PUBLICATION & ARTICLES

Timothy M. Stearns: Entrepreneurship vital to recovery Getting innovation from the mind to the market So, you want to be an entrepreneur Inc. Magazine's 5000 fastest growing companies Business Planning, business plans and venture funding - a definitive reference guide for start-up companies Venture investment climbs in India, China and Israel Building a better business school Update on the $250,000 Entrepreneur USA business plan competition

TIMOTHY M. STEARNS: ENTREPRENEURSHIP VITAL TO RECOVERY The Fresno Bee As any entrepreneur knows, when the market is not responding to your product, you change your product. And with unemployment in the San Joaquin Valley once again returning to unacceptable levels, we must change our product. By all accounts, we are in for a long cycle of economic malaise. The Great Recession looks more like an L than a V or U on a graph. And with that in mind, we need to rethink why we continue to find ourselves in economic circumstances that rival the worst in the nation. There is a way out, but it is going to require a commitment by the community as a whole to move in a new direction. By offering a product that has succeeded in many other regions. That product is a tenacious effort to cultivate and foster entrepreneurial start-ups. Entrepreneurs are individuals who have built our country's wealth, brought innovation to the market, and have taken the necessary risks that others are unwilling to pursue. Our cultural fabric has been built on self-employment, though over the past 50 years we lost our understanding of the contributions that entrepreneurs make. Instead, we have accepted a common set of myths that serve to dampen the entrepreneurial spirit depriving us of a powerful wealth generator. So what are those myths? Here are five: Myth 1: Most businesses fail within two years. False. Depending on the source and the time period, the number of businesses that survive to their fifth year hovers around 50%. And that includes counting as failures those business that were sold, closed for personal reasons, and discontinued after accomplishing the desired outcomes. Myth 2: Entrepreneurs are born, not made. A genetic argument. For some reason, people want to believe that entrepreneurs are individuals born with a gene that makes them entrepreneurs. But why stop there? Let's find the accountant gene, the dishwasher gene and the office manager gene. We can conduct the tests on all 12-year-olds and then based on the genetic findings, we can guide them to their genetic destiny. Entrepreneurs are made. Myth 3: Entrepreneurs are risk takers. Yes, they are. Calculated risk takers. They size up an opportunity, evaluate the factors that can lead to failure, identify how to neutralize those factors, and then if that makes sense, launch a business. The risk takers are those preparing themselves to take a job with a corporation. Myth 4: Large businesses create the jobs in America. False. The Kauffman Foundation, in a recently released study, compared start-ups with existing businesses from 1977-2005. On average, start-ups create 3 million jobs each year. Existing businesses, on average, lose 1 million jobs annually. And more important, the study found that during recessionary years, job creation at start-ups remains stable; while for existing businesses the pattern was downward. Myth 5: The most productive economic strategy by a community is to attract existing businesses. This is often referred to as the "rob thy neighbor" strategy of economic development. Find a business in another community, bribe them with taxpayer dollars to move to your community, and as a result they will bring jobs and wealth to your community. Never mind the fact that it destroys many lives in the other community. If you are looking for an example of success using this strategy, look no further than Mississippi. They originated the "rob they neighbor" strategy back in the 1930s. If we are to change the product, we as a community need to embrace a culture of entrepreneurship. And the very first step is through educating our youth. No student in our community should graduate from high school without a course in entrepreneurship. We need to realign our government and community institutions so entrepreneurship becomes a priority, not a desire. And we need to make sure that our precious tax dollars dedicated to economic development are directly invested into programs that assist individuals who can launch a business with great success. We cannot afford another decade of economic decision making based on myths. We need to make a change and make it now. Dr. Timothy M. Stearns is the executive director of the Lyles Center for Innovation and Entrepreneurship and the Coleman Foundation Chairholder in Entrepreneurship at California State University, Fresno.   GETTING INNOVATION FROM THE MIND TO THE MARKET Brad Talbutt / btalbutt@idahostatesman.com. Boise State University professors Rick Ubic, left, and Peter Mullner use an electron microscope to examine ceramics, cells and other substances to help them develop materials for practical uses. I-Cubed, a new Boise company, plans to help Idaho university researchers like Ubic and Mullner develop commercial applications from their research. Darin Oswald/Idaho Statesman. Ryan Woodings founded MetaGeek about three years ago in Boise. The small tech business has developed wireless analysis software and hardware that aid in optimizing WiFi signals. A new business called I-Cubed plans to help Idaho companies like Woodings’ take advantage of millions of dollars in private investment aimed at commercializing new technology.

Joe Jaszewski / Idaho Statesman. Miles Mahoney (right) and Brian Dickens head I-Cubed, a private corporation which will funnel intellectual property and innovation from state laboratories and universities to the private sector.

The Idaho Department of Commerce is backing the enterprise, helping it negotiate with the Homeland Security Department and using its trade representatives to identify potential investors in China, Mexico and other countries.

The company expects foreign investment under a federal immigration program that grants foreigners visas in exchange for investing at least $500,000 in U.S. businesses. The program offers foreigners permanent U.S. residency, or a green card, in exchange for helping create U.S. jobs.

State officials hope I-Cubed, short for Invest Idaho Innovations LLC, will become a central clearinghouse for Idaho’s untapped intellectual wealth.

SO, YOU WANT TO BE AN ENTREPRENEUR

First, answer these questions to see if you have what it takes. Thinking about starting a business? Make sure you’re cut out for it first.

In this bleak economy, lots of people are contemplating striking out on their own—whether they’re frustrated job seekers or people who are already employed but getting antsy about their company’s prospects. For some people, entrepreneurship is the best option around, a way to build wealth and do something you love without answering to somebody else. But it’s also a huge financial gamble—and some people, unfortunately, will discover too late that it’s not the right fit for them.

Building a successful business can take years filled with setbacks, long hours and little reward. Certain personalities thrive on the challenge and embrace the sacrifices. But it can be a hard switch for someone who has spent years sitting in a cubicle with a steady paycheck. Here, then, are 10 questions to ask to see whether you’re up for the challenge of entrepreneurship. >>

INC. MAGAZINE'S 5000 FASTEST GROWING COMPANIES

Has your company grown since 2005? If so, yours may be one of the 5,000 fastest-growing companies in America. Apply now to be recognized and celebrated for your accomplishment on the Inc. 500|5000 (http://www.inc.com/5000) list.  

The list ranks companies based on revenue growth over a three-year period, from 2005 to 2008. If you make the list, Inc. will share your company’s story with the world. The top 5,000 companies will be profiled on Inc.com, while the top 500 will be covered in the September 2009 issue of Inc. magazine. All are invited to our annual Inc. 500|5000 conference and celebration. (When’s the last time you hung out with 1,000 or so successful entrepreneurs?) Plus, you’ll have access to year-round networking, promotional and educational opportunities through the Inc. network. 

Click here (http://www.inc.com/inc5000apply} to apply if you haven’t already done so. If you applied last year, or are already a member of IncBizNet, please access the 2009 application through your account login here (http://incbiznet.com/user). Applications for the 2009 list are due on March 31, 2009. If you have any questions about the list or the application process, call us directly at 1-800-248-0308. Each applicant will be assigned an account specialist who will be available to address questions and comments by phone or email.  

This year more than ever, entrepreneurs need to join together to remind the world that you are the backbone of the American economy and the future of American business. There is no better way to do it than through the Inc. 500|5000.  

We hope to see you on the 2009 list!

The Inc. 500|5000 team
1.800.248.0308 

BUSINESS PLANNING, BUSINESS PLANS AND AND VENTURE FUNDING - A DEFINITIVE REFERENCE GUIDE FOR START-UP COMPANIES

Robert Ochtel’s new book of its kind to take a “planning-to-funding” approach to fund raising, with the ultimate goal of securing angel, venture or other third party equity funding. Targeting entrepreneurs, early-stage company investors and entrepreneurship students, this book provides an experienced, practical approach on how to: execute business planning, develop a complete investor-focused business plan, and secure venture funding. 

The processes and methodologies provided in this book to have been used raise over $50M in early stage funding from such venture capitalists as Sequoia Capital, Brentwood Associates, Oak Investment Partners, AT&T Ventures, and Intel Corporation. Through the adoption of these proven processes and methodologies, entrepreneurs can substantially increase their probability of success in their fund raising efforts and ultimately introducing their company’s product, service or technology into the market place. For more information on Robert’s book or to purchase a copy go to: www.carlsbadpublishing.com.  

As a complementary resource, Robert Ochtel’s Entrepreneur Blog addresses venture capital and angel investor funding issues facing entrepreneurs. Robert’s blog focuses on providing proven and practical expertise on business planning, business plans, marketing, sales, venture capital and angel investor funding issues. Recent topics covered in Robert’s blog include: 

Know the rules of the venture capital funding game!

1. A technology does not make a product. Venture capitalists prefer large established markets

2. Take time to do business planning before you jump.

3. Know the venture funding community—angel investors vs. venture capitalists

4. Know your odds in securing funding. 

Robert’s latest blog posting

The economic crisis spread beyond Silicon Valley to technology hotbeds abroad in the fourth quarter. But while venture capital investment fell in the United States last year, it still managed to rise in China, India and Israel, according to Dow Jones VentureSource data released Wednesday.

In 2008, venture capitalists invested $13.4 billion in young companies in Europe, Israel and India, according to VentureSource. That was up 5 percent from 2007. Comparatively, venture capital investment in the United States for the year fell 8 percent to $28.8 billion.  >>

BUILDING A BETTER BUSINESS SCHOOL

Entrepreneurial spirit key, Babson president says.
Leonard A. Schlesinger, 56, took over as president of Babson College in Wellesley July 1. A former Harvard Business School professor who has worked in both academia and business, Schlesinger came to Babson from Limited Brands Inc., in Columbus, Ohio, where he was vice chairman and chief operating officer. Earlier in his career, he was executive vice president and chief operating officer at Au Bon Pain, based in Boston. Schlesinger recently spoke in his office at Babson with Globe business reporter Robert Weisman.

UPDATE ON THE $250,000 USA ENTREPRENEUR USA BUSINESS PLAN COMPETITION

The Lyles Center for Innovation and Entrepreneurship at CSUF (ranked 8th in the nation by Entrepreneur Magazine) is pleased to announce that we are moving forward on plans for the $250,000 Entrepreneur USA Business Plan Competition. We have recently partnered with the Astone Agency that will assist us in our advertising efforts.

The Competition will provide an opportunity for entrepreneurs across the country to submit a business plan for the launch of a business in the City of Fresno. These enterprising entrepreneurs will visit a website, gather information on opportunities in the region, craft a business plan, and submit an application online for evaluation.

The top 10 business plan finalists will be flown to Fresno for their presentations in the fall of 2008. The winner will receive $100,000 cash and $150,000 of in-kind services provided they start and grow the business in Fresno. A field of judges will be selected to interview the ten finalists and scrutinize their business plans. Entrepreneurs will soon be able to obtain information about the contest through advertisements with media partners and via the website.

Our team of web engineers is developing a web site that will provide market information to entrepreneurs that will also serve as a portal for business and community resources while submitting entries. 100% of the prize winner earnings of $100,000 have been identified. We are seeking further capital and in-kind funding to complete our package.

We would like you to join the effort to create a national competitive advantage for the city of Fresno. Our Levels of Sponsorship for interested organizations who would like to contribute to Fresno's economic growth can be reviewed at www.lylescenter.com.

For further information on how your organization can become involved, please contact Christine Cerda at the Lyles Center for Innovation and Entrepreneurship at (559) 285-1999.