keeping virginia’s competitive edge small business legislative update the impact on entrepreneurs...
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Keeping Virginia’s Competitive Edge
Small Business Legislative Update
The Impact On Entrepreneurs
Josh Levi
Vice President of Policy
October 13, 2010
[email protected] | www.nvtc.org
The Northern Virginia Technology Council Is The Membership And
Trade Association For The Technology Community In Northern
Virginia And Is The Largest Technology Council In The Nation.
Who We Are
NVTC Members Are From All Sectors Of The Technology Industry
Including:
Our Membership Companies
Aerospace
Bioinformatics
Biotech/Life Sciences
Cyber Security
Data Centers
Education IT
Green IT
Health IT
Information Technology
Internet
Modeling and Simulation
Nanotechnology
Professional Services/
Government Contracts
Semiconductors
Software
Systems Integration
Telecommunications
Size Of Technology Member Companies
By Number Of Employees In Region
26%
50%
4%
6%
4%2%
5%
1 to 9 10 to 74 75 to 149 150 to 249
250 to 499 500 to 999 1000+
Launched In 2004
Educational Programs
Mentoring And Advising Opportunities
Networking Events And Activities
Online Guidance And Resources
For More Information Contact Kristin D’Amore At [email protected]
NVTC Public Policy Advocacy
Focus Since 1991
Membership Driven
Centered On Tech Industry Needs/Concerns
Emphasis On Commonwealth Of Virginia
Successes Thrust Virginia Into Broad Technology Leadership Position
Highly Educated Workforce
World Class Colleges And Universities
Low Tax State
Attractive Regulatory Environment
Right To Work
Reliable And Affordable Energy
Access To Ports And International Airport
Well Managed State/AAA Bond Rating
Open To Innovative Public-Private Partnerships
Commonwealth Of Virginia Supports And Promotes Business
Named The “Best State For Business” By Forbes Four Years In A Row (2006-2009)
Ranked America's “Top State For Business” By CNBC (2007 And 2009); Took The No. 2 Spot In 2008 And 2010
Ranked “No. 1 Pro-Business State” By Pollina Corporate Real Estate Inc. (2003, 2007, 2009 And 2010)
Ranked The Second “Best State For Business” By Directorship Magazine (2009)
Ranked The Second “Best State To Start A Business” By U.S. News And World Report (2009)
Ranked The Second “Top Overall Growth Performer” By The United States Chamber Of Commerce, "Enterprising States: Creating Jobs, Economic Development, And Prosperity In Challenging Times” (2010)
Virginia As National Business Leader
Virginia As A National Technology Business Leader
Private Sector Statistics
1st In Concentration Of High-Tech Workers 2nd For Entrepreneurs Starting Businesses2nd For Total Federal Procurement 2nd For Fastest Growing Firms3rd In High-Tech Services4th For Economic Development For Nanotechnology4th In Engineering Services Employment5th In Number Of High-Tech Workers 5th For High-Tech Payroll5th In High-Tech Employment Growth6th For High-Tech Average Wages6th For Number Of High-Tech Firms
Sources: 2008 State New Economy Index, National Science Foundation, Cyberstates 2009 And 2010, Lux Research, U.S. Census Bureau, U.S. News & World Report, Federal Procurement Data System
Source: CHMURA Economics & Analysis, Virginia Economic Trends, 1st Quarter 2010 Report
All Industries
High - Tech
2009Q2 VA Employment
2009Q2 VA Wages
84%
16%
69%
31%
Total Employment: 3,558,351
High-Tech Employment:585,051
Total Wages: $41.68b
High-Tech Wages: $13.04b
Technology In Virginia's Economy
Source: CHMURA Economics & Analysis, Virginia Economic Trends, 1st Quarter 2010 Report
All Industries
High - Tech
2009Q2 NOVA
Employment
2009Q2 NOVA Wages
73%
27%
55%
45%
Total Employment: 1,239,569
High-Tech Employment:331,183
Total Wages: $19,134,180
High-Tech Wages: $8,608,377
Technology In Northern Virginia's Economy
Aggressive Computer Crimes Laws
Broadband Deployment Policies And Investments
Commercial Law To Support E-Commerce
Early Leader In E-Government
Legacy Of Rejecting Internet Sales And Services
Taxes
State Investments To Build Research Capacity
Telework Promotion
Technology Procurement
Technology Tax Policy And Incentives
Virginia Supports And Promotes Technology Business
Dual Emphasis Economic Development Strategy Is Key Emphasis 1: Enhance Tools To Attract Companies
Seeking To Relocate, Expand, Establish R&D Operations
Doubled Governor’s Opportunity Fund
$6M To Expand International Marketing Efforts
Lower Threshold For Major Business Facility Tax
Credit
Increase Worker Training Incentives
Bolster Department Of Business Assistance
Program Activity
State Industrial Mega-Site Fund
Green Jobs Tax Credit
Emphasis 2: Employ Comprehensive “Grow Your Own”/New Company Formation Strategy
Position Virginia As:A Leader In Next-Generation Tech
Company Formation And Innovation
Top Destination For Entrepreneurs, Early Stage Investors, Innovators
Dual Emphasis Economic Development Strategy Is Key
Emphasis 2: Employ Comprehensive “Grow Your Own”/New Company Formation Strategy
Recent Policies Help Promote Virginia As A Top Destination For Innovation, Entrepreneurs And Small Technology Companies
100% Capital Gains Tax Exemption For Technology Investments
CIT Early Stage GAP Fund VA Angel Investor Technology Tax
Credits VA One Stop Business Permitting Portal
Dual Emphasis Economic Development Strategy Is Key
Capital Gains Tax Exclusion 100% Capital Gains Tax Exclusion For Founders
And Investors In Qualifying Tech Startups
3 Year Window
Targeted Toward Statewide Technology, Biotechnology, Energy Companies
Entrepreneurs And Investors Can Come To Virginia To Start And Invest In Early Stage Tech Companies Over The Next Three Years With No Long Term Capital Gains Tax Liability
Strongly Promote Virginia As A Top Destination For Innovation And Technology Startups
CIT/GAP Fund $1.5M In Additional Funding To Bolster CIT’s
Early Stage GAP Fund Early Stage Fund To Underwrite Critical And
Immediate First Financing For High Growth, High Expectation Early Stage Companies
Targeted Toward Statewide Technology, Biotechnology, Energy Startups
Public-Private Partnerships Model CIT Does Due Diligence And Validates Science
And TechnologyDrives Private Sector Capital Investment At A
Rate Of 13x Public Outlay
Promote Virginia As A Top Destination For Innovation, Entrepreneurs And Small Technology Companies
Angel Investor Tax Credit Encourage And Leverage Early Stage Investments
In Technology Startups
Targeted Toward Statewide Technology, Biotechnology, Energy Startups
50% Of Qualified Business Investments, Up To $50,000 Credit Per Investor
For Calendar Year 2010, Funding For The Program Was Increased From $3M To $5M
Strongly Promote Virginia As A Top Destination For Innovation, Entrepreneurs And Small Technology Companies
1975: Virginia Opened Its First Minority Business Office
1980s: Agencies Began Establishing Goals For Minority Business Spending
2003: A Study Commissioned By Governor Warner Found That Less Than One-Half Of One Percent (< 0.5%) Of State Contracts In Virginia Were Directed Towards Minority Owned Businesses
Small, Women- And Minority-Owned Businesses In Virginia
2005: Governor Warner Called For The State To Direct 40% Of Its Goods And Services Needs To SWaM Businesses In Executive Order 103
2006: Governor Kaine Signed Executive Order 33 Expanding The Commonwealth’s Efforts To Enhance Opportunities For SWaM Businesses
Spring 2008: The Commonwealth Reached 40% Goal And Number Of SWaM Certified Businesses Up From 4,000 (2006) To 15,800
August 2010: Governor McDonnell Created The Governor’s Supplier Diversity Advisory Board To Revitalize Procurement Policy, Expand Opportunities To SWaM Businesses
Small, Women- And Minority-Owned Businesses In Virginia
Before A Business Can Participate In VITA's IT Procurement Activities As A SWaM Certified Business, It Must:
Obtain Certification As A SWaM Business From The Department Of Minority Business Enterprise (DMBE).http://www.dmbe.virginia.gov/swamcert.html
Register With eVA As A VendoreVA Is Virginia's Online Procurement Initiative. Current And Potential Suppliers Of IT Products And Services To The Commonwealth Of Virginia Must Register With eVA, At www.eva.virginia.gov.
Doing Business With VITA
Impact Of Defense Secretary Gates’ Announced DoD Cuts On Virginia
Source: CLARITY Advisor, Special Report On DoD Funding Cuts, Deltek, Inc.
Deltek: Clarity Advisor
Cuts Will Hit Federal Professional, Administrative and Management Support Services (PAMS)
The Government Spent $73.3B In The PAMS Category In FY2009
DoD Spent $45.9B In The PAMS Category In FY2009 $10.8B Went To Contracts Performed In Virginia $3.8B Went To Contracts Performed In California
Impact Of Defense Secretary Gates’ Announced DoD Cuts On Virginia
Source: CLARITY Advisor, Special Report On DoD Funding Cuts, Deltek, Inc.
Deltek: Clarity Advisor
10% Cut Would Cost Firms Working In Virginia At Least $1.1B In FY2011 (≈ 11,000 Jobs)
10% Cuts In FY2012, FY2013 To Follow
Will Impact: Firms Holding DoD Contracts Funded From
Federal Supply Group (PAMS) Subcontractors Working For Those Firms Suppliers To Both At Least 200 Firms Receive 90% Or More Of Their
Prime Contract Funding From This One Category
Keeping Virginia’s Competitive Edge
Small Business Legislative Update
The Impact on Entrepreneurs
Josh Levi
Vice President of Policy
October 13, 2010
[email protected] | www.nvtc.org