ࡱ> ` 6bjbj 7hj.%nnnnnnn8",I"&&&FIHIHIHIHIHIHI${KhMlIn$$$lInn&&I***$n&n&FI*$FI**CnnF& U~h%D*II0ID^N8&N4FF>NnVF*# /!lIlI*jI$$$$ nnnnnn  SENATE COMMERCE COMMITTEE AND HOUSE ECONOMIC DEVELOPMENT AND TOURISM COMMITTEE March 6, 2008 Testimony by: Steve Radley, Director, Kansas Center for Entrepreneurship NetWork Kansas  Education NetWork Kansas partners offer a variety of seminars and workshops, including: how to start a business; tax workshops; business planning; and more. Classes provided by our partners are listed on  HYPERLINK "http://www.networkkansas.com" www.networkkansas.com under the Entrepreneurial Education tab. In addition, NetWork Kansas is working with partners across the state to assess current entrepreneurial offerings with the objective of developing a vision for entrepreneurship education across the state. We conducted three Entrepreneurship Education Meetings: One for K-12 institutions and one for Community College and Public Sector organizations and one with Regents Universities. I have included the minutes of the meetings in your packets along with a list of attendees. Now that weve completed these meetings, we will focus on three areas: 1) Identifying key areas of opportunity for enhancing entrepreneurship education statewide; 2) Ferreting out pockets of opportunity for activities that can be pursued more quickly, (Example: Youth Entrepreneurship Fair in Atwood) and 3) Identifying new communication channels among all educational institutions in the areas of developing entrepreneurs, commercializing new ideas more effectively and playing to the strengths that each educational institution brings to the table. Once we do that, well bring together all three educational groups to get their feedback and identify short and long term actions to enhance entrepreneurship education statewide. Economic Resources NetWork Kansas has more than forty economic resource partners that provide loans and grants to entrepreneurs and small businesses. The partners are certified development companies, the seven regional economic development foundations, Mainstreet Kansas communities with their IWW loans through the Kansas Department of Commerce, City and County Economic Development organizations that have revolving loan funds, USDA Rural Development and others. Our resource network can also access additional matching dollars from NetWork Kansas through the following programs. StartUp Kansas: StartUp Kansas was launched in August 2006 to provide funding to small businesses in rural and distressed Kansas communities in the form of matching grants or unsecured loans. We use the same financing terms as the NetWork Kansas economic resource partner working on behalf of the entrepreneur. During the first 18 months of operation which includes 6 rounds, StartUp Kansas awarded more than $550,000 in grants and loans to 22 small businesses throughout rural Kansas. More than $4 million of additional capital was leveraged from other sources for these businesses. Forty-one percent (9) of the businesses were pre-venture or startup businesses; forty-five percent (10) were expansion of existing businesses, and fourteen percent (3) were the purchase of existing businesses which weve identified as a key strategy for rural development. A little over 40% of the businesses were in communities of less than 1,000. Ive provided a list of NetWork Kansas partners who participated in these projects. These partners have either been involved from a funding standpoint or provided assistance with business plan development business coaching and other types of expertise. FUNDING PARTNERS --Anderson County Economic Development, Garnett --CloudCorp, Concordia --Coffey County Economic Development, Burlington --Four Rivers Development, Beloit --Linn County Economic Development, Mound City --Leavenworth Mainstreet, Leavenworth --Russell Mainstreet, Russell --South Central Economic Development District, Wichita PARTNERS who have provided assistance with business plan development, business coaching and other types of expertise/assistance include: --Advanced Manufacturing Institute, Manhattan --Cowley Community College, Arkansas City --Kansas Small Business Development Center (KSBDC) at CloudCommunity College, Concordia --KSBDC at Emporia State, Emporia --KSBDC at Wichita State University, Wichita --KSBDC at the University of Kansas, Lawrence --Q.U.A.D. Enterprise Facilitation, Eureka --Wichita Technology Corporation, Wichita There are two key points that Id like to share about StartUp Kansas. Point 1: The StartUp Kansas Committee reviews and selects businesses based upon two primary factors. 1. The business has the potential to be an economic driver. This is a business the committee thinks that if successful, it has the ability to grow and create additional jobs. Also, it may have the capability of generating wealth from outside of the community. (Manufacturer, etc.) 2. The business provides a community benefit. It provides a benefit that the community perceives as either a necessity or enhances the community in another way. An example is a business like you heard about today, Fall River Grocery, which provides a recognized community benefit. Point 2: StartUp Kansas wants to be at the end of the rural entrepreneurs capital food chain. 1. We dont to replace private capital and if a bank can do it, we dont want to. 2. An example: BankPartnerStartUp Kansas: Fall River State BankSouth Central Economic Development DistrictStartUp Kansas. Listed are additional factors the StartUp Kansas committee considers. Considerations when reviewing StartUp Kansas proposals: In the majority of cases, the projects would not have moved forward without the assistance of the StartUp Kansas fund. The StartUp Kansas committee feels this is a key consideration because StartUp Kansas funds were not intended to replace private sector investment. Another implication is that these proposals represent more risky ventures. (The StartUp Kansas committee consists of members of the Kansas Center for Entrepreneurship Board of Directors and includes: Ken Daniel, CEO, Midway Wholesale, Topeka; Wint Winter, President, Peoples Bank of Lawrence; Tony Delesaga, President, Community National Bank, Frontenac; Suzan Barnes, Owner, Grand Central Hotel, Cottonwood Falls; Kate Pope Hodel, Kansas City) Other factors that were important to the committee included: *Whether the following organizations were involved in some capacity: SBA, other NetWork Kansas partners, banks or financial institutions, or other local funding sources; *Whether the seller was participating in the case of buy-outs (peel back); *High leverage; *High risk; *Ability to repay; *Percent of local match; *Whether there was new investment and in what; *New jobs; *Saved jobs; and *Economic and community benefits. E-Community Program: As we reviewed our experiences and decisions with StartUp Kansas and looked at ways to track our progress, we started thinking about some of the challenges that we wanted to address. First, we realized that because these 22 businesses are dispersed throughout Kansas, it would be difficult to measure the overall impact to the community. Second, we also wanted to figure out ways to: 1. Accelerate funding to businesses, 2. Partner with communities to help make them more entrepreneurial by ensuring that entrepreneurs in local communities were connecting entrepreneurs to the Expertise, Education, and Economic Resources available and 3. We wanted to figure out a strategy that would ensure we utilize 100% of our allocated tax credits. We also think that by concentrating resources in specific communities, we have a greater chance of measuring the overall impact not only on a particular business but also the community. The E-Community Pilot Program was launched in September of 2007. The first competitive round was in October of 2007;six communities were selected from 11 applicants. The E-Community Program is designed to help Kansas communities establish a fund for entrepreneurs and small business owners through a partnership with NetWork Kansas and the Entrepreneurship Tax Credit. A NetWork Kansas E-Community enables local communities to provide loans and grants to businesses in their own community in the same manner that StartUp Kansas provides funding on a statewide basis through a partnership with NetWork Kansas. The initial interest in this partnership between NetWork Kansas and communities far exceeded our expectations. We expected 5 or 6 applications and we had 11 applications. The Board of Directors approved 6 applications and approved earmarking $1.2 million of our $2 million in tax credits for these 6 communities. These six pilot E-Communities include: Cowley County, Garnett/Anderson County, Great Bend/Barton County, Rawlins County, Sterling/Alden/Rice County, Thomas County. We are thankful for your support in passing Senate Bill 324 in June 2006, which raised the Entrepreneurship Tax Credit from 50% to 75%, as a result, these six communities raised $2.67 million. $1.634 million was designated for those 6 communities to provide matching funds to entrepreneurs in those communities and over $1 million was put into the StartUp Kansas fund to continue to provide statewide funding to entrepreneurs and small businesses. I want to discuss three very important points about the funds. 1. Loans and grants going to entrepreneurs have the same requirements of the StartUp Kansas fund. In essence, weve hired communities to partner with us to manage StartUp Kansas funds. We, meaning NetWork Kansas, manage the funds to ensure that it meets statutory guidelines and have final signatory authority on all loans and grants. 2. Second, the E-Community partnership is very important because it helps ensure collaboration among communities and our NetWork Kansas partners to make sure that communities not only have economic resources but also have access to other NetWork Kansas partners who provide consulting services, education, and other needs that local entrepreneur may have. 3. The E-Community program will allow us to benchmark our impact in a much more significant way. We will track every business utilizing the same spreadsheet that is in your packet. We are working with Dr. Art Hall at the Center for Applied Economics at KU to determine the best way to benchmark and track businesses and communities from both a micro and macro economic level. We are very excited about the potential of this program; weve received inquiries from other states and national experts who think were on the right track. The essential ingredient and strategy for rural development is local empowerment of communities because community and economic development happens within the community not top down. We think the E-Community program provides an important asset as well as an avenue for effective engagement with local, state, and federal resources that help entrepreneurs and small business. Rural Angel Network Another opportunity to build the capital infrastructure in rural communities has emerged since the launch of the E-Community program; this is the opportunity to build a statewide rural angel network through existing services already provided by one of our partners. At this time, Id like to introduce Patricia Brasted. Trish is the President of Wichita Technology Corp., a NetWork Kansas partner and KTEC organization and is a founding member of the Midwest Venture Alliance. Trish is going to share with you the vision behind the dialogue we are starting with rural communities. Conclusion If you have any questions, Id be more than willing to try and answer them now or you can email me at sradley@networkkansas.com or call 316-218-6304. Thank you. Steve Radley, Director, Kansas Center for Entrepreneurship, 1845 Fairmount, Box 202, Wichita, Kansas 67260-0202     PAGE  PAGE 6 QRS`dztc[I5'hFkh65>*OJQJ\^Jwh"h65B* CJOJQJaJph 2ijOh6U!h65>*OJQJ\^Jwh-hVBhu56B* OJQJ\]^Jph 2i-hVBh 56B* OJQJ\]^Jph 2i!hG&5B* OJQJ\^Jph 2i'hVBh 5B* OJQJ\^Jph 2ihVBh B* CJ$aJ$ph 2ih-B* CJ$aJ$ph 2iwhh>2,hGYCJaJ huhujhsLURSabpHgd$f d^gd<$0d^0a$gd6$@&a$$a$gd gd gdGYj66   . > P Q x]xHx5%h2"*h qB*CJOJQJaJph)h2"*h<0JB*CJOJQJaJph4jh2"*h<B*CJOJQJUaJph.jh2"*h<B*CJOJQJUaJph/h2"*h qB*CJOJQJ^JaJphwh/h2"*h;g>B*CJOJQJ^JaJphwh/h2"*h<B*CJOJQJ^JaJphwh%h2"*h<B*CJOJQJaJph(hRh<5B*CJOJQJaJph    ( L Z |     ! & / 2 Ƴƍz٠gƠTTT%h2"*hQB*CJOJQJaJph%h2"*h/BB*CJOJQJaJph%h2"*h B*CJOJQJaJph%h2"*h=+B*CJOJQJaJph%h2"*h{M%B*CJOJQJaJph%h2"*h#B*CJOJQJaJph%h2"*h6B*CJOJQJaJph%h2"*h qB*CJOJQJaJph%h2"*h<B*CJOJQJaJph 2 3 4 Z j     i j %.K젍zeP(hQh<5B*CJOJQJaJph(h2"*h<5B*CJOJQJaJph%h2"*h<B*CJOJQJaJph%h2"*h#B*CJOJQJaJph%h2"*h{M%B*CJOJQJaJph%h2"*hQB*CJOJQJaJph%h2"*h qB*CJOJQJaJph%h2"*hLB*CJOJQJaJph%h2"*h6B*CJOJQJaJphQRSVW_`dkزآز؏||i[Nh$fh<OJQJ^Jh$fh<5OJQJ^J%hGh<B*CJOJQJaJph%hI+~hQB*CJOJQJaJph%hI+~h B*CJOJQJaJphhjB*CJOJQJaJph%hI+~h#B*CJOJQJaJph%hI+~hB*CJOJQJaJph%hI+~h<B*CJOJQJaJph(hGh<5B*CJOJQJaJph(@CJijĥăăraraP?r!hI+~h B*OJQJ^Jph!hI+~hB*OJQJ^Jph!hI+~hBB*OJQJ^Jph!hI+~h,bB*OJQJ^Jph!hI+~hk B*OJQJ^Jph!hI+~h#B*OJQJ^JphhjB*OJQJ^Jph!hI+~h B*OJQJ^Jph!hI+~h<B*OJQJ^Jph)h$fhBB*CJOJQJ^JaJph%8$)h$fhBB*CJOJQJ^JaJph%8$ !RSTfj|ݻ̪ݻ̪̻r_L$h$fh5B*OJQJ^Jph$h$fh>*B*OJQJ^JphhjB*OJQJ^Jph)hI+~hB*CJOJQJ^JaJph)hI+~h B*CJOJQJ^JaJph!hI+~hB*OJQJ^Jph!hI+~h'B*OJQJ^Jph!hI+~hQB*OJQJ^Jph!hI+~h,bB*OJQJ^Jph!hI+~hk B*OJQJ^Jph`c  CD gdlK d^gdHgd d^gd< w(,DJ_`bkmȵzgzgzTzTzgzAT%hI+~h B*CJOJQJaJph%hI+~h-*B*CJOJQJaJph%hI+~hk B*CJOJQJaJph%hI+~hQB*CJOJQJaJph%h$fhB*CJOJQJaJph)h$fhB*CJOJQJ^JaJph$h/Bhk 5B*OJQJ^Jph$h/Bh5B*OJQJ^Jph$h$fh5B*OJQJ^Jph!h$fhB*OJQJ^Jph!~  tADEKOZb~̹̦s^(h~h~5B*CJOJQJaJphh~B*CJOJQJaJph%hI+~h<B*CJOJQJaJphhjB*CJOJQJaJph%hI+~h-*B*CJOJQJaJph%hI+~h B*CJOJQJaJph%hI+~hQB*CJOJQJaJphh-*B*CJOJQJaJphhQB*CJOJQJaJph$;D ®®®žzdNd8dz*h~hmN6B*OJQJ^Jphwh*h~htLZ6B*OJQJ^Jphwh*h~hlK6B*OJQJ^Jphwh'h~hlKB*OJQJ^JphwhhI+~hmNOJQJ^JwhhI+~hlKOJQJ^Jwh'hI+~h B*OJQJ^Jphwh'hI+~hlKB*OJQJ^Jphwh%h;g>hlKB*CJOJQJaJph+hbhlK56B* CJOJQJaJph 2i !"A"Y"]""""""""""#Y######$$$A$K$𺫚p[p[pFp[pFpF[FpF)hI+~h6B*CJOJQJ^JaJph)hI+~htLZB*CJOJQJ^JaJph)hI+~h_!B*CJOJQJ^JaJph)h~h~B*CJOJQJ^JaJph%8$ h~h~CJOJQJ^JaJh~5CJOJQJ^JaJ%h;g>hlKB*CJOJQJaJphhmNOJQJ^Jwh+hbhlK56B* CJOJQJaJph 2ih;g>hlKOJQJ^Jwh ~!!!!!"B"M"^"""";&<&(()gdu & F xgdG& d^gd$f d^gd<`gdlK^gdlKgdlK d^gdbK$$$$%%%%&+&8&9&<&?&{&}&~&&&&&&&&&'(xxggVgGhI+~hG&B*OJQJph!hI+~h/BB*OJQJ^Jph!hI+~hF"B*OJQJ^Jph!hI+~htLZB*OJQJ^Jph!hI+~h+ B*OJQJ^Jph!hI+~hG&B*OJQJ^Jph)hI+~htLZB*CJOJQJ^JaJph)hI+~h+ B*CJOJQJ^JaJph)hI+~h*B*CJOJQJ^JaJph)hI+~h_!B*CJOJQJ^JaJph(((((((")#)N)}))))))))))))**ʶʶԗmXC)h2"*h=B*CJOJQJ^JaJph)h2"*h*B*CJOJQJ^JaJph)h2"*hF"B*CJOJQJ^JaJph)h2"*hG&B*CJOJQJ^JaJph)h2"*h6B*CJOJQJ^JaJphhROJQJ^Jh6OJQJ^Jh*OJQJ^JhuOJQJ^JhuhuOJQJ^J#h$fB*CJOJQJ^JaJphhI+~hG&0JCJaJ))**K,L,,,--J/K/002222F5G5R5S555 d^gdgw gd`(m d^gdgdA[gd<  d^gdu*************++G+J+++!,G,J,K,V,^,c,,--K-˷˷{gg{g{gg{gZJhI+~h=OJQJ^Jwhh=OJQJ^Jwh'hI+~h=B*OJQJ^Jphwh'hI+~h*B*OJQJ^Jphwh'hI+~hwB*OJQJ^Jphwh'hI+~h,eB*OJQJ^Jphwh'hI+~hB*OJQJ^Jphwh'hI+~hF"B*OJQJ^Jphwhhu5OJQJ^J)h2"*h<B*CJOJQJ^JaJphK-------...-. /I/J/R0\00011131<1w1111̸̸̸̸̤|h|ThThTCThTh!h~B*OJQJ^Jphwh'hI+~hB#[B*OJQJ^Jphwh'hI+~hmKB*OJQJ^Jphwh'hI+~h*B*OJQJ^Jphwh'hI+~hh]B*OJQJ^Jphwh'hI+~hh'B*OJQJ^Jphwh'hI+~hF"B*OJQJ^Jphwh'hI+~h=B*OJQJ^JphwhhI+~h=OJQJ^JwhhI+~h*OJQJ^Jwh1122222222 303F3R3X3}3~3334B5E5ökWkkWkWkJ=h`(mOJQJ^Jwhh=OJQJ^Jwh'hI+~h}B*OJQJ^Jphwh'hI+~h=B*OJQJ^Jphwhh;g>hh]OJQJ^Jwh(h;g>h5B* CJOJQJaJph 2i"h`(m5B* CJOJQJaJph 2ih(BOJQJ^Jwh'hI+~h(BB*OJQJ^Jphwh'hI+~hmKB*OJQJ^Jphwh'hI+~hB#[B*OJQJ^JphwhE5F5Q5R555555i6j6k6m6n6p6q6s6t6v6w6}6~66666666666ɹ|tptptptpf`f`\f`fQf`\ph360JmHnHuh]I' h]I'0Jjh]I'0JUhcjhcUh;g>hO9OJQJ^Jh;g>hLOJQJ^Jwhh;g>hH OJQJ^Jwhh;g>hKOJQJ^Jwhh;g>hO9OJQJ^Jwh(hgw hO95B* CJOJQJaJph 2i"hgw 5B* CJOJQJaJph 2ih;g>h`(mOJQJ^Jwh526g6h6i6j6l6m6o6p6r6s6u6v666666666&`#$$a$gdGY66h;g>hO9OJQJ^J5 01h:pmN/ =!"#$8% ODd{('r  C NA6network_ks_taglines_bottomb9O;ɤe1ᦏODcn O;ɤe1ᦏPNG  IHDR{ҏ9gAMA|Q cHRMR@}y<s,٩<9SbL!GĈ 3,F0+7T3IlpX"61"H _qW,d ėrIKst.ښAdp&+g]RәY2EE44432PuoJEzg`̉j- -b8o׿M]9La.+-%Mȧg3YះuAxEK i<:ŹPcu*@~(  ]o0 ~y*s7g%9%(3H*@C`-pn VH@ A1 jPA3hA'8΃Kn`Lg` a!2D!H҇ dAP B Byf*z: @]h ~L CUp΅ p%;56< ?" 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