HOUSE BILL REPORT

ESSB 6276

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Lee, Warnke, Fleming, Smitherman, Conner, Deccio, McMullen and Johnson)

Creating an interagency task force on entrepreneurial development.

House Committe on Trade & Economic Development

Majority Report:  Do pass.  (17)

      Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Amondson, Beck, Cantwell, Doty, Fox, Grant, Heavey, Holm, Kremen, McLean, Moyer, Rasmussen, Schoon, B. Williams and J. Williams.

House Staff:Stephen Hodes (786-7092)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

FEBRUARY 22, 1988

BACKGROUND:

Entrepreneurship is the process of combining resources in new ways to add value to goods or services, and also refers to the process of creating an economic venture, involving the organization of and assumption of the risks of a venture.  There has been a substantial increase in entrepreneurship in the U.S. economy in recent years.  The Small Business Administration reports a 65 percent rise in new business formations and a 45 percent rise in self- employment from 1970 to 1984.  Studies have reported that smaller and younger firms have higher rates of innovation than larger firms, and that they are able to bring innovations to market more quickly.  A national study conducted in 1986 reported that Washington State ranked 24th in the nation in the rate of new business formation and 23rd in the nation in the number of patents per thousand state residents awarded in the state.

SUMMARY:

An interagency task force on entrepreneurial development is created.  The task force shall include the Department of Trade and Economic Development, the Department of Community Development, the Employment Security Department, the Department of Labor and Industries, the Department of Social and Health Services, the State Board for Vocational Education, the State Board for Community College Education, the Higher Education Coordinating Board and the Superintendent of Public Instruction.  The task force shall be chaired by the director or an assistant director of the Department of Trade and Economic Development.

The task force is directed to gather information on entrepreneurial development, including policies and programs in other states and nations, and the targeting of existing programs to enhance entrepreneurial development. The task force is also directed to formulate interagency agreements to promote entrepreneurial activity, and to design program and policy options to promote entrepreneurial development.

The job training coordinating council is directed to include provisions in its coordination and special services plan to facilitate entrepreneurial development and the formation of employee-owned firms.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    David Dougherty, Department of Trade and Economic Development; John Dobbie, Stia Systems.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    There is a need for an inter-agency group to promote job creation.  Most jobs are created in new and small businesses. Entrepreneurial training was provided by the Employment Security Department until recently when federal funding for such activities was cut off.

House Committee - Testimony Against:      None Presented.