Creating America's Most Entrepreneurial City

This past year the Greater Kansas City Chamber of Commerce rolled out their Big 5 Ideas for improving the Kansas City Region and making it great. One of those "big ideas" is the bold goal of making Kansas City "America's Most Entrepreneurial City." To advance that vision, they appointed a committee headed by Peter DeSilva, CEO of UMB Financial. Mr. DeSilva has organized a series of Community Conversations, comprised of small business owners, academics, educators, corporate executives and more to discuss and form some tangible plans for achieving the goal.

Recently I attended one of these sessions and came away impressed. Many of the same old ideas and challenges were bandied about of course. But between the 90% of same, there were some new and exciting ideas. One of the ideas that came from the team I was on sought to look at barriers to entrepreneurship from a different perspective. We chose to look at it from a human perspective. Think about the life of an entrepreneur outside of their business plan. From this the beginning of a big idea was formed. The Entrepreneur's Safety Net idea seeks to remove barriers that make founding a start-up, growing a new company and even selling and starting over possible.  

Hopefully, these ideas will be added to the well of ideas that come from these sessions. They will grow, evolve and become something great and meaningful for current, and future, innovators in our region. I simply left too inspired by these ideas to just sit and wait for the larger committee to take them on. I felt starting a virtual dialogue might help. 

Thus, you have the forming ideas of the the Entrepreneur Safety Net Program

1. Healthcare

Creation of a community-based healthcare program that is portable and affordable for small businesses and individuals. It could be portable and consistent, as individuals change employment status or even employers within the region. It would be preventative-based and use technology to keep costs low. Cerner as a global leader in healthcare technology should play a leading role in creating a regional healthcare program. Ideally there would also be a shared pool created were the business community could help to subsidize healthcare for some start-ups while in their early launch phase and they would contribute back to the pool as they grow. 

2. Childcare

Much like healthcare, childcare is a major barrier to many small innovators. Kansas City is known as a great community to raise a family, but the childcare network is sporadic and expensive. Using the model of the larger corporations and universities that have created their own highly successful childcare centers, we would propose a civic network of childcare centers that are designed to accommodate the children of the creative class and the start-up business owner. Flexible hours, tiered cost structure, community activities and more. 

3. Advanced Entrepreneur Education

One of Kansas City's great assets is how the city's non-profit organizations and universities have created exceptional programs for entrepreneurs. From the Kauffman Foundation and their FastTrac program, the Helzberg Entrepreneurial Mentoring Program, the various great university programs, such as the UMKC Bloch Business School and the Kansas City Art Institute; there is no lack of opportunity. There is however a problem with cohesion and selection. All of these educational programs need to create a clearinghouse and sharing program with the student in mind. What program or combination of programs are best for an individual? Then help that student craft a course of study that benefits them and sets them on the best path for building and growing a business in Kansas City.    

4. Primary Education

Like most mid-size and large American cities, Kansas City has a serious problem with urban education. Many other initiatives are underway to attempt to address the challenges facing our educational system and I wish them well. For improving entrepreneurship, we need to look at current realities, and how we can create a school (or school network) that appeals to those considering our city to start a business or are already here. These women and men are generally highly educated and creative and want to find great schools for their kids. Currently, they are limited. Why not create a "district" that spans state lines and district borders and focuses on creative high-quality education? Use the new Kauffman School as a basis, but for K-12 and not limited to the current Charter School constructs.       

5. Continuity of Resources (Entrepreneur Concierge)

This is perhaps the easiest one of the eight ideas to accomplish. All of the government entities need to put aside their differences and work with the local non-profits to create one simple gateway for all new business start-ups. The Area Development Council has had some success with this, but they are not conducive to the small start-up. There should be a singular point of contact throughout the entire life cycle of a company, regardless of the location in the metro or the type of business. Have one "concierge" that is there to assist and guide a business.  

Additionally, our region has several great small business incubators such as Office Port. What the region needs is an effort to connect and unify the incubator programs. Tie together and leverage resources across for-profit facilities and university facilities.   

6. Community-Based Venture Capital

We have one of the great philanthropic community funds in America. The Greater Kansas City Community Foundation currently administers over $1-billion in assets that benefit countless programs in the region. We also have several great venture capital funds in our region. The great missed opportunity is the creation of a community-based venture capital fund that is designed to support and fund early stage start-ups for the benefit of our community. A fund seeded by the philanthropists and local corporations and administered by a board of local leaders.  

7.  Start Up Neighborhood

All great cities known for innovation have one particular area or neighborhood especially known for the vibrancy of the entrepreneurial spirit. This becomes the hub from which the identity grows. Businesses may start in that area and then move to other areas within the region as their needs change. By designating and aligning assets to help create one key innovation hub, we will be able to better craft our message and story to the rest of the world. This benefit then spins off to the entire region. Creating an energetic center of innovation also reinforces the idea of the "Third Place" for individual interaction and idea exchange. Richard Florida does a great job explaining this in his book Who's Your City.   

Hopefully these thoughts will coalesce into something tangible. Perhaps they will spur new ideas, debate and perhaps even real action. I am excited to continue to be an entrepreneur, while also pushing this greater discussion of how we can create a true American Entrepreneurial City.

Now I want to hear from you. Please share this article and leave your thoughts on this first draft of ideas. I will edit and refine as we continue a virtual dialogue.

Thank you.






Article first published as Creating America's Most Entrepreneurial City on Technorati.

Buy Less, Benefit More

Yasuhiro Yamashita designed small home

Alternately titled, Better Living Through Curated Belongings.

Graham Hill is a writer at Treehugger.com and a designer. He explains in his TED talk how and why we should simplify our lives through smaller spaces, fewer things and more thoughtful living. He covers the idea of editing your life. His talk is certainly worth a listen. In it he explains how the world benefits and how the individual benefits.

Leading a more sustainable life is laudable for all of us, but I am more interested in how producers of things benefit. How does the furniture company, the electronics company, the car company benefit? In more ways than you can imagine.

Engaging in a cultural shift toward possessing fewer belongings does not mean that our earnings and total spending on goods and services will change. What it does mean is that we will start to desire products that are longer lasting and of more quality. Couple that with the trend of localized consumption and you have a perfect storm for and explosion of micro and artisanal manufacturers of a huge array of products. I believe you will also see a growth of locally based Etsy.com style sites. But what does this shift mean for current products?

The strong retailers and manufacturers will start to adapt. Companies like Target will start to stock more refillable and reusable products. The days of the low quality bookcase that goes to the curb on trash day after a couple years will be replaced by high-quality solid wood bookcases made from reclaimed materials. You may also start to see retailers offering trade-in and trade-up programs. The consumer will benefit but so will the retailers. Fewer total transactions may occur, but each product transaction will be at a higher price point and invariably a higher profit margin.

Neighborhoods will benefit by having more infill homes, more density and more civic engagement. If you live in a smaller home that doesn't have 4,500 square-feet you get out to public spaces more. Restaurants will see continued increase in frequency of visitors. Architects will have to be much smarter, but will get to be much more creative. Smaller home construction will also allow more custom designs as the total construction cost will be lower.  

Smaller quality product manufacturers located in your city will mean more jobs, closer commutes, more use of mass transit and so on.

Getting on the leading edge of this trend could hold great potential for business owners and entrepreneurs. There is great potential for more small retailers, small neighborhood grocers, residential renewable energy providers  and even service providers to help consumers downsize their lives.

A lot to think about as this trend takes hold, but a lot of possible benefit for all of us.
   

AMC Not to Blame in KC Metro State Line Battle

Today we diverge a bit from the usual branding and marketing commentary to discuss economic development and civic engagement:

AMC Theatres is the latest in a long line of Kansas City area companies to use the state line that runs down the middle of our metropolitan area to their financial advantage. In May, it was Applebee's jumping to Missouri to take advantage of incentives. Now it is AMC, fleeing downtown Kansas City after 91 years, and taking over 400 employees to Leawood, Kansas. They have every right to choose the location of their company. They are not a public trust and owe the citizens and taxpayers nothing. In fact, the Park Place development they are moving to is a very nice location. AMC has a clear goal of minimizing corporate expenses and maximizing corporate revenue. They are owned by a multi-national investment company, the Carlyle Group, that according to their own media info, "seeks to deliver attractive returns for our fund investors." Pretty clear what AMC CEO Gerry Lopez has been tasked with delivering back to the parent company.  

AMC Theatres current HQ

 Much as they cannot be blamed for their decision, they also cannot be considered good civic citizens. In taking the tax incentive package, worth anywhere between $60-67 million they are certainly returning an attractive return to their investors. However, for the Kansas City metro area, those are tax dollars lost for core investments in our community. The economic development experts are not only shifting tax revenue from one state to the other, and from one municipality to the other, they are taking dollars out of the coffers of the entire metro. Does anyone believe that the Carlyle Group, or AMC for that matter, will invest those dollars back in our city? Will they be generating a bevy of new jobs? Will they create a multi-million dollar education fund? No, that is not the corporate mission of AMC.

Park Place development

The public relations spin placed on this decision is simple. AMC could have moved to any number of cities and taken all of those jobs out of our metro. In fact, by their own words they point out that Kansas City is only the 28th largest AMC market. Thereby hinting at the fact that there were 27 other possibly more attractive markets that they could have taken their headquarters to. I am sure that this is true. Many cities would have loved to have lured a Fortune 1000 company headquarters. So the Kansas City area may have avoided the disaster of losing another large employer. But what have we gained? Nothing.

So if AMC is not to blame for the metro area losing $60 plus million in tax revenue while gaining zilch, who is? The economic development officials on both sides of the state line are to blame. These men and women have done nothing to benefit the citizens of our area with this type of deal. They are fighting for bragging rights at the behest of the narrow geography they represent. They seem to forget that this is a complex metro area that does not exist within any one border. Hundreds of thousands of people cross dozens of political boundaries every day. Their lives are only improved when all of the areas they visit are improved. They don't care whose road it is, they just want it to be nice when they drive on it. Our economic development officials do not seem to get that. They are a myopic bunch at best.

So what can be done to improve our entire city? The Greater Kansas City Chamber of Commerce recently launched their Five Big Ideas plan. It is an ambitious and worthy roadmap for our future. How does corporate poaching improve entrepreneurship? Translational technology transfer? When was the last time any of the economic development teams in Kansas City lured a Fortune 1000 headquarters from another city to anywhere in the metro area? If we are going to give away $60 million in tax incentives, shouldn't the return on investment be completely new dollars to the area? 

As citizens we musty demand better from all of our elected officials and the people they hire. The civic leaders of our city also need to stand up and work to grow our region, not just one small areas. The Greater Kansas City economy grew at only 1.52% in 2010, according to a report in the Kansas City Business Journal. That is good for 222nd among all metro areas. This does not even take into account our success globally. We are losing the fight, and we are losing it because we continue to let it be lost by fighting among ourselves. This is not unique to Kansas City, but we seem to do it better than most other metro areas. 

We need to understand and accept that businesses will act in their best interest every time. We should leverage that motivation and focus our energy as a metro area and a region on new business creation, employment expansion and new employment recruitment. Continuing to shift headquarters a few miles at the expense of millions in needed tax revenue is a fools game. Consider that the next time your municipality raises your property tax rate, fees and sales tax after granting millions to lure a new business across a street.