For job growth, small business is big

By Peter J. Howe, Globe Staff  |  October 8, 2006

Lieutenant Governor Kerry M. Healey , who has been distancing herself from Governor Mitt Romney's more conservative positions on abortion rights and stem cell research, is now pledging if she becomes governor she'll focus far more attention than Romney has on small business.

In an appearance on ``This Week in Business" shown on New England Cable News today, Healey made a rare -- if oblique -- criticism of Romney's performance as governor, suggesting he has been too focused on trying to get big out-of-state corporations to expand here and failed to do enough to nurture existing small businesses.

``I think the emphasis when the governor came into office was very much on `How do we go outside of Massachusetts and bring jobs in?' My orientation is very different," Healey said. ``I would say that over half the people here in Massachusetts already work for small businesses, and some of the most dynamic businesses I see are one-, two-, three-person businesses that have the potential to grow exponentially. What I would like to do is figure out what we can do to support small business creation and expansion here in Massachusetts."

A planned $660 million Bristol-Myers Squibb Co. pharmaceutical factory, set to open at the former Fort Devens in 2009, is a major economic development trophy Romney has been heralding as his four-year term closes.

But Healey said: ``I think a much better approach than trying to go out and capture jobs from a Bristol-Myers Squibb, as much as we would like to have those jobs -- they're 350 jobs, it's good -- but what we really should be doing is saying to 350 small businesses, `What can we do to help you grow?' Because that is how I think ultimately we're going to get the most job creation in our state."

Healey, 46, a former criminal-justice policy consultant and state Republican Party chairwoman, is the first of the four candidates for governor to appear since the primaries on the NECN show, which can be seen at 12:30 p.m. today. Independent Christy Mihos, Democrat Deval L. Patrick, and Green-Rainbow Party nominee Grace Ross are scheduled for upcoming weeks.

Healey had broken with Romney in supporting emergency contraception, stem-cell research, and civil unions as a marriage alternative for same-sex couples . In pledging a new economic course, Healey is continuing to distinguish herself from Romney, who is becoming increasingly unpopular.

A Boston Globe/CBS4 poll released last week showed that 48 percent of Massachusetts voters give Romney an unfavorable rating, his worst showing since he took office, and 45 percent of voters say Healey's service as his lieutenant governor makes them less likely to vote for her.

Small business employees represent lots of votes. As of 2003, according to the US Small Business Administration , more than one-third of Bay State workers, about 1.03 million, were employed by firms with fewer than 100 employees.

Overall, Healey said her top economic priorities as governor would be rolling back the state income tax to 5 percent from 5.3 percent and continuing to simplify and accelerate issuance of state and local permits that businesses need for expansions. Patrick, the frontrunner in the race, opposes the income tax reduction but largely agrees with Healey on permitting.

Asked for examples of direct personal success in promoting business growth, Healey cited a meeting she and state Economic Affairs Secretary Ranch Kimball set up for Procter & Gamble Co. executives to meet local researchers, startup companies, and investors soon after P&G bought Gillette Co. for $54 billion last year.

``Out of that we've had 10 deals happen between P&G and Massachusetts-based companies and researchers as a result," Healey said, but she couldn't immediately specify how many jobs that created.

Healey said the local business leaders she admires most and has learned the most from are biotechnology executives, such as James C. Mullen , chief executive of Biogen Idec . ``They really have managed to take some very difficult science and think about how do we translate that into helping humanity," Healey said, adding that state government should emulate many biotech companies' efforts to maximize their buildings' energy efficiency.

In other NECN remarks, Healey said as governor she would:

Push local governments to shut down their own pension and health insurance systems and join state-run plans, because ``our cities and towns are not being managed as well as they ought to be, and they're leaving hundreds of million of dollars" in potential savings untapped.

Attack soaring healthcare costs by enabling more elderly people to get healthcare at home or through other alternatives to costly nursing homes.

Avoid a ``one-size fits all" economic growth strategy for various parts of the state and instead focus on nurturing such local strengths as biotech, plastics, and tourism. ``I'd like to nurture the individuality of the different regional economies," Healey said, ``and help them all grow."

Peter J. Howe can be reached at howe@globe.com.