Jim Carroll
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  • 1. Embrace the Teeter Totter Factor … What is so BIG about Small Business? Presented by: Jim Carroll Executive Director, BIG Center Kentucky Highlands Investment Corporation London, Kentucky
  • 2. KHIC‟s Mission To provide and retain employment opportunities in Southeastern Kentucky through sound investments, training and management assistance. Regional, private, non-profit business development corporation founded in 1968 serving 22 counties in Eastern and Southern KY.
  • 3.  Created or retained over 10,000 jobs  Assisted 483 businesses  Invested over $180 million  Created or retained over $120 million in annual wages
  • 4. How Do We Accomplish Our Mission?  Micro- Enterprise Loan Program – up to $35,000  Small Business Loan Program – up to $250,000  USDA B&I Loan Program – up to $10,000,000  Revolving Lines of Credit  Equity Investments  Support Entrepreneurs with Training & Coaching  Business Incubation
  • 5. Definitions… Small Business – a for profit business with 500 or fewer employees that is independently owned and operated. US SBA Micro Enterprise – a business having 5 or fewer employees and seed capital of no more than $35,000. Wikipedia Entrepreneur – an individual who starts a for profit business with the idea to supply a product or service which is better, faster or cheaper than what is currently available. Jim Carroll
  • 6. Economic Development Recruitment Retention (Get „em) (Keep „em) New Companies (Grow „em)
  • 7. “For the United States to survive and continue its economic and political leadership in the world, we must see entrepreneurship as our central comparative advantage.”
  • 8. What you should know…  1/3 of GDP comes from companies that didn‟t exist before 1980  Between 1980 and 2005, young companies (<5yrs) accounted for ALL net new job growth  Firms have been started in bad economic times  FedEx, Microsoft, Apple, Southwest  50% of Fortune 500 and Inc. 500 Since 1980 the US has made a “profound shift from a „managerial‟ to an „entrepreneurial‟ economy.” Peter Drucker
  • 9. What you should know…  New companies create new industries  Small businesses are more productive  Small businesses pay better wages (+15%)  Employees of small companies have higher job satisfaction  Small businesses are a major source of innovation
  • 10. What should concern you…  Little “economic stimulus” is directed towards Small Business - $15 billion of $1.5 trillion  Policy tends to hurt Small Business  Sarbanes Oxley  Health Care  Taxes  Higher Education  27% of graduating college seniors plan to work for nonprofits  More seniors will graduate with sports degrees than electrical engineering degrees  < 20 business will be started for each $1 billion in university research
  • 11. What should give you hope…  SBA Policy…  Elimination or reduction of SBA loan fees  Raising SBA guarantee  Raising loan maximums  Expansion of SBIC program  State is streamlining application processes  Bank regulations focusing on Small Business “Economic recovery will be driven, in a large part, by America‟s small businesses.” – White House Statement
  • 12. Things I Think I Think…  SEC and states need to allow third party securities (peer-to-peer loans such as Kiva, Prosper) to operate without standard regulation  Allow shareholders of Small Business to choose SOX compliance  Health care reform – level out small business costs, eliminate “entrepreneurship lock”  Immigration – green cards for job creators  University Technology License Office competition Creating a System of  Educators… Stop vilifying capitalism and free Support for Entrepreneurs enterprise and Small Business in Kentucky: Insights and  States need overarching visions for Small Policy Recommendations, Marley and Dabson Business Economic Development  Each community must adopt a plan for creating a Small Business Ecosystem
  • 13. The Teeter Totter Effect It only takes a small shift one way or the other to make a negative or positive impact on a community. “Just one person can really make a difference – either for good or for bad.”
  • 14. The Teeter Totter Effect  Identify the Champion  Use the Champion to make introductions to community leaders – don’t expect this person to deliver YOUR message  Understand the political dynamics  Know the hot-buttons for the community  Show support for other projects already in place  Communicate, communicate, communicate…
  • 15. Entrepreneur E Ecosystem Training Capital Mentoring Connections Entrepreneur Commerce Facilities Connections Networking
  • 16. Entrepreneur E Ecosystem Training  Provide practical business skills training  Recruit Trainers  Provide training to Trainers  Offer classes on a regular basis  Partner with local Higher Ed Institution(s)  Offer lecture series on Entrepreneurship  Encourage participation in Excellence in Entrepreneurship Awards  Publicize Boot Camp to students  Provide facilities to conduct Boot Camp  Encourage High Schools to introduce entrepreneurism  Offer lecture on Entrepreneurship  Offer Junior Achievement program  Encourage participation in Entrepreneur Leadership Institute
  • 17. Entrepreneur E Ecosystem Mentoring  Engage SBDC, SCORE, Chamber of Commerce, ED  Deliver information to Entrepreneurs on existing programs  Provide Mentors and Coaches  Recruit Mentors and Coaches from existing business leaders  Provide training to Coaches  Establish Coaching Connections  Assign Mentors to Entrepreneurs  Mentors to schedule regular meetings with Entrepreneurs
  • 18. Entrepreneur E Ecosystem Facilities  Identify space for collaboration with other entrepreneurs  Establish Business Accelerator (nice to have)  Shared office & conference facilities, shared technology, shared manufacturing  Below-market rates  Favorable lease terms (short-term, no personal guarantee)  Furnished
  • 19. Entrepreneur E Ecosystem Networking  Utilize technology to communicate with Entrepreneurs  email, Facebook, Twitter  Sponsor regular networking events for entrepreneurs  Establish CEO Roundtable group  Sponsor Lunch & Learn Series  Recruit small businesses to join Chamber of Commerce  favorable rates  benefits
  • 20. Entrepreneur E Ecosystem Commerce Connections  Establish a formal business networking group  Establish “Do Business Local” campaign  Establish/maintain connections with State and Fed policy makers  Make connections with University tech transfer organizations  Sponsor an annual Export Expo  Encourage E-commerce  Identify local developers  Encourage instruction at local education institutions
  • 21. Entrepreneur E Ecosystem Capital Connections  Involve local banks  Cultivate relationships with local investors, CDC’s, etc.  Identify local and state private investors  Sponsor an annual Small Business Showcase  Educate entrepreneurs on due diligence expectations
  • 22. Entrepreneur E Ecosystem Training Capital Mentoring Connections Entrepreneur Commerce Facilities Connections Networking
  • 23. What is so BIG about Small Business? Jim Carroll Executive Director, BIG Center 606.260.0830 jcarroll@khic.org