Ohio Business Development

Conclusion

 

Finding funding is among the biggest challenges entrepreneurs face even in the best of times, and there is no question that the task becomes more difficult in a strained economy. Still, there's funding to be had out there for those business owners willing to devote the time, energy and commitment needed to secure it. Most of the experts interviewed for this white paper suggest that the best prospects are those closest to home, although in some cases it may make sense to cast a wider net. "Relationships are a big part of this, and they usually work best when both parties are local or at least in the same region," notes Gellermann. "There is a shared sense of place and a better understanding of what each is trying to accomplish. But expanded networks make sense when you reach a certain level of growth. Broader geographic reach also makes it easier to syndicate and bring in other capital."

Veteran business owners warn that timing is also a critical component of fundraising. "It's best to bootstrap the early stages, because your first customers usually don't turn out to be your best customers," says Pamela Springer, CEO of Manta Media, a provider of small-business information based in Westerville, Ohio. Most companies devote significant time and resources to fine-tuning their products or services during their first few years in business, and burning through their funding in that stage can be a mistake. "It's more important to have it available when you're done with that stage. You won't have the money you need to scale up if you used it all for R&D," she says.

Coming in the Next Issue of Enterprise Benchmarks: The Educated Entrepreneur—Building Your Knowledge Base

Staying ahead of the competition and knowing your market means educating yourself. This paper will outline a wide range of resources, including online databases for competitive research; CEO peer organizations; executive MBA programs; executive coaching; Small Business Development Center programs; and more.

Enterprise Appalachia Resources: Access to the Capital You Need

Without capital, great ideas die inglorious deaths. Fortunately, Ohio's Enterprise Region makes it easy for you to access capital to efficiently and successfully transition your product or service from R&D to commercialization, with resources all within your geographic reach. Entrepreneurs locating in Ohio Appalachia benefit from regional venture capital and financial support that meets the needs of all businesses, from startups to fast-growth companies. The following links can help you learn more about Appalachia Ohio's capital opportunities.

  • Adena Ventures (www.adenaventures.com/default.aspx)—The Adena Venture Fund, a $34 million venture capital enterprise, provides equity capital and operational assistance to high-growth businesses at various stages of development across a broad range of industries from cutting-edge technology to more traditional opportunities, operating in central Appalachia.
  • Athenian Venture Partners (www.athenianvp.com)—Athenian Venture Partners is an Ohio-based venture capital firm with principals located in Boston, San Diego and London, focusing on early-stage investment opportunities in the Information Technology and Life Science Industries.
  • Ohio Tech Angels (www.ohiotechangels.com/about_us.htm)—The Ohio TechAngels (OTA) provide investment capital for commercialization of innovations in life sciences, information technology and physical sciences. The goal of all OTA funds is to support Ohio-based technology investment opportunities by facilitating risk sharing on early opportunities with high upside potential.
  • The Progress Fund (www.progressfund.org/main.htm)—A community development financial institution, the Progress Fund is provides capital and coaching to new or expanding businesses that will build the local economy. Since its inception in 1997, The Progress Fund has made 149 loans totaling more than $11 million, created or retained more than 855 jobs, provided at least 5,000 hours of business counseling and helped reuse 60 historically significant buildings.
  • Appalachian Regional Commission (ARC) (www.arc.gov)—In administering the ARC funding programs, The Governor's Office of Appalachia has established a series of linkages with a wide assortment of local, state and federal initiatives to help entrepreneurs and grow business.
  • Ohio and Huntington Job Growth Partnership (https://www.huntington.com/growohiobusiness)—Initiated May 2009, The Ohio Huntington Job Growth Partnership is a groundbreaking three year, $1 billion public-private lending partnership to attract, retain and grow businesses and jobs. The statewide program offers a $1 billion lifeline in new credit to small to medium-sized businesses to help retain employees or hire new ones. The partnership leverages existing State of Ohio and U.S. Small Business Administration loan programs to maximize availability of funds for companies located in or moving to Ohio.
  • Ohio Third Frontier (www.thirdfrontier.com)—Initiated in February 2002, this project is the state's largest-ever commitment to expanding Ohio's high-tech research capabilities and promoting innovation and company formation. The 10-year, $1.6 billion initiative is designed to:
    • build world-class research capacity;
    • support early stage capital formation and the development of new products;
    • finance advanced manufacturing technologies to help existing industries become more productive; and
    • through the Ohio Third Frontier, boost additional federal and private sector support to more than $6 billion.
  • Learn more about the Third Frontier Programs at http://thirdfrontier.com/FiscalYear2010_ProgramOpportunities.htm.
  • Appalachian Center for Economic Networks (ACENet) (www.acenetworks.org)—ACENet focuses on small businesses, including startups, primarily in the food, agriculture, artisan and wood sectors, giving priority to those who are lower income and reside in Appalachian Ohio. The areas of support provided by ACENet include:
    • ACENet Business Innovation—Adult and youth entrepreneurship training.
    • ACENet Food Ventures—Assistance to startup or existing small food businesses.
    • Business Facilities and Networking—Office, light manufacturing and warehouse space
    • ACENet Ventures—Business loan opportunities.
    • ACENet Institute—Research and policy development
  • Revolving Loan Funds
  • Entrepreneurial Signature Program (ESP)—The purpose of the ESP is to significantly increase technology-based entrepreneurial commercialization success by accelerating growth in strategic technology-based sectors that offer exceptional economic development prospects. Each ESP represents a comprehensive, coordinated network of high value services and assistance providers that is visible and easily accessible to technology-based entrepreneurs and small tech-based companies.
  • Preferred Treatment—Additional State of Ohio incentives are available in Priority Investment Areas, which include most Appalachian counties. Qualifying companies can benefit from:

Enterprise Appalachia: The Right Resources in the Right Location

Ohio's 32 Appalachian counties are well-known for their beautiful scenery, rich culture and timeless traditions; they also boast a welcoming business climate, skilled workers with a strong work ethic, and an affordable cost of living. The traditional assets that have been the foundation of the Appalachian region's economy for centuries are supporting new and emerging opportunities for the region today. Enterprise Appalachia (http://ohiomeansbusiness.com/enterprise_appalachia/), an initiative developed by the Governor's Office of Appalachia, was created specifi cally to help make entrepreneurs aware of all the benefits and resources the region provides.

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