Business Plan Contest Designed to Spark IT

In only its second year of existence, the annual Governor’s Award for Entrepreneurial Development competition has nearly doubled its prize pool.

Last year the event, which includes teams from Arkansas’ four-year colleges and universities and is sponsored by Capital Resource Corp., distributed $63,000 in prizes for its business-plan competition.

Thanks to the generosity of Capital Resource, an affiliate of The Arkansas Capital Corporation Group, the prize pool is $102,000. Sam Walls, Arkansas Capital’s executive vice president, said the goal is to make the competition second to none in the nation.

“The first Governor’s Award competition last year was such a resounding success that we decided to nearly double this cash awards for this year,” Walls said. “Our $102,000 in awards makes this competition the fourth-largest collegiate business plan competition in the United States.”

MIT’s business plan competition is currently the nation’s largest with a $150,000 prize pool. But Walls said the partnership between Capital Resource and the University of Arkansas has grown the event so quickly because of the state’s great potential.

“We already have twice as many entrants this year, and the message being sent by this competition is clear,” Walls said. “You can be successful in Arkansas.”

About 1,200 guests are expected for the awards ceremony at noon on April 30 in Little Rock’s Statehouse Convention Center. More than 60 teams with four or five participants each are competing.

April 5 was the deadline for contestants to submit their business plans for initial review. On April 22, semifinalists will be announced and the semifinals and finals will be conducted April 26-27 at the Arkansas Arts Center in Little Rock.

Winners will be announced on April 30. The winning team will receive $30,000, second place gets $20,000 and third wins $10,000. Other prizes accrue as teams advance.

A $5,000 technology incentive bonus will be awarded to three additional teams that incorporate the best use of technology. They do not have to be among the finalists, a stipulation Walls said is intended to help promote technology-based businesses in Arkansas.

“We believe that activity begets activity,” Walls said. “We believe that encouraging technology-based businesses in Arkansas is vital to the state’s economic health, and we’re committed to that goal.”