This column was originally published by State Affairs.
By Morton J. Marcus
July 10, 2025
A million dollars is going for a new agency of state government. Our Governor has picked Brian Schutt to head the Office of Entrepreneurship and Innovation (OEI). He will be spending that million doing what is already being done without centralized oversight.
The General Assembly authorized the OEI  via âSenate Enrolled Act 516, which passed the Legislature with near-unanimous support earlier this yearâ (according to State Affairs 6/7/25).
But then what doesnât pass our cauterized General Assembly with near-unanimous support? Cauterization, you might recall, is used to stop bleeding or seal off an undesired growth. In our Hoosier legislature that is the flow of, or development of, rational thought.
The Governor (again according to State Affairs), ââwants every Hoosier to have the opportunity to pursue âthe American dream of growing Main Street businesses.ââ Ah! Yet another American dream, like home ownership, with the capability of being a nightmare, but found deserving of government subsidy.
Now Mr. Schutt is my kind of fellow. He wants to build a data base, in addition to funding and seizing control of existing programs serving small businesses on Main Street. The existing national data tell us that:
A small business is foolishly considered to have as many as 500 employees. However, the standards for small businesses to contract with the federal government, allow for as many as 1500 in selected industries. Lobbying makes it so.
Small businesses disappear rapidly. About 20% do not survive for a full year. Fully 50% donât make it for 5 years. The much heralded âentrepreneurâ bows out early for dozens of reasons including inadequate capital, an inability for sell enough of a product or service, or a recognition of the work required to prosper.
Our state now is going to try funding fading businesses, although there is no evidence that this service is not adequately handled already by the Small Business Administration, local lenders (profit and non-profit agencies), and families. Now, the entrepreneur becomes a welfare recipient.
The state might provide education or coaching for entrepreneurs, although those services too are available from a variety of sources. What the state will do, ultimately, is hire more staff to invent reasons existing programs donât work better.
They will discover that loving to design wearable oddities wonât get you far in the garment industry. Because you are handy with a saw and a hammer doesnât qualify you as a cabinet maker. Drawing funny faces will not make you a political cartoonist.
If honest, the state admits small business often serves as a means of tax evasion and dreams are not sufficient for commercial success, even on Main Street.
Mr. Marcus is an economist. Reach him at mortonjmarcus@gmail.com and follow him and John Guy on the Who Gets What? podcast available at mortonjohn.libsyn.com. The views and opinions expressed are those of the author only and do not necessarily reflect the views of The Indiana Citizen or any other affiliated organization.
