The LAIC is excited to be a partner with DSU regarding the entrepreneurial program. The ability to grow ideas and commercialize innovation is an important component of developing the community, county and region. The ideas that will be developed and brought to market through this program will enhance the culture of DSU, the community and region for the next several decades. This moment will be remembered as a determining factor for the University and region.
The emphasis will be on providing support to DSU students, faculty and community innovators. The support factors include the development of business plans, mentoring programs, network building, consultation, and team building to name a few. The Center will strive to build an entrepreneurial spirit in the area, which will develop economic stability by helping participants commercialize their innovative ideas.
The Lake Area Improvement Corporation would like to share four main points of importance that explains its desire to have this program succeed. Competition development, participation in EPSCoR, partnering with local universities and programs such as N2TEC, and developing an effective process, incubation, to develop and commercialize innovative ideas are all part of creating a unified local and regional success.
Point 1
Merriam-Webster defines competition in business as “the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms.” The Latin root for the verb “to compete” is “competere” which means “to seek together” or “to strive together.”
Competition is the pillar of capitalism. Competition keeps a business or individual focused on providing the best quality product or service. Competition leads to the development of new products and innovative technologies. The optimal goal is to provide selection to the consumer. Competition creates a lower cost of goods purchased by the consumer.
There are three levels of economic competition. Direct competition is normally between products that perform the same function. For example, company A and company B both offer gasoline. Company A competes for your business by offering a free car wash while company B offers free coffee. Both offer the exact same product but use different means to acquire your business. Substitute competition allows for the same use by two or more products. For example, butter competes with margarine, mayonnaise, and other various sauces and spreads. The product used depends on the taste and desire of the consumer at a point in time. The broadest form of competition is typically called budget competition. This level of competition includes anything the consumer may want to spend their available resources on. For example, a consumer may need a new car but wants a new boat or vacation. All products and services are competing for the consumers’ dollars.
The United States is by far the largest free enterprise nation in the world. Competition begins at an early age between its citizens. In school, students compete for grades, in sports and other areas. Competition fosters capitalism. Competition leads to the development of new products and innovative technologies. Competition keeps the cost of goods and services low for the consumer. Competition encourages and creates success. A little competition is good for all of us.
Point 2
Nearly 80% of the United States does not share in the enormous wealth creation generated by technology innovation and entrepreneurship. The vast majority of the country is struggling to find ways to generate new jobs, new companies, and economic prosperity. Today about 40% of states fall into the EPSCoR category, meaning that they don’t receive the levels of research funding that lead to technology commercialization and economic development that their non-EPSCoR counterparts do.
South Dakota EPSCoR is a grant funded organization that promotes research and development throughout the state of South Dakota. EPSCoR programs help improve access to high-quality education and front-line research, expand economic opportunity, and improve the quality of life for residents of South Dakota.
Point 3
We believe that by transferring viable technologies, commercialization expertise, and resources from economically rich areas to communities that meet the N2TEC standards for readiness, we can create new companies, new jobs, and bring economic prosperity to the underserved regions of the country while positively affecting the economic health of the U.S. as a whole.
N2TEC began as a National Science Foundation Partners-for-Innovation Project led by the University of Southern California with the purpose of raising the level of innovation and technology commercialization in the U.S. Our mission is to bring the wealth creation process to areas of the U.S. that have not benefited from technology entrepreneurship. Using our High Performance Regional Model and tapping more than 20 university and industry partners, we are serving the needs of rural and underserved regions.
Commercialization Portal, N2TEC has moved into the second phase, the establishment of a national nonprofit institute whose purpose is to raise the level of innovation diffusion and wealth creation in America through technology innovation and entrepreneurship. N2TEC will be the premier trusted authority on effective commercialization practices and the development of High Performance Communities (see below). We accomplish this purpose in a number of ways:
- Building a community of practice dedicated to innovation and technology commercialization practices that is virtually linked within an enterprise level collaboration space – the N2TEC Commercialization Portal
- Partnering with organizations that can contribute expertise and resources to support our effort.
- Providing resources and educational opportunities to facilitate effective innovation, technology commercialization, and entrepreneurship
- Developing best practices, standards of excellence, and models for communities and others to emulate
Point 4
It may take 3 to 5 years to develop a successful business. Development corporations across the nation understand the importance of working with innovative entrepreneurs.
One of the most effective ways to develop an economy is working from within the community fostering growth. This can be accomplished by developing an incubation format that will encourage and entice innovative thinking. The following tips are from a speech by Dinah Adkins, CEO and President of National Business Incubation Association (NBIA).
1. Effective business incubation programs are based on legitimate feasibility studies and business plans. These essential documents must identify the market an incubator will serve and prove its financial viability.
2. Business incubators are service programs, not buildings. No building can grow companies, provide mentoring and assist emerging companies in meeting benchmarks necessary for growth. It has been many years since any knowledgeable person thought a building was the key innovation in business incubation. If your stakeholders aren't aware that they need to invest in people and knowledge more than in bricks and mortar, you need to work with them to open their eyes.
3. Top incubation programs are well managed, which means their sponsoring organizations provide appropriate salaries and benefits to individuals who have the skills to help companies grow and to transform communities. If local authorities pay for a concierge, they will get a multi-tenant building with a receptionist, not a vibrant business incubator that can grow the local economy.
4. Flexibility and commitment to service are keys to effective incubation. Incubator staffs themselves must be entrepreneurial and non-bureaucratic and recognize that they're in a service industry. Not only do they have to help companies develop management teams, they also have to get the mail out on time. They must maintain a special relationship with their clients – both leader and servant – and only those types of personalities are appropriate for incubator staff.
5. Effective incubator managers proactively provide business development services. They screen clients, analyze their strengths and weaknesses, help set benchmarks for growth, and bring in mentors and business service providers to provide customized assistance. Effective incubator executives also monitor these activities, garnering enough feedback from the entrepreneurs and the mentors to determine what is and isn't working. Effective managers don't make a referral and walk away, confident that they've done their job.
6. A top-of-class incubation program knows its mission, and management, board and staff clearly understand and work to support that mission. Regular evaluation of all aspects of the program ensures that the incubator meets its goals, evolves with the market, and incorporates new tools and technologies to better serve its clients.
7. The best business incubation programs are well integrated into their community networks, resources, and economic development plans and strategies. Gone are the days of stand-alone programs lacking support from economic developers, academics and the business community. More and more, we see incubation programs at the nexus of significant angel equity investing networks, publicly sponsored seed funds, technology infrastructure development and commercialization programs, entrepreneurial campuses, or youth entrepreneurship programs.
8. Top incubators adhere to the NBIA Principles and Best Practices of Business Incubation. These best practices include ensuring that management time is focused primarily on serving companies, rather than managing buildings, raising money or holding politicians' hands. In fact, NBIA research has shown that incubators that adhere to best-practice standards have better outcomes and are more self-sufficient and sustainable. Public investors in these incubators get more return for their investment.
9. Top incubator managers engage in continual learning. After all, this field is not like accounting, which has been around for more than 1,000 years. The business incubation industry is only about 25 years old, and not a day passes when someone doesn't develop a new tool or technique or uncover a key piece of information that can help us grow companies. Top incubator managers engage in professional development activities, ongoing learning and networking to improve their skills.
10. Effective incubator managers are committed, idealistic and hard-headedly realistic at the same time. They take a hard and honest look at their communities, roll up their sleeves and get to work. They recognize that our successes are limited primarily by the size of our dreams.
The LAIC believes that developing a strong partnership with DSU will provide prosperity for the region into the future. It is an exciting opportunity for all of you to be a part of.
