In recent days, our nation and the world have once again been made witness to systemic racial injustice that remains within our country. MadREP is among the many nonprofits in the area that regards itself as part of the “choir” to which the activists and other leaders might preach. However, this last two weeks has engendered a much needed introspection that calls into question the legitimacy of that claim and may even have revealed that some in the choir are off key, flat or even tone deaf. While we embrace the following principles we have to admit that, in many ways, they are still aspiration more than fact. Economic developers and MadREP in particular must do better. Our talent and education programs like Inspire Madison Region must begin to capture metrics on reaching and placing students of color, our entrepreneurship and innovation programs have to better connect with historically disadvantaged communities to guarantee more entrepreneurs of color, our annual summit has got to tackle the broader issue of what it means to be Black or Brown in this economy before we can create diverse workplaces that truly include everyone. And, perhaps most urgently, we must bring broadband to every citizen in the region. We have often said that broadband is economic oxygen and, while we have managed over the decades to provide water, sewer and electrical service to 99% of the state, we still struggle to adequately serve the students and workers who drive the economy with respect to a service without which no one can thrive. So here’s what we believe and we can pledge only to do our level best to stay on key.

The underpinnings of a country which espouses “Life, liberty, and the pursuit of happiness” must include equal justice before the law. Until equal justice is fulfilled, we will not as a nation be able to realize the unalienable rights for all written in our country’s declaration of independence.

At its very foundation, this is a moral issue. But it is also an economic issue. The Madison Region Economic Partnership has long promoted that diversity spurs economic growth and that thriving regions across the country have embodied, embraced, and encouraged diversity in all its forms. And embracing diversity includes expecting, and where necessary demanding, equal justice before the law irrespective of an individual’s race.

As an organization, we acknowledge there are disparities in access to opportunity and justice, and we embrace the challenge to overcome them. Our goal is to advance talent, opportunity, growth and justice for all the region’s citizens.

The Madison Region is rich with organizations that share this goal, including our close partner, the Urban League of Greater Madison. We urge others to reach out to these community partners who have risen to the challenge of promoting equal justice. To be silent is to be complicit. We urge citizens of the Madison Region to find their voice in this discussion, for the betterment of us all.

Sincerely,

The MadREP Team

StartupBlink annual report shows momentum for entrepreneurism building in state

Madison, Milwaukee, Green Bay and Appleton made significant gains in a leading startup ecosystem ranking of 100 countries and 1,000 cities, registering “amazing momentum,” according to the report’s authors. StartupBlink is a global startup ecosystem map and research center that works with dozens of governments, municipalities and economic development corporations on the development, mapping and benchmarking of their startup ecosystems, and support networks for entrepreneurs.

The organization’s annual report, published for the third time in 2020, uses an algorithm built over five years to develop what StartupBlink bills as the world’s most comprehensive startup ecosystem ranking. StartupBlink’s algorithm is supplemented with information from global data partners such as CrunchBase, SEMrush, Meetup and Coworker.

Madison rose 26 spots in StartupBlink’s 2020 Global Rankings Report to 98th globally, while Milwaukee jumped 31 spots to 132nd. Green Bay’s ranking of 446th was up 44 places, while Appleton came in at 581st, an improvement of 35 spots.

“The positive showing of Wisconsin cities in StartupBlink’s global startup ecosystem ranking is a testament to the culture of innovation and entrepreneurial spirit that exists throughout our state,” said Aaron Hagar, Wisconsin Economic Development Corporation vice president of
entrepreneurship and innovation. “Four of our local communities ranking highly among the top 1,000 globally showcases the strength and passion for startups and small businesses we see throughout Wisconsin and is continued evidence that supporting entrepreneurs is good for our local communities as well as the state’s overall economy.”

StartupBlink’s 2020 Global Rankings Report is available for download here. A profile of Madison appears on page 218 of the report. The StartupBlink interactive database and map is accessible at  StartupBlink.com. Wisconsin startups have the ability—and are encouraged—to add their own information to StartupBlink’s database directly on this site, so the full breadth of entrepreneurial activity in Wisconsin can be represented. StartupBlink’s annual report is read by tens of thousands of decision-makers and has been featured in more than 1,000 articles to date.

 

 

The Madison Region Economic Partnership (MadREP) continues its partnership with the Wisconsin Economic Development Corporation (WEDC),Wisconsin’s eight other regional economic development organizations (REDOs) and UW-Oshkosh to create and distribute a data collection tool to businesses in the Madison Region who are experiencing economic hardship due to the COVID-19 pandemic.

The third observation period of the statewide survey, measuring the economic impact of the COVID-19 pandemic on Wisconsin businesses, is underway. The survey is open – for both past participants and new participants – until June 13.

Those businesses who took part in the initial observation period should go to http://uwo.sh/covid-19-econ-june to share their current situation. Interested businesses who previously did not participate are encouraged to do so at http://uwosh.edu/ccrs/covid-19-survey.

According to MadREP President Paul Jadin, the results of this installment of the survey will continue to inform state and federal responses to the pandemic. “It’s imperative we continue to experience high participation from Wisconsin businesses, but even more important, we want to see responses from all counties throughout the state. We want to be sure our future efforts offer the most appropriate support for all businesses, not just those in major population centers.”

Survey results from businesses responding to the second sampling period (May 4-17, 2020) showed 9,816 employees lost income due to layoffs and furloughs. That number is in addition to the 8,795 reported for March.

Additionally, while 74 percent were open or confident they would be able to reopen soon, 14.85 percent of businesses surveyed did not anticipate being able to reopen without assistance. 1,151 businesses responded to both the April and May surveys, representing a retention rate of 47.1 percent period over period. An additional 235 new businesses responded to the May survey. Data is reported with an error rate of plus or minus 3 percent based on a respondent pool of 452,000 active Wisconsin businesses. The results are available at https://uwosh.edu/ccrs/covid-19-survey/.

Wisconsin’s small businesses have been dramatically challenged by the Coronavirus pandemic. The Wisconsin Economic Development Corporation (WEDC)’s We’re All In Small Business Grant is designed to help these small businesses get back on their feet.

HOW IT WORKS
Funded by the federal Coronavirus Aid, Relief and Economic Security (CARES) Act, the We’re All In Small Business Grant Program will provide $2,500 to 30,000 Wisconsin small businesses to assist with the costs of business interruption or for health and safety improvements, wages and salaries, rent, mortgages and inventory.

ELIGIBILITY REQUIREMENTS
To be eligible, businesses must:

• Be a Wisconsin-based, for-profit business;
• Employ 20 or fewer full-time equivalent (FTE) employees, including the owner;
• Earn greater than $0 but less than $1 million in annual revenues (gross sales and receipts); and
• Have started operating prior to Jan. 1, 2020, and have been in business in February 2020.

APPLICATION PERIOD
The online grant application will be accessible for one week from 8 a.m. Monday, June 15, through 11:59 p.m. Sunday, June 21. A link will be available at: https://wedc.org/programs-and-resources/wai-small-business-grant/

BE PREPARED
Applicants are encouraged to prepare for the one-week application period by gathering the following required documents:

2018 or 2019 federal tax return for business (If you started your business in 2020, you are not eligible for this grant). Applicable tax returns are:
IRS form 1065 Partnership Return (no K-1s required)
IRS form 1120 Corporation Return (no schedules required)
IRS form 1120S S Corporation Return (no K-1s required)
IRS form 1040 (sole proprietors) and the following:
Schedule C, Profit and Loss from Business
Signed W-9 form available at www.irs.gov/pub/irs-pdf/fw9.pdf

Three-digit North American Industry Classification System (NAICS) code that best fits their business. This information may be included in a business’s tax return, or through the NAICS website: www.naics.com/naics-code-description.

A letter or email of acknowledgement from a community organization indicating your business was in operation in February 2020. The letter or email can be from any of the following:
– Chamber of commerce
– Main Street or Connect Communities organization
– Local business improvement district
– Neighborhood economic development association
– Local economic development organization such as MadREP
– County economic development organization
– Municipality, including tribal government
– County
– Local bank, credit union or community development financial institution
– Regional UW Small Business Development Center
– U.S. Export Assistance Center – Wisconsin
– Regional economic development organization
– Regional Planning Commission
– Trade association

For more information, go to the FAQ page.

MadREP is happy to write a letter of acknowledgement for small businesses in the eight-county Madison Region. Simply send a request to: jmoore@madisonregion.org.

 

Madison, WI – Most businesses responding to the second statewide COVID-19 Wisconsin Business Impact survey anticipate the effects of the COVID-19 pandemic to continue through 2020 and beyond.

While twenty-three percent of responding businesses reported not being able to remain open beyond three months if current conditions persist, 32 percent of respondents reported they would likely survive beyond 10 months under current conditions. Jeffrey Sachse, director of University of Wisconsin Oshkosh’s Center for Customized Research and Services (CCRS) indicates these data point to a “greater sense of resilience.”

Madison Region Economic Partnership (MadREP) President Paul Jadin notes, “this longitudinal survey is an effort to assess how businesses are coping through the pandemic and the second observation has yielded some interesting changes from a month ago that will help inform the regional and state response.”

The survey was authored by MadREP in collaboration with its eight county partners and the State’s other eight regional economic development organizations. UW-Oshkosh administered the survey and the results continue to be shared with the Wisconsin Economic Development Corporation (WEDC) for the purposes of informing its COVID-19 response. Additional collaborators include the Wisconsin Technology Council and the Wisconsin Workforce Development Association.

Respondents to the second survey, administered between May 4 and 17, represent more than 67,000 employees across the state. The first survey ran April 1-10.

Key findings of the May survey include:

• Respondents reported April losses of 9,816 employees due to layoffs and furloughs in addition to the 8,795 reported for March.
• Businesses also reported losses of $28.8 million in inventory (62 percent decrease from April), $78.9 million in income (7.2 percent decrease from April), and losses in wages and productivity totaling $26 million (56 percent increase from April).
• Businesses reported other financial impacts of $118.6 million (62 percent decrease from April).

It is important to note that all losses are considered cumulative.

“It is encouraging to see reductions in inventory and income losses, though respondents are less optimistic about their ability to recoup these losses. It will be equally critical to trace the survivability of vulnerable firms now that we have started to reopen the state’s economy,” Sachse said.

Sixty-five percent of businesses reported being open at the time of the May survey and an additional nine percent indicated they were confident in being able to re-open soon.

Additionally, this month’s survey asked two questions of interest to the Wisconsin Bankers Association and Wisconsin Technology Council.

Seventy-five percent of respondents reported seeking some form of financial assistance in the past month (Paycheck Protection Program and Economic Injury Disaster Loan, etc.). Only 61 percent of respondents reported receiving assistance, Sachse said.

Respondents reported access to capital and customers remain their most pressing needs. The most pressing information technology workforce needs reported both before and during the crisis are in IT support (18.3 percent) and network operations (9.6 percent).

1,151 businesses responded to both the April and May surveys, representing a retention rate of 47.1 percent period over period. An additional 235 new businesses responded to the May survey. Data is reported with an error rate of plus or minus 3 percent based on a respondent pool of 452,000 active Wisconsin businesses.

CCRS also released statewide results by industry sector available online here.