The Small Business Administration suggests that small businesses are expected to help the nation recover from recession. Now, it seems Tennessee officials are hoping local business growth can help recover the state economy.
According to the Daily Times, the Tennessee state revenue is about $196 million below estimates for the current budget year. Now, officials are proposing budget measures that might help reduce this deficit and boost business formation in and around the state.
Senator Doug Overbey has proposed a bill that will increase the investments in small startups in the Tennessee area. Through an increased venture capital fund, business owners in the state – or nearby states – will be eligible for funding.
In order to capitalize on these funds, out-of-state business owners will need to establish a headquarters in Tennessee and move 60 percent of their workforce to the state. This measure could help a large number of business owners willing to do some structural shifting, and it will also bring commerce to Tennessee.
This might be a smart move on Tennessee officials’ part. Even as the state struggles to recover financially, national consumer confidence is on the rise which might make business incorporation more appealing and make entrepreneurs willing to move to Tennessee to find funds.