Development Funding SF787. March 23 rd Page 1
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1 Proposal Executive for Entrepreneurial Summary Development Funding 1 SF787 March 23 rd 2015 Page 1
2 Executive Summary The South Central MN Small Business Development Center (SBDC) and Regional Center for Entrepreneurial Facilitation (RCEF) came together four years ago to realize a truly cooperative partnership one that is unique and extremely successful. The South Central Collaborative Business Development Partnership brings together two organizations that previously competed for funding, clients and community partners. Both organizations were administered by the Department of Employment and Economic Development (DEED) and had redundant administration staff and expenses. This resulted in un-leveraged funding, missed opportunities, underserved markets and confusion among business owners. By partnering, the two organizations have established well-defined areas of service excellence, leveraged federal dollars and county resources, and also engaged local communities and banking partners. This collaboration has strengthened more small businesses, created more jobs and helped businesses in accessing more capital than ever before. With continued and increased funding, we will expand our services to more communities, establish stronger local partnerships, and help grow more businesses and jobs. Our pilot initiatives include programs to engage students in their rural communities in order to conduct comprehensive small business needs analysis. In addition, we will begin to build an export assistance center to help southern Minnesota businesses become globally competitive. Page 1 Page 1
3 2014 Results 2014 Results Goals Actual Hours of Consulting 3,500 4, % Clients % New Business Starts % Investment Capital Accessed 8M 18M 225% Jobs Affected % Source: MN SBDC Network Client Database MN Department of Employment and Economic Development Based on calendar year 2014 Page 2
4 Return on Investment According to DEED s 2013 Annual Impact Survey: For every $1 of state funds invested in the South Central Collaborative Business Development Partnership $631 in business revenue is increased or saved. $18 is generated in taxable income. For every $213 of state funds invested in the South Central Collaborative Business Development Partnership 1 job is created. 92% Page of clients who started a business in the past 5 years are still in business. Page 3 3
5 New Initiatives Main Street Business Retention The goal of this program is to walk through the door of every rural business in the nine-county region. A proactive approach, this program serves small rural communities in assessing their business needs and matching them with appropriate resources. This will strengthen rural economies through retention and growth from within. Expand Satellite Service Centers To meet our clients needs and support growing economies, satellite service centers have been established. We intend to expand our delivery infrastructure to include a satellite center in each of the nine counties in our region. Youth Entrepreneurship This program aims to work with students to enhance their education, provide interaction with the small business community and apply their academic coursework in real-world entrepreneurial practice. Export Assistance Center Working closely with the Minnesota Trade Office, we will create a center to provide hands-on support to southern Minnesota businesses entering the global marketplace or expanding their existing trade activities. BizPitch This program aims to better prepare entrepreneurs to pitch their ideas to investors and lenders. The program provides them insightful feedback from area business professionals, helping them identify strengths and weaknesses in their business concept. Page 4
6 Awards Rural Outstanding Economic Development Effort Award This award was received for partnership and economic development efforts between RCEF and Martin County EDA-IGNITE. SBDC Center of Excellence Minnesota and Upper Midwest Region Presented for excellence in providing value to small businesses and advancing program delivery and management through innovation. The Upper Midwest Region includes Minnesota, Illinois, Indiana, Michigan, Ohio and Wisconsin. Progress Minnesota Award Best Rural Economic and Community Development Program MN SBDC State Star Page 5
7 Testimonials The City of St. James EDA is always interested in collaborations that enable us to reach our goals with the ultimate goal being to enhance the quality of life for people in St. James through the generation of productive employment opportunities sand the expansion of the tax base. Collaborations with the SBDC and RCEF provide services to achieve this goal. Molly Westman City of St. James EDA RCEF has provided remarkable entrepreneurial and business consultation services, support, and training for new and existing businesses here in Martin County. The RCEF entrepreneur and business facilitation model has been highly effective in Martin County, creating and retaining jobs and strengthening our local economy. This collaboration between RCEF and the Martin County EDA has truly been a success. Scott Higgins Martin County Coordinator We have partnered with the SBDC in assisting entrepreneurs and small business growth and development in Faribault County. Our partnership has continued to strengthen the economy in Southern Minnesota. Linsey Preuss, Executive Director Faribault County Development Corporation The SBDC has delivered impressive results toward building lasting collaborations for economic development and increasing the capacity to serve entrepreneurs and small businesses. The SBDC provides business consulting, education workshops and outreach. These efforts will leverage even further existing federal and regional resources in a true partnership with local business and community leaders. Michele Sorenson, Executive Director Business and Entrepreneurial Support Team of Waseca Page 6
8 SF787 A bill for an act relating to economic development; appropriating money for entrepreneurial development; requiring reports. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. ASSISTANCE TO ENTREPRENEURS; APPROPRIATION. (a) $360,000 in fiscal year 2016 and $360,000 in fiscal year 2017 are appropriated from the general fund to the commissioner of employment and economic development for a grant to the small business development center hosted at Minnesota State University, Mankato, for a collaborative initiative with the Regional Center for Entrepreneurial Facilitation. Funds available under this section must be used to provide entrepreneur and small business development direct professional business assistance services in the following counties in Minnesota: Blue Earth, Brown, Faribault, Le Sueur, Martin, Nicollet, Sibley, Watonwan, and Waseca. For the purposes of this section, "direct professional business assistance services" must include, but is not limited to pre-venture assistance for individuals considering starting a business. This appropriation is not available until the commissioner determines that an equal amount is committed from non state sources. Any balance in the first year does not cancel and is available for expenditure in the second year. (b) Grant recipients shall report to the commissioner by February 1 of each year and include information on the number of customers served in each county; the number of businesses started, stabilized, or expanded; the number of jobs created and retained; and business success rates in each county. By April 1 of each year, the commissioner shall report the information submitted by grant recipients to the chairs of the standing committees of the house of representatives and the senate having jurisdiction over economic development issues. Page 7
9 South Central Collaborative Business Development Partnership Helping create sustainable growth and business success throughout South Central Minnesota. Mike Nolan Director Small Business Development Center Minnesota State University, Mankato # Bryan Stading Executive Director Regional Center for Entrepreneurial Facilitation # Page 8 Page 8
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