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Small business centers help revitalize local economies

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A prospective entrepreneur receives advice from staff at North Iowa Area Community College’s John Pappajohn Entrepreneurial Center.​​​
Keith Kullberg knew his freshly prepared beans would be a hit in Portland, Ore. He was not afraid to launch a new business, but he knew nothing about the food industry.
 
Then he heard about Portland Community College’s (PCC) Recipe to Market Program, which covers food safety, recipe formulation, product and brand development, and distribution—everything a food entrepreneur needs to know to bring a product to life.
 
“In 13 weeks, I learned what would’ve taken at least nine months to figure out on my own,” Kullberg says.
 
The culmination of the program is a trade show-like event at which students present their products to New Seasons Market. The winner receives $2,000 and shelf space at New Seasons stores. Kullberg’s Better Bean Co.’s Skillet Refried Beans were this year’s winner.
 
Across the country, community colleges and small business development centers (SBDCs) are working together to provide classes, seminars, counseling and more to help revitalize their local economies. These relationships are mutually beneficial, as both parties have different but complementary skills and expertise.
 
“Community colleges are extremely focused on economic development. They’ve done a great job of integrating what they do with their communities,” says Antonio Doss, associate administrator of the Office of SBDCs at the U.S. Small Business Administration. “SBDCs make sure small businesses have the opportunity to succeed. It’s a perfect match.” 
 
“The better their connectivity, the better for the entire economic community,” says Trish Truitt, special projects manager for the National Association for Community College Entrepreneurship (NACCE). “It’s a natural partnership that can be as effective as you want it to be.”
 
That’s certainly the case at PCC’s SBDC. In addition to Recipe to Market—which the center and its in-house SBDC started after several foodies began coming around—the college offers a series of entrepreneur-development programs that take business owners from concept through the first six years. The 10-month programs cover finance, personal development, marketing and operations. Between classes, students meet with a business advisor to help turn their ideas into action.
 
“The advisor coaches, mentors, nags, harasses, and offers emotional support,” says Jackie Babicky Peterson, director of business education at PCC’s SBDC. “Tying education and advising together is a hugely powerful model.”
 
Small businesses in Portland are listening. In 2009, the SBDC provided one-on-one business advising to more than 900 clients, created 167 new jobs, and trained more than 150 small business owners, all of which made it the number-one SBDC in the state.
 
A focus on high tech
 
Indian River State College (IRSC) in Florida is another community college with a strong SBDC affiliation.
 
“Our president is a visionary who believes education equals economic development,” says Jan Pagano, an associate dean at the college.
 
The college is building an energy-efficient facility that will house the SBDC, a virtual incubator and an entrepreneurial-development suite with support services for fledgling high-tech firms.
 
“It will be like Kinko’s,” Pagano says. “We’ll offer memberships to area businesses that need counseling, one-on-one training and intensive assistance with business or marketing plans.”
 
Because more than half of the local businesses are home-based, the new center will have office space, a conference room and a marketing-analysis room for entrepreneurs to conduct surveys and focus groups. In addition, there will be a spot for people to practice their presentations for angel investors and venture capitalists. Pagano says there is a strong need for these kinds of assistance, and a lot of thought and planning have gone into this.
 
Perhaps the best service provided, however, is the opportunity for networking.
 
“Often, you don’t realize someone down the street has exactly what you need,” Pagano says. She tells the story of a coffee-shop owner who brought coffee and doughnuts to a seminar and soon began taking catering orders on the spot.
 
Small business at IRSC is booming. In 2009, more than 1,700 jobs were created or retained, eight new businesses launched and nearly 300 clients received counseling.
 
Nuturing ideas
 
North Iowa Area Community College (NIACC) contracts with the John Pappajohn Entrepreneurial Center (JPEC) to provide SBDC services.
 
“Our entire staff sits down to talk with a potential client about her ideas or problems. Like doctors, we diagnose the issues and try to solve them collaboratively,” says Jamie Zanios, vice president of institutional advancement at NIACC.
 
Some businesses are a good fit for the college’s incubator; others need help with feasibility studies or business plans. Many just need seed money.
 
“We developed a micro-loan program of $2,500 and less for home-based businesses that need money but have been turned down by banks,” Zanios says.
 
There’s a venture-capital fund for startups that are not home based.
 
Between July 2008 and June 2009, JPEC started 29 new businesses, created 235 jobs and welcomed 5,346 people into its entrepreneurship program.
 
One lesson these three colleges have learned is that partnering with an SBDC can be rewarding and beneficial.
 
“We encourage all community colleges to reach out,” says NACCE’s Truitt. “The more you work together, the better off the entire local economy will be.”
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