Jim Carroll


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Embrace the Teeter Totter Effect

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Jim Carroll

  1. 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. 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. 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. 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. 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. 6. Economic Development Recruitment Retention (Get „em) (Keep „em) New Companies (Grow „em)
  7. 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. 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. 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. 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. 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. 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. 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. 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. 15. Entrepreneur E Ecosystem Training Capital Mentoring Connections Entrepreneur Commerce Facilities Connections Networking
  16. 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. 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. 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. 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. 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. 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. 22. Entrepreneur E Ecosystem Training Capital Mentoring Connections Entrepreneur Commerce Facilities Connections Networking
  23. 23. What is so BIG about Small Business? Jim Carroll Executive Director, BIG Center 606.260.0830 jcarroll@khic.org