Legislation has been introduced that aims to put Delaware in the ranks of states with a welcoming environment for young entrepreneurs.
Senate Bill 112, which was introduced earlier this month, would create a public-private partnership, known as the Delaware Student Entrepreneur Program Fund.
The fund would tap into the sate’s long-running Strategic Fund, which provides incentives and financial packages for new and existing businesses adding staff.
The partnership, according to the text of the bill, would “help fund and develop new businesses in Delaware and create job opportunities in Delaware for Delaware’s young citizens in the areas of innovation and technology that are poised to grow in the 21st-century economy.”
The fund would “attract global entrepreneurs to Delaware higher education institutions, to grow businesses, create jobs in Delaware, and provide employment opportunities for the graduates from these institutions.”
A copy of the bill is below:
[pdf-embedder url=”http://delawarebusinessnow.com/wp-content/uploads/2018/05/SB112.pdf”]
The partnership would provide technical assistance as well as financing.
The text of the bill cites the “brain drain” from young people leaving the state, with that percentage increasing to more than 60 percent from 40 percent in recent years.
The state has struggled to recover from cutbacks from companies like DuPont and the closing of both auto plants eight years ago.
The partnership would also seek out talented immigrants, who have gone on to launch large technology companies.
In making its case for the partnership, the legislation notes that Pennsylvania, New York and Massachusetts are engaged in similar initiatives.
The size of the three states might lead to questions about whether Delaware has the resources to compete.
The bill may also compete with legislation backed by Delaware Gov. John Carney that seeks to abolish the Delaware Economic Development Office in favor of a public/private partnership.
Delaware does have a growing fintech sector that as its name indicates focuses on apps and other technology in financial services.
The bill was assigned to the Elections & Government Affairs Committee in Senate
