Resources in place to foster entrepreneurship

What is the future for startups and entrepreneurship in Colorado Springs? The short answer is a promising future, but the long answer is more complicated.

Colorado Springs has been recognized with Boulder and Denver as "cybercities" in a report by the Nasdaq Stock Market and AeA, formerly the American Electronics Association. The report assesses the U.S. high-tech industry in 60 metropolitan areas.

The report ranked Colorado Springs as the fastest-growing cybercity with a 77 percent gain in high-tech employment - defined as workers in the electronics manufacturing, communication service, and software and computer-related service industries.

Venture capital investors pumped $343 million into Colorado companies during the fourth quarter of 2000, a 31 percent decline from a year earlier and a nearly 60 percent drop from the previous quarter.

Colorado Springs companies received $14.5 million in the fourth quarter and more than $101.6 million for the entire year. Springs firms received about one-fifth of all Colorado investments - 95 percent went to technology and telecommunications companies.

Local angel investors also placed more than $200,000 with local entrepreneurs last year to get their business plans off the ground.

The city's high-tech base continues to grow, particularly software and telecommunications, totaling more than 400 companies, with an annual turnover of about 20 percent. About 70 percent of those companies are developing some type of software.

The Colorado Institute for Technology Transfer and Implementation works with about 100 small, emerging and nascent (in the process of formation) local high-tech companies each year.

Colorado Springs doesn't lack entrepreneurs, but a more critical factor is whether the area offers enough support to startup firms. Key elements of that support include information and know-how, resources, critical mass and quality of life.

Information and know-how needed by startup firms include:

Efficient, timely access to experts to solve a specific problem

Efficient, timely access to advisers (peers, mentors, board members) for ongoing dialogue and assistance

Networking with other community leaders, high-tech managers and entrepreneurs

Technical "gurus" - leading experts in their fields

Efficient, timely access to business and market information

Colorado Springs offers such information and know-how - perhaps not as clearly defined and accessible as the ideal, but they are available.

Resources include:

Access to skilled, motivated employees (students, grads, mid- range, upper management)

Local suppliers

Access to capital sources

Education/training (technical and business), usually with a top- quality research university

Specialized lab facilities (clean room, anechoic chamber, software platform test)

Convenient airline and surface transportation

Resources are more of a problem. Although the city's work force is among the nation's most highly educated, the area's record-low unemployment rate makes hiring needed workers more difficult.

Access to capital is limited, with only a few venture funds making investments here. Capital has become more scarce as the nation's economy slows. Investors are more likely to pump more money into existing investments, rather than aggressively seeking new investments.

Specialized lab facilities in Colorado Springs are limited, and convenient air and surface transportation remain a major concern.

A "critical mass" of seasoned local entrepreneurs and managers is somewhat limited in Colorado Springs. Seasoned entrepreneurs are available, but few have experience with the newest technologies.

Local startups have succeeded, only to be required to move their operations to other communities to secure funding or hire seasoned managers. Competition among startups in Colorado Springs also is minimal.

High-tech professionals sought by startups want a high quality of life that includes the physical environment, cultural amenities and cultural diversity.

Physical environment is a strong draw for Colorado Springs, but the city's cultural amenities are somewhat limited. Cultural diversity is improving, albeit slowly.

Support for new high-tech businesses is improving. Existing sources of support include the Small Business Development Center, Chamber of Commerce, CITTI, the new Colorado Springs Technology Incubator and much assistance from the private sector.

A large pool of experienced and successful local entrepreneurs and managers are willing to offer advice, experience and support to new enterprises. These volunteers reflect a local culture that supports startups and entrepreneurship.

I believe the future looks bright. The job is not done, but local efforts are moving in the right direction.

- Williams is director of the Colorado Institute for Technology Transfer and Implementation. (719) 548-8227 [email protected]

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