https://en.wikipedia.org/wiki/AutoWorld_(theme_park)
Then when Jennifer Granholm was Governor a conman succeeded in getting a $9 million dollar state check to build a factory that would hire thousands of unskilled laborers in Flint. When the papers had a picture of the guy holding a large mockup of the check with the smiling governor someone told the state this guy is a convicted embezzler who just got out of a lengthy jail sentence. But he wrote a pretty nifty business plan that passed muster with the State Economic Development Commission who never bothered to vet him even though the story was so hard to believe.
https://www.mlive.com/news/flint/2010/03/state_officials_emb...
If the state instead had given seed funding of $25,000 to 2,000 local entrepreneurs they might be building back Flint's economy. I was mocked at the time for even suggesting that idea. It took 30 years but presently Detroit, Lansing and Grand Rapids have versions of that same idea and it is creating jobs.
If they cannot vet one guy, how will they vet 2000? And are there even 2000 people in Flint with an idea they actually want to pursue, that is viable and the only thing they need is 25000USD?
I think its best if entrepreneurs do it. I've noticed that most of the successful VC's are entrepreneurs with at least one successful exit.
In Michigan it is a mixture of government, non-profits and entrepreneurs who decide who gets funded. That's primarily because it's government money funding it. In Lansing a non-profit provides business classes and applicants complete a business plan.
40 years ago GM employee 80,000 people in the Flint area.