- Report Published -
|House Joint Resolution No. 206, 2002 Study: Technology-Based Businesses|
|Secretary of Technology; Secretary of Commerce and Trade|
|HJR 206 (Regular Session, 2002)|
|At its initial meeting, the Joint Task Force opted to focus on three (3) specific issues in its "best practices" study of entrepreneurial support programs conducted by other states and regions: Entrepreneurial Networking, Business Assistance Programs, and Early Stage Capital Programs. Among the states considered in the "best practices" examination were Pennsylvania, North Carolina, Maryland, Minnesota, Ohio, Oklahoma, and California.|
Key Preliminary Findings
Entrepreneurial Networking: The "best practices" assessment affirmed the criticality of networking among entrepreneurs as an essential building block in the development of early stage technology companies, The study suggested that to be most effective, these networks could not be "government-created," but must driven be entrepreneurs and be composed of entrepreneurs. Rather, government could playa role in facilitating or financing the formation of such networks. Internet-based technology offers a number of ways for these networks to work more effectively, providing avenues for "on-line" interaction in the form of discussion groups, listservs, e-mail newsletters, and on-line chat.
Business Assistance Programs: The study observes that the states that have been most effective in developing entrepreneurial support programs are those that view entrepreneurs as a unique segment of the economy. Effective program development requires a significant commitment of time and funding. Several states have achieved critical funding mass by amassing funds from several sources - state, federal, and private - in support of their initiatives. Many states have taken a "regionalized" approach to entrepreneurial support, foregoing the creation of "minor-image" resources in favor of an approach that exploits the unique entrepreneurial strengths and assets of individual state regions.
Early Stage Capital Formation: The study indicated that for states to be successful in assisting in early stage capital formation, they must be willing to undertake a long-term commitment. Additionally, states must appreciate the strong business orientation required to successfully participate in pre-seed or see funding endeavors. Specifically, states must incorporate the participation of professional money management in the early stage funding process and be able to provide non-monetary resources -- education, mentoring, and connections -- critical to sustaining early stage companies.
Task Force Recommendations
As of this writing, the Task Force has concluded a preliminary assessment of the "best practices" study on the three (3) areas it designated for investigation and has not yet had the opportunity to develop formal recommendations. The Task Force has decided to reconvene in January, 2003 to continue discussion of this subject matter for future legislative or administrative action.