Let’s boost our entrepreneurship rating
We should not be embarrassed about seeing Iowa listed 50th in the recent national ranking from Entrepreneurship magazine. Instead, we should build interest in and excitement about the challenge of turning this situation around. This is another wake-up call to implement effective solutions for Iowa entrepreneurs and continue to instill a culture of enterprise development in our communities.
At the Iowa Entrepreneur’s Coalition, we believe these things can be done because of an emerging consensus that a positive entrepreneurship climate is essential to economic development and improvements in the quality of life for all Iowans. Furthermore, entrepreneurship is an inherent Iowa value, one based on our agricultural tradition. Given their risk-taking, innovation and hard work, many Iowa farmers are entrepreneurs in the truest sense of the word.
As members of a progressive entrepreneurs’ advocacy group and support network, we seek to work in partnership with Iowa communities and economic development organizations to make Iowa the “entrepreneurship state.” Our growing, broadly based coalition is promoting a practical agenda that brings together Iowans who believe that smart government, not more government, is needed to develop small business, as well as Iowans who believe existing private-public partnerships can be refocused to truly assist entrepreneurial enterprises that have the potential to grow. Iowa Entrepreneur’s Coalition recommendations to boost Iowa’s entrepreneurial climate include:
• An Iowa Entrepreneurial Institute: The state has programs, so does the federal government and so do universities, community colleges and some private associations. The hodgepodge is difficult and time-consuming for a busy entrepreneur to access and use. Every successful entrepreneur understands the necessity for effective systems to consistently deliver quality service to consumers. The state of Iowa would go a long way in changing the fortunes of its entrepreneurs by organizing the various programs into a pipeline that would ensure the efficient delivery of those resources to entrepreneurs.
• Smart incentives: Iowa-educated entrepreneurs could be provided with start-up tax credits for their businesses or help in paying off college loans.
• Health insurance pools: The inability to provide health insurance to employees is one of the main deterrents to people who want to start their own businesses. The state could help by developing insurance pools for new firms to use until they are able to provide health insurance on their own.
• Incentives to “buy Iowa.” New Iowa entrepreneurs know that the first clients are the most difficult to get. Established businesses should commit to making a certain percentage of their purchases from start-up firms that have been through the institute’s pipeline programs. State government could do the same and organize a pool or clearinghouse of corporations willing to buy from Iowa-based start-ups.
• Give qualified Iowa firms preferences in bidding on public contracts. State and local governments should give extra points to Iowa-based start-ups that prove themselves by providing quality products and services that match those of out-of-state companies.
• Build businesses to grow, not to sell. Venture capital programs are an excellent economic development tool, but many Iowa entrepreneurs are building businesses to pass on to the next generation, not sell when the venture capitalists want to cash in their investment.
• Retool the Grow Iowa Values Fund so that it could help start-up Iowa companies, not just big established firms. In certain cases, lowering the minimum number of jobs that must be created to receive a grant would help small entrepreneurs.
As we implement innovative solutions, it is crucial for the private and public sectors to educate the public about the value of entrepreneurship as a natural extension of Iowa’s historical work ethic and belief in progress. Iowa communities have a lot to gain by welcoming and celebrating the individual’s decision to become self-sufficient. Every new entrepreneur represents a step toward the creation of more jobs, improved quality of life and the generation of economic vitality that will move our state forward. Iowa entrepreneurs are poised and ready to take the lead on this transformation for themselves and for Iowa.
Kathryn Dickel is the founder of the Iowa Entrepreneur’s Coalition and a partner in Swaelu Media and IowaTIX.