Future of Innovation & Entrepreneurship Center under review

Around 25 area business and civic leaders gathered Wednesday morning (June 29) at the University of Arkansas at Fort Smith to discuss the future — or if it should have a future — of the Innovation and Entrepreneurship Center.

The IEC which opened in 2007, was initially a joint effort of the University of Arkansas at Fort Smith, the Fort Smith Regional Chamber of Commerce and the city of Fort Smith. The IEC was created to help foster innovative ideas, inspire new production, assist entrepreneurs, build and strengthen businesses and encourage youth to think entrepreneurially.

Michelle Stockman was hired in April 2007 as the first IEC director, but resigned in November 2008 when hired by Little Rock-based Arkansas Capital Corp. to help implement entrepreneurial programs statewide. Stockman attended the Wednesday forum.

It wasn’t until June 2009 that UAFS officials — who by then had control of the program — hired Nick Remy to direct the IEC. But Remy, concerned that the program was becoming more academic than entrepreneurial, left the post in June 2010.

UAFS officials have struggled with the direction of the program, and held the Wednesday forum to seek public input on the future of the program.

Dr. Paul Beran, chancellor of the University of Arkansas at Fort Smith, said in opening the forum that he has talked to area business leaders who believe the region would benefit from an organization that would help existing businesses expand to the next level. Beran said most wanted the organization to provide support beyond that provided by the Arkansas Small Business and Technology Development Center.

The ASBTDC is based in Little Rock and has six other offices around the state that serve geographic regions. Fort Smith is in a nine-county region (Conway, Crawford, Franklin, Johnson, Logan, Pope, Sebastian, Scott and Yell counties) served by an office at Arkansas Tech University in Russellville.

Beran also said he “fully agreed” with those who say IEC support should extend further than from just the UAFS. He also said the IEC should not be located on the UAFS campus.

Beran challenged forum attendees to consider three questions related to the IEC future.
• What is the community looking for from the IEC?
• What kind of support is there in the community for the IEC?
• What you you want from the IEC? Start-up groups or growth for existing companies?

Attendees were split into two groups to discuss possible answers to the questions.

One group suggested a future IEC should focus on finding a “targeted approach” to helping potentially higher-wage companies expand to the next level, noted Craig Rivaldo, president of Arvest Bank-Fort Smith, who spoke for the group. The approach would combine access to a local investor fund, advisory council — or councils — and a director who is knowledgable about various sources of advice and/or funding for small businesses.

This concept avoided having an “incubator” facility in which start-up businesses might locate until they could successfully move on or failed.

The second group focused more on creating an incubator program in which a director would “filter unique” ideas and business concepts that have “economic merit,” said Jim Patridge, head of BancorpSouth in Fort Smith, who spoke for the second group.

Patridge said Ivy Owen, executive director of the Fort Chaffee Redevelopment Authority, is willing to provide space and other resources to an incubator effort. Owen, who attended the Wednesday forum and was in the group with Patridge, said he has also talked to Beran about moving the IEC to Chaffee Crossing.

Although both groups believed the region needs a restructured and re-energized IEC and they agreed on some concepts, they disagreed on issues related to organizational structure and mission.

The primary agreement, however, was that the region could benefit from an organization the helped filter “unique and innovative” businesses with a concept, service or product that is doable, has a competitive edge, is sustainable and would create an economic benefit for the region.

Beran said UAFS staff would compile notes and comments from the meeting and distribute to the attendees. They would also work to schedule a meeting in late July for the purpose of coming to agreement or moving closer to an agreement on IEC structure and mission.