One bright spot from Hurricane Katrina is the high entrepreneurial activity it sparked in Louisiana. After the hurricane hit, causing billions of dollars worth of damage, the state and federal government began offering a slew of economic incentives to clean up and rebuild.
The federal Gulf Opportunity Zone Act of 2005, also known as the GO Zone Act, offered tax incentives, while the Small Business Administration provided loans. Louisiana launched a multimillion grant program for small businesses.
Buildings had to be rebuilt, levies reconstructed and areas cleaned up, said Loren Scott, professor emeritus at Louisiana State University and an expert on the state's economy. That demand, coupled with a swell of startup initiatives, launched a lot of new businesses, he said.
The state's tax incentives for the film and television industry have also played a role. Today, Louisiana is considered a top location for movie-making, which has brought more production companies to the region, and in turn supported new catering and trucking ventures. A strengthening economy also encouraged people to start companies, said Scott. "People looked around, saw an economy that was pretty good and said I am going to finally try this dress shop, or car detailing company," he said.
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