Writer: Ryan Gandolfo
2 min read April 2024 — Searching for untapped opportunities to boost local economic growth, the city of Bloomington and the Minneapolis Regional Chamber recently launched a local business pitch competition, called Hatch Bloomington, to further develop its small business ecosystem.
In the United States, small businesses employ nearly half (46%) of the private sector workforce and represent 43.5% of the gross domestic product (GDP), but they are also a fair representation of local communities.
“Hatch Bloomington is a vehicle to champion and support independent small businesses through funding, education, exposure and mentoring. The excitement surrounding a pitch competition and the substantial award that will help kickstart a small business helps attract diverse, robust business proposals and allows the community to have a say in what business they want in their community,” Jamie Verbrugge, Bloomington’s city manager, told Invest:.
In its inaugural year, Hatch Bloomington will give applicants a platform for their ideas and the chance to win a $100,000 financial assistance award for a Bloomington-based storefront. From now until May 3, there is an open call for applications, followed by separate pitch rounds throughout the summer. According to the official Hatch Bloomington website, the competition will include a ‘community voting’ portion in the later rounds. The final winner will be announced in September.
Interest in entrepreneurship is reaching new heights in the United States, with nearly one in five working-age adults either in the process of starting a business or have been running a business less than 42 months old, according to Babson College’s latest Global Entrepreneurship Monitor United States Report, which collects data on entrepreneurial activity, intentions, and outcomes in May and June annually.
However, aspiring entrepreneurs and small business owners in the North Star State may face a relatively harder path compared to their counterparts in other states.
Forbes Advisors’ Best States to Start a Business in 2024 ranking placed the state at No. 43, narrowly beating Oregon (No. 44) and trailing Alaska (No. 42). Analyzing data from the Small Business Administration (SBA) state profiles, Bureau of Labor Statistics, and Bureau of Economic Analysis, among other sources, Minnesota was adversely affected by its high business costs (including corporate tax, income tax, formation fee, etc.) and lack of financial accessibility.
In Bloomington, Verbrugge views the pitch competition as a way to direct more resources and access to funding from the city to entrepreneurs in the small business community. “Hatch Bloomington is ultimately about building a pipeline of entrepreneurs and small business owners in our city and connecting them to the resources they need to be successful,” he said.
The city, which sits 10 miles south of Minneapolis, is home to the corporate headquarters of Dairy Queen, Great Clips, Donaldson Company, and Toro, among other national entities. After a nearly successful bid to host the 2027 World Expo, which saw buy-in from stakeholders across the state, Bloomington has moved forward with a new long-term investment plan to support community projects in health, wellness, athletics and recreation. In November 2023, city voters approved a half-percent local option sales tax to finance $155 million in bonds to cover the costs.
The citywide pitch competition is yet another means to promote the city’s appeal to businesses of all sizes.
“As this is the inaugural year of Hatch Bloomington, we hope to build a sustainable small business ecosystem where entrepreneurs have access to business resources and are able to leverage this platform to build a lasting business. We expect to generate a lot of interest this year and will plan on building out this program each year moving forward,” said Verbrugge.
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