A plan to retain businesses

Madison (S.D.)Daily Leader: Gov. Dennis Daugaard and Lt. Gov. Matt Michels announced a plan to make personal visits to nearly 40 of South Dakota’s largest employers over the next several months.

We think it’s a great idea. The visits are intended to keep large employers in the state and help them grow. In addition, staff from the GOED will visit an additional 400 businesses as part of the effort.

It’s easy to always look to recruit outside companies when attempting to boost job growth in the state. While new recruits bring great job opportunities, the reality is that substantial job growth occurs when existing companies expand.

The Governor’s office of Economic Development (GOED) tracks job growth, and states that nearly three-fourths of business expansions in South Dakota come from established companies.

Depending on how the visits go, the plan could actually backfire. If companies see government officials coming for a few handshakes and publicity opportunities, without listening to legitimate concerns or opportunities to work together, the companies will certainly be disillusioned.

But we have confidence in both the governor and lieutenant governor. In our experience, they’ve both been good listeners, and we believe they can support any growth initiatives the existing employers might have.

We expect to see tangible job growth results from this campaign.