that Dingell also actively discussed. There were three areas of concern:
- Internet (remote) sales tax
- Patent laws
- Online customer data collection
Internet and mail order non-compliance with the Michigan sales tax has been a problem for years. It is a serious loss of
in revenue for Michigan and is a disadvantage to local businesses that have a physical presence and pay their state sales tax. The Michigan Legislature needs to pass
and
to equalize the marketplace. To the dismay of the many companies present that are getting hit financially by frivolous patent suits, Dingell told the attendees to forget about updating patent law and to use trade secrets instead. The 57-year congressman advised those in attendance that the patent courts lack expertise and move extremely slow. "Technology changes so fast, you will still be in court and the technology will be outdated."
President Obama's newly approved America Invests Act was touted by the administration, in part, as a way to help entrepreneurs avoid litigation. I guess we can forget about that recent legislation.
Dingell also gave what seemed to be an unsympathetic ear regarding the expenses the failed system is costing many of the small business panelists saying, "I don't mean to be insulting, but $750,000 is nothing." Perhaps on an individual basis, this isn't much to our federal government. However, the aggregate dollar impact is probably in the hundreds of millions. And, this amount can break a small business. This mindset isn't what we need to move the economy forward.
Another very complicated policy area is data mining and consumers' desire for greater control of their personal information. Everyone recognized the many economic benefits of effectively using mined data. However, many at the table also want to protect their own privacy. If businesses and policy leaders aren't able to collaborate and resolve consumer concerns surrounding the collection of consumer data, there could be harsh federal repercussions at the end of this year. Pending legislative action could cost many businesses -- small, medium, and large -- hundreds of millions of dollars.
Pure Michigan: The Next Silicon Valley
Linda Girard, Founder and CEO of Pure Visibility, Inc., summed up the panelists' mood at the end of the day, "We (Michigan) can be a model for the U.S. in the area of digital ethics. We can be the next Silicon Valley. We just need to work together to make it happen."
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.