The New Economy Initiative, a project of the Community Foundation for Southeast Michigan (CFSEM) and supported by a dozen CMF members, has released a new report that provides insights, lessons learned and a look at what’s needed to further power Southeast Michigan’s entrepreneurial network.
The New Economy Initiative, a project of the Community Foundation for Southeast Michigan (CFSEM) and supported by a dozen CMF members, has released a new report that provides insights, lessons learned and a look at what’s needed to further power Southeast Michigan’s entrepreneurial network.
The research, supported by the William Davidson Foundation, is a scan of the resources and services available to entrepreneurs in the region.
“A community that retains and attracts residents by valuing people and their ideas is a community of opportunity,” Pamela Lewis, director of NEI said. “Southeast Michigan is a community rich in resources to help people with ideas to start and grow businesses. The more people become aware of these resources and the more efficiently they are able to navigate them, the more resilient our region will become.”
As noted in the scan, “Business support networks help the entrepreneurs they serve to understand the viability of their ideas and identify clear paths to converting those ideas to businesses.”
Data at a glance:
Eighty-nine percent of business support organizations serving entrepreneurs are “reliant on foundation grants or public funds.”
The research has shown that “intentional investment in equitable and accessible business support organizations (BSOs), primarily by foundations has encouraged inclusive network behavior across the region.
Southeast Michigan’s entrepreneurial support network consists of at least 226 BSOs which provide unique resources.
BSOs attract entrepreneurs from as far as 100 miles away to utilize Detroit’s resources. About 38 percent of BSOs serve clients in 9 counties throughout Southeast Michigan.
In the region there are 37 different types of services offered by BSOs to entrepreneurs. The top services include networking, meeting space, capital, business planning and marketing.
There are several BSOs highlighted in the report which are powered by philanthropy including CMF member Michigan Women Forward (MWF) which provides access to capital, education and training to women entrepreneurs.
TechTown in Detroit, which is supported by several CMF members, is another example of a BSO which helps startups and businesses grow. TechTown provides support with coworking, office space, resources, networking events and more.
The Ferris Wheel in Flint is a successful BSO, as well. It was created through a public-private partnership led by Phil and Jocelyn Hagerman of the Hagerman Foundation and supported by the Charles Stewart Mott Foundation.
The report highlights philanthropy’s role in powering this progress and helping to cultivate an “inclusive network behavior” but the research shows that many BSOs still lack awareness of other available services.
The report calls for greater coordination among BSOs to strengthen the network and accessibility for entrepreneurs to get the assistance they need to be successful.
“Continued investment is required to encourage greater network behaviors among existing business support organizations, whereas declines in investment could result in a culture of scarcity, fragmentation, and competition, rather than one of collaboration.”
The researchers highlight that “increased coordination could improve Detroit startups’ early survival rate of nearly 49 percent which is significantly lower than the national rate of 79 percent.”
As for next steps, the report calls for more research around several key areas to help make data-driven decisions on creating alignment for the region’s entrepreneurial support ecosystem.
“This research affirms that entrepreneurs are being embraced as key contributors to the regional economy. Improving the visibility and coordination of these many resources will amplify their contribution,” Lewis said.
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