One question I am frequently asked is, “What is going to happen to the economy in Maine?” Well, in some ways, things are getting better, but we are not out of the woods yet.

While the percent of people who are unemployed in Maine is lower than in states like Nevada and Florida, it still is significant. And the drop in the real estate market here has left many people vulnerable to losing their homes, and most people unable to sell their properties for what they consider reasonable prices.

Some things in our state will need to change, and we may have to look to our future with a different view about what will fit our local economy and create more jobs. The world market is changing fast with unstable oil prices, increased labor costs in China, and trade barriers removed from Canada and Mexico, make the future uncertain. But with all of these problems, here are some possible changes that could affect Maine’s economy in a positive way.

Maine’s taxes on business and personal income need to be reduced. Maine’s local municipalities and its state government impose high tax burdens on small businesses and budding entrepreneurs, such as high personal income tax rates, state and local sales taxes, gross receipts and excise taxes and high electric utility costs. This unfriendly business atmosphere is unwarranted, and because of it, Maine loses many businesses, and does not attract enough new businesses to keep pace economically with the rest of New England.

Liability reforms are needed to protect business owners, employees and professional people against frivolous plaintiff suits, by promoting legislation for liability reform. It will be necessary to set a cap on punitive damages in civil cases. The State of Texas passed liability reform, including such a cap of $250,000 on medical liability cases, which reduced insurance rates and medical liability awards against practicing physicians. We need liability reform at both the state and federal levels.

Regulatory relief is needed, also, not just at the national level, but locally, too. Businesses are experiencing excessive costs, financially and production-wise, by unnecessary and burdensome regulations that affect their industries. In some instances, big and small businesses, including independent contractors, are being forced out of business due to complicated, and sometimes, unfair regulations. Our over-regulated business environment puts job creation at risk.

Maine businesses should be thinking about ways to export more goods or products out of the country. It is natural for small businesses and entrepreneurial start-ups to enter the export field. An expanded international trade policy should be established to give more incentives for American-made goods to compete against foreign-made goods imported to our country. Usually foreign exporters have cheaper labor, with no environmental policies to be enforced against them.

Maine’s small businesses can sell overseas with help by our government. It needs to supply businesses with export marketing-information, specific business advice and various strategies for entering or expanding sales to targeted overseas markets. Sweeping political, social and economic changes are taking place in South American countries right now. Brazil’s economy is super-heated, for example. Now is the time to export to our neighbors to the south.

While our government needs to do more, businesses can get some help by contacting export.gov or the U.S. Department of Commerce local offices, on a free or fee-based arrangement. Ask for the “Basic Guide to Exporting” from the U.S. Department of Commerce, to learn costs and risks associated with exporting.

Our federal tax system should be restructured to encourage investments and job creation. Small businesses fill and build from a narrow niche of products or services to survive and grow in today’s economic climate. They determine the products to make and to sell to their customers. Generally, small businesses compete in the market by keeping their costs low. High taxes and costly regulations make it difficult for young businesses to survive. The strength of our country is in our people, their small businesses and the hard work they do to build success. Most Mainers have the essence of this American way of life. They need a cooperative government climate to enable them to innovate and grow.

Being more business friendly will help us to grow more jobs in Maine.

— Bernard Featherman is a business columnist for the Journal Tribune and former president of the Biddeford-Saco Chamber of Commerce.