President and CEO of Michigan Economic Development Corporation, Michael Finney, spoke to a full house at CEO Connect on Friday January 13th. Prior to accepting the position with MEDC, Finney served as President and CEO of Ann Arbor Spark.
The gathering began with several local business owners praising the assistance they received from MEDC in business initiation and business growth. Finney noted that MEDC “has its challenges,” but the organization is actively looking for ways to “tear down barriers to get things done”.
The audience listened attentively as Finney explained that MEDC has seven important facets to their central role in the redevelopment of Michigan. Finney started with MEDC’s role in entrepreneurship. He emphasized that Michigan entrepreneurship needs to be “vibrant and robust”. He said that MEDC offers business acceleration support by connecting start ups with talent and resources. One tool is “pre-seed” funding to hire consultants, locate talent and identify needed technologies. Finney explained that these steps lead to the “highest probability for success.” He also pointed out MEDC facilitates some direct investment to businesses through loans, collateral gap funding and venture matching funds.
Finney spoke with enthusiasm regarding business growth, calling it “the guts of what MEDC does”. He noted that business growth is 80% of the role of the agency. He pointed out the recent change in Michigan tax law which relieves two thirds of businesses from paying the state business tax. Finney explained that the improved tax situation for businesses is better than a tax credit because tax credit programs can be too complex and drawn out. Finney used the expansion of Hyundai in Superior Township as an example of MEDC acting as a facilitator. Hyundai needed improved access to electrical power for its expanding facility; MEDC funneled a portion of the state tax proceeds from Hyundai to Superior Township to fund the upgrade in the Township power grid.
Another MEDC role that Finney discussed is Pure Michigan Business Connect. Through Business Connect, MEDC encourages Michigan businesses to work together as trade partners to buy more Michigan goods and services to create jobs in the state.
Finney said that MEDC is also focused on vibrant communities. He explained that MEDC is hiring a new liaison between MEDC and Michigan universities and colleges. The idea is the connect schools with businesses and job opportunities. Finney observed that there are 78,000 jobs unfilled in the state because of a talent mismatch. He pointed out that community colleges help develop marketable skills for current job demands. Finney explained that when young people have the skills appropriate for current jobs, they are more likely to stay in the state and make our communities more vibrant.
Finney noted that another key role of MEDC is improving Michigan’s image around the country and around the world. He said that the state of Michigan is associated with industry, Detroit and Ann Arbor. MEDC manages the Pure Michigan advertising campaign. Finney explained that the Pure Michigan campaign is now being used to promote many aspects of the state. He proudly pointed out that Pure Michigan is one of the top 10 brands for states. He observed that people tend to really notice the Pure Michigan advertisements.
Finney said that MEDC is also focusing on improving access to agency services. One of the ways the organization is working on improvement is by having 30 locations around the state working collaboratively with local economic development organizations. This helps MEDC be more aware of local business development needs and issues.
Finney said that “economic gardening” of businesses in the state is highly important. He pointed out that another way MEDC is growing economic development in the state is by attracting business expansions. Finney remarked that attracting a business to relocate from another state can lead to a bidding war, but attracting an expansion helps Michigan and the growing business. Finney said the MEDC is working on developing relationships with Michigan university alumni who may know about opportunities. He observed that MEDC needs those relationships “to be far enough upstream” to get to the right people and information.
He encouraged those in attendance to follow him on Twitter at @michaelafinney or find him on Facebook and Linkedin. The website for MEDC is MichiganAdvantage.org. Michigan Economic Development Corporation is a public-private partnership serving as Michigan’s marketing arm and lead agency for business, talent, jobs and overall economic growth.
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