Chamber eager to develop Ocean State entrepreneurs

As efforts progress to establish a knowledge-based economy in Rhode Island, the Greater Providence Chamber of Commerce is trying to give entrepreneurs the tools they need for success.
The Chamber will hold a community summit open to all on Oct. 8, from 9:30 to 11:30 a.m. at the Westin Hotel, to announce results and recommendations from a year-long study of the status of the state’s knowledge-based economy, according to Laurie White, Chamber president.
At the same time, the Chamber is offering the second round of its Entrepreneur Launch Pad program, first held in the spring and designed to help entrepreneurs in high-growth mode find the resources and funding they need to successfully grow their businesses. Derby Management of Boston will once again present the program.
Regarding the study, the local Chamber has been working for the last year with New Economy Strategies of Washington, D.C., on an assessment of the knowledge-based economy centered in the Providence area, White said.
“We looked under the hood, so to speak,” White said, to see what’s missing and what needs fine-tuning “to strengthen entrepreneur productivity” in Rhode Island. Among the factors studied were access to capital, retention of young talent and the role of the state’s universities and hospitals.
“We’re taking into account our assets and our strengths, to see how we can turn them into jobs and increase the tax base in a way that has never been done before,” White said. She promised that the study will not be one that sits on a shelf gathering dust because the report includes recommendations for implementation.
A major finding, White said, points to the need for additional capital to supplement what organizations such as the Slater Technology Fund provide new businesses. “The Slater Technology Fund has done a great job providing support for startups, but we need additional sources of capital,” White said.
And that’s where the Entrepreneur Launch Pad program comes in.
“In Boston, there’s a ton of money,” though not everyone can gain access to it, said George Simmons, who presents the program with partner Jack Derby, who founded Derby Management in 1990. Simmons is an associate with the firm with expertise working with early-stage and middle-market companies.
The launch pad program is designed to help established businesses identify sources of venture and angel capital, and then coach the owners on what they need to do to get it, according to Simmons.
“I received actionable information [at the spring session] I could immediately use” on such issues as recruitment and employee health care, said Andrew Schiller, CEO of Location Inc., a Woonsocket-based company with nine employees. The company operates www.neighborhoodscout.com., a search engine that helps homebuyers choose a neighborhood anywhere in the U.S.
The next round of the six-month program was scheduled to begin with a two-day intensive seminar Sept. 22 and 23 on “Essential Skills for the Entrepreneur,” what Simmons called “a boot camp” for small-business owners. Sessions will be scheduled every month. The Oct. 31 session, for example, is on “Creating the Successful Investor Pitch” and, the Nov. 14 workshop will cover “Understanding and Negotiating Term Sheets.” Registration is $300 for Chamber members, $575 for nonmembers.
White said the Chamber has a “long-term commitment” to offer the Entrepreneur Launch Pad program periodically, so another round is likely in 2009. “We will continue to re-run the program because of the importance of its content,” she said. “A lot of work needs to be done to develop entrepreneurship in Rhode Island.”
Simmons explained the kind of business that would most benefit from the program. “We’re trying to build a knowledge-based economy,” Simmons said, “so we’re looking for businesses that want to grow and may have run out of private financing, like that provided by family and friends. We’re looking for business owners interested in venture capital and wondering: ‘Who are they [venture capitalists]? Where are they? How do I approach them? Do I need a Grade A business plan to talk to them?’”
The venture capital community in the Boston area is “absolutely” interested in investing beyond the Route 128 and Interstate 495 beltways and into Providence environs, Simmons said, because “there’s not much difference in location between Providence and Boston.” •