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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, 2017
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Background…...
Mark LangeUW-Extension, Edward Lowe Foundation, Notre Dame
University of Oregon, Banking & Business Education
Entrepreneur
Todd Strother, Ph.D., MSPhD 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.
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Cooperative Extension
Continuing Education
Public Broadcasting
Business & Entrepreneurship
Small Business Development Centers (SBDC’s)
Center for Technology Commercialization
Center for Business Intelligence
Food Finance Institute
Business Dynamics Research Consortium
Division for
Business and Entrepreneurship
SMALL BUSINESS AND
ENTREPRENEURSHIP DEVELOPMENT
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SCHEDULEPart 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 StrotherUWEX Center for Technology Commercialization
Part 5 – questions and discussion (20 min)
small business development matters
local economies are driven by small business
small business developmento creates local jobs
o increases local tax base
o improves the quality of living for local residents
new business and existing business programs
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vital and robust local economy
dynamic and growing small
business sector
role of small businesses
employers
tax revenue generators
economic supporters
property owners and renters
providers of economic stability and growth
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www.YourEconomy.org
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
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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 15-16 93.3% 6.7%
job loss 15-16 85.8% 14.2%
small business impact in Wisconsin
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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%
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underlying dynamics part 2 (churn)
opens minus closings = 53%
expansions – contractions = 47%
moves = 1%
let’s look at your
community..........
four types of entrepreneurs
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Micro Enterprises
$35K or less to start
Dislocated workers,
retirees and lifestyle
Main Street
Large segment –
defines culture
Create business
around area of expertise
Innovation-Led
Research and development
bring new products and
processes
Intellectual property and high growth
potential
Secondstage
Survived startup
focused on growth
10-99 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) www.joinsourcelink.com
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Micro Enterprises
$35K or less to start
Dislocated workers,
retirees and lifestyle
Main Street
Large segment –
defines culture
Create business
around area of expertise
Innovation-Led
Research and development
bring new products and
processes
Intellectual property and high growth
potential
Secondstage
Survived startup
focused on growth
10-99 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
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
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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
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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
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supporting roles of the EDO
IMPROVE ACCESS TO
SMALL LOANS
CONNECTIONS TO BUSINESS
SUPPORT ORGANIZATIONS
SUPPORT BUSINESS
INCUBATION ACTIVITIES
IMPROVE ACCESS TO SBA 504 CDC LOAN
PROGRAMS
SPONSORING NETWORKING
EVENTS
SUPPORT BUSINESS
EDUCATION & TRAINING COURSES
BUILD CULTURE OF BUSINESS
PERFORMANCE DEVELOPMENT
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existing business
development strategies+ the age of the
generalist is over – findorganizations 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
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