Earlier this fall, we read about a Fairfield company that moved its home office to Seattle from Iowa shortly after receiving financial assistance from the state. The story was a reminder of how we continue to struggle to promote new business development. It’s an important issue, because regions that succeed in incubating new ventures, especially in fields of advanced technology, have consistently outperformed the rest of the nation in measures of per capita wealth, economic growth rates and overall quality of life.

Iowa’s governors and legislators have mounted efforts over the past 20 years aimed at overcoming the state’s deficiencies in this area. The last time I counted, at least 12 initiatives had been launched by our state government to support formation of new businesses. Nearly all of those initiatives were based on the assumption that Iowa had an ample supply of capable entrepreneurs but that they were unable to progress because of a lack of venture capital. The state has tried to prime the pump by directing millions of taxpayer dollars toward aspiring entrepreneurial businesses.

The resultsof these programs have disappointed nearly everyone. However, it would be a huge mistake to use this as an excuse to abandon our efforts. The more constructive response should be to learn from our experience and find more effective methods.

Iowa’s past efforts to launch new businesses have typically relied on an entrepreneur-inventor — a person whose technical skill was the basis for a new product or service. Successful venture capitalists have long recognized the critical role that managerial experience plays in the success of a new enterprise. Iowa has lacked venture capitalists not because of our lack of good ideas, but because of our inability to produce a corps of experienced marketing and management entrepreneurs.

First on my list of things to do is to put more priority on the human dimension of business development. The state has had impressive success with its offer of tax credits to form Community Based Seed Capital Funds, leading to the formation of at least five seed capital funds. The investors in those funds must not assume that they can now sit passively waiting for their capital gains to roll in. Those programs will have a far greater chance of success if the investors are committed to sharing their time and expertise in active day-to-day involvement.

Second on my list is to urge the Iowa Department of Economic Development to engage in a real partnership with the seed funds. The best way for the IDED to avoid more frustrations is to connect its financial support to deeply rooted community interests.

Third, I commend the IDED’s Ray Walton for his efforts to bring the various local seed funds and other private investors together. Venture investing is, at its core, a people business and a team sport. Knowing whom to contact for expert advice on the feasibility of new business ideas and for marketing and management assistance is key to success in this difficult arena.

Lastly, I would offer as an example the group of private “angel” investors that I helped to organize three years ago. Viable Technologies LLC is composed of 10 individuals with skills and experience spanning a wide range of business, industry and public policy backgrounds. They’re all willing to devote their time and expertise in active support of young entrepreneurs.

I hope our example can be replicated throughout the state, to rally a thousand experienced Iowa business people to offer their personal involvement in supporting new business development and entrepreneurship. The private sector and the government working together is the only way to transform Iowa into a state where young, homegrown, local businesses drive dynamic economic growth.

Tim Neugent is the president of Viable Technologies LLC.