New IEC plan moves forward

Discussion is moving closer to a reformatted Innovation and Entrepreneurship Center, with a planned Sept. 20 meeting possibly serving as a decision point in the process.

University of Arkansas at Fort Smith Chancellor Dr. Paul Beran, Fort Chaffee Redevelopment Authority Executive Director Ivy Owen and about 10 area business leaders met Thursday (Sept 8.) at the FCRA office to further narrow the ideas behind revamping and relaunching a business support operation.

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 meeting and the June 29 meeting.

It wasn’t until June 2009 that UAFS officials — who by then were managing the program — hired Nick Remy to direct the IEC. But Remy, concerned the program was becoming more academic than entrepreneurial, left the post in June 2010. Since that time, the program has come to a halt.

Thursday’s discussion focused primarily on funding, governance and overall structure in terms of how the new organization will work with other regional entities that also provide small business support.

In terms of funding, Beran estimated the initial budget at about $200,000, with roughly half of that to pay a director who is “very knowledgeable” about financial markets, investor groups, investment options and other details related to advanced entrepreneurial support. Beran also said — and the group agreed — that the director should work with a “quality, high level executive assistant” who can help filter the requests for support.

Of the $200,000, Beran also suggested that half be supported by area universities, cities and other public entities; and the remainder supported by the private sector (area businesses). Beran said UAFS might commit to 25% of the total funding because an active IEC — or whatever moniker is selected — would be “fertile ground” for UAFS business students.

UAFS is holding $187,000 from the initial IEC effort that will be used to help fund a new entity. Also, UAFS is willing to donate trailers to the FCRA, which has agreed to house and help fund a new IEC effort. The trailers were purchased by UAFS from the Federal Emergency Management Administration as possible faculty offices.

Linda Hixson, with the Paris Chamber of Commerce, praised the apparent consensus to locate the new entity at Chaffee Crossing.

“This area has a (geographic) neutrality to it. … That is very appealing,” Hixson said.

Structurally, the new IEC proposal calls for the creation of an organization with a director and executive assistant. The pair would provide support with “advanced business planning,” entrepreneurial/incubator support and create a connection with potential investors. The two IEC employees would also work to funnel small business owners or potential owners to other resources, such as the Small Business and Technology Development Center (SBTDC; regionally administered by Arkansas Tech University in Russellville), Small Business Administration and the UAFS Family Enterprise Center.

Thursday’s meeting saw the structure revised slightly to include potentially connecting the director to an ad hoc committee that would help review the viability of supporting a business plan or product. The group also suggested the new entity have a close tie to the SBTDC. Beran offered the following as broad example of how the two groups would work: The person wanting to open a restaurant might work with the SBTDC, whereas the person or company with a few restaurants and wanting to franchise the operation might work with the new IEC.

The group is scheduled to meet Sept. 20 for the purpose of finalizing a plan.