Download - Assisting and mentoring business start ups
![Page 1: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/1.jpg)
How Many Stars Are in the Night Sky?
How Many New Businesses Are There?
![Page 2: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/2.jpg)
It Depends Who Is Doing the Counting and Defining.
![Page 3: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/3.jpg)
This is What The Federal Government Sees
![Page 4: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/4.jpg)
A Business Doesn’t Exist Until there Is an Employee
With the Naked Eye, You Can Only See 2,500 Stars
![Page 5: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/5.jpg)
The SBA Defines a Small Business as Having 500 or Fewer Employees
![Page 6: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/6.jpg)
Here is What Venture Capitalists and Many Public Policy Experts See.
![Page 7: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/7.jpg)
…a Small Subset of the Universe.
![Page 8: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/8.jpg)
88 Constellations. On Scale, about 37 Venture Capital Deals Per Year
![Page 9: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/9.jpg)
This is What the State Sees.
![Page 10: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/10.jpg)
There were 58,260 New Business Filings In 2013.
![Page 11: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/11.jpg)
Compare State Fed
![Page 12: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/12.jpg)
Why Does It Matter?
![Page 13: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/13.jpg)
Why Does It Matter? Bad information leads to bad policy. We need to have consistent definitions and consistent methodology to make informed policy . It is not helpful when we have conflicting reports; one labeling Minnesota a failure in creating new businesses, and one saying we are breaking records for creating new businesses.
![Page 14: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/14.jpg)
![Page 15: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/15.jpg)
![Page 16: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/16.jpg)
Conflicting Schools of Thought 1) Anyone engaging in business activities -- whether full-time or
part-time, at the industrial park or the garage, in addition to another job or not -- should be counted as a business.
2) The census bureau's non-employer statistics over other sources --
the census only counts people who reported self-employment (Schedule C) income of more than $1,000, possibly weeding out some side-workers who pay self-employment income tax but do not operate independent businesses.
![Page 17: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/17.jpg)
Adopt the Broader Definition of Business
“The problem with ambiguous definitions of what counts as a small business is that they may make it more difficult for policymakers to really understand and address the unique problems that businesses of different sizes are confronted with.” -- Tracy Clark, associate director, W. P. Carey School's Spirit of Enterprise Center, Arizona State University
![Page 18: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/18.jpg)
A New Formula Is Needed
![Page 19: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/19.jpg)
Old Formula
B (Business) = Oy (Owner) + Ex (Employees)
![Page 20: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/20.jpg)
What Do Policy Makers Really Want?
Jobs, Jobs, Jobs!
![Page 21: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/21.jpg)
Employment = Jobs = Making a Living
E E E E E E!
![Page 22: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/22.jpg)
A Traditional View of a Business
B = O + (E + E + E + E + E + E + E + E)
![Page 23: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/23.jpg)
After Layoffs
Original Business - B = O + (E + E ) Shedding 6 Employees
![Page 24: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/24.jpg)
After Layoffs
B = O
B = O B = O
B = O B = O B = O
The Former Employees “E”
Start Their Own Businesses
and Become Owners “O”
![Page 25: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/25.jpg)
Self-Employment Trend
In March 2011, the Number of New Self Employed Who Had Been Unemployed
in the Prior Year
Was 900,000, or 5.5 Percent of All Self Employed.
-- SBA Office of Advocacy Report
![Page 26: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/26.jpg)
What Next?
![Page 27: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/27.jpg)
![Page 28: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/28.jpg)
![Page 29: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/29.jpg)
Who Helps New Businesses Now
• SBA – SCORE Volunteer Mentor Program.
• SBA – DEED – Small Business Development Centers
• Education Institutions Offering Entrepreneurship Programs Such
as Dakota County Technical College.
• Workforce Training Centers.
![Page 30: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/30.jpg)
Venture Capital?
Most VCs like to invest in ventures after the potential has been proven and the
risk reduced. In the first quarter of 2012,
only 3 percent of VC funding went to start-ups.
Typically Averages $243 Million Invested in 37 Deals Per Year.
![Page 31: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/31.jpg)
$24 Million State Job Creation Fund?
To qualify, a business must: • Invest at least $500,000 in real property improvements. • Create 10 new full time permanent positions within two years. • Have other location options outside of Minnesota. • Cause no undue harm to Minnesota business competitors.
![Page 32: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/32.jpg)
A New Model to Support Emerging Businesses
![Page 33: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/33.jpg)
A New Model to Support Emerging Businesses
• Emulate the Legal Profession’s Pro Bono Initiative • Harness Business Professionals Already Committed to Service • Acknowledge that Sole Proprietors, Freelancers, Consultants, etc.,
Are Actually Businesses. • Drop the “It’s not a real business” attitude.
![Page 34: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/34.jpg)
Start Collecting Data When a business registers ask: • SIC Code? • Plans to Hire? • Full-Time or Part-Time Venture? • Full income or supplemental? • Interested in Mentorship? • Need Assistance of Business Professional?
![Page 35: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/35.jpg)
What Can Chambers Do?
• Identify Members that Are Willing to Mentor. • Welcome Startups to All Events. • Offer 1 Year Membership at No Cost. • Offer Networking Training. • Help Members Develop Pricing For Startups. • Make Chambers The Place Where Entrepreneurs / New Businesses Can Turn
to for Help. • Help Lobby the Legislature to Appropriately Fund Current Programs that
Need Help In Reaching Their Client Base.
![Page 36: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/36.jpg)
New Business Survival Rates
• Year One – 85%
• Year Two – 70%
• Year Three – 62%
• Year Four – 55%
• Year Five – 50%
• Year 10 – 30%
![Page 37: Assisting and mentoring business start ups](https://reader033.vdocument.in/reader033/viewer/2022051513/546fbee0b4af9f16648b45ea/html5/thumbnails/37.jpg)
Taking Care of Business