doing business with small business sue paulson 02.17.2009
TRANSCRIPT
Doing Business with Small Business
Sue Paulson02.17.2009
Figures In 2006, Minnesota companies received
$321.5 million in venture capital investments, an increase of more than 40 percent from the previous year, ranking14th nationwide and second in the Midwest
Minnesota received $62 in venture capital investment per capita, highest in the Midwest and 13th nationwide
Minnesota’s Small Business Administration ranked 14th nationally, with $466 million in approved loans in 2006
http://www.deed.state.mn.us/bizdev/PDFs/whymn10rsns.pdf
Positive Impacts Create partnership between University –
Small Businesses Benefit both organizations
◦ Academic◦ Economic◦ Building relationships for future◦ Impacting local and global issues
Incentive Federal Agencies encourage partnerships
◦ SBIR – Small Business Innovation Research DHHS, USDA, DOC, DOD, USDA, DOC, DOD, DoED,
DOE, DHS, DOT, EPA, NASA and NSF $12 Billion has been awarded under this program
◦ STTR – Small Business Technology Transfer programs DHHS, DOD, DOE, NASA and NSF $68 million has been awarded under this
program
Challenges Business & Industry FY2008 Accounts
Receivable figures◦ 5.3 million in outstanding receivables ◦ 25% of overall receivables◦ 40% of receivables over 120 days old
B&I generally considered least collectable of all fund classes
Small businesses often view the relationship as a business
transaction
Challenges Small businesses always watch the bottom
line May have limited resources, both
monetarily and human◦ Sometimes have to make hard choices – payroll or
bills?◦ Award contact, programmatic contact, financial
contact – same person Struggle with the U of M structure
Principal Investigator Academic Department SPA SFR
We can overcome Department Head, PI and academic
department need to understand the risks and the benefits – not always easy money
Quality & quantity issues need to be escalated quickly – involve SFR immediately
Any discussions related to scope change, budget changes, or personnel – involve
SPA Watch spending and receivables
◦ SFR works BI more often than other sponsors
More tools EFS Aging
◦ List projects by RRC or DeptID UM Aging by RRC DeptID Tree Report UM Aging by DeptID & Contract
New to the University Sponsors – credit check◦ Establish credit worthiness◦ Negotiate financial terms & conditions based on
credit◦ FY 2010 implementation
Negotiate new awards based on receivables ◦ Lower risk to the University◦ FY 2010 implementation
Keys to Minimize Risk Communication is the key Treat the awards differently than other
awards◦ Partner with sponsor
Help sponsor understand the U of M structure Be responsive
◦ Watch receivables closer, monitor spending
◦ Submit deliverables on time Obtain any changes to deliverables or
due dates in writing
Opportunities Fund class where the U of M has the most
room to grow ◦ We aren’t always competing with other
Universities for the same funding New and start up businesses can “spin” off
from other research projects Many successful experiences with small
business!!
