2008 Northeast Texas Entrepreneurship Assessment

Cass

Bowie

Lamar

Miller

Red River

HopkinsTitus

Hempstead

Delta

Little River

MorrisFranklin

An Assessment of Rural Entrepreneurship in Northeast Texas and Southwest Arkansas

JULY 2008

WORKFORCE SOLUTIONS: RURAL ENTREPRENEURSHIP ASSESSMENT

Acknowledgements The project team would like to thank the many individuals who took time to participate in the development of this document. We are particularly grateful to the Northeast Texas Workforce Development Board, the Local Activities Committee, and the many business owners and organizations who provided feedback and valuable insights regarding the community.

Staff: Kay O’Dell, Executive Director, Workforce Solutions David Vershaw, Project Manager, Workforce Solutions

Local Activities Committee: Ron Davis CEO, Titus Regional Medical Center Roger Feagley Executive Director, Sulphur Springs / Hopkins County EDC Bradley Hardin Community Relations, SWEPCO Peter Kampfer Executive Director, Paris EDC Steve Harris Director, Nash EDC Charles L. Smith Executive Director, Mount Pleasant Industrial Foundation Jerry Sparks Economic Development Director, Texarkana Chamber of Commerce Christy Wendell CEO, Harrison, Walker & Harper

About Us

TIP Strategies, Inc. (TIP) is a privately held Austin-based business and economic development consulting firm committed to providing quality solutions for both public- and private-sector clients.

Established in 1995, the firm’s areas of practice include economic development consulting, strategic planning, site selection, economic impact analysis, regional economic development, target industry analysis, cluster analysis, technology audit, transit-oriented development, workforce analysis, feasibility studies, market analysis, and redevelopment analysis and planning.

T.I.P STRATEGIES, INC. 7000 North MoPac, Suite 305

Austin, Texas, 78731 512.343.9113 (voice) 512.343.9190 (fax)

[email protected] www.tipstrategies.com


Table of Contents

Executive Summary ............................................................................................................ 4

Introduction ......................................................................................................................... 6

Asset Mapping .................................................................................................................... 7

Strategic Recommendations ............................................................................................. 23

Organizational Recommendations .................................................................................... 33

Implementation Guide....................................................................................................... 36

Appendices ....................................................................................................................... 39

Appendix A: Entrepreneurs Survey Responses............................................................... 40

Appendix B: Service Providers Survey Responses........................................................... 44

Appendix C: List of Bank Branches................................................................................... 45

Appendix D Potential Funding Sources ............................................................................ 55

Appendix E Data Analysis................................................................................................. 59


Executive Summary With growing interest in using entrepreneurship as a key economic development tool, Workforce Solutions Northeast Texas hired TIP Strategies, an Austin-based economic development consulting firm, to conduct an entrepreneurship assessment of the region and devise a set of strategies to strengthen the region’s entrepreneurship initiative.

As part of this assessment, TIP mapped the entrepreneurial assets of the region, identified any gaps in service, and made recommendations on how to better promote entrepreneurship in the region. The results of the asset mapping and gap analysis are summarized to the left.

To address these gaps, TIP recommended three primary goals and outlined strategies and actions to support these goals. A summary of these strategic recommendations is contained in the boxes below.

Asset Category Existing Gaps Capital Local banks

Informal angel network Small revolving loan funds

Formal angel network Regional revolving loan fund Financial literacy training

Business Services Legal

Accounting Marketing Human resources

Information technology Affordable healthcare Education about services

Education & Information Programs

SBDCs Higher education

institutions CORRE Paris incubator Sulphur Springs assistance

center Some youth e-ship training

Matching training offerings with entrepreneur needs

More regional access to training Entrepreneur boot camp Peer networking Formal mentor network Information clearinghouse Coordinated youth e-ship

initiative

GOAL ONE: DEVELOP AN EDS Design an online entrepreneurs portal Create a strong network of partners and

service providers Build capacity in regional communities to

better support entrepreneurs

GOAL TWO: AUGMENT SUPPORT SERVICES Develop a three-tiered support system for

entrepreneurs in the region. Strengthen and target support services for

each tier.

GOAL THREE: PROMOTE A MORE ENTREPRENEURIAL CLIMATE AND CULTURE Design a PR campaign to build awareness

of regional entrepreneurs’. Organize an annual business expo. Lower barriers to entry for new

entrepreneurs.


To set up the organizational structure to implement the goals and strategies, TIP recommended that the region create a roundtable of stakeholders. This roundtable should meet regularly to track implementation progress. In addition, experienced staff dedicated to entrepreneurial issues should be hired. This staff person should be responsible for everything from fundraising to program design and should provide administrative support to the roundtable, as needed.

To ensure effectiveness, accountability measures should be identified and integrated into the design of the programs and initiatives that grow out of this report. These accountability measures will provide a feedback loop to modify the programs and initiatives, if needed, and allow stakeholders to track progress and results.

Finally, the region will need to raise funds necessary to support the programs and initiatives. The source of funds should be well-diversified in order to ensure the longevity of the programs and initiatives.


Introduction The Northeast Texas region and the neighboring counties in Southwest Arkansas are facing significant job losses associated with the realignment of Red River Army Depot and Lone Star Army Ammunition Plant. In addition, the region has experienced recent layoffs in the manufacturing and retail sectors. In response, the region is seeking to strengthen its entrepreneurship initiative in an effort to bolster economic growth and job creation.

Entrepreneurship is becoming more commonly accepted as an essential tool in the economic development toolbox. Especially in rural areas, communities are recognizing that a “grow your own” strategy has a higher probability of success than recruiting a major employer to the area. In addition, entrepreneurship strategies that foster new business creations are often more cost effective than incentives paid to recruit businesses to a community. A recent study of the Appalachian Regional Commission’s Entrepreneurship Initiative found that the public cost of the initiative per job created ranged from $579 to $3,994.1

Past studies in the region have found an entrepreneurship initiative to have much promise. The 2005 report North East Texas: Building on Strengths and Working Together on Challenges found that entrepreneurship plays a significant role in the regional economy in terms of employment and income. Furthermore, the 2006 Texarkana Regional Community Plan revealed that 30 percent to 40 percent of workers to be affected by the base realignments were interested in starting their own businesses.

With this in mind, Workforce Solutions Northeast Texas hired TIP Strategies, an Austin-based economic development consulting firm, to conduct an entrepreneurship assessment of the region and devise a set of strategies to strengthen the region’s entrepreneurship initiative.

1 Creating an Entrepreneurial Appalachian Region by RUPRI’s Center for Entrepreneurship, April 2008.


Asset Mapping METHODOLOGY

To assess the entrepreneurial assets in the region, the consulting team focused on collecting both qualitative and quantitative data through site visits, interviews, and primary and secondary data sources. These research activities included:

Data collection, analysis, and assessment

Stakeholder interviews (13)

Entrepreneurs focus groups (21 attendees)

Survey Entrepreneurs (106 respondents / 72 completed) Service providers (3 respondents)

With the information obtained through this discovery process, TIP created a map of the region’s entrepreneurial assets and identified any significant gaps in the spectrum of small business and entrepreneurship services. We classified assets into three categories - capital, business services, and education and information programs as shown in the asset checklist. In addition to these asset categories, we assessed the entrepreneurial climate of the region.

Once the service gaps were identified, TIP researched best practices for program design and delivery to address these gaps. We, then, developed recommendations for promoting entrepreneurship in the region through regional collaboration and enhanced programs and service delivery.

Build awareness of entrepreneurship

Board of DirectorsInvolvement

Basic Training

One-on-OneCounseling

BusinessNetworking

MentorPrograms

Adv. Training

Angel NetworkFacilitation

Where are the gaps?

Build awareness of entrepreneurship

Board of DirectorsInvolvement

Basic Training

One-on-OneCounseling

BusinessNetworking

MentorPrograms

Adv. Training

Angel NetworkFacilitation

Where are the gaps?

Entrepreneur ia l Asset Checkl is t

SOURCE: RUPRI Center for Rural Entrepreneurship.


CAPITAL

Entrepreneurs need access to capital that is appropriate for the stage of growth that their business is in. Start-ups have different financing needs than established businesses. These financing needs are met through a variety of mechanisms from friends and family investment pools to debt issuances in international financial markets. The various financing sources by state of growth are presented on the chart to the left.

In the Entrepreneurs Survey, access to capital was perceived to be the primary obstacle to starting a business in the region.

Currently, traditional bank financing and small business loans are the primary source of financing available. However, there is no formal access to a venture capital network in the region. As a result, entrepreneurs in the region do not have adequate access to capital to fund the CONCEPT and INCEPTION stages of growth. In addition, companies with unique or unusual business models confront challenges in obtaining financing.

EQUITY CAPITAL

Entrepreneurial growth companies and other growth-oriented enterprises typically depend on equity capital to fund their needs through the concept and inception stages of growth. Equity capital is primarily available through “angel” investors and venture capital funds.

Focus group participants noted that many businesses in the region are generally hesitant to give up a portion of the ownership of their business in pursuit of equity investments. These comments highlight an important fact: equity investments are not for every business. For family-owned businesses and lifestyle businesses, debt financing may be adequate to meet their needs. However, for entrepreneurial growth companies and high-growth companies, selling equity in the company to fund start-up operations is often a necessary part of establishing a solid platform for growth. To create a business climate

Sources of F inancing by Stage of Growth

SOURCE: Adapted from PriceWaterhouseCoopers. (http://www.pwc.com/nz/eng/ins-sol/publ/pcs/CleverCompaniesDiagnosticChart.pdf)


that encourages the development of entrepreneurial growth and high-growth companies, the region should work to make equity capital accessible to promising entrepreneurs.

Angel Investors

The term “angel” refers to high-net worth individuals, or accredited investors, who typically invest in and support start-up companies in the very early stages (“seed stages”) of growth. In Northeast Texas and Southwest Arkansas, an informal angel investor network exists that provides early-stage funding for a select few promising entrepreneurs. Formalizing this network could enhance this type of capital’s accessibility and grow the base of “angels” as more investors become aware of investment opportunities in the regional economy.

Among their many benefits, formal angel investor networks provide opportunities for investors to pool their resources to support a wider range of financing needs in their region. They also provide entrepreneurs the opportunity to seek equity investments rather than rely on debt financing.

Venture Capital

Venture capital is also a type of equity capital. Venture capital investments are made by professional investors to promising high-growth companies who are beyond the seed stage of growth, but still considered to be start-ups.

While no venture capital funds are headquartered in the region, an entrepreneurial company that is prepared to actively solicit venture funds should be able to access funds outside of the immediate region in nearby metropolitan areas. Venture funds in the Dallas area and in Little Rock may consider making investments in regional companies. In Dallas, the North Texas Regional Center for Innovation and Commercialization functions as an outreach arm for the Texas Emerging Technologies Fund, a $200 million fund established to encourage the development of technology companies across the state. Dallas is also home to a number of venture capital firms, including an office of Sevin Rosen. In Little Rock, Diamond State Ventures, which is part of the Arkansas Capital Corporation Group (ACCG) provides capital for entrepreneurs across the state.

Three Things to Know about Capi ta l

1. Venture capitalists rarely invest outside of a two- to four-hour drive of the investor’s office. These investors need access to the entrepreneurs and management of the companies they are working with. Good investors are actively involved in helping the company succeed by adding management talent, making introductions to potential partners, and continuing to find other potential investors to lower the risk of failure.

2. Venture capital does not just happen in urban areas. There are groups that only invest in rural areas such as Meritus Ventures out of Kentucky and Tennessee and Sustainable Job Fund Ventures based in Durham, North Carolina, and New York.

3. Banks typically do not lend money to entrepreneurs in early stages especially companies working with intellectual property. An overwhelming majority of people think the only source of capital for entrepreneurs is a bank. In fact, most banks do not lend money to entrepreneurs who lack a certain net worth or entrepreneurs who usually lack any collateral that can be used as a guarantee of the loan.


DEBT CAPITAL

In the region, debt capital is largely provided in the form of business loans. These loans are principally provided by banks, SBA loan programs, revolving loan funds, and non-traditional lenders.

Banks

Northeast Texas and Southwest Arkansas are home to many banks, including most large national commercial banks and many local and regional banks. (See Appendix C – List of Bank Branches.) From 2001 to 2007, the number of bank branches in the region grew from 123 to 143. In spite of this growth, the value and number of small business loans has declined since 2006. The value of loans underwritten dropped from $52 million in 2001 to $28 million in 2006, while the number of loans declined from 1,558 in 2001 to 726 in 2006. This likely indicates a tightening of credit in the region. In 2007 and 2008, this trend has likely continued due to national market conditions.

This tightening of credit will make it harder for companies in the CONCEPT and INCEPTION phases to access credit. Business loans for these types of start-ups are too risky for most banks to consider, in most cases. Banks that will consider business loans to start-up companies usually have requirements for collateral and equity contributions that are prohibitively high to new businesses, particularly service-oriented businesses. For these reasons, bank financing is generally considered to be more suited for companies in the later stages of growth.

Some focus group participants noted that obtaining bank financing can be challenging for businesses that are unique or unusual. These business owners commented bankers turned down their requests or provided less capital than requested based on “not understanding the business.” As a result, some of the most innovative companies in the region may not be able to secure financing to grow their businesses.

The region is, however, very fortunate to have a large number of independent local and regional banks. Generally, a strong presence of independent banks positively contributes to the entrepreneurial climate of a community because the decentralized, less automated underwriting process of local banks (in comparison to that of national banks) allows more flexible lending practices that can be tailored to the needs of local entrepreneurs. Focus

$0

$50,000

$100,000

$150,000

$200,000

$250,000

2001 2002 2003 2004 2005 20064,000

4,500

5,000

5,500

6,000

Value of Small BusinessLoans ('000s)# of Small Business Loans

NORTHEAST TEXAS / SOUTHWEST ARKANSAS REGION Small Business Loans, 2001-2006

SOURCE: FFIEC.

123

124

129

134

139

141

143

110 115 120 125 130 135 140 145

2001

2002

2003

2004

2005

2006

2007

NORTHEAST TEXAS / SOUTHWEST ARKANSAS REGION Number of Bank Branches, 2001-2007

SOURCE: FDIC.


group participants cited over and over again the important role that the local and regional banks play in securing bank financing for their businesses. Many indicated that they had even been able to secure funding for their businesses when it was in the start-up stage. However, they also noted that some of these community banks rely on personal relationships with the perspective borrower to make underwriting decisions, which may exclude borrowers from surrounding communities or newcomers to the area. The exceptions to this kind of relationship banking are the local banks in Mount Pleasant, which participants explained are competing fiercely for small business loans and base underwriting decisions less on personal relationships.

SBA Loans and Non-Traditional Lenders

In addition to conventional bank financing, the SBA’s loan programs provide another source of debt capital for business owners in the region. Under these programs, the SBA acts as the primary guarantor of loans made by private institutions to small businesses. In this way, the SBA assumes much of the risk associated with small business lending in order to increase access to capital available to small businesses across the United States. The table to the left provides an overview of the SBA loan programs.

Both the Paris SBDC and the Southern Arkansas University SBDC provide loan packaging services to help their clients obtain SBA loans. They normally work with Borrego Springs Bank and the affiliates of ACCG to obtain SBA loans. The Ark-Tex Regional Development Company, which is part of the Ark-Tex Council of Governments, also underwrites SBA loans in the region.

Southern Financial Partners and ACCION Texas offer non-traditional small business loans in the region. Southern Financial Partners offers loans to small business owners within a 50-mile radius of their office in Arkadelphia, which includes parts of Hempstead, Little River, and Miller counties in Arkansas. ACCION Texas offers microloans from $500 to $50,000 to small businesses across the state of Texas. These nonprofit lending institutions provide capital to small businesses that do not have access to credit through conventional commercial banks or the SBA.

PROGRAM PERMITTED USES OF LOAN PROCEEDS LOCAL RESOURCES

7(a) Loan Guaranty, Max. $2,000,000

Working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions).

Borrego Springs Bank Arkansas Capital

Corporation (ACCG)

504 Loan Program, Max. $1,500,000

Purchase of real estate, machinery, and equipment

Ark-Tex Regional Development Corp.

Six Bridges Capital Corporation (ACCG)

ACCION Texas Greater East Texas

Certified Development Corp.

Microloan Program, Max. $35,000

Working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment

ACCION Texas

SOURCE: The Small Business Administration.

Summary of SBA Programs


Revolving Loan Funds

Four organizations across the region have established revolving loan funds in an effort to provide greater access to credit for small businesses. The funds were created by obtaining a grant from government agencies including the EDA, USDA, HUD, the U.S. Department of Agriculture, and private foundations. Once the funds are established, communities are then able to make loans to small businesses that do not otherwise have access to credit based on criteria established by the organizations themselves. The table to the left provides an overview of the revolving loan funds in the region.

While it is encouraging that these funds have been established across the region and that these resources are available, they will not be able to fill the existing credit gap. The size of the funds and the terms of the loans limit the ability of these funds to meet the needs of area business owners.

LITERACY

When asked about issues of access to credit, most focus participants were familiar only with conventional bank lending. In addition, the service providers interviewed commented that many business owners have poor credit, which prohibits them from being able to access credit from banks. Both these situations highlight gaps in financial literacy among area entrepreneurs – one in understanding different types of financing, another in understanding both personal and business financial management.

Currently, most financial literacy education for business owners occurs through the SBDCs and informal counseling. The SBDCs sponsor workshops to educate their clients most often on obtaining a bank loan and occasionally on financial management topics. Business owners in need of more intensive help with personal and business financial issues and credit repair often seek the help of informal mentors – sometimes bankers, SBDC counselors, bookkeepers, and accountants. However, education programs on non-bank financing and courses on very basic personal and financial management for business owners are not currently offered regularly across the region.

ORGANIZATION (Date Established) FUND AMOUNT LOANS MADE

Nash EDC (2002)

$300,000 15

Paris EDC (2000)

$200,000 3

Sulphur Springs EDC (2008)

$118,000 1 in process

North East Texas Economic Development District / Ark-Tex COG (1987)

$1,400,000 24

Chapman RLF (managed by Ark-Tex COG) (1995)

$1,400,000 22

SOURCE: TIP Research.

Summary of Loan Funds


BUSINESS SERVICES

Business services providers play a vital role in supporting local small businesses and entrepreneurs. Such services include accounting, bookkeeping, tax and legal advice, insurance, human resources, marketing, information technology, financing, succession planning, and market identification and development.

According to focus group participants, necessary business services are available locally, in nearby metropolitan areas, or online. In other words, area entrepreneurs have access to the business services that they need. The primary services not available locally are information technology related – from specialized equipment to network support services. However, many business owners have addressed this issue by traveling to the Dallas area to find needed equipment and by contracting with companies to provide remote assistance.

Another area of concern for focus group participants is health insurance. According to a recent survey by the National Federation of Independent Business, the cost of health insurance is the number one issue facing small businesses. In fact, the cost of health insurance can be a significant barrier to aspiring entrepreneurs considering starting their own business. In Texas, various chambers have begun to form Health Group Cooperatives, which allow them to offer employer health plans to their members. FirstCare Health Plans is one healthcare service provider that works with the Lubbock Chamber of Commerce, a partnership between the Permian Basin Petroleum Association and Odessa Chamber of Commerce, and a collaboration of 16 chambers in the Texas Midwest Community Network (Abilene / Waco area) to offer this kind of employer health plan.

The greatest gap in this asset category is that many business owners are not aware of the kinds of services available, why they may need these services, and where to find the services. For example, business succession and transfer planning is vital to the longevity of successful entrepreneurial ventures but not widely used by business owners. To address this lack of awareness, many communities plan annual small business expos, fairs, or conferences to expose small business owners to the types of services available and raise awareness of the need for these services. In addition, a directory of local services and informative newsletters can also raise awareness. Raising awareness


among business owners about the services available to them will increase the services’ accessibility and likely increase their usage rate.

EDUCATION AND INFORMATION PROGRAMS

Access to capital and business services are essential to creating a strong entrepreneurial climate in a region that provides the conditions in which entrepreneurial ventures can flourish. Creating a strong network of education and information programs is the next step in developing an effective entrepreneur support system. These programs are vital in building entrepreneurs skills and, thereby, increasing their chances of survival and success.

TRAINING & TECHNICAL ASSISTANCE

Various non-profit and public institutions offer area entrepreneurs training courses and more personalized technical assistance. The Small Business Development Centers are the primary service providers in the region. Most of their courses and services are offered at little or no cost to the entrepreneur. Regional higher education institutions also play a vital role in providing more advanced business courses to enhance entrepreneurs understanding of accounting, business management, marketing, and finance. In addition to these primary resources, a number of communities in the region are in the planning stages of new initiatives to serve business owners in their areas.

Small Business Development Centers

The Northeast Texas / Southwest Arkansas region is fortunate to have three organizations focused on providing assisting small businesses. These are the SBDCs. (See Appendix B – Service Providers Survey Responses.)

The Paris SBDC covers Lamar, Hopkins, Delta, and Red River counties. The center is headquartered at Paris Junior College. Training courses and counseling sessions are regularly offered

SBDC Coverage Areas

Cass

Bowie

Lamar

Miller

Red River

HopkinsTitus

Hempstead

Delta

Little River

MorrisFranklin

SOURCE: Small Business Administration.

Northeast Texas

Paris

Southern Arkansas University


in Paris, Sulphur Springs, Cooper, and Clarksville. They have two full-time and one part-time staff.

The Northeast Texas SBDC covers Franklin, Titus, Morris, Cass, and Bowie counties. The center is headquartered at Northeast Texas Community College. Training courses and counseling sessions are regularly offered in Mount Pleasant, Texarkana, Atlanta, and Naples. They have three full-time staff.

The Southern Arkansas University SBDC covers Little River, Hempstead, and Miller counties. It is headquartered outside of the region at Southern Arkansas University in Magnolia, Arkansas. Training courses and counseling sessions are regularly offered in Texarkana, Hope, and Ashdown. They have two full-time staff.

The SBDCs provides one-on-one counseling and training for potential entrepreneurs and business owners. Together the SBDCs provided counseling to 351 clients in 2007 and taught 110 training courses to 711 participants. In addition, they helped package 33 loans, securing almost $5 million in capital for small businesses. Local clients can also access the services of the North Texas Small Business Development Center Network that has specialty centers focused on government contracting, international trade, risk management, enterprise excellence, and technology.

Higher Education Institutions

The region’s universities and community colleges also provide education to entrepreneurs and aspiring entrepreneurs through their business and accounting programs. An overview of the degree programs offered in the region is provided on the following page. In addition to the topic areas covered by these degree programs, entrepreneurs may enroll in business classes for credit or as part of the institutions’ continuing education programs. These classes cover topics ranging from management and accounting to Quickbooks.

Of note among the higher education institutions is the new business school at Texas A&M – Texarkana. One of the near-term goals of the business school is to establish an entrepreneurship center and offer an entrepreneurship concentration. The center is currently in the nascent planning stage, and the school hopes to have this center up and running within the next 10 years.

CASE STUDY: the Hankamer School o f Business , Baylor Univers i ty

The Hankamer School of Business at Baylor University has received national recognition for its efforts to promote entrepreneurship. In addition to offering a course of study to prepare its undergraduate and graduate students for entrepreneurial careers, it houses the John F. Baugh Center for Entrepreneurship. This center offers two primary programs: the Innovation Evaluation Program and the Institute for Family Business. The Innovation Evaluation Program evaluates new products or ideas to determine the likelihood for commercial success. The Institute for Family Business provides educational opportunities for family business owners to strengthen their businesses across generations.

The entrepreneurship program at the Hankamer School was ranked 14th in the nation by U.S. News & World Report.

For more information: http://www.baylor.edu/business/entrepreneur/


Higher Educat ion Degree Programs

Texas A&M University - Commerce*

Texas A&M University - Texarkana

Texarkana College

Paris Junior College

Northeast Texas Community

College

Southern Arkansas

University - Magnolia*

University of Arkansas

Community College at Hope

Cossatot Technical

College BranchCITY Commerce Texarkana Texarkana Paris Mount Pleasant Magnolia Hope AshdownCOUNTY Hunt Bowie Bowie Lamar Titus Columbia Hempstead Little RiverGENERAL BUSINESS BBA BBA BBA

BUSINESS ADMINISTRATION BS, MBA BS, MS, MBA

MANAGEMENT BBA, MS BBA BBA

ACCOUNTING BBA BBA BBA TC

PROFESSIONAL ACCOUNTANCY BPA

ELECTRONIC COMMERCE MS

FINANCE BBA, MSF BBA BBA AAS

HUMAN RESOURCE MANAGEMENT BBA BBA

INDUSTRIAL MANAGEMENT BBA

INTERNATIONAL BUSINESS BBA CP AAS

MANAGEMENT INFORMATION SYSTEMS BBA BBA

MARKETING BBA, MS BBA AAS, CERT 1

BBA

PRODUCTION/OPERATIONS MANAGEMENT

BBA

REAL ESTATE CERT 1

BUSINESS ADMINISTRATION, MANAGEMENT, AND OPERATIONS

AAS, CERT 1

AAS, CERT 1

AAS AAS

BUSINESS OPERATIONS SUPPORT AND ASSISTANT SERVICES

AAS, CERT 1

AAS, CERT 1

AAS, CERT 1, CERT 3

* Located outside of study area, but provide access to higher education to residents in the study area.SOURCE: Texas Higher Education Coordinating Board, Arkansas Department of Higher Education.


Other Initiatives

In addition to SBDCs and higher education institutions, three communities across the region are in the process of planning and developing other types of programs to provide training and technical assistance to entrepreneurs. A summary of these initiatives is provided below:

Coalition of Red River Entrepreneurs (CORRE), Red River County. A group of stakeholders from the Clarksville area has initiated the process to contract the Sirolli Institute to provide training on the Enterprise Facilitation Model. This model provides a framework for delivering “free, confidential, and professional management advice” to aspiring entrepreneurs and existing business owners in a region.

Business Incubator, Paris / Lamar County. The Paris EDC is in the process of designing a business incubator to service entrepreneurs in the immediate region. In addition to affordable office space, this incubator will provide technical assistance and other support services to participating business owners.

Entrepreneur Assistance Center, Sulphur Springs / Hopkins County. The Sulphur Springs EDC is planning a comprehensive technical assistance program for entrepreneurs. Aside from technical assistance, the program will make meeting and office space available for clients to use on an as-needed basis.

Training Offerings

With these existing and planned programs, the region should have the basic infrastructure to deliver a comprehensive training and technical assistance program. However, the specific offerings should be tailored to the needs of the different types of entrepreneurs. According to the Entrepreneurs Survey respondents, the most helpful training courses would be marketing on a shoestring, identifying new markets, and tax and legal issues. The majority of the training courses currently offered by the SBDCs are on starting a business. The North Texas SBDC offers a series of courses on business planning, and the Paris SBDC offers a variety of courses, including human resource management,

Tra in ing Needs

9%

18%

21%

24%

25%

27%

28%

32%

32%

38%

Intellectual property

Raising capital

Cash flow management

Retaining employees

Quickbooks

Hiring employees

Managing employees

Tax & legal issues

Identifying new markets

Marketing on a shoestring

Q: Which training courses would you find most helpful?

SOURCE: TIP Strategies research.


intellectual property, government contracting, customer service, and getting a bank loan. The top three areas of interest for survey respondents, however, are not currently offered.

Furthermore, the course offerings are not uniform across the region because of the differing service areas for each of the SBDCs. For example, some of the classes that may be offered in Lamar County are not offered in Bowie and vice versa. As a result, accessibility of a wide range of training courses across the region is inequitable.

While current training course offerings provide valuable information for existing and aspiring business owners, comprehensive boot-camps for potential entrepreneurs are effective means of preparing start-up businesses. A number of excellent curricula exist that educate potential entrepreneurs and start-ups on the basics of entrepreneurship. Two popular curricula are FastTrac and NxLeveL. Both the SAU SBDC in Magnolia and the North Texas SBDC in Dallas are certified FastTrac Administrators. The Arkansas SBDC is a certified trainer of NxLevel. However, none of these courses are regularly offered in the region.

PEER NETWORKING & MENTORING

On the Entrepreneurs Survey, 41 percent of respondents ranked peer networking as the service that would be most helpful to their business. Peer networking provides entrepreneurs with the opportunity to exchange ideas, discuss issues they are confronting, share experiences, and generally support one another in a secure setting. While many chambers of commerce offer general networking opportunities, these networking events are geared toward cultivating business relationships rather than solving business issues. At this time, no peer networking events are offered in the region.

Successful entrepreneurs often cite their mentors as “the secret to their success.” Communities across the nation have found that facilitating a mentor network for entrepreneurs can be an effective and relatively low-cost way to enhance the entrepreneurial climate. There is not currently a formal mentor network that matches up entrepreneurs with successful mentors although the SBDCs provide some informal mentoring. Mentoring was not, however, one of the top needs that entrepreneurs indicated on the survey.

Tra in ing Curr icu la

One popular entrepreneurial training program is FastTrac. Founded by the Kauffman Foundation of Kansas City, Missouri, FastTrac is a boot camp for entrepreneurs. According to the foundation’s materials, 70 percent of companies that go through the program succeed beyond three years – the oft-touted threshold by which the majority of small businesses fail. The program can be brought to any town provided there is an organization willing to become certified to teach the program. (http://www.fasttrac.org/)

Another popular program is NxLeveL, a curriculum developed by the University of Colorado at Denver. NxLeveL includes seven different curriculum tailored for different types of entrepreneurs. Since 1996, over 80,000 students have participated in NxLeveL trainings. A third-party evaluation of the program shows that over 90 percent of business start-ups that participated in the program were still in business after three years. The program is taught by certified trainers in over 600 communities in 48 states. (http://www.nxlevel.org/)

Serv ice Needs

8%

9%

11%

11%

14%

35%

35%

41%

One-on-one counseling

Mentoring

Loan packaging

Help finding investors

Business plan preparation

Training courses

Market research

Peer networking opportunities

Q: What services would you find most helpful for your business?



One of the largest mentoring networks for small business owners and entrepreneurs is the Service Corp of Retired Executives (SCORE), which is a resource partner of the SBA. SCORE has local chapters across the U.S. with a volunteer corps of retired executives that offer one-on-one counseling and mentoring. The region currently does not have a chapter of SCORE. One focus group participant commented that he found SCORE to be extremely helpful when he lived in an area with a chapter and that he has met with volunteers from the Dallas Chapter of SCORE to seek assistance. Strong mentoring programs, however, need not be composed of retirees. The figure to the left provides an overview of other successful mentoring programs.

ACCESS TO INFORMATION

In many communities, service providers find reaching business owners and entrepreneurs very difficult. Likewise, entrepreneurs and business owners find it difficult to locate needed services. Of the 72 respondents that completed the Entrepreneurs Survey, fewer than 20 had used any of the SBDCs’ services. During focus groups as well, this information gap was apparent as some participants commented that they could not find certain business services and others shared which business service providers they used.

Also, on the Entrepreneurs Survey, 35 percent of respondents find market research to be a service that would be most helpful to their businesses. However, access to the type of competitive information needed for market research is often expensive and not affordable to small business owners. There is not currently a competitive information resource geared specifically towards entrepreneurs.

Creating a central clearinghouse of information for entrepreneurs in the region can bridge these information gaps. A clearinghouse should provide information on sources of capital, business services, and training and technical assistance providers. It should also host a calendar of events and provide competitive information resources for entrepreneurs. In this way, service providers can more effectively and efficiently reach their potential clients and entrepreneurs can stay abreast of what resources are available to them.

YOUTH ENTREPRENEURSHIP TRAINING

Youth entrepreneurship programs are an important part of a long-term strategy for promoting entrepreneurship in general and building a more entrepreneur-friendly climate

EXAMPLE: Mentor ing

North Carolina’s Blue Ridge Entrepreneurial Council (BREC) connects local entrepreneurs with mentors during a monthly breakfast meeting. Called the Mentor BRECfast, the meetings feature a single mentor addressing topics such as marketing, sales, cash flow, and other topics of interest to aspiring entrepreneurs. Mentor BRECfast meetings frequently lead to direct mentoring relationships between the presenter and one or more attendees. (http://www.brecnc.com/)

A growing number of for-profit services are available to help connect entrepreneurs with potential mentors. One example is Minneapolis-based Menttium, which provides mentoring services to “high-performing female talent.” Programs include a year-long program designed to match protégés across the country with mentors based on a rigorous screening process.

EXAMPLE: Peer - to -Peer Networking

The Entrepreneurs’ Organization (www.eonetwork.org) is world-wide network of entrepreneurs whose mission is to “engage leading entrepreneurs to learn and grow.” The organization offers a wide range of services including executive education, events, an online exchange, and mentorship. One of its most successful programs is the Forum. Local chapter forum organizers assign members to peer forums of 8 to 12 business owners for peer-to-peer learning and support. Members are assigned to forums to ensure a good mix of business owners and avoid the inclusion of competitors in the forum. Through monthly forum meetings, participants explore business issues in a confidential, supportive atmosphere and share lessons learned.


in a region. Entrepreneurship for school-aged youth can be integrated into existing curricula, be a stand-alone class, or be part of an after-school program.

The region has two primary avenues for educating youth about entrepreneurship – Junior Achievement and high school career and technology programs. Junior Achievement is a nonprofit organization with chapters across the United States that are “dedicated to educating students about workforce readiness, entrepreneurship and financial literacy through experiential, hands-on program.” In the region, the Texarkana area and Titus County both have active chapters of Junior Achievement. The Texarkana area chapter serves Texarkana, Pleasant Grove, and Liberty-Eylau, Texas, and Texarkana, Arkansas, school districts. The Titus County chapter serves Mount Pleasant, Chapel Hill, and Harts Bluff school districts. Both chapters work in both elementary and middle schools.

At the high school level, some school districts offer entrepreneurship training in their career and technology programs. The Paris, Prairiland, Mount Pleasant, and Atlanta school districts all offer some kind of entrepreneurship training to their students. The table below provides an overview of these programs.

District County CurriculumAtlanta Cass Entrepreneurship: Ideas in Action

Includes case studies, extensive business plan preparation, and numerous interactive activities

Paris Lamar From School to Work has a chapter on entrepreneurship

Prairiland Lamar Entrepreneurship is integrated in their Family and Consumer Sciences courses. Includes exploration of entrepreneurship opportunities; types, characteristics & motivations of entrepreneurs; case studies; interviews of entrepreneurs and/or business plan preparation

Mount Pleasant Titus Entrepreneurship: Ideas in ActionIncludes case studies, extensive business plan preparation, and numerous interactive activities


High School E-sh ip Programs


ENTREPRENEURIAL CLIMATE

The entrepreneurial climate of a community encompasses both the acceptance of entrepreneurs among community members and the regulatory environment created by local government.

Respondents to the Entrepreneurs Survey and participants in the focus groups found the Northeast Texas and Southwest Arkansas region to be entrepreneurial-friendly in terms of acceptance of the community. Community members actively support local businesses when possible, and business owners make a concerted effort to patronize each others’ businesses. The region does, however, lag somewhat in promoting an entrepreneurial climate through youth entrepreneurship programs. In addition, the entrepreneurs pipeline that is strengthened by an entrepreneur-friendly environment could also be improved.

From a regulatory standpoint, each county and city differed. Mount Pleasant’s entrepreneurs perceived the city and the community to be exceptionally supportive of small business. Other communities, however, noted the difficulty in navigating the permitting process. Some downtown business districts, in particular, were perceived to have very restrictive codes that made downtown storefronts and office space difficult to develop.

Perce ived Entrepreneur ia l C l imate Strongly Disagree Disagree Neutral Agree

Strongly Agree

Rating Average

Response Count

People in the community try to support local businesses.0.0% (0)

10.3% (7)

16.2% (11)

58.8% (40)

14.7% (10) 3.78 68

My community generally admires entrepreneurs.1.5% (1)

8.8% (6)

17.6% (12)

57.4% (39)

14.7% (10) 3.75 68

People are aware of successful entrepreneurs in the region.1.5% (1)

5.9% (4)

22.1% (15)

47.1% (32)

23.5% (16) 3.85 68

Our school district teaches children to value entrepreneurship.4.6% (3)

26.2% (17)

49.2% (32)

16.9% (11)

3.1% (2) 2.88 65

Many of my friends and family would like to start a business some day.

4.5% (3)

16.7% (11)

34.8% (23)

37.9% (25)

6.1% (4) 3.24 66

As a small business owner, I feel that the community is supportive of entrepreneurs.

1.5% (1)

6.0% (4)

28.4% (19)

53.7% (36)

10.4% (7) 3.66 67



SUMMARY

Overall, most entrepreneurial assets are represented somewhere in the region. However, some areas of the region have access to assets that others do not. In addition, all of these assets available to entrepreneurs struggle to connect with their potential clients (entrepreneurs) as the entrepreneurs struggle to find the services and support that they need. Finally, many of the service providers work independently of one another and are not aware of what the others are doing. As a result, the entrepreneurship initiative for the region as a whole is fragmented and not effectively coordinated.

A summary of the gaps identified is presented below.

Asset Category Existing Gaps Capital Local banks

Informal angel network Small revolving loan funds

Formal angel network Regional revolving loan fund Financial literacy training

Business Services Legal

Accounting Marketing Human resources

Information technology Affordable healthcare Education about services

Education & Information Programs

SBDCs Higher education

institutions CORRE Paris incubator Sulphur Springs assistance

center Some youth e-ship training

Matching training offerings with entrepreneur needs

More regional access to training Entrepreneur boot camp Peer networking Formal mentor network Information clearinghouse Coordinated youth e-ship

initiative


Strategic Recommendations Through the work of the Kellogg Foundation, the Corporation for Enterprise Development (CFED), the Rural Policy Research Institute (RUPRI), and other leaders in rural entrepreneurship development, a consensus has emerged about what a comprehensive entrepreneurship development strategy must entail – “a coordinated infrastructure of public and private supports that facilitate entrepreneurship.”2 This infrastructure is referred to as an ENTREPRENEURSHIP DEVELOPMENT SYSTEM (EDS). These leaders in rural entrepreneurship development have further outlined a set of guiding principles for the creation of an EDS.

The Kellogg / CFED EDS team explain that “an EDS should be: Entrepreneur focused – driven by the true needs of entrepreneurs. Inclusive – of all types of entrepreneurial talent; of underrepresented populations

and communities; of all types of organizational leadership. Asset based – building on the region’s assets. Collaborative – (1) leadership across private, public and non-profit sectors and (2)

engagement of service providers. Comprehensive and integrated – addresses all elements of an EDS and integrates

entrepreneurship into other aspects of regional economy. Community-based but regionally-focused – rooted in communities but connected

to the resources of a region. Linked to policy – informing economic development policy (local and state) through

the demonstration of entrepreneurship in communities and regions. Sustainable over time – if entrepreneurship development is a long-term strategy, the

systems must be sustainable over time as well. Continuous improvement – articulating and measuring outcomes that reflect the

goals of EDS, and being flexible enough to revamp, retool, and rethink the practice as you move forward.“3

2 Mapping Rural Entrepreneurship, W. K. Kellogg Foundation and CFED, August 2003. 3 Kellogg EDS Collaboratives. http://www.cfed.org/focus.m?parentid=32&siteid=601&id=601

CASE STUDY: the Kel logg EDS Col laborat ives

In 2005, the Kellogg Foundation awarded $2 million grants to six collaborative entrepreneurship efforts. The objective of these grants is to enable the collaborations to promote entrepreneurial activity in their regions, showcase successful models of entrepreneurship activity to rural communities outside their area, leverage significant new investments, and stimulate state and national interest in rural entrepreneurship policies and strategies.

The groups that were awarded the grants were:

Empowering Business Spirit Initiative Collaborative, serving Northern New Mexico counties, pueblos, and tribes.

Connecting Oregon for Rural Entrepreneurship Collaborative, serving Lake County, Lincoln County, Northeast, Southwest, and North-Central Oregon.

Oweesta Collaborative, serving Pine Ridge and Cheyenne River reservations of South Dakota (Lakota Sioux), and the Wind River Reservation in Wyoming (Eastern Shoshone and Northern Arapahoe).

HomeTown Competitiveness Collaborative, serving 15 counties in Nebraska and the Winnebago, Omaha, and Santee Sioux reservations.

Advantage Valley Entrepreneurship Development System Collaborative, serving eight counties in West Virginia, Boyd and Greenup counties in Kentucky, and Lawrence County in Ohio.

North Carolina's Rural Outreach Collaborative, serving 85 rural counties of North Carolina, including seven rural Native American Tribes.

The experiences of these programs provide valuable best practices and lessons learned for other communities looking to start their own EDS.


TIP incorporates these guidelines into its entrepreneurship strategies in order to create robust systems that serve the needs of local entrepreneurs and promote entrepreneurial – friendly climates.

As previously mentioned, the regional entrepreneurship initiative in Northeast Texas and Southwest Arkansas is fragmented. While many of the entrepreneurial assets are in place, they are not connected in a way that maximizes support for entrepreneurs. In order to create a unified entrepreneurship development initiative, TIP recommends adopting the following three goals:

Develop an entrepreneur development system.

Augment support services.

Promote a more entrepreneurial climate and culture.

On the following pages, we outline strategies and actions to support the above goals. Adopting these goals and strategies will help connect the region’s fragmented initiatives to create a more comprehensive, well-targeted system to support entrepreneurs.

GOAL ONE: DEVELOP AN ENTREPRENEUR DEVELOPMENT SYSTEM (EDS)

1. Design an online entrepreneurs portal Create a high-quality, user-friendly Web site for entrepreneurs. Choose an

easy-to-remember address. Include a directory of services providers, calendar of events, information resources, and forum for entrepreneurs to share information and exchange ideas.

Consider including a social networking platform to allow entrepreneurs to better connect with each other. Companies such as Small World Labs (www.smallworldlabs.com) offer software to create these platforms.

US Source Link (http://www.ussourcelink.com/) provides a model for linking service providers to each other and to clients through an online portal. The Wisconsin Entrepreneurs Network

CASE STUDY: the Empower ing your Business Spi r i t In i t ia t ive

Founded in 2005, the EBS initiative is a collaborative of 20 service providers dedicated to supporting entrepreneurs in North Central New Mexico.

The EBS collaborative came together to determine how best to nurture entrepreneurship in the region. In this spirit, they have identified two major initiatives: (1) teaching entrepreneurship and providing opportunities for entrepreneurship in schools; and (2) using a network facilitation model to support entrepreneurs in the region.

A corner stone of this collaborative is their small business portal that provides a link to all of the partners’ Web sites, updated news stories on topics relevant to entrepreneurs, and a calendar of events.

The initiative was initially funded by a grant from the Kellogg Foundation. However, donations from EBS partners now play a central role in supporting the initiative.

For more information: http://www.bizport.org/


(http://www.wenportal.org/) provides another example of a useful portal.

Update the Web site at least monthly to keep information current and relevant.

Launch an active region-wide outreach initiative to drive entrepreneurs to the Web site.

Send postcards with the Web address out to new businesses registered with regional counties.

Publish the Web site in service providers’ and partners’ newsletters and in local newspapers.

Provide links to the Web site from service providers and partners’ Web sites.

Distribute cards with the Web address to service providers and partners to hand out to their clients and members.

2. Create a strong network of partners and service providers

Service providers that should be included are the SBDCs, chambers of commerce, higher education institutions, economic development corporations, any entrepreneur-oriented non-profit organizations, and business bankers.

Educate service providers about each other’s services by convening service providers in a central location. Have each service provider introduce themselves, their organization, and their entrepreneurial initiative. Focus on clarifying exactly what services each provides and what kind of clients each serves. This self-education serves to connect service providers and craft a better referral network. This, in turn, helps to encourage a “no wrong door policy” for entrepreneurs seeking assistance.


Schedule regular meetings and facilitate regular communication among service providers to explore partnership opportunities, share progress and highlight best practices.

3. Build capacity in regional communities to better support entrepreneurs

Train community leaders, economic development professionals, and policy-makers on how to promote entrepreneurship and an entrepreneurial climate in their communities.

The Kentucky Entrepreneurial Coaches Institute provides an excellent model.

The Texas Agrilife Extension’s Rural Entrepreneurship Support Network (http://www.tcre.org/Default.aspx?tabid=159) has a free training curriculum available to communities in Texas.

The Rural Policy Research Institute (RUPRI) also provides a training course to communities. These courses can be anything to half-day in-service trainings to full-week institutes. (http://www.energizingentrepreneurs.org/)

The Sirolli Institute trains communities on how to implement their trademarked Enterprise Facilitation model. (http://www.sirolli.com/) This is the model that the city of Clarksville is pursuing.

Once an initial training is held, schedule periodic conferences and seminars on topics of interest to keep entrepreneurship in the minds of the trainees. Allocate time for participants to share experiences and support one another.

GOAL TWO: AUGMENT SUPPORT SERVICES

1. Develop a three-tiered support system for entrepreneurs in the region. Different types of entrepreneurs have different needs. As a result, a one-size-fits-all approach to providing services to entrepreneurs will inevitably leave one or more groups with

CASE STUDY: Kentucky Entrepreneur ia l Coaches Inst i tute

In 2003, the College of Agriculture at the University of Kentucky founded the Kentucky Entrepreneurial Coaches Institute to promote economic diversification in Northeastern Kentucky. Since then, the program has expanded into South Central Kentucky as well.

The program trains coaches through an intensive series of seminars and a national education tour. Thirty participants are selected from the pool of applicants to receive a fellowship to attend the institute. These fellowships are funded through the Kentucky Agricultural Development Board.

The Entrepreneurial Coaches are volunteers who work with entrepreneurs. Rather than providing technical assistance, they serve as a resource for entrepreneurs, help them assess their businesses, and assist them in finding the technical support that they need.

The program was named one of the top programs in the nation by the Small Business Administration.

For more information: http://www.uky.edu/Ag/CLD/KECI/


ENTREPRENEURIAL TALENT

Limited Potential

PotentialEntrepreneurs

Business Owners

Entrepreneurs

Not Working Want to be an Employee

(Lack motivation and capacity)

Frustrated

Aspiring

Start-ups

Dreamers

Youth

(Motivations include dislocations, glass ceiling / dead end, desire for more, need to create it.)

Lifestyle

Re-starts

Survival

(Limited motivation to grow) (Unable to see how to grow)

Serial Growth-Oriented

Entrepreneurial Growth

Companies

Long-Term

Medium-Term

Short-Term

TYPE OF TALENT INTERVENTION TIME FRAME

SOURCE: RUPRI Center for Rural Entrepreneurship.

needs unmet. Developing a tiered-system will help to create a system that specifically targets the needs of each type of entrepreneurs.

The tiers should correspond to the type of entrepreneurial talent:

High-growth. Entrepreneurs who are motivated to rapidly expand and grow their businesses into something more than a family-owned company. Their businesses are often highly innovative and are export-oriented with customers beyond their local markets.

Potential. Entrepreneurs who are attracted to the idea of starting their own businesses or have just started their own businesses.

Business Owners. Entrepreneurs who have started businesses to supplement their incomes or maintain a certain lifestyle.

Develop a self-assessment tool that entrepreneurs can use to place themselves on the appropriate track. This tool may be accessed through the Web portal.

Using this assessment tool, entrepreneurs and aspiring entrepreneurs can identify their goals, motivations, and plans.

Based on the outcome of the assessment, entrepreneurs can be directed to the tier of services that will best suit their needs. In addition, it will provide the region with a record of entrepreneurs using the portal.


2. Strengthen and target support services for each tier. This will ensure the needs of each group of entrepreneurs are better met. While the services will be specifically targeted, many of the services can support more than one type of entrepreneur at a time.

Tailor a tier of services specifically for high-growth entrepreneurs. At present, few services exist for this category of entrepreneurs. While this is the least common type of entrepreneurs, it is the type that has the highest economic impact, in terms of job and wealth creation. As a result, it is not necessary for each community in the region to provide all of these services; rather, the services should be provided at a regional level and accessible to all communities. In some cases, the demand for the service may be strong enough to support providing the service at the local level as well. The future entrepreneur center at Texas A&M University – Texarkana could be a good lead partner for developing this tier of services. The local economic development corporations would be good leads at the community level. The services that should be included are:

Peer networking opportunities. The objective of these opportunities should be to provide entrepreneurs with a forum to exchange ideas with one another in an effort to help each resolve salient business issues. A facilitator should be present to lay the ground rules and to help ensure that the opportunities do not become leads generation events. These could be held in-person or virtually through a teleconference or video conference. Groups should be kept relatively small (fewer than 15 participants). These could be offered at the community level, depending on demand.

Assistance raising capital. High-growth entrepreneurs will likely need to access equity capital to finance their companies through the CONCEPT and INCEPTION phases of development. The assistance provided should include education on the process; preparing a professional, compelling pitch; connecting with potential investors (both angels and venture capital); and structuring a deal. This should be offered at the regional level.

CASE STUDY: Ind iana Venture Center

Founded in 2003, the Indiana Venture Center is a non-profit organization that seeks to increase the number and quality of entrepreneurial, high-growth companies in Indiana.

Through its staff and collaboration with local universities, the center provides promising companies with assistance from exploring concept feasibility to raising capital. In addition, it has created AngelNet, an angel network that connects entrepreneurs with investors.

The center works closely with entrepreneurship programs and business schools at seven universities across the states to promote educational opportunities for entrepreneurs. Also through this collaboration, the center matches entrepreneurial companies with groups of student consultants to work on special projects as part of the Venture Creation Accelerator.

For more information: http://www.indianaventurecenter.org/


Angel investor network. Formalize the regional angel investor network to increase participation of angels and further support high-growth entrepreneurs. A helpful guide for creating a network can be found at http://www.kauffman.org/pdf/angel_guidebook.pdf. In addition, AngelSoft is a valuable resource for creating angel networks (http://www.angelsoft.net/). This network should operate at the regional level.

Advisory board resources. Advisory boards can serve as a valuable mentor for entrepreneurs and help to build stronger companies. This service should assist entrepreneurs in assembling an effective advisory board and should offer training to entrepreneurs and board members on their roles and responsibilities. This could be offered at the community level, depending on demand.

Enhance support services for potential entrepreneurs, including aspiring entrepreneurs and start-ups. Much of the existing services are geared towards this group of entrepreneurs. Community colleges and the SBDCs would be good community partners for hosting and/or facilitating these programs. The services that should be included in this tier are:

Entrepreneur boot camp. Contact one of the area’s certified trainers for FastTrac or NxLevel to explore offering these courses in the region. If those existing certified trainers cannot conduct classes in the region, arrange for one or more of the regional service providers to become a certified trainer. Set a goal of offering a course at least twice a year at first. Then, as demand grows, expand the course offerings.

Regional revolving loan fund. Create a regional revolving loan fund, establishing an effective structure and sound policies and procedures. This fund should be designed specifically to provide access to credit to those entrepreneurs who currently do not have access. If possible, seek the participation of existing loan funds to better leverage those resources in the region and share marketing expenses.

CASE STUDY: Blue Ridge Angel Investor Network (BRAIN)

Founded in 2002 by the AdvantageWest Economic Development Group, BRAIN has invested over $2 million and helped companies raise an additional $10 million in capital.

BRAIN members meet quarterly to review pre-screened business plans. While the group collaborates on due diligence, each member makes individual investment decisions.

For those entrepreneurs in whose companies BRAIN members invest, the members serve as mentors and coaches and assist them in team building, strategic planning, and fundraising.

BRAIN investments are focused on 10 industry clusters, thus reinforcing the greater economic development efforts of AdvantageWest.

For more information: http://www.brainnc.com/index.cfm


Numerous programs across the country exist and can be researched to identify best practices. In addition, the following resources are available to provide guidance and technical assistance:

― The Council of Development Finance Agencies: http://www.cdfa.net/cdfa/cdfaweb.nsf/pages/rlffactsheet.html

― The National Association of Development Organizations: http://www.nado.org/edfs/index.php

― Development Finance Training and Consulting, Inc.: http://devftc.com/economic.php

Coordinate a regional youth entrepreneurship initiative. Encourage the regional school districts to become involved in the regional initiative by incorporating entrepreneurship into their existing curricula and supporting the expansion of Junior Achievement in schools in the region.

Continue to support existing business owners, including lifestyle and survival businesses. The SBDCs already do an excellent job supporting these businesses with training courses and one-on-one counseling. However, a few services could be added to the offerings. These services include:

Formal mentor network. Develop a network of experienced entrepreneurs or businessmen and women who are willing to volunteer their time to work with entrepreneurs. Match the skills of these volunteer mentors with the needs of the participating entrepreneurs. Facilitate an initial meeting between volunteer and entrepreneur. Further meetings should be set up at the discretion of the volunteer and mentor.


Competitive information. Accessing data and information necessary for high-quality market research can be expensive to an entrepreneur. At the regional level, provide access to data sources such as Nexus Lexus, ESRI or Claritas market profiles, Dun & Bradstreet, and direct marketing databases. With this information, entrepreneurs can compile mailing lists, research competitors, and identify new markets. In many communities, the data providers also staff market research analysts to assist entrepreneurs. This information could be accessible to registered users of the entrepreneurs’ portal.

― A list of helpful databases and resources is available from Growing Local Economies: (http://growinglocaleconomies.com/files/pdf/EGurls.pdf )

GOAL THREE: PROMOTE A MORE ENTREPRENEURIAL CLIMATE AND CULTURE

1. Design a public relations campaign to build awareness of regional entrepreneurs’ success stories.

Interview successful local entrepreneurs and develop a database of local success stories.

Compile a list of local media contacts and pitch them the idea of profiling these local success stories in a regular column or program.

2. Organize an annual business expo or summit.

Include a keynote speaker, break-out sessions covering topics of interest, networking opportunities, and a regional business showcase. Hold the conference at a different location in the region each year.

To create buzz about the expo, hold local business plan competitions. The finalists from these local competitions would then compete in the regional competition for a cash award. As part of the expo, the finalists from each

Elements of successfu l media & PR campaigns

Have clear and measurable goals. Have extensive knowledge of your audience. Develop compelling messages that connect with

your target audience. Specify what actions you want people to take,

how to do it, and why. Make the case for why action is needed now. Match strategies to your target audience. Research, plan, and pre-test. Budget. Evaluate, revise, and refocus on an ongoing

basis.


local competition would have to make their pitch to be judged by a panel of successful entrepreneurs (perhaps nationally known). The pitch presentations should be open to the public and media.

Organize these business plan competitions for youth entrepreneurs as well as adults.

3. Lower barriers to entry for new entrepreneurs.

Create a Health Group Cooperative to provide small employers in the region with access to more affordable healthcare. Information on creating a cooperative can be found at the Texas Department of Insurance Web site: http://www.tdi.state.tx.us/health/indexlhcoop.html

On the entrepreneurs Web site, post information on registering businesses and obtaining necessary permits for each county. Include pertinent addresses and contact numbers to help new businesses navigate the process. Include a section where entrepreneurs can post advice on how to better navigate the system.

Establish a working group that will examine regulatory policies that affect small businesses in the region to ensure that these policies do not inadvertently negatively affect small businesses.

CASE STUDY: Lubbock Chamber Employer Heal th P lan

In 2006, the Lubbock Chamber of Commerce launched an employer health plan to help its members find affordable health insurance. Members with two or more employees may enroll in the plan and choose from seven different plan designs offered by FirstCare.

In order to offer this employer plan, the Chamber formed two Health Group Cooperatives, one for large employers and one for small employers. Health Group Cooperatives must have at least 10 employers and may grow to any size, but it will be considered a single large employer for the purposes of issuance of coverage and rating. This structure provides the opportunity for the cooperative to realize savings and obtain more flexibility in plan design.

As of June 2008, the Chamber has 10,242 lives enrolled in the plan, 20 percent of which were previously uninsured. The average business enrolled in the plan has 10 employees. Small business owners enrolled in the plan have been able to realize thousands of dollars of savings while covering more of the premium cost for their employees.

For more information: http://www.lubbockchamber.com/healthcare.htm http://www.tdi.state.tx.us/health/indexlhcoop.html


Organizational Recommendations In order to implement these strategies, the region must dedicate resources, both human and financial. TIP recommends the following actions:

1. Assemble a roundtable of representatives from participating counties.

This roundtable should meet on a regular basis (at least quarterly).

Initially, the roundtable should create working groups assigned with the responsibility of ensuring that specific strategies are implemented. These working groups should work with the relevant service providers and other partners to identify any additional resources needed and create an implementation work plan.

In subsequent meetings, each working group should report on progress, sharing any successes and discussing any implementation issues.

2. Consider hiring at least one full-time staff person devoted to the plan implementation.

This person would provide support for the roundtable working groups and the implementation of the initiative with responsibilities including:

Fund raising

Research

Coordination of meetings, training sessions, workshops, and events

Outreach

Updating the entrepreneurs portal

Basic administrative support


3. Identify accountability measures to track progress.

Choose performance measures that track both outputs and outcomes of the initiative. Such measures could include:

# of visitors to the Web site

# of entrepreneurs registered through the Web site

# of self-assessments completed through the Web site

# of trainings / networking events held and # of participants (by type – service provider, capacity building. and direct assistance to entrepreneurs)

# of mentor–entrepreneur relationships created through the network

# of youth participating in entrepreneurship classes and activities

Total # of clients assisted through service provider network

# of new businesses started

# of new jobs created

$ value of capital raised (angel, venture, revolving loan fund, loan packaging)

Track these measures on at least an annual basis and produce a report card to distribute to partners and funders. Publicize these achievements on the Web site.

At trainings and networking events (when appropriate), have participants complete an evaluation of the event. Use these evaluations as a means of feedback to ensure the events are useful for the participants.


4. Raise funds needed to implement the plan.

Seek funding from a mix of private and public funding sources (see Appendix D – Potential Funding Sources).

Launch a local fund raising campaign to tap into local community foundations, donors, and other resources.

To accept these donations, however, an appropriate legal structure must be first established. An existing organization may be able to serve this purpose or the roundtable may need to establish a new 501(c)(3) tax-exempt charitable organization.


Implementation Guide STRATEGY / ACTION ITEMS TIMELINE

Description Lead Partner(s)

0-6 mos.

6-12 mos.

2-3 yrs.

3-5 yrs.

On-going

WS – Workforce Solutions Northeast Texas; SBDC – Small Business Development Centers; EDO – Economic Development Organizations; CC - Chambers of Commerce; HE – Higher Education; NPO – Non-Profit Organizations

GOAL ONE: DEVELOP AN ENTREPRENEUR DEVELOPMENT SYSTEM Budget Summary Web Site $30,000 - $50,000 design, $5,000 per year maintenance Service Provider & Stakeholder Meetings $500 - $1,000 per year for misc expenses Training $1,000 - $120,000 depending on curriculum chosen Marketing / Outreach Expenses $1,500 - $5,000 per year

1 Design an online entrepreneurs portal

Create a high-quality, user-friendly Web site for entrepreneurs. WS X

Update the Web site at least monthly. WS X

2 Create a strong network of partners and service providers

Convene service providers in a central location. WS X

Schedule regular meetings and facilitate regular communication among service providers. WS, HE X

3 Build capacity in regional communities to better support entrepreneurs

Organize a training on promoting entrepreneurship and an entrepreneurial climate in communities. WS, HE X

Schedule periodic conferences and seminars for continuing education. WS, HE X


STRATEGY / ACTION ITEMS TIMELINE


0-6 mos.

6-12 mos.

2-3 yrs.

3-5 yrs.

On-going


4 Launch an active region-wide outreach initiative to drive entrepreneurs to the Web site

Send postcards with the Web address out to new businesses registered with regional counties. WS X

Publish the Web site in service providers’ and partners’ newsletters and in local newspapers. WS X

Provide links to the Web site from service providers and partners’ Web sites. WS X

Distribute cards with the Web address. WS X

GOAL TWO: AUGMENT SUPPORT SERVICES Budget Summary Entrepreneur Boot Camp Curriculum Depends on curriculum Database Subscriptions $3,000 - $5,000

1 Develop a three-tiered support system for entrepreneurs in the region

Design tiers for high-growth entrepreneurs, potential entrepreneurs, and business owners.

SBDC, HE, EDO X

Develop a self-assessment tool for entrepreneurs. SBDC, HE, EDO X

2 Strengthen and target support services for each group

Tailor a tier of services specifically for high-growth entrepreneurs.

SBDC, HE, EDO X


STRATEGY / ACTION ITEMS TIMELINE


0-6 mos.

6-12 mos.

2-3 yrs.

3-5 yrs.

On-going


Enhance support services for potential entrepreneurs. SBDC, HE, EDO X

Continue to support existing business owners. SBDC, HE, EDO X

GOAL THREE: PROMOTE A MORE ENTREPRENEURIAL CLIMATE AND CULTURE Budget Summary Expo & Business Plan Competition $15,000 - $30,000 per year

1 Design a public relations campaign to build awareness of regional entrepreneurs’ success stories

Interview successful local entrepreneurs and develop a database of local success stories. CC, EDO X

Pitch the local media the idea of profiling success stories in a regular column or program. CC X

2 Organize an annual business expo or summit

Plan the expo / summit WS, CC X X Hold local business plan competitions. HE, EDO X X

3 Lower barriers to entry for new entrepreneurs

Create a Health Group Cooperative WS X

Post information on registering businesses and obtaining necessary permits for each county WS X

Establish a working group to examine regulatory policies that affect small businesses WS X


Appendices A. ENTREPRENEURS SURVEY RESPONSES

B. SERVICE PROVIDERS SURVEY RESPONSES

C. LIST OF BANK BRANCHES

D. POTENTIAL FUNDING SOURCES

E. DATA ANALYSIS


Appendix A: Entrepreneurs Survey Responses

The Entrepreneurs Survey was distributed by regional economic development organizations and chambers of commerce. In the following pages, we highlight the survey results.

In all, 106 people started the survey. Of those, 72 completed the survey (67.9%).

The majority of respondents were from Titus and Lamar Counties. However, there was representation from all counties except Little River, Hempstead, and Delta.

Most of the respondents were male (66%), white (96%), and college-educated (62%).

The services, manufacturing, FIRE (finance, insurance, & real estate), and retail sectors were well-represented.

0%0%0%1%1%2%

4%5%

8%9%

33%39%

DeltaHempsteadLittle River

MorrisMillerCass

FranklinRed River

HopkinsBowieLamar

Titus

Q: In which county do you reside?

1%

7%

13%

9%

32%

9%

20%

10%

Ph.D.

Professional Degree

Master’s degree

Some graduate school

Four-year degree

Two-year degree

Some college

High School/GED

Q: Highest level of education completed?

0%

0%

3%

13%

16%

17%

50%

Wholesale/distribution

Construction

Transportation

Retail

FIRE

Manufacturing

Services

Q: Which best describes your primary business activity?


Most of the respondents had started their own businesses (53%). However, one-third had purchase the business and 13% had inherited it.

Over the next five years, respondents plan to grow their businesses. 82% plan to grow their revenues, while 57% plan to hire new employees and 49% plan to expand to new markets. Very few respondents plan to sell or close the business.

22% of the respondents plan to raise capital over the next five years. Access to capital was also highlighted as a vital ingredient to growth. When asked what they needed to grow their businesses, access to capital was the second most common response. In addition, capital was most commonly cited as the primary obstacle to starting a business in the region.

The most common response to the question on what business owners needed to grow their businesses was a quality workforce.

13%

33%

53%

Inherited thebusiness

Purchased thebusiness

Started thebusiness

Q: How did you become owner of the business?

0%

5%

7%

22%

27%

49%

57%

82%

Close the business

Sell the business

Acquire / merge with anothercompany

Raise capital

Introduce a new product

Expand to new markets

Hire new employees

Grow revenues

Q: What are your business plans for the next 5 years?


Human resources, marketing, and growth management are the largest areas of concern for entrepreneurs in the region.

Peer networking, market research, and training courses are the services that business owners would find most helpful.

Marketing on a shoestring, identifying new markets, and tax & legal issues are the training topics that respondents would find most helpful.

3%

7%

9%

14%

14%

31%

35%

44%


Legal

Market research

Securing financing

Accounting / bookkeeping

Growth management

Marketing

Human resources

Q: Which issue areas pose the greatest challenge to growing your business?

8%

9%

11%

11%

14%

35%

35%

41%

One-on-one counseling

Mentoring

Loan packaging

Help finding investors

Business plan preparation

Training courses

Market research

Peer networking opportunities

Q: What services would you find most helpful for your business?

9%

18%

21%

24%

25%

27%

28%

32%

32%

38%


Raising capital

Cash flow management

Retaining employees

Quickbooks

Hiring employees

Managing employees

Tax & legal issues

Identifying new markets

Marketing on a shoestring

Q: Which training courses would you find most helpful?


For the most part, respondents to the survey felt that the community is supportive of entrepreneurs.

Respondents did not, however, feel that the school district is teaching children to value entrepreneurship.

Strongly Disagree Disagree Neutral Agree

Strongly Agree

Rating Average

Response Count

People in the community try to support local businesses.0.0% (0)

10.3% (7)

16.2% (11)

58.8% (40)

14.7% (10) 3.78 68

My community generally admires entrepreneurs.1.5% (1)

8.8% (6)

17.6% (12)

57.4% (39)

14.7% (10) 3.75 68

People are aware of successful entrepreneurs in the region.1.5% (1)

5.9% (4)

22.1% (15)

47.1% (32)

23.5% (16) 3.85 68

Our school district teaches children to value entrepreneurship.4.6% (3)

26.2% (17)

49.2% (32)

16.9% (11)

3.1% (2) 2.88 65

Many of my friends and family would like to start a business some day.

4.5% (3)

16.7% (11)

34.8% (23)

37.9% (25)

6.1% (4) 3.24 66

As a small business owner, I feel that the community is supportive of entrepreneurs.

1.5% (1)

6.0% (4)

28.4% (19)

53.7% (36)

10.4% (7) 3.66 67


Appendix B: Service Providers Survey Responses The table below provides an overview of the programs and activities of the primary services providers in the region – the Paris SBDC, the NTCC SBDC, and SAU SBDC.

Service Provider Survey, 2008

Location Paris Mount Pleasant MagnoliaCounties Served Lamar, Delta,

Red River, Hopkins

Bowie, Cass, Morris, Titus,

Franklin

Miller, Little River,

HempsteadStaff Full-Time 2 3 2 Part-Time 1 0 0Services Provided One-on-One Counseling Training Networking Opportunities Mentoring Market Research Loan Packaging

PARIS SBDC NTCC SBDC SAU SBDC


Appendix C: List of Bank Branches

NORTHEAST TEXAS COMMERCIAL BANKS AND CREDIT UNIONS NAME ADDRESS CITY COUNTY # OF EMPLOYEES

Capital One Bank 107 US Highway 59 Loop Atlanta Cass County 5 - 9

Century Bank 204 E Main St Atlanta Cass County 10 - 19

Domino Federal Credit Union 9978 US Highway 59 N Atlanta Cass County 10 - 19

Domino Federal Credit Union 901 W Main St Atlanta Cass County 5 - 9

First National Bank 220 N Louise St Atlanta Cass County 5 - 9

Highway Dist 19 Credit Union 202 N Louise St Atlanta Cass County 5 - 9

Red River Federal Credit Union 209 W Main St Atlanta Cass County 5 - 9

Regions Bank 307 N William St Atlanta Cass County 5 - 9

Texar Federal Credit Union 103 W Allday St Atlanta Cass County 5 - 9

Woodforest National Bank 201 Loop 59 Atlanta Cass County 5 - 9

First State Bank Highway 155 & Highway Avinger Cass County 5 - 9

Bloomburg State Bank 109 E Main St Bloomburg Cass County 5 - 9

Guaranty Bond Bank-Bogata 110 Halesboro St Bogata Red River County 5 - 9

First Federal Community Bank 203 W Washington St Clarksville Red River County 5 - 9

First National Bank 2203 W Main St Clarksville Red River County 5 - 9

Red River Bank 200 W Main St Clarksville Red River County 10 - 19


NAME ADDRESS CITY COUNTY # OF EMPLOYEES

Red River Federal Credit Union 1501 Main St Clarksville Red River County 5 - 9

Red River Federal Credit Union 121 W Broadway St Clarksville Red River County 5 - 9

Delta Bank 91 W Side Sq Cooper Delta County 5 - 9

Enloe State Bank Highway 24 & Highway 64 Cooper Delta County 5 - 9

First National Bank of Cooper 11 W Side Sq Cooper Delta County 5 - 9

First National Bank 706 Linda Dr Daingerfield Morris County 5 - 9

National Bank of Daingerfield 107 Webb St Daingerfield Morris County 20 - 49

No East Texas Credit Union 1206 Linda Dr Daingerfield Morris County 5 - 9

North East Texas Credit Union 1206 Linda Dr Daingerfield Morris County 5 - 9

State Bank of De Kalb 102 S Runnels St De Kalb Bowie County 20 - 49

Community National Bank 12038 Highway 82 Detroit Red River County 5 - 9

Enloe State Bank 222 Lexie St Enloe Delta County 5 - 9

Bancorp South Bank 109 Main St Hooks Bowie County 5 - 9

First National Bank 505 E 1st Hughes Springs Cass County 20 - 49

First National Bank 124 E Rush St Linden Cass County 20 - 49

Cypress Bank 110 N Main St Lone Star Morris County 5 - 9

Lone Star State Bank 300 N Main St Lone Star Morris County 5 - 9

American National Bank 301 S Madison Ave Mount Pleasant Titus County 20 - 49

Bank of America 302 N Jefferson Ave Mount Pleasant Titus County 20 - 49

Cypress Bank Fsb 801 N Jefferson Ave Mount Pleasant Titus County 10 - 19



First Federal Community 805 N Madison Ave Mount Pleasant Titus County 5 - 9

Guaranty Bond Bank 100 W Arkansas St Mount Pleasant Titus County 50 - 99

Guaranty Bond Bank 2317 S Jefferson Ave Mount Pleasant Titus County 5 - 9

North East Texas Credit Union 1405 S Jefferson Ave Mount Pleasant Titus County 5 - 9

Pilgrim Bank 112 W 16th St Mount Pleasant Titus County 5 - 9

Pilgrim Bank 2401 S Jefferson Ave Mount Pleasant Titus County 20 - 49

Texas Independent Bank FM 21 Mount Pleasant Titus County 5 - 9

Tib Independent Bank 95 County Road 2930 Mount Pleasant Titus County 5 - 9

Woodforest National Bank 2311 S Jefferson Ave Mount Pleasant Titus County 5 - 9

Equity Bank 539 Interstate 30 W Mount Vernon Franklin County 20 - 49

First National Bank 101 Main St W Mount Vernon Franklin County 20 - 49

Franklin Bank 539 Interstate 30 W Mount Vernon Franklin County 5 - 9

Guaranty Bond Bank 304 Highway 37 S Mount Vernon Franklin County 5 - 9

Texas American Bank 824 Texas Highway 37 S Mount Vernon Franklin County 5 - 9

Morris County National Bank 101 Wl Doc Dodson E Naples Morris County 20 - 49

Morris County National Bank 101 Wl Doc Dodson E Naples Morris County 20 - 49

Capital One Bank 103 E New Boston Rd Nash Bowie County 5 - 9

Bancorp South Bank 320 N State Highway 8 New Boston Bowie County 5 - 9

Century Bank 401 N Mccoy Blvd New Boston Bowie County 5 - 9

Century Bank Na 201 Rice St New Boston Bowie County 20 - 49



First Convenience Bank 800 James Bowie Dr New Boston Bowie County 5 - 9

First National Bank 201 Rice St New Boston Bowie County 5 - 9

Red River Federal Credit Union 128 N Ellis St New Boston Bowie County 10 - 19

Texar Federal Credit Union 507 James Bowie Dr New Boston Bowie County 10 - 19

Texar Federal Credit Union 507 James Bowie Dr New Boston Bowie County 5 - 9

First National Bank 200 Big League Bnd Omaha Morris County 5 - 9

Bank of America 1161 Clarksville St Paris Lamar County 5 - 9

Capital One Bank 3rd NW & Price Paris Lamar County 5 - 9

Capital One Bank 104 Bonham St Paris Lamar County 5 - 9

Capital One Bank 2800 Lamar Ave Paris Lamar County 50 - 99

Community Bank First 630 Clarksville St Paris Lamar County 5 - 9

First Federal Community Bank 3010 NE Loop 286 Paris Lamar County 10 - 19

First Federal Community Bank 630 Clarksville St Paris Lamar County 20 - 49

Guaranty Bond Bank 3250 Lamar Ave Paris Lamar County 20 - 49

Hibernia National Bank Paris Lamar County 5 - 9

Lamar National Bank 200 S Collegiate Dr Paris Lamar County 20 - 49

Liberty National Bank 1929 Bonham St Paris Lamar County 5 - 9

Liberty National Bank 305 Lamar Ave Paris Lamar County 20 - 49

Liberty National Bank 140 N Collegiate Dr Paris Lamar County 5 - 9

Liberty National Bank 305 Lamar Ave Paris Lamar County 50 - 99



North East Texas Teachers CU 3320 Lamar Ave Paris Lamar County 5 - 9

Peoples Bank 2805 Lamar Ave Paris Lamar County 5 - 9

Peoples Bank 35 South Plz Paris Lamar County 20 - 49

Cass County Bank 401 Highway 59 Queen City Cass County 10 - 19

Lamar National Bank 6270 Lamar Rd Reno Lamar County 5 - 9

First Bank of Roxton 210 Harrison Ave Roxton Lamar County 5 - 9

Bank of America 110 Sandy Lake Rd Scroggins Franklin County 10 - 19

Alliance Bank 1200 Houston St Sulphur Springs Hopkins County 5 - 9

Alliance Bank 1437 S Broadway St Sulphur Springs Hopkins County 5 - 9

Alliance Bank 1226 S Broadway St Sulphur Springs Hopkins County 10 - 19

Alliance Bank 100 Jefferson St W Sulphur Springs Hopkins County 50 - 99

Alliance Bank 300 Rosemont St Sulphur Springs Hopkins County 5 - 9

City National Bank 201 Connally St Sulphur Springs Hopkins County 50 - 99

City National Bank 1133 Mockingbird Ln Sulphur Springs Hopkins County 20 - 49

City National Bank 1067 Gilmer St Sulphur Springs Hopkins County 5 - 9

City National Bank 1108 S Broadway St Sulphur Springs Hopkins County 5 - 9

Community Bank 1067 Gilmer St Sulphur Springs Hopkins County 5 - 9

Community Bank 1404 S Broadway St Sulphur Springs Hopkins County 10 - 19

First Convenience Bank 1750 S Broadway St Sulphur Springs Hopkins County 5 - 9

Guaranty Bond Bank 919 Gilmer St Sulphur Springs Hopkins County 20 - 49



Guaranty Bond Bank 204 W Broad St Talco Titus County 5 - 9

Bancorp South Bank 3000 New Boston Rd Texarkana Bowie County 50 - 99

Bancorp South Bank 5702 Richmond Rd Texarkana Bowie County 10 - 19

Bancorp South Bank 3113 Richmond Rd Texarkana Bowie County 5 - 9

Bank of the Ozarks 5202 Summerhill Rd Texarkana Bowie County 10 - 19

Bank of the Ozarks 2609 Richmond Rd Texarkana Bowie County 5 - 9

Capital One Bank 5th & Main St Texarkana Bowie County 5 - 9

Capital One Bank 3900 S Lake Dr Texarkana Bowie County 5 - 9

Capital One Bank 100 W Broad St Texarkana Bowie County 50 - 99

Capital One Bank 2318 Richmond Rd Texarkana Bowie County 50 - 99

Capital One Bank 4805 Texas Blvd Texarkana Bowie County 5 - 9

Century Bank 4601 W 7th St Texarkana Bowie County 10 - 19

Century Bank Na 1718 New Boston Rd Texarkana Bowie County 5 - 9

Century Bank Na 2317 Richmond Rd Texarkana Bowie County 5 - 9

Century Bank Na 4820 Texas Blvd Texarkana Bowie County 5 - 9

Century Bank Na 4105 N Kings Hwy Texarkana Bowie County 5 - 9

Century Bank Na 2900 Saint Michael Dr Texarkana Bowie County 20 - 49

Commercial National Bank 5515 Summerhill Rd Texarkana Bowie County 10 - 19

Domino Federal Credit Union 2208 Kennedy Ln Texarkana Bowie County 10 - 19

Guaranty Bond Bank 5800 W 7th St Texarkana Bowie County 5 - 9



Guaranty Bond Bank 2202 Saint Michael Dr Texarkana Bowie County 20 - 49

Hybernia Bank 100 W Broad St Texarkana Bowie County 5 - 9

People's State Bank 3702 Summerhill Rd Texarkana Bowie County 10 - 19

Red River Federal Credit Union 4405 Summerhill Rd Texarkana Bowie County 100 - 499

Regions Bank 5126 Summerhill Rd Texarkana Bowie County 5 - 9

Regions Bank 2000 Richmond Rd Texarkana Bowie County 20 - 49

Texar Federal Credit Union 417 Spruce St Texarkana Bowie County 5 - 9

Texar Federal Credit Union 2301 Richmond Rd Texarkana Bowie County 50 - 99

Texarkana Terminal Emp Fcu 3801 Texas Blvd Texarkana Bowie County 5 - 9

Texas Bank & Trust CO 4646 Cowhorn Creek Rd Texarkana Bowie County 5 - 9

Woodforest National Bank 4000 New Boston Rd Texarkana Bowie County 5 - 9

SOURCE: Texas Workforce Commission, SOCRATES.


SOUTHWEST ARKANSAS COMMERCIAL BANKS AND CREDIT UNIONS NAME ADDRESS CITY COUNTY # OF EMPLOYEES

BANCORP SOUTH BANK E WOOD ST ASHDOWN LITTLE RIVER 1-4

CENTURY BANK S CONSTITUTION AVE ASHDOWN LITTLE RIVER 10-19

FIRST NATIONAL BANK W MAIN ST ASHDOWN LITTLE RIVER 20-49

FIRST NATIONAL BANK S CONSTITUTION AVE ASHDOWN LITTLE RIVER 5-9

FIRST NATIONAL BANK HIGHWAY 71 S ASHDOWN LITTLE RIVER 5-9

MIL-WAY FEDERAL CREDIT UNION HIGHWAY 71 S ASHDOWN LITTLE RIVER 5-9

REGIONS BANK S CONSTITUTION AVE ASHDOWN LITTLE RIVER 10-19

BANK OF BLEVINS HIGHWAY 371 BLEVINS HEMPSTEAD 5-9

BANK OF ASHDOWN TRACY LAWRENCE AVE FOREMAN LITTLE RIVER 1-4

REGIONS BANK E 3RD AVE FOREMAN LITTLE RIVER 1-4

STATE FIRST NATIONAL BANK E 3RD AVE FOREMAN LITTLE RIVER 5-9

COMMERCIAL NATIONAL BANK HIGHWAY 71 S FOUKE MILLER 1-4

BANCORP SOUTH BANK S ELM ST HOPE HEMPSTEAD 50-99

BANCORP SOUTH BANK N HERVEY ST HOPE HEMPSTEAD 1-4

BANCORP SOUTH BANK E 3RD ST HOPE HEMPSTEAD 1-4

BANCORP SOUTH BANK S MAIN ST HOPE HEMPSTEAD 1-4

DIAMOND STATE BANK S MAIN ST HOPE HEMPSTEAD 5-9



FIRST NATIONAL BANK N HERVEY ST HOPE HEMPSTEAD 1-4

FIRST NATIONAL BANK S MAIN ST HOPE HEMPSTEAD 1-4

FIRST NATIONAL BANK OF HOPE E 3RD ST HOPE HEMPSTEAD 50-99

SUMMIT BANK N HERVEY ST HOPE HEMPSTEAD 1-4

SUMMIT BANK S MAIN ST HOPE HEMPSTEAD 10-19

FIRST NATIONAL BANK OF HOPE S WALNUT ST HOPE HEMPSTEAD 1-4

BANCORP SOUTH BANK E 3RD ST TEXARKANA MILLER 1-4

BANK OF THE OZARKS ARKANSAS ST TEXARKANA MILLER 5-9

CENTURY BANK ARKANSAS BLVD TEXARKANA MILLER 10-19

CENTURY BANK HICKORY ST TEXARKANA MILLER 10-19

CENTURY BANK E 9TH ST TEXARKANA MILLER 10-19

COMMERCIAL NATIONAL BANK E 9TH ST TEXARKANA MILLER 5-9

COMMERCIAL NATIONAL BANK ARKANSAS BLVD TEXARKANA MILLER 5-9

COMMERCIAL NATIONAL BANK N STATE LINE AVE TEXARKANA MILLER 5-9

COMMERCIAL NATIONAL BANK E 4TH ST TEXARKANA MILLER 50-99

FIRST NATIONAL BANK ARKANSAS BLVD TEXARKANA MILLER 5-9

MILLER COUNTY TEACHERS FED CU

E MARTIN LUTHER KING JR BL

TEXARKANA MILLER 1-4

MIL-WAY FEDERAL CREDIT UNION ARKANSAS BLVD TEXARKANA MILLER 20-49

REGIONS BANK EAST ST TEXARKANA MILLER 5-9

REGIONS BANK OLIVE ST # 100 TEXARKANA MILLER 50-99



REGIONS BANK N STATE LINE AVE TEXARKANA MILLER 10-19

BANCORP SOUTH BANK N STATE LINE AVE TEXARKANA MILLER 5-9

U P LITTLE RIVER UP RIVER RD WINTHROP LITTLE RIVER 5-9

SOURCE: Arkansas Department of Workforce Services, "Discover Arkansas."


Appendix D Potential Funding Sources As part of the funding strategy for this regional initiative, the roundtable and/or the staff person should focus on assembling a diversified donor base. First and foremost, the partner organizations, service providers, and participating communities should be asked to contribute to the extent that they can. In addition, local employers, banks, institutions, and foundations should also be approached. Demonstrating strong local support will likely facilitate securing resources from national and state funding sources.

The list below contains resources that may provide funds to the initiative. Many on the list have supported entrepreneurship programs in the past. However, funding priorities are subject to change. In addition, eligibility requirements vary from source to source. Thus, further research will be needed to verify that the initiative, once it is structured and formalized, qualifies for funding from the resources listed below.

NORTHEAST TEXAS / SOUTHWEST ARKANSAS REGION Potential Funding Sources Source Contact Information Description National Foundations: The Ewing Marion Kauffman Foundation http://www.kauffman.org/ The Kauffman Foundation makes grants to

support education and entrepreneurship initiatives across the US.

The W.K. Kellogg Foundation http://www.wkkf.org/ The Kellogg Foundation makes grants to support its goals, which include promoting economically secure families and strong communities partially through greater employment opportunities.

The Coleman Foundation http://www.colemanfoundation.org/entrepreneurship.html The Coleman Foundation supports a number of different entrepreneurship initiatives, including youth entrepreneurship, chairs in entrepreneurship at universities & colleges, and raising awareness of entrepreneurship.


Source Contact Information Description The US Bancorp Foundation http://www.usbank.com/cgi_w/cfm/about/community_relations/grant_guideline

s.cfm The US Bancorp Foundation supports the creation of economic opportunity through grants to organizations that assist in economic development.

Local Foundations: Texarkana Area Community Foundation http://www.arcf.org/page12804.cfm TACF supports a variety of initiatives including

community development and education initiatives.

Truman and Anita Arnold Foundation 2900 St. Michael Dr., 5th Fl. Texarkana, TX 75503-2388 Additional info: Application address: c/o Truman & Anita Arnold, P.O. Box 1481, Texarkana, TX 75504-1481 http://dynamodata.fdncenter.org/990s/990search/ffindershow.cgi?id=ARNO033

No information was available on the initiatives this foundation supports.

First Federal Community Foundation 630 Clarksville St. Paris, TX 75460-5934 Contact: Richard M. Amis, Tr. http://dynamodata.fdncenter.org/990s/990search/ffindershow.cgi?id=FIRS176


Martha, David & Bagby Lennox Foundation 228 6th St. S.E. Paris, TX 75460-5908 http://dynamodata.fdncenter.org/990s/990search/ffindershow.cgi?id=LENN004


George F. Sunkel Foundation P.O. Box 1001 Clarksville, TX 75426-1001 Telephone: (903) 427-3163 Contact: M.K. Russell, Jr., Secy. http://dynamodata.fdncenter.org/990s/990search/ffindershow.cgi?id=SUNK001


The Bobbie A. Atkinson Foundation 3424 Texas Blvd. Texarkana, TX 75503-3248 http://dynamodata.fdncenter.org/990s/990search/ffindershow.cgi?id=ATKI029



Source Contact Information Description Mildred Cabe Cook Foundation 3402 Texas Blvd.Texarkana, TX 75503-3248

http://dynamodata.fdncenter.org/990s/990search/ffindershow.cgi?id=COOK049


Vasco McCoy, Jr. Foundation 3424 Texas Blvd. Texarkana, TX 75503-3248 http://dynamodata.fdncenter.org/990s/990search/ffindershow.cgi?id=MCCO021


Local Businesses: Pilgrim's Pride Corporation Pilgrim's Pride Corporation

PO Box 93 Pittsburg, Texas 75686 800-824-1159

Pilgrim's Prides supports community initiatives by providing volunteer support as well as financial support.

JB Weld 1130 Como Street Sulphur Springs, TX 75483 (903) 885-7696

JB Weld has supported a number of community development projects in the Sulphur Springs area.

WalMart http://walmartstores.com/CommunityGiving/203.aspx Contact the Community Involvement Coordinators at local WalMarts & Sam’s Clubs

WalMart supports local initiatives and organization through grants.

Lowe's http://www.lowes.com/lowes/lkn?action=pg&p=AboutLowes/Community Lowe’s supports a variety of community organizations and education initiatives.

Southwest Electric Power http://www.swepco.com/communities/economic/default.asp SWEP provides financial support for community organizations and economic development initiatives.

See list of local banks Federal Sources (for specific funding information go to www.grants.gov): Economic Development Agency http://www.eda.gov/ The Economic Development Assistance

Program is available to provide assistance to distressed communities. Distressed includes those communities impacted by military base closures.


Source Contact Information Description US Department of Agriculture Rural Business Programs Enterprise Community Program

http://www.rurdev.usda.gov/tx/rbshome.htm http://www.rurdev.usda.gov/tx/ocd.htm

Other Federal Sources: Housing & Urban Development Health & Human Services Department of Labor Department of Defense

State Sources: Texas Workforce Commission http://www.twc.state.tx.us/ Office of Economic Development & Tourism http://www.governor.state.tx.us/ecodevo/ Office of Rural Community Affairs http://www.orca.state.tx.us/ Local Sources: City & County governments Industrial Foundations Higher Education Institutions SOURCE: TIP Strategies research.


Appendix E Data Analysis GENERAL DEMOGRAPHIC & ECONOMIC INDICATORS

The region has a total population of 362,515.

Over the next 5 years, the region is expected to grow at an annual growth rate of 0.5%, which is significantly below the state annual growth rates.

Miller County will account for the largest share of the region’s growth, adding 2,728 residents by 2012.

NORTHEAST TEXAS / SOUTHWEST ARKANSAS REGION2007 Population & Five-Year Projected Net Growth

CountyBowie County, TX 92,914 +2,097Lamar County, TX 50,020 +975Miller County, AR 43,836 +2,728Hopkins County, TX 33,737 +920Cass County, TX 30,641 +170Titus County, TX 29,666 +772Hempstead County, AR 24,640 +803Red River County, TX 14,115 -162Little River County, AR 13,677 +31Morris County, TX 13,324 +205Franklin County, TX 10,561 +859Delta County, TX 5,384 +36Regional Total 362,515 +9,434SOURCE: ESRI

2007 Population 2007-2012 Net Change

NORTHEAST TEXAS / SOUTHWEST ARKANSAS REGION Projected Annual Population Growth Rates, 2007-2012

0.05%

0.11%

0.13%

0.31%

0.39%

0.45%

0.52%

0.54%

0.64%

1.21%

1.58%

1.90%

1.14%

-0.23%

-0.5% 0.0% 0.5% 1.0% 1.5% 2.0%

Red River County, TX

Little River County, AR

Cass County, TX

Delta County, TX

Morris County, TX

Lamar County, TX

Bowie County, TX

Titus County, TX

Hopkins County, TX

Hempstead County, AR

State of Arkansas

Miller County, AR

Franklin County, TX

State of Texas

SOURCE: ESRI

Franklin County and Miller County are expected to be the fastest growing areas of the region, while Cass County and Little River County are expected to be the slowest growing areas.

Red River County is the only county in the region that is expected to experience negative population growth.


The counties in the region have significantly lower median household than the state averages.

Bowie County, which has the highest median household income in the region, is 79% of the state average. Red River County, which has the lowest median household income in the region, is 65% of the state average.

NORTHEAST TEXAS / SOUTHWEST ARKANSAS REGION Median Household Income, 2007

$34,330

$35,219

$35,563

$36,098

$36,363

$38,252

$38,609

$38,960

$38,986

$40,527

$41,124

$51,090

$33,348

$39,232

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000

Red River County, TX

Cass County, TX

Morris County, TX

Hempstead County, AR

Delta County, TX

Little River County, AR

Lamar County, TX

Titus County, TX

Miller County, AR

Hopkins County, TX

Franklin County, TX

Bowie County, TX

State of Arkansas

State of Texas

SOURCE: ESRI

While the portion of the population with at least a high-school education in the region is not significantly different from the state rates, fewer people in the region have pursued higher education opportunities.

74% of the population in the region has completed high-school (versus 75% in Arkansas and 76% in Texas).

14% of the population in the region has a 4-year degree or higher (versus 17% in Arkansas and 23% in Texas).

NORTHEAST TEXAS / SOUTHWEST ARKANSAS REGIONHighest Educational Attainment for the Population Age 25 or Older

12-County Region State of Arkansas State of Texas

SOURCE: ESRI

No high school

diploma, 26%

High school or

GED, 34%

Some college,

26%

4-year degree or

higher, 14%

No high school

diploma, 25%

High school or

GED, 34%

Some college,

25%

4-year degree or

higher, 17%

No high school

diploma, 24%

High school or

GED, 25%

Some college,

28%

4-year degree or

higher, 23%


NORTHEAST TEXAS / SOUTHWEST ARKANSAS REGION Total Employment for the 12-County Region

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

1970 1980 1990 2000NOTE: Total employment includes nonfarm "covered" employment plus all farm & sole-proprietor employmentSOURCE: US Bureau of Economic Analysis (accessed via Moody's Analytics)

1970sAverage Annual

Job Gain

+2,840

1980sAverage Annual

Job Gain

+1,506

1990sAverage Annual

Job Gain

+2,907

2000sAverage Annual

Job Gain

+1,399

NORTHEAST TEXAS / SOUTHWEST ARKANSAS REGIONTotal Nonfarm Employment by County and Industry, 2006

Approx. Regional

Total*

Bowie County Texas

Lamar County Texas

Titus County Texas

Miller County

Arkansas

Hopkins County Texas

Cass County Texas

Hempstead County

Arkansas

Franklin County Texas

Morris County Texas

Little River County

Arkansas

Red River County Texas

Delta County Texas

Manufacturing 28,594 2,913 4,812 7,723 2,728 1,451 1,678 2,766 * 2,298 1,472 734 19Retail trade 23,115 6,710 3,393 2,265 2,316 2,364 1,464 1,170 1,841 464 518 431 179Government (local) 19,340 4,745 2,658 2,718 1,604 2,114 1,725 981 351 639 754 776 275Health care & social assistance 15,548 8,059 3,843 * * 1,077 * * 713 427 213 785 431Personal & other services 12,512 2,874 2,246 842 1,675 1,224 979 780 615 418 401 291 167Construction 11,256 2,282 1,947 656 1,928 1,615 732 472 591 188 420 283 142Accommodation & food services 10,128 3,752 1,553 1,037 1,349 992 656 642 * * * 147 *Administrative services 7,297 1,802 1,682 424 1,304 847 353 364 264 82 175 * *Finance & insurance 6,760 2,374 1,129 565 558 659 419 267 283 233 115 112 46Transportation & warehousing 6,616 2,358 1,090 218 * 911 420 * 171 448 924 76 *Government (federal civilian) 5,060 4,315 154 108 56 92 74 98 18 29 49 44 23Real estate & leasing 4,944 1,506 857 306 654 569 288 215 271 88 85 67 38Wholesale trade 4,551 2,173 494 386 * 1,053 * 254 63 * 75 21 32Government (state) 3,410 1,290 268 137 523 122 223 602 33 46 86 55 25Professional & technical services 2,761 1,352 * 353 * 591 * * 216 183 * * 66Information & media 1,555 495 273 164 158 210 60 88 45 37 25 * *Arts, entertainment, & recreation 1,396 524 253 81 248 110 83 64 * * * 33 *Government (military) 1,112 248 112 67 244 74 66 132 23 30 74 30 12Forestry & fishing 799 * * 48 258 * 493 * * * * * *Oil, gas, & mining 734 * * 377 74 * 179 * 104 * * * *Utilities 719 111 236 270 * 85 * * * * * 17 *Corporate & regional offices 441 280 * 64 * 97 * * * * * * *Educational services 441 213 122 * * 73 * * 33 * * * **Jobs unallocated by industry 13,060 319 886 1,351 3,952 366 2,181 1,930 519 457 582 251 266Total nonfarm jobs 182,149 50,695 28,008 20,160 19,629 16,696 12,073 10,825 6,154 6,067 5,968 4,153 1,721*NOTE: The small size of employment in some county industries triggers the BEA to suppress data in order to protect privacy. Therefore, regional industry totals will be undercounted to some degree.SOURCE: U.S. Bureau of Economic Analysis (accessed via Moody's Analytics)

In the 1990s, the region experienced a period of strong job growth in conjunction with the nation’s economic boom.

During the recession that occurred at the beginning of the 2000s, this trend weakened. However, by 2003 job growth had resumed again.

The manufacturing sector accounts for the largest portion of total nonfarm employment in the region (16%). Retail trade accounts for 13% of total employment while government accounts for 11%.


SMALL BUSINESS & ENTREPRENEURSHIP INDICATORS

The region has over 36 million sole proprietorships and individual partnerships.

Since 2003, proprietor employment in the region has been growing rapidly, with annual growth rates from 4.6% to 7.0%.

In comparison to the state averages, Cass, Delta, Franklin, Hopkins, Lamar, and Miller counties’ share of proprietor employment to total employment is greater than the state average. The region as a whole also follows this same trend.

From 2001 to 2005, the region has become increasingly more reliant on its small business owners and entrepreneurs as sources of employment.

Non-Farm Proprietor Employment, 2001 - 2005 (in thousands)2001 2002 2003 2004 2005

TEXASBowie County (TX) 5.328 5.498 5.963 6.243 6.544Cass County (TX) 2.990 3.032 3.255 3.397 3.541Delta County (TX) 0.520 0.476 0.538 0.561 0.587Franklin County (TX) 2.328 2.337 2.560 2.662 2.800Hopkins County (TX) 3.716 3.585 3.870 4.043 4.241Lamar County (TX) 5.330 5.386 5.847 6.105 6.411Morris County (TX) 0.878 0.817 0.900 0.936 0.980Red River County (TX) 0.679 0.690 0.741 0.773 0.803Titus County (TX) 2.124 2.037 2.218 2.323 2.437ARKANSASHempstead County (AR) 1.548 1.602 1.591 1.670 1.752Little River County (AR) 0.972 0.997 1.005 1.054 1.100Miller County (AR) 4.744 4.757 4.922 5.168 5.422REGIONTotal 31.157 31.214 33.410 34.935 36.618# Change 0.057 2.196 1.525 1.683Pct Change 0.2% 7.0% 4.6% 4.8%

Share of Proprietor to Total Employment, 2001 - 20052001 2002 2003 2004 2005

TEXASBowie County (TX) 11.2% 11.5% 12.3% 12.6% 12.8%Cass County (TX) 22.6% 23.0% 24.9% 25.6% 26.8%Delta County (TX) 22.6% 21.0% 24.1% 26.2% 26.4%Franklin County (TX) 39.5% 38.0% 41.7% 42.0% 42.9%Hopkins County (TX) 20.9% 20.2% 21.9% 22.2% 22.2%Lamar County (TX) 18.9% 19.0% 20.3% 21.3% 22.3%Morris County (TX) 14.0% 13.7% 15.1% 15.7% 15.5%Red River County (TX) 11.9% 12.5% 13.7% 14.1% 14.6%Titus County (TX) 10.8% 10.2% 10.6% 10.8% 11.4%ARKANSASHempstead County (AR) 12.4% 12.8% 12.9% 14.1% 15.0%Little River County (AR) 15.1% 15.2% 15.4% 16.3% 16.9%Miller County (AR) 23.5% 24.2% 25.3% 26.5% 27.3%AVERAGERegional Average 18.6% 18.4% 19.9% 20.6% 21.2%Texas Average 16.9% 17.6% 18.8% 19.0% 19.3%Arkansas Average 15.2% 15.4% 15.7% 16.5% 17.1%Source: Bureau of Economic Analysis. Indicates that county's share is more than 1% greater than state average.


Small businesses with fewer than 50 employees account for the vast majority of business establishments in the region.

The number of small businesses remained stable from 2002 to 2005, growing only 0.5% over the 4 year period.

The number of larger businesses grew almost 1.1% over the same period.

SOURCE: US Census Bureau, County Business Patterns.

7,041

7,058

7,080

7,081 350

357

352

329

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

2002

2003

2004

2005

Establishments with Fewer than 50 EmployeesEstablishments with Greater than 50 Employees

NORTHEAST TEXAS / SOUTHWEST ARKANSAS REGION Establishments by Size (2002 - 2005)

Small business dominates all industry sectors. However, the manufacturing sector has the lowest share of small businesses (78.1%).

The highest numbers of small businesses are in retail trade, other services, and health care & social assistance.

Establishments by Industry and Business Size, 2005

Small Biz Big Biz PctSmlRetail trade 1463 50 96.7%Other services (except public administration) 915 6 99.3%Health care and social assistance 799 78 91.1%Construction 555 16 97.2%Accommodation & food services 512 37 93.3%Finance & insurance 483 15 97.0%Professional, scientific & technical services 436 2 99.5%Wholesale trade 381 15 96.2%Transportation & warehousing 315 12 96.3%Real estate & rental & leasing 307 3 99.0%Manufacturing 268 75 78.1%Admin, support, waste mgt, remediation services 210 22 90.5%Information 120 4 96.8%Arts, entertainment & recreation 79 1 98.8%Forestry, fishing, hunting, and agriculture support 71 1 98.6%Utilities 56 4 93.3%Mining 34 2 94.4%Educational services 32 1 97.0%Management of companies & enterprises 26 6 81.3%Unclassified establishments 19 0 100.0%Total 7081 350 95.3%Note: Small Biz = employees 1 - 50; Big Biz = employees > 50.

Source: U.S. Census Bureau. http://www.census.gov/epcd/cbp/view/cbpview.html

All CountiesIndustry


The value and number of small business loans has declined over the past 3 years in spite of growth in the number of bank branches. Bowie County experienced the most significant decline between 2005 and 2006 in terms of both loan value and loan numbers. Hopkins County experienced a significant decline between 2004 and 2006.

The average loan size has declined from a high of $43,000 in 2002 to $25,000 in 2006.

$0

$50,000

$100,000

$150,000

$200,000

$250,000

2001 2002 2003 2004 2005 20064,000

4,500

5,000

5,500

6,000

Value of Small BusinessLoans ('000s)# of Small Business Loans

NORTHEAST TEXAS / SOUTHWEST ARKANSAS REGION Small Business Loans, 2001-2006

NORTHEAST TEXAS / SOUTHWEST ARKANSAS REGIONSmall Business Loans Originated to Firms with Gross Annual Revenues Less Than 1 Million

$ ('000s) #

$ ('000s) #

$ ('000s) #

$ ('000s) #

$ ('000s) #

$ ('000s) #

Bowie County (TX) $58,729 1,262 $79,839 1,374 $75,638 1,469 $96,725 1,705 $83,568 1,693 $47,834 1,435Miller County (AR) $13,397 368 $20,411 398 $21,316 517 $23,689 477 $28,780 528 $16,832 433Hopkins County (TX) $21,836 759 $24,836 1,176 $29,208 1,288 $18,984 1,153 $16,045 982 $16,314 834Lamar County (TX) $17,117 537 $16,735 430 $18,403 493 $16,688 421 $10,269 401 $9,316 476Hempstead County (AR) $17,618 433 $10,716 261 $13,305 350 $8,982 285 $10,970 308 $8,027 317Cass County (TX) $7,399 271 $10,438 261 $8,901 255 $13,262 299 $7,672 287 $5,825 261Little River County (AR) $4,991 146 $5,547 172 $6,368 180 $7,844 236 $4,991 206 $2,826 133Titus County (TX) $34,182 598 $32,240 519 $29,957 468 $26,072 408 $4,686 198 $2,547 271Red River County (TX) $2,639 172 $2,915 140 $2,539 143 $1,589 123 $1,176 75 $1,892 93Morris County (TX) $2,979 73 $2,288 49 $1,419 54 $1,644 59 $864 69 $787 91Franklin County (TX) $4,373 127 $2,331 70 $3,157 74 $2,790 67 $727 85 $751 83Delta County (TX) $646 31 $598 17 $666 32 $1,142 27 $1,726 43 $457 39Total $185,906 4,777 $208,894 4,867 $210,877 5,323 $219,411 5,260 $171,474 4,875 $113,408 4,466Average Loan Size $39 $43 $40 $42 $35 $25

2005 20062001 2002 2003 2004

2008 Northeast Texas Entrepreneurship Assessment

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Transcript of 2008 Northeast Texas Entrepreneurship Assessment