Small Business and Entrepreneurship Development
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1 Small Business and Entrepreneurship Development The goal today providing a framework for understanding and supporting small business and entrepreneurship Mark Lange and Todd Strother, Ph.D., MS Madison, Wisconsin September 13,
2 Mark Lange UW-Extension, Edward Lowe Foundation, Notre Dame University of Oregon, Banking & Business Education Entrepreneur Todd Strother, Ph.D., MS PhD UW Madison in Cellular and Molecular Biology, HR recruiting specialist for ealry stage scientific companies, Co-designed and manages two seed funding programs for UWEX. 2
3 Cooperative Extension Continuing Education Public Broadcasting Business & Entrepreneurship 3
4 Division for Business and Entrepreneurship Small Business Development Centers (SBDC s) Center for Technology Commercialization Center for Business Intelligence Food Finance Institute Business Dynamics Research Consortium
5 SMALL BUSINESS AND ENTREPRENEURSHIP DEVELOPMENT SCHEDULE Part 1 understanding small business impact (35 min) Part 2 defining the four types of entrepreneurs (15 min) Part 3 your role in developing small business and entrepreneurship resources (15 min) Part 4 lean startup tutorial (35 min) featuring Todd Strother UWEX Center for Technology Commercialization Part 5 questions and discussion (20 min) 5
6 small business development matters vital and robust local economy dynamic and growing small business sector local economies are driven by small business small business development o creates local jobs o increases local tax base o improves the quality of living for local residents new business and existing business programs 6
7 role of small businesses employers tax revenue generators economic supporters property owners and renters providers of economic stability and growth 7
8 YourEconomy.org provides a deeper view inside traditional federal statistics to show the real impact of small business and entrepreneurship. Combines non-employer and employer establishments Includes business owner as an employee Nearly 70% of business establishment tax returns have no employees YE shows active businesses (does not include paper or micro estabs) To learn more about your small business impact begin with: 1. Number of establishments 2. Number of jobs 3. Total revenue 4. Net job change and where it comes from 8
9 small business impact in Wisconsin 2016 less than 100 employees greater than 100 employees establishments 98.7% 1.3% jobs 67.6% 32.4% revenue 68.6% 31.4% job gain % 6.7% job loss % 14.2% 9
10 underlying dynamics 2016 (churn) where the gains came from. new startups = 70.2% existing company expansions = 29.7% company moves-ins = 0.1% and the losses. business closings = 78.5% existing contractions = 21.3% move-outs = 0.2% 10
11 underlying dynamics part 2 (churn) opens minus closings = 53% expansions contractions = 47% moves = 1% let s look at your community... 11
12 four types of entrepreneurs Micro Enterprises Main Street Innovation- Led Second stage $35K or less to start Large segment defines culture Research and development bring new products and processes Survived startup focused on growth Dislocated workers, retirees and lifestyle Create business around area of expertise Intellectual property and high growth potential employees up to $50 million revenue Entrepreneurs and the companies they lead are different - and that s what makes matching entrepreneurs with the right resource at the right time so challenging Developed by Source Link (R&D for your entrepreneurial community) 12
13 Micro Enterprises Main Street Innovation- Led Second stage $35K or less to start Large segment defines culture Research and development bring new products and processes Survived startup focused on growth Dislocated workers, retirees and lifestyle Create business around area of expertise Intellectual property and high growth potential employees up to $50 million revenue Group exercise For the type your table has been assigned: 1. Identify 3 of the most critical issues they face or the resources they need. 2. Identify the 2-3 organizations in your area best suited to provide those resources 13
14 role of the EDO coordinate and orchestrate relationships among state, regional and local business organizations. improve access to capital develop multiple alternatives recognition & awareness of successful ventures o Tell stories tell more stories have three in your pocket streamline access to information o permits, zoning laws, etc o market and demographics increase access to technical assistance 14
15 technical assistance for entrepreneurs and new businesses determining form of enterprise local market or external market focus local finance, marketing, cash flow, location, competition, operations, networking business plan external market, competitor and strategic intelligence lean startup business model canvass 15
16 incubators and accelerators incubators space to grow and collaborate o mechanism used to encourage and support young companies - affordable space - technical and managerial support (wet labs, food kitchens, shared meeting spaces) accelerators guidance for growth (not a place) o Program combining education, mentoring and access to service providers. Some funding or cash infusion is typically included, 2-3 cohorts or session per year over a short and intense timeframe. WEDC is big supporter 16
17 supporting roles of the EDO IMPROVE ACCESS TO SMALL LOANS IMPROVE ACCESS TO SBA 504 CDC LOAN PROGRAMS SPONSORING NETWORKING EVENTS CONNECTIONS TO BUSINESS SUPPORT ORGANIZATIONS SUPPORT BUSINESS INCUBATION ACTIVITIES SUPPORT BUSINESS EDUCATION & TRAINING COURSES BUILD CULTURE OF BUSINESS PERFORMANCE DEVELOPMENT 17
18 + + + existing business development strategies the age of the generalist is over find organizations with specific tools for business development coordinate efforts with multiple sources - state, regional and local recognize the impact of existing companies and build a culture that supports them 18
19 19
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