Sen. Vitelli introduces bill to revive entrepreneurship program

AUGUSTA – On Monday, Sen. Eloise Vitelli, D-Arrowsic, introduced a bill to restart an entrepreneurship program for unemployed Mainers. LD 594, “Resolve, Directing the Department of Labor To Submit to the United States Secretary of Labor a Plan for a Self-employment Assistance Program,” would revive the Maine Enterprise Option (MEO) program. The bill was the subject of a public hearing in front of the Legislature’s Joint Standing Committee on Labor and Housing.

“As Maine’s economy rebuilds from this pandemic, it’s time to reinstate a pathway for those entrepreneurs among us who want to build something for themselves,” said Sen. Vitelli. “Maine’s small businesses are the building blocks and backbones of our local economies. Small businesses arise to meet the needs of the communities they serve, and they give back to these communities in so many ways. They sponsor local sports teams and fundraise for local causes. Small businesses are engines of innovation and growth. The Mainers who choose this path are hard-working, creative and resilient, but they need support, and MEO is a great opportunity to support them.”

The Maine Enterprise Option program was first implemented in March 1995 and operated successfully for almost 20 years before funding lapsed in 2013. The goal of MEO is to encourage Mainers who lost their jobs through no fault of their own to prepare to become self-employed while receiving unemployment insurance (UI). Rather than completing weekly work search activities to qualify for UI, MEO participants receive counseling in how to open a business.

MEO operated as a partnership between the Maine Department of Labor, the Small Business Development Centers and New Ventures Maine. In her previous role with New Ventures Maine, Sen. Vitelli helped to manage the MEO program and saw first-hand how beneficial the program can be. A 2001 study found that Maine participants in MEO were more likely to start a business than non-participants. Of MEO participants, 62 percent went on to start a business, and one-third were still self-employed after 36 months. Successful small businesses started with assistance from MEO included a kettle corn maker, a small engine repair shop and many others.

LD 594 has the support of Maine’s Department of Labor. The bill faces further action in committee.