Alexandria (MN) poised for economic recovery

Minnesota can expect significant new investment as businesses emerge from the recession, according to the annual findings of the Alexandria Lakes Area Chamber of Commerce and the Grow Minnesota! network.

But it will not be automatic as business owners across the state cite crucial items that must be addressed by policy-makers.

“Holding the line on taxes is key to their decision to stay and grow in Minnesota,” said Bill Blazar, senior vice president of public affairs and business development at the Minnesota Chamber. “Other cost factors are also cause for immediate concern. Electricity rates in many parts of the state are becoming less competitive, and the environmental permitting process continues to be lengthy and costly for too many Minnesota businesses.”

Grow Minnesota! is completing its sixth year as the Minnesota Chamber of Commerce’s private-sector job retention and creation program. It is conducted in partnership with 50 local chambers of commerce and organizations, including the Alexandria Lakes Area Chamber of Commerce.

Volunteers statewide conducted one-on-one conversations with owners or top-level managers of nearly 900 companies this past year.

Especially noteworthy was the distribution of $5.5 million in low-interest loans and grants to 90 small businesses in 62 communities, thanks to a grant from the Pohlad Family Foundation. The loans and grants are designed to help these businesses survive the recession and be prepared to grow as it ends.

The complete Grow Minnesota! annual report can be found at http://www.mnchamber.com/research_economy/annualreport/index.cfm

“Our local Chamber can make a positive impact in this down economy by continuing to play an active role in Grow Minnesota! through consistent face-to-face business retention visits,” said Coni McKay, executive director of the Alexandria Lakes Area Chamber of Commerce. “2009 has been a roller-coaster year for our local companies. Most have been affected in some way by the economic downturn. Grow Minnesota! visits allow us to have in-depth conversations with local companies, identify their concerns, and provide resources and solutions in a timely manner. What better way to retain and grow our local economy.”

Grow Minnesota! started with the goal of thanking businesses for investing in Minnesota and employing Minnesotans. Every Grow Minnesota! business retention visit also includes an offer of assistance to the company to help it be more successful in Minnesota.

Businesses also are asked what is needed in public policy to assure they will stay and grow in the state.

With more than 4,000 business retention visits completed in six years, it became apparent that the 50 local chamber partners and their volunteers are connecting only with a fraction of Minnesota’s more than 100,000 businesses.

That reality spawned the creation of BusinessConnection, an electronic business assistance and referral network launched in conjunction with the Minnesota Department of Employment and Economic Development.

The service is free to all companies and is intended to be a single entry point to help businesses connect with private and public resources to solve everyday business problems.

It can be accessed online at www.mnbizconnect.com or by calling (888) MINN-BIZ (646-6249).

Blazar said he expects the economic recovery to bring more exporting and more orders – but not necessarily more jobs.

“Creating more businesses will be key to getting Minnesotans back to work,” Blazar added.

Jobs shed during the recession have, to a significant extent, been permanently replaced by changes in processes, procedures and even some new equipment, he added.

“Minnesota’s economic recovery has begun and will continue through the coming year,” Blazar said. “But the message is clear. There is a new reality coming for businesses across our state, and now is the time for everyone – businesses as well as policy-makers – to understand the risks and mine the new opportunities. A big part of that is to create more businesses and have them be successful.”

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