Since 2000, the U.S. has lost over 2.8 million manufacturing jobs to downsizing, export and productivity improvements. Nearly 170,000 Michigan workers have suffered this trend. As state policymakers decide how to react, they should consider that most job creation occurs in small rather than large businesses. What's more, so-called "gazelles"-defined as the top 3% of small firms in terms of growth potential-are responsible for most of that sector's economic growth and technology innovation. As Michigan pursues economic recovery, it should seize the opportunity to develop what the Small Business Association of Michigan (SBAM) and Center for Small Businesses (CSB) have termed "Green Gazelles," whose competitive advantage is based on combined environmental and economic benefits of certain new technologies.

Cumulatively, Green Gazelles offer a creative, market-based approach to environmental problems that balances traditional command-and-control regulation. To spur their development, SBAM has partnered with Michigan State University and MBI International to launch a program called "Green Industries for Tomorrow (GIfT)." The goal is to help U.S. Green Gazelles overcome barriers to growth that have kept them from competing in the burgeoning global market for environmental technologies.

Obstacles have included lack of professional organization, general bias by those who do not distinguish Green Gazelles from other firms, conflicting charges to government agencies for economic development and environmental protection, discrimination by lenders who assume environmental businesses cannot be profitable, and institutional barriers against green firms by competitors that tend to dominate business and industry associations and their legislative agendas.

Despite these barriers to growth, Green Gazelles represent a viable alternative to centralized "command and control" techniques of environmental protection. Their manifestation as a decentralized, market-based, non-bureaucratic and non-regulatory approach produces economic activity, cost-effective environmental restoration and new high-value jobs. As Byron Kennard of CSB has aptly noted, "There can be no transition to an environmentally-sound economy without Green Gazelles leading the way." Accordingly, public policies that promote Green Gazelles could pay significant dividends for Michigan.

Three examples serve to highlight this potential.

• IdleAire of Virginia provides a solution to the problem of diesel idling by long-haul truck drivers. The company's technology allows truckers to turn off engines and still receive hotel services in their cabs. IdleAire could help Michigan counties cost effectively reduce ozone pollution, while cutting operating expenses for trucking firms.
  
• NaturaLawn of America®, with 67 franchise locations in 25 states, is one of the fastest growing lawn care companies in the nation. It features organic fertilization and natural, integrated pest management. By contracting for organic lawn care, public entities could develop a sufficient market to support a NaturaLawn franchise in Michigan.
  
• Lansing-based KTM Industries uses technology developed at MSU to manufacture fully biodegradable packaging foam. According to KTM president Tim Colonnese, "This is what Homeland Security is really about, stimulating business growth, job creation and economic development while solving major environmental and energy security problems for our country."
  

To promote the growth of Green Gazelles like these and others, SBAM invites the Granholm Administration and the environmental community to join the GIfT initiative. Michigan's future prosperity depends on it.