DEED was proud to join Governor Tim Walz, Minnesota small businesses, and the organizations that support them at Small Business Day at the Capitol on Thursday, April 26!

The event was not only a celebration of Minnesota's extraordinary small businesses and entrepreneurs, but a chance to reflect on the One Minnesota budget proposals that will make them even stronger.

At DEED, one of our core goals is to enhance Minnesota's economic dynamism by creating an environment ripe for business growth.

That starts with our small businesses. They are the foundation of Minnesota's economy – employing three-fourths of workers, enlivening Main Streets and powering economic growth.

Minnesota is a hotbed for small business growth, with our small business economy exploding as entrepreneurs see new opportunity across our state. Our state has seen record-setting small business starts over the last four years, and we have one of the highest five-year business survivability rates in the country.

We need to double-down on this success and invest more in programs to help our small businesses launch, grow and flourish. Some of the important proposals within the One Minnesota budget include:

Revitalizing Minnesota Main Streets

The Main Street Economic Revitalization Fund is one of the ways Governor Walz and Lieutenant Governor Flanagan are reinvesting in Minnesota communities that were hit hard by the events of 2020. By partnering with local economic development nonprofits, DEED has provided $80 million since 2021 to catalyze investments in business corridors – neighborhoods and main streets – where they can make a big difference for individual businesses and communities as a whole. DEED is seeking new funding to multiply the positive impacts of this program across the state.

New Funding for Small Business Programs

Minnesota's small business ecosystem employs three out of every four workers in the state. The Governor and Lieutenant Governor recommend new funding for the Small Business Navigation Program, Small Business Development Centers and the Small Business Partnerships Program. These programs provide the funding, coaching and consulting small businesses deeply need, and target communities facing systemic barriers to growth. All of these programs are proven ways to help Minnesota's small businesses thrive.

Expanding Opportunity for Small Businesses

Small business owners and entrepreneurs are often unable to obtain the loan capital they need to start or expand their businesses – a critical miss for job creation as the state emerges from the pandemic. Governor Walz and Lieutenant Governor Flanagan recommend funding for an Expanding Opportunity Fund, which will vastly accelerate capital into small businesses through partnerships with nonprofit lenders. The fund would provide additional capital for nonprofit lenders so the state can maximize its access to federal funds and benefit over 1,000 businesses with access to capital.

Empowering Entrepreneurs at Launch Minnesota

DEED's Launch Minnesota supports innovation and entrepreneurship by increasing access to capital, creating a connected and collaborative culture and expanding entrepreneurial talent and expertise. Investing in Launch Minnesota will connect more start-ups to funding, expand entrepreneurial expertise, jumpstart commercialization and cultivate collaboration with business leaders.

Small businesses have a big impact on Minnesota. DEED will continue working with Governor Walz and our legislators to make sure they continue to launch, grow and thrive.