Good ideas without a working knowledge of business and the ability to attract investment tend to end up failing to advance beyond the idea and startup stage.
However, according to officials with TechGROWTH Ohio, assistance abounds in the Buckeye State to help startup businesses forge ahead from the idea stage to the revenue-earning stage.
John Glazer, director of TechGROWTH Ohio, offered an overview of the agency's function as he kicked off a day-long seminar aimed at small businesses and entrepreneurs. "Reinventing Small Business in Appalachia," one of six TechGROWTH seminars planned across Eastern Ohio, was held Monday morning at the Pugliese Training Center of Eastern Gateway Community College.
Glazer said unlike many other states, Ohio offers help for early-stage companies.
"No other state has programs like this," he said.
TechGROWTH, an outgrowth of Ohio's Third Frontier effort to foster advanced-technology business in the state, offers not only monetary capital but access to human capital to help advance a business from idea to success, Glazer said.
Fact Box
TECHGROWTH'S FUNCTION
- TechGROWTH Ohio, an offshoot of the Ohio Third Frontier technology business investment program, has been in existence for more than three years
helping foster businesses in Southeastern Ohio.
- The group has helped more than 1,900 businesses, with nearly 300 receiving intensive assistance.
- More than $2.7 million in competitive small grants has been awarded to early-stage companies and more than $900,000 in pre-seed capital has been invested.
- For every $1 invested by TechGROWTH Ohio, $7 in additional money was raised to assist businesses.
- TechGROWTH Ohio has put together deals of up to $1.3 million involving private investors to help grow technology-based businesses in the region.
- More than $26.7 million in third-party investments have been made through TechGROWTH's assistance.
- To learn about how to access the assistance offered in advice and monetary resources by
TechGROWTH Ohio, visit www.techgrowthohio.com.
While an entrepreneur or inventor has knowledge of their subject and how to improve or create something, they often lack business skills.
"It's a whole different set of skills to take your innovative idea and organize a business entity around it," he told the dozens of business people attending the seminar. He said while the region is filled with people with great ideas and a willingness to go into business, the atmosphere of being a tough, self-reliant region can be a hindrance to accessing capital.
"It is a do-it-myself and get out of my way kind of entrepreneurism," he said, noting that can mean resistance from outside investors to help turn good ideas into profitable businesses.
TechGROWTH Ohio aims to find the entrepreneurs and offer the assistance and mentoring from businesspeople who have endured the line from startup to success to help businesses access money and advice while laying the groundwork to attract investors and eventually pay them a return to keep control of the company in the hands of the entrepreneur.
U.S. Rep. Charlie Wilson, D-Ohio, noted he's the fourth generation of his family to operate a now 112-year-old business that has diversified from funeral homes into retail furniture, other retail and real estate investments.
He said the federal government is working on plans to improve small business access to money by using at least part of the $32 billion repaid by banks into the Troubled Asset Relief Program to improve small business loan conditions and invest in community banks that can loan to small businesses.
Wilson said Congress acted a year ago to improve Small Business Administration programs for loans and incentives to small business.
"The most important thing for you to remember today is that there is help available," he told the businesspeople.
Wilson said business boils down to some basic areas: "You've got to please your customer and provide a service that is important for them, then you've got to keep your employees happy and meet payroll and pay your taxes."
He said the area is poised to serve as an alternative energy center for the nation, with a capable work force, the Ohio River and available natural resources to make transportation for business and energy generation cheaper than elsewhere in the nation.
Wilson is delivering the keynote speech at each of TechGROWTH Ohio's six scheduled Appalachian business seminars. The first was held Friday in Marietta. Glazer said there will be one more focused on small business and three that will focus on alternative energy development.
As part of the day of talks about available services and opportunities for small business growth and assistance, about a dozen entrepreneurs were given the opportunity to make a quick pitch about their idea or service to a panel that would offer advice, both on the presentation and where to seek assistance, according to Jessica Sherman, regional coordinator for the Muskingum County-based MCBI incubator. Progress Alliance is the MCBI-designated service provider for business in Jefferson County.
Glazer said TechGROWTH Ohio, which stands for "Growing Rural Ohio With Technology's Help," offers operational assistance, small grants to help advance business in its earliest phases, pre-seed capital and access to equity investments.
The Third Frontier, which funded the start of TechGROWTH Ohio, is up for voter renewal this year. Glazer said TechGROWTH Ohio has assisted more than 1,900 companies, with nearly 300 receiving intensive assistance during the past three years. More than $2.7 million in small grants has been offered and more than $900,000 in pre-seed investments has been made. The agency has put together deals to finance businesses with private investors of up to $1.3 million.
He said more than $26.7 million has been acquired in third-party investment beyond TechGROWTH and state seed grants, meaning for every $1 invested by TechGROWTH, about $7 additional dollars were raised to assist businesses.