New Hampshire Gov. Craig Benson has an interest in encouraging entrepreneurship activities in the state, especially technology-driven ones. The governor was a co-founder of a company that later became Cabletron Systems, one of the country's leading sellers of servers and server equipment.

The governor is behind the Start Up New Hampshire business plan competition, which is being funded solely by Public Service New Hampshire. The competition, which is thought to be one of the largest cash prizes for a business plan competition, with prizes totaling $250,000. The prizes will be awarded to the winners in several competition categories.

“The idea of the high cash award is two,” says Stuart Arnett, director, New Hampshire Division of Economic Development. “One is to get the nation's best business plans, and secondly, the early stage is important for receiving unencumbered cash.”

Arnett says the categories include three industries: bioscience, high-mix manufacturing and financial services. He says any industry is eligible and there are set-asides for those.

New Hampshire officials have also created the New Hampshire Business Incubator Network. Arnett says the network will feature virtual incubators, where entrepreneurs can use services via the Internet, video or phone.

Said Gov. Benson about the network when it formed last fall: “Typically, more than three-fourths of all new startups enrolled in an incubator program are successful. By sharing best practices and networking together, each incubator is able to provide a higher level of services and mentorship to its companies.”

“There is also real value in being able to contact similar companies, and the board of directors for our incubator system, of which the state features three,” Arnett says. A fourth will open in 2005 and is co-sponsored by Dartmouth. It is anticipated that another incubator, associated with the University of New Hampshire, will open soon after the one in 2005. The state expects to feature eight to 10 incubators.

In regard to legislative activities, at press time, New Hampshire was close to adopting an R&D tax credit. “It models the federal program, but it will be another incentive for technology companies,” Arnett says. The legislative decision was expected later this month.

In other economic development activity, Manchester is developing a new research park on land that was formerly owned by the University of New Hampshire. The master plan is completed for the 150-acre park and it is in the process of getting its final approvals. “This space is zoned for a research park but allowed uses are light manufacturing, office, research and testing labs, etcetera,” says Jane Hills, assistant economic development director, Manchester Economic Development Office.

Targets

Arnett says New Hampshire targets the biosicence, high-mix manufacturing and financial services industries. Recently, advanced manufacturer Janos Technology Inc. of Townshend, Vt., announced it would relocate to the Black Brook Corporate Park in Keene. The company is a world leader in advanced infrared optical components and assemblies. “After more than 30 years of production at our current location, our commitment to growth and customer service has brought forth this much needed move to a larger facility,” says Brett Rosner, president of Janos. “We are confident that Keene will provide a stimulating business climate that will infuse further growth into our company.”

The new Janos facility will reach a higher technological level by providing streamlined manufacturing and production efficiencies. The existing square footage will allow for additional employees to be added as well as possible expansion to 50,000 square feet.

In Manchester, industries well suited for the community include manufacturing and financial, legal and accounting services. “Most of the large firms in the state are located here, as well as some insurance companies,” Hills says.

She notes that the city cannot recruit companies that need 40 to 50 acres because it doesn't have that size available.

Recent siting activity in Manchester includes the 140,000-square-foot Comcast Cable call center and administrative offices. The company consolidated a couple of Massachusetts's offices to New Hampshire.

Allegro Microsystems, which is based in Worcester, Mass., recently moved its Concord office to Manchester.

Workforce and Education

Arnett says New Hampshire's workforce productivity has been a strong point for the state for years. “We have had companies who have consolidated their operations here because we have high output,” he says.

“It is the quality of our workforce that sets us above other locations,” says Karen Pollard, economic development manager, City of Rochester Economic Development Commission. “We are highly educated, well-skilled, experienced and we have an abundant supply of workers. Rochester is growing 3 percent per year. We are currently at 30,500 in population and by 2010 we anticipate we will be home to a population of 34,523, with more than 20,000 of workforce age.”

Pollard says the Technical Training Center offers programs developed by local business and provides customized training. The Project Futures program offers several classes a year where in-depth training in a variety of skills is provided.

In regard to higher education, Manchester is well-served with 10 colleges and universities in the area, including Southern New Hampshire University and the University of New Hampshire-Manchester.

Manchester has also invested $105 million in major upgrades to its public schools.

Rochester's higher education system offers nearby access to the University of New Hampshire-Durham. “Within 50 miles we have access to four four-year institutions,” Pollard says.

Business Climate

Among the state's incentive programs are the Community Reinvestment Opportunity Program (CROP) Zones and the Job Benefit Program. The CROP Zones reimburse employers for a portion of payroll costs for new hires in selected areas of the state. The Job Benefit Program is targeted to two rural counties and allows up to a $20,000 credit against payroll for a new position. “This is an actual cash payment,” Arnett notes.

Arnett says one of New Hampshire's most important incentives is the state's existing tax structure. He says the state doesn't charge personal income taxes, sales and use taxes, capital gains taxes, or inventory taxes, among others. The state also does not conduct higher assessments for commercial or industrial real estate. It also offers tax-exempt financing for manufacturers.

“Our tax burden is historically among the lowest in the country, depending on what is measured,” Arnett says. Hills adds: “When we compare ourselves to other large cities in the 50 states in terms of tax burden for a family of four with an income of $100,000, we rank 41st in the country, near the bottom.”

Arnett adds that while New England overall isn't generally known as a low-cost area, the state is a low-cost state in high-cost area.

Another key incentive in New Hampshire is its size. “We excel at providing companies customer-service access to decision-makers quickly,” Arnett says. “It is not unusual for a company of 10 people to have a meeting with the secretary of environmental affairs or the attorney general.”

In terms of development activity around the state, Manchester is revitalizing its riverfront. The city is involved in the construction of a new 6,500-seat baseball stadium to serve as home to the New Hampshire Fisher Cats, Hills says. The team has contributed $1.4 million to the renovation of an existing stadium, which will be available to various teams once the Fisher Cats locate to their new facility.

There is also $120 million in private development occurring in hotel and condo construction at the riverfront.

In Rochester, the Granite State Business Park has 35 acres left in Phase I. There are 180 acres planned for Phases II and III. Pollard says the park is suited for a mix of traditional and high-tech composite manufacturing. The park offers rail access, is on state Route 108 and is near the Skyhaven Airport.
“We have plans for a new exit, Exit 10, off the Spaulding Turnpike, which will be done in the next phase of road construction in the state,” Pollard says.

In terms of market access, the Manchester Airport has a new passenger terminal and is served by 11 commercial airlines. “The airport also completed an extension to the main runway, which is now 9,250 feet,” Hills says. “Our airport is the only airport in the country that continued to grow after Sept. 11, 2001, in terms of passengers. We serve 3 million passengers a year.”

The Skyhaven Airport in Rochester has several hangers under development. The runway is also being lengthened to accommodate larger jets.

The Port of New Hampshire, the closest U.S. port to Europe, has recently been expanded. New Hampshire also features five Foreign Trade Zones, with two in Portsmouth, one in Dover, one in Manchester and one for the Port Authority.

For complete details on conducting business in New Hampshire, visit www.nheconomy.com, www.rochesternh.net and www.manchesternh.gov.