Berea talk march 2012 2

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  • Work with NADO—scale of exisitng fundsHUD Loan Funds--$2.2 billionEDA RLFs-$850 millionUSDA IRP--$700 million in lending SBA 504—half of 504s reported lending $30 billion outstanding in 66,000 businesses (2009)CDFIs-$4.6 billion under mgmt.These funds are essential here—after bank loans, public loan funds were 2nd biggest source of small biz lending in Appalachia
  • Berea talk march 2012 2

    1. 1. Erik R. Pages EntreWorks ConsultingAppalachian Funders Network March 28, 2012
    2. 2.  Entrepreneur Focused: Meeting entrepreneurs where they are; responsive to their demand Pipeline Approach: Wide and deep mouth of the pipeline; Process for moving through the pipeline Not Another Program: Holistic; interconnected• Collaboration among Resource Providers: Offers “no wrong door” and leads to “hard referrals” Hub: Someone making Connections; “Network Weaver” Regionally Asset-Based: Connected to Community and Regional Assets(Source: Deborah Markley, RUPRI Center for Rural Entrepreneurship) Copyright 2012 EntreWorks Consulting March 28, 2012 2
    3. 3. PROSPER: INFORM: GROW: BuildSTART: Spur Create Train "Better" "Better" New Es Wealth & Es Businesses Jobs Copyright 2012 EntreWorks Consulting March 28, 2012 3
    4. 4.  Rural start-ups are prevalent and do not look much different from start-ups located in other parts of the US. Most firms – both urban and rural – start small and stay small. ◦ Rural firms are more persistent. They tend to have better survival rates than other firms. ◦ But, survival does not equal prosperity. These persistent firms tend to grow slower, create fewer jobs, and generate less spin-off benefits than their urban counterparts. Rural firms that do achieve fast growth tend to lose any distinctive characteristics. Copyright 2012 EntreWorks Consulting March 28, 2012 4
    5. 5.  Typical Services:  Growth Services: ◦ Coach Start-Ups ◦ Expand Markets (e.g. exports) ◦ Develop Biz Plans ◦ Stimulate growth sectors ◦ Make Traditional Loans (e.g. clusters) ◦ Help Lower Costs ◦ Link to Global Networks  Incubators (e.g. accelerators)  Tax Credits ◦ Coaching/Mentoring  Training Subsidies ◦ Provide equity finance (e.g. CDFIs, angels, etc.) ◦ Business Model InnovationWhat We Do Now: What We Should Do:Incubate! Accelerate! Copyright 2012 EntreWorks Consulting March 28, 2012 5
    6. 6.  Accelerators ◦ Tend to be for-profit ◦ Work via Boot Camp Model ◦ Start Fast, Fail Fast Examples ◦ Tech Stars (www.techstars.com) ◦ Y Combinator (www.ycombinator.com) ◦ DreamIt Ventures (www.dreamitventures.com) Copyright 2012 EntreWorks Consulting March 28, 2012 6
    7. 7.  The Business Innovation Factory Genome (www.businessinnovatonfactory.com) ◦ COLLABORATE  Connect across sectors and disciplines ◦ INSPIRE  Link entrepreneurs to new possibilities every day ◦ TRANSFORM  Tweaks Won’t Do  Experiment daily to create a wholly new vision Copyright 2012 EntreWorks Consulting March 28, 2012 7
    8. 8.  Develop and exploit new tools for financing ◦ Angel funds ◦ CDFIs ◦ Crowdfunding Better use of underutilized capital pools ◦ Revolving Loan Funds (EDA, USDA) ◦ SBA 504 Loans Copyright 2012 EntreWorks Consulting March 28, 2012 8
    9. 9.  Often used to refer to general approach that focuses on nurturing “home-grown” businesses. In reality, it refers to deployment of a targeted set of services focused on business growth. ◦ Focused on “Second Stage” Firms (those with 10-99 employees) These include: ◦ Information ◦ Infrastructure ◦ Connections Copyright 2012 EntreWorks Consulting March 28, 2012 9

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