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June 2, 2014 From the Editor

Peter Van Allen: Don't get me wrong. Utah is a nice place.

Several years ago my wife and I camped out in Zion National Park. We visited Arches National Park and marveled at rust-brown spires extending from a dry desert floor. We drove past miles of dusty landscape and passed more than one wildfire. It's undeniably beautiful, though, if you're a water person, it may not be for you.

In some ways, you could make the same point with Utah as a model for economic development.

The recent MEREDA Conference, held in Portland on May 20, resurrected a Forbes magazine article that ranked business friendly states. Maine, burdened Forbes says “with an aging population and weak economic forecast,” was at the bottom (for the fourth-straight year) and Utah was No. 3 (falling from the top spot).

At the conference, Alan Hall, a successful Utah businessman, discussed how leaders there work together to get things done, often locking themselves in a closed room to hammer out details. A panel of Maine business leaders followed. Panelist Josh Benthien, a Portland developer, argued that Maine has “good bones.” “I don't feel like we're the 50th,” he said. “If we were an apartment building, we'd be at 90% occupancy. Cash flow is at 95%. But we're not 65%,” as a bottom-of-the-list ranking might suggest.

Many of you were at the conference, so I will spare you the details, but I will offer my take as a new arrival in Maine. The discussion is not unique to Maine. Many states, including the one I came from (Pennsylvania), struggle with an aging workforce, a brain-drain of young talent, challenging regulations, political factions, unpredictable weather, high energy costs and just about every other obstacle that Maine faces.

Here's what many other states do not have: incredible scenic beauty, a massive influx of summer residents and visitors, natural resources like deep-water ports and forests, a strong educational system, hard-working residents — who, it has been pointed out by brighter minds, are hired to work eight hours a day, routinely work nine hours and are often paid for seven hours. If we want to move up on the Forbes list of “business friendly” states, it seems like we'd be better suited to building on the things we do well.

Fittingly, in this issue of Mainebiz Senior Writer Lori Valigra examines how Maine might develop its own version of an innovation economy to raise its stature and assure a healthy future. Maine needs more engineering grads and some in the story argue that the state needs more of an innovation mindset.

As part of this issue's focus on small business, Senior Writer James McCarthy explores challenges facing retailers and what Gardiner is doing to add vitality to its downtown.

Likewise, our Web Editor, Dylan Martin, looks at economic development groups throughout the state that are helping businesses get started and grow. He looks at the example of Frosty's Donuts. When Brunswick's legendary doughnut shop was poised to retire along with its founders, a couple of entrepreneurs stepped in and offered a down payment of $5,000. They are now expanding locations, selling doughnuts in grocery stores and projecting sales of over $1 million.

As anyone who steps foot here knows, Maine is not a cookie-cutter state. The people of Maine fiercely protect “their” iconic small businesses. In Maine, “buy local” is more than a slogan. Some businesses fail. Unfortunately, Maine's Own Organic Milk, MOO, will not survive in its present form. Yet brands like Frosty's, Coffee By Design, Shipyard Brewing, Stonewall Kitchen and many others follow in the footsteps of L.L. Bean, Tom's of Maine and Burt's Bees that have or had their roots here.

All this gets back to the Utah discussion.

As Patrick Wright, executive director of Gardiner Main Street told Jim McCarthy (albeit in the context of building a downtown), “I think we need to pursue ambitious goals. It doesn't happen by accident. It takes a lot of intentionality. It's half science, half art — and a little bit of luck.”

Those are words for Maine to live by.

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Forbes: Maine is second-worst state for business

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