SBA s Cluster Initiative ScaleUp America

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1 annual meeting of SBA s Women s Business Centers: SBA s Cluster Initiative ScaleUp America Office of Entrepreneurial Development U.S. Small Business Administration Sarah Hughes sarah.hughes@sba.gov

RICs Play an Important Role in Achieving President Obama s Jobs Strategy The Administration s Priorities are focused on the following policy elements: Spurring innovation: making it easier and faster

2 RICs Play an Important Role in Achieving President Obama s Jobs Strategy The Administration s Priorities are focused on the following policy elements: Spurring innovation: making it easier and faster to turn new ideas into new jobs and new businesses Launch new ventures and grow existing businesses Making the U.S. a magnet for long-term job creation and strengthening the middle class Increase the depth and breadth of technical assistance to small businesses Spur innovation and commercialization of new technologies Investing in place-based economic development Enhance economic development and growth at the regional level

3 SBA s Cluster Initiative definition of a cluster: a geographic concentration of interconnected businesses, suppliers and associated institutions focused or clustered around a particular industry or sector. Cluster Solicitation: Due July 31, fab f&tab=core&_cview=0

4 Cluster initiatives build off organic clusters by purposely integrating small, medium and large companies and universities for business, funding and research opportunities that create jobs, attract capital and have long-term, positive economic impact. Its Core functions: Industry/Sector Serves as a navigator/concierge to connect stakeholders Maintain governance structure Provide some in-house technical assistance and rely on outside service providers Entrepreneurs Gov t Agencies Community Leadership Lenders Small Businesses Cluster Initiative Investors Large Contractors Colleges Trade Associations Venture Capital

5 Mission of SBA s Clusters Program The ability of small businesses to drive innovation is critical to U.S. competitiveness. The Small Business Administration Clusters Program connects and enhances innovation hubs so that small businesses can effectively leverage them to commercialize new technologies and expand into new markets, thereby positioning themselves and their regional economies for growth.

SBA s Regional Innovation Clusters Advanced Power & Energy Cluster (Upper Midwest) 38 FlexMatters Northeast Ohio Technology Coalition (OH) Cluster Administrator: Minnesota Wire Industry focus: Power

Research Center Industry Focus: Autonomous systems, cybersecurity, and C4ISR 19 1 39 20 9 40 The Smart Grid Cluster (IL and Midwest) Cluster Administrator: Illinois Institute of Technology Industry

Focus: geospatial technologies 8 34 35 33 30 5 31 46 32 45 41 4 7 16 26 15 10 27 25 C 49 11 22 12 23 13 3 6 48 24 14 A 52 51 50 2 43 42 28 44 29 B 21 Cluster Administrator: NorTech Industry focus:

6 SBA s Regional Innovation Clusters Advanced Power & Energy Cluster (Upper Midwest) 38 FlexMatters Northeast Ohio Technology Coalition (OH) Cluster Administrator: Minnesota Wire Industry focus: Power and energy generation, storage, distribution, conservation, and supporting technologies 53 San Diego Advanced Defense Cluster (San Diego, CA) Cluster Administrator: San Diego State University Research Center Industry Focus: Autonomous systems, cybersecurity, and C4ISR The Smart Grid Cluster (IL and Midwest) Cluster Administrator: Illinois Institute of Technology Industry focus: smart electrical grid equipment and technologies Enterprise for Innovative Geospatial Solutions Cluster (MS, LA) Cluster Administrator: Magnolia Business Alliance Industry Focus: geospatial technologies C A B 21 Cluster Administrator: NorTech Industry focus: flexible electronic products Huntsville Advanced Defense Technology Cluster (HADTC) (10 counties in Northern AL) Cluster Administrator: HADTC Northeast Electrochemical Energy Storage Cluster (New England, NY and NJ) Cluster Administrator: Connecticut Center for Advanced Technology, Inc. Industry focus: hydrogen and fuel-cell supply chain Industry Focus: Small spacecraft, environmental monitoring, C4ISR, robotics, and cybersecurity

7 ScaleUp America The objective of the initiative is to provide the necessary supports to help companies scale up and grow, while strengthening and enhancing local entrepreneurial ecosystems around the specific needs of growth oriented entrepreneurs and firms resulting in their ability to produce measurable economic impact and job growth in local communities. ScaleUp America Solicitation: PreProposal Webinar on Thursday, July 24, 2014 Due August 13, c12e86667c5da5&tab=core&_cview=0

8 The Rationale: Supporting growth-oriented firms is an effective strategy for job creation and economic growth The vast majority of new jobs (92%) come from the expansion of existing businesses; start-ups accounted for around 7% of net new jobs in the past decade Most new jobs are being created through the sustained, incremental expansion of small businesses across a wide range of industries Very few resources have been directed toward enhancing the support services and ecosystem to help growth-oriented small businesses scale up Firms led by underserved/underrepresented entrepreneurs have far less business success and have challenges scaling up 8

9 SBA s ScaleUp Framework will include 4 key elements 1. Entrepreneurship Education Curriculum: delivery of a proven, existing curriculum for growth-oriented entrepreneurs and small businesses; 2. Management Assistance & Support: On-going oneon-one support, mentoring and technical assistance; 3. Access to Capital: Assistance and connections to growth capital; and 4. Connections: Opportunities to build and strengthen connections and networks 9

11 SBA Growth Accelerator Fund Howard University Business School July 9, Small Business Administration

12 What is an accelerator? Selective process to choose participating startups Regular networking opportunities offered to startups Introductions to customers, partners, suppliers, advisory boards and other players High-growth and tech-driven startup mentorship and commercialization assistance Shared working environments focused on building a strong startup community Resource sharing and co-working arrangements for startups Includes: accelerators, incubators, shared work spaces, tinker spaces, etc Opportunities to pitch ideas and startups to investors Small amounts of angel money, seed capital or structured loans to startups 2 Small Business Administration

13 Accelerators The What & Why $2.5MN Competition Quick Facts The U.S. Small Business Administration has launched a $2.5 million competition for accelerators and other entrepreneurial ecosystem models to compete for monetary prizes of $50,000 each. To award the prizes, an expert panel of judges will consider each applicant s mission, founding team and business goals among other items. The panel will give particular attention to, and the SBA encourages, applicants that fill geographic, industry or other underrepresented gaps in the accelerator and entrepreneurial ecosystem space in the USA. The prize money is intended to provide with supplemental and critical capital to the operating budgets of entrepreneurial ecosystems across the land. This map is not an actual representation, just a demonstration. 3 Small Business Administration 3

14 Accelerators The How 4 Small Business Administration

15 Accelerators The How The Application Questions & Metrics Application Link: MOST EASILY AVAILABLE ON CHALLENGE.GOV Application Elements (SAMPLE QUESTIONS): MISSION & VISION What is your accelerator s mission (in one sentence)? Why is your accelerator unique? What specific elements make your accelerator model innovative? What experiences prepare your founding team for this project? IMPACT What gaps will your accelerator fill? (Geography? Underserved communities? Industries?) What are the specifics of your model and how will it accomplish above? For existing accelerators what metrics do you use and what have been your successes to date? Metrics (Quarterly & Yearly): Jobs created (both in the actual accelerator team and in the startups within the accelerator) Funds raised or dollars invested Startups launched Progress of startups towards graduation New startups in queue Qualitative impact on community Loans acquired Corporate Partnerships obtained IMPLEMENTATION What is your specific plan for utilizing the prize money if you win? If you are an existing accelerator using the funds to scale up, provide details of current operations, phases for scale up and website. Key Dates: Competition Launched May 12 Application Deadline August 2 Prizes Awarded Mid-September 5 Small Business Administration 5

16 Status Status of Incoming Applications (So Far): About 400 applications have been started Sample 10 cities applications have come from Oak Ridge, TN Hoboken, NJ Cedar Rapids, IA Lincoln, NE Canton, GA Asheville, NC Westerville, OH Ashland, OR Fort Lauderdale, FL Martin, TN Sample News Clip Quote: It s a good first step, said John Fein, who is the managing director for Techstars, which operates the Sprint Mobile Health Accelerator in Kansas City. Fein said the SBA has worked with the Global Accelerator Network, recently spun off from Techstars. Traditionally the SBA hasn t been an organization that we ve thought of when talking to our own startups about funding. We re certainly hoping that s going to change, Fein said. Sample of 5 themes which accelerators are focused on Women focused Clean energy Technology Organic farming Food industry 6 Small Business Administration

18 Veterans Update Boots to Business Resource Partner Grant Expanding Overseas Feedback, Challenges and Opportunities Boots to Business: Reboot Veterans Programs and Events Veterans Advantage VBOC Re Compete 1

Boots to Business 2 day JAN 13 JUN 14 Installations 165 2 day

participants 1065 *includes virtual curriculum 8 Week Enrollment

19 Boots to Business 2 day JAN 13 JUN 14 Installations day courses day participants* 12,610 8 week courses 14 8 week participants 1065 *includes virtual curriculum 8 Week Enrollment 01JAN13-01JUN14 Attendees by Service % by Gender % by Ethnicity % by Rank/Dependent

20 Instructors

21 Key Facts Who: U.S. Military Veterans What: An entrepreneurship training program developed to introduce veterans to the fundamentals of business ownership Where: Hosted in 12 cities across the U.S. When: July and August Why: There are more than 20 million veterans who have transitioned into civilian life. Veterans have the skills it takes to be entrepreneurs, yet the jobless rate among veterans is persistently high. This program will educate participants on the fundamentals of business ownership. 4

Locations & Dates Seattle Aug. 20-21 Los Angeles Aug. 15-16 Albuquerque Aug. 6-7 Kansas City Aug. 8-9 Chicago Jul. 31- Aug. 1 Detroit Aug.

22 Locations & Dates Seattle Aug Los Angeles Aug Albuquerque Aug. 6-7 Kansas City Aug. 8-9 Chicago Jul. 31- Aug. 1 Detroit Aug Philadelphia Aug. 1-2 Washington D.C. Jul Charlotte Aug Boston Aug. 5-6 Dallas-Fort Worth July Miami Jul

23 Veterans Advantage From Jan 2014 June 2014 = 115 loans for $30 million (Average loan $260K) Almost 75% greater volume when compared to Patriot Express activity from the same quarter in Fiscal Year lenders participated so far this year (34% increase in number of lenders) Veterans Advantage Loan Activity: MASSACHUSETTS DISTRICT OFFICE 7 MICHIGAN DISTRICT OFFICE 6 BALTIMORE DISTRICT OFFICE 6 PHILADELPHIA DISTRICT OFFICE 5 WISCONSIN DISTRICT OFFICE 5 COLORADO DISTRICT OFFICE 5 SAN ANTONIO DISTRICT OFFICE 5 GEORGIA DISTRICT OFFICE 5 MINNESOTA DISTRICT OFFICE 5 SOUTH FLORIDA DISTRICT OFFICE 4 Update v6-04 6

24 Veteran Programs and Events VWISE January 2015, New Orleans, Louisiana EBV July at Syracuse University National Veteran Small Business Week 3-7 November 2014 Vet Shark Tank VBOC Re-compete December 2014 Program Announcement 7

25 Veterans Business Outreach Centers 14 of the 15 VBOCs are in their final option year Program year ends 19 April 2015 VBOC Program Announcement Will be posted by Dec. 31, 2014 Current actions VBOCs will host Boots to Business Curriculum Update events for instructors in late summer/early autumn 8

27 1.9 million population 77,000 square miles Serve 93 Counties

29 Deb Eslinger North Dakota WBC

30 North Dakota Population North Dakota: 699,628 Washington DC: 632,323 Population Density of states with similar land area North Dakota: 10.1 South Dakota: 11.1 Nebraska: 24.3 Oklahoma: 56.1 Missouri: 87.9 Washington: 104.9

31 Office Stats Staff of 3 1 Office Cover entire state Average training requires 242 miles round trip or 4.5 hours travel Annual Individuals Counseled: 45 Annual Individuals Trained: 1500

32 Outreach RDC NDYP Finance Tour Master Minds BTAP WLP WOB CC B2B Counseling

34 Challenges & Best Practices for Rural Programs REI Women s Business Center Oklahoma

35 REI Women s Business Center Staff

36 Oklahoma

Online Job Demand Up 169,000 in August, The Conference Board Reports

Online Job Demand Up 169,000 in August, The Conference Board Reports News Release For further information: Frank Tortorici (212) 339-0231 Gad Levanon (212) 339-0317 June Shelp (212) 339-0369 For Immediate Release 10:00 AM ET, Monday, August 31, 2009 Release #5362 Online