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Week of August 28 - September 3, 2006

Welcome to the National Dialogue on Entrepreneurship, an initiative of the Public Forum Institute made possible by a grant from the Kauffman Foundation of Kansas City. Through NDE-news, we bring you short summaries and analyses of various trends driving the innovation economy. Subscribe now to receive your weekly copy. Archived issues are available online. Links to the day's entrepreneurship stories from across the nation and around the world are posted each weekday on the NDE main page - bookmark it and stay informed about the latest entrepreneurship news.

Hispanic Business 100

The boom in America’s Hispanic population has been accompanied by a boom in Hispanic-owned businesses. The best of the best among Hispanic businesses are profiled in the August edition of Hispanic Business. The annual Hispanic Business 100 lists the US’ fastest-growing Hispanic-owned firms. San Antonio’s TerraHealth, Inc. tops this year’s list. TerraHealth, a health care and military support firm, has been on a blistering growth pace of 8,339% since its founding in 2001. While TerraHealth’s growth has been off the charts, the entire Hispanic 100 list performs pretty well---the group has average five-year revenue growth of 334%. The traditional centers (e.g. California, Florida and Texas) of the Latino population host the most firms. Florida appears to be becoming a major center of Latino entrepreneurship, as 28 Hispanic Business 100 firms are located in the Sunshine State.

The 2006 Hispanic Business 100 appears in the August 2006 edition of Hispanic Business and can be accessed on line at: http://www.hispanicbusiness.com/_client/pdf/2006_100Fastest1.pdf

The Power of Clusters

It pays to locate near clusters of similar businesses, at least in terms of generating new innovations. That’s the primary message of new research from the European Commission’s InnoBarometer Survey series. The latest study includes a massive survey of more than 3,500 company managers with firms operating throughout Europe. A large portion of company managers were familiar with the concept of business clusters, but only 24% agree that their firms participate in a local cluster. At first glance, few differences exist between cluster-based firms and non-cluster based firms. But, cluster-based firms are slightly larger and more stable. Nonetheless, firms do attribute important benefits to cluster participation. These include better access to skilled workers, nurturing of the entrepreneurial spirit, and access to better market information. Finally, the survey indicates the cluster-based firms may be more innovative. These firms are more likely to introduce new products, processes, and services than are other European-based firms.

To view the July 2006 European Commission’s 2006 Innobarometer on Cluster’s Role in Facilitating Innovation in Europe: Analytical Report, can be accessed at: http://cordis.europa.eu/innovation/en/policy/innobarometer2006.htm.

Start-Up Funds Average $10,000

The next time that someone tells you it takes big money to start a business, don’t believe them. The newest Wells Fargo/Gallup Small Business Index confirms that it requires relatively small amounts---an average of $10,000---to start a new business. Wells Fargo asked a nationwide sample of 600 business owners to discuss how they financed their firms. Seventy-three percent of respondents used their own money to start their first business; 37% obtained loans or lines of credit. More than half (53%) feels their business development would have been smoother with more funding at the outset. New business owners also seem to have a strong hunger for better information and support. Forty-nine percent would have liked to have advice from seasoned business owners before pursuing the entrepreneurial path. An additional 37% would have liked to have a better understanding of financial management.

To learn more about the August 2006 results of the Wells Fargo/Gallup Small Business Index, visit https://www.wellsfargo.com/press/20060815_Money?year=2006.

Forbes’ Best States for Business

Last week’s E-News covered Entrepreneur Magazine’s list of best places for business. It’s Forbes’ turn this week, as its latest issue contains its first ever listing of the best states for business. Virginia was a clear winner in the Forbes rankings, which include thirty measures in six main categories: business costs, economic climate, growth prospects, labor, quality of life, and regulatory environment. Virginia took the crown because it performed well in all of these categories. It scored in the top ten in every category---no other state hit in the top ten in more than three categories. Other top performers (in rank order) included Texas, North Carolina, Utah and Colorado. In terms of future growth prospects, Colorado, Texas and Florida ranked at the top.

To access the Forbes Special Report, The Best States for Business, visit
http://www.forbes.com/lists/2006/9/06beststates_The-Best-States-For-Business_land.html

Capital Formation Institute Blogs

If you’re interested in hearing the latest on issues related to the innovation economy, the Capital Formation Institute (www.cfi-institute.org) has developed a helpful new resource. The CFI’s new Audio Blogs bring in leading experts to discuss important topics in areas such as technology transfer, early stage investing, and angel capital. The latest edition examines investment opportunities in the energy sector, featuring Dr. John Sibert of GFG China Holdings. Lots of other interesting discussions can be found in the Audio Blog archives.

To learn more about the Capital Formation Institute’s Audio Blog series, visit
http://www.cfi-institute.org/AudioBlog/index.html.

Kauffman Foundation    The Public Forum Institute

National Dialogue on Entrepreneurship
2300 M Street, NW; Suite 900
Washington, DC 20037

Mark Marich, Editor

All stories © 2006 The Public Forum Institute
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