On Creativity, Innovation and Entrepreneurialism in Michigan

Monday, April 16, 2007 Updated Study Says Michigan Still Struggles to Grow Entrepreneurs

LANSING - The latest Small Business Foundation of Michigan's Entrepreneurship Score Card, released Monday, finds that Michigan last year lost ground in developing new, high growth job-creating entrepreneurial small businesses. The Score Card gives Michigan a 2006 grade of "D-minus" for entrepreneurial dynamism, down from the 2005 "D" grade and edging closer to the failing "F" grade that Michigan received for 2004. The Score Card project is a collaborative project of the Small Business Foundation of Michigan (SBFM) and GrowthEconomics, Inc. Financial sponsors are Automation Alley, Central Michigan University, the Edward Lowe Foundation, Lawrence Technological University, MERRA, the Michigan Entrepreneurial Education Network, Michigan State Housing Development Authority, Michigan Technological University, MiBiz, Next Energy, Schoolcraft College, Saginaw Valley State University and the Small Business Association of Michigan. The SBFM defines entrepreneurial dynamism as a composite measure of Michigan’s performance in entrepreneurial change, entrepreneurial vitality and entrepreneurial climate. “While Michigan has not achieved its full entrepreneurial dynamism potential, there are some things it does right – it is still making tremendous progress in areas critical to robust entrepreneurship, such as private lending to small businesses, university spinout businesses and entrepreneurial education,” said SBFM executive director Mark Clevey. “However, the economic impacts of factors like globalization and restructuring of old-line industries will continue to have negative effects on entrepreneurship. Michigan needs to do even more if it is to accelerate entrepreneurial dynamism and create more jobs for our struggling economy.” Here’s how Michigan ranks compared to other states: Entrepreneurial Change (the amount of recent entrepreneurial growth or decline in an economy): 46th Entrepreneurial Vitality (the absolute level of entrepreneurial activity): 38th Entrepreneurial Climate (the capability of an economy to foster entrepreneurship): 38th Business Costs and Productivity: 41st Quality of Life: 37th Government Efficiency and Regulatory Environment: 26th Infrastructure: 24th University Spinout Businesses: 16th Workforce Preparedness: 10th Education and Workforce: 8th Broadband Coverage: 4th Private Lending to Small Businesses: 3rd Although the Foundation does not advocate policy positions, Clevey says Michigan can improve its entrepreneurial dynamism by paying greater attention to entrepreneurial education, economic development strategy, access to capital, technology commercialization and developing a business climate that nurtures entrepreneurs. Promotion sponsors are Ann Arbor SPARK, Creating Entrepreneurial Communities (CEC), Michigan State University; Corporation for a Skilled Workforce, Great Lakes Angels, Inc., Great Lakes Entrepreneur Quest, Keweenaw Economic Development Alliance, Michigan Homeland Security Consortium, Michigan Interfaith Power and Light, Michigan Ross School of Business, Center for Venture Capital and Private Equity Finance, Michigan Center for Innovation and Economic Prosperity, James Madison College, Michigan State University; Midland Tomorrow, Michigan Venture Capital Association, Prima Civitas Foundation and Vision Tri-County.

Author: Staff Writer Source: MITechNews.Com