Committee hears bill to create state Office of Entrepreneurship

The House Industry, Business and Labor Committee heard testimony on House Bill 1191 on an effort to create an Office of Entrepreneurship in the Department of Commerce that would coordinate services for businesses in their first five years.

The bill’s sponsor, Representative Warrie, told the committee the office would “serve as a referral source for entrepreneurs to find quality assistance and strengthen connections between resource providers,” and would be staffed initially with a director and a coordinator. The draft bill includes a fiscal note of about $485,000 for the coming biennium to cover salaries and benefits.

Why it matters: Supporters told lawmakers the state currently lacks a single, statewide point of contact for entrepreneurs and that small, early-stage firms create most net new jobs. The bill would require the office to produce a biennial State of Entrepreneurship report to give the Legislature data on resources, barriers and contract awards to businesses younger than five years.

Business owners who testified said access to concentrated startup ecosystems — particularly Fargo’s Emerging Prairie — made the difference for their growth. Bryce Warrie of Pavewise Inc., which moved temporarily to Fargo to access programs there, said, “If we wouldn't have went out to Fargo, we wouldn't be in business today,” and described going from a few employees to more than 10 in 18 months with help from local programs. Christine Staley of Magic City Hoagies described using programs, loan products and incubators to open in Minot.

Other witnesses described existing statewide resources — Small Business Development Centers, university incubators such as the UND Center for Innovation, and regional programs such as Emerging Prairie and Generator — and said the proposed office would be additive: a coordinating, not duplicative, entity. Greg TeVigne, CEO of Emerging Prairie, declined questions and invited legislators to Entrepreneur Day at the Capitol.

Concerns raised included whether a small two-person office could replicate the reach or nimbleness of nonprofit incubators and whether the proposal would overlap existing state programs. Sherry Neese of the Office of Management and Budget said the bill’s reporting requirements would affect procurement reporting systems and asked to work with sponsor and committee staff on implementation language.

Committee action: The hearing closed with committee members taking testimony from entrepreneurs, nonprofit and state representatives. No committee vote on House Bill 1191 was recorded during the hearing.

What’s next: The sponsor said he is open to placing the office in the Department of Commerce, a university SBDC, the Bank of North Dakota, or another structure if the Legislature prefers. The committee did not take final action during the hearing; the bill will return to committee for possible amendment and vote.