The following three articles are taken from a recent edition of the NATIONAL DIALOGUE ON ENTREPRENEURSHIP, a weekly e-newsletter published by THE PUBLIC FORUM INSTITUTE www.publicforuminstiture.org/nde

Start-Up Funds Average $10,000

The next time that someone tells you it takes big money to start a business, don’t believe them. The newest Wells Fargo/Gallup Small Business Index confirms that it requires relatively small amounts---an average of $10,000---to start a new business. Wells Fargo asked a nationwide sample of 600 business owners to discuss how they financed their firms. Seventy-three percent of respondents used their own money to start their first business; 37% obtained loans or lines of credit. More than half (53%) feels their business development would have been smoother with more funding at the outset. New business owners also seem to have a strong hunger for better information and support. Forty-nine percent would have liked to have advice from seasoned business owners before pursuing the entrepreneurial path. An additional 37% would have liked to have a better understanding of financial management.

To learn more about the August 2006 results of the Wells Fargo/Gallup Small Business Index, visit https://www.wellsfargo.com/press/20060815_Money?year=2006.
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The Power of Clusters

It pays to locate near clusters of similar businesses, at least in terms of generating new innovations. That’s the primary message of new research from the European Commission’s InnoBarometer Survey series. The latest study includes a massive survey of more than 3,500 company managers with firms operating throughout Europe. A large portion of company managers were familiar with the concept of business clusters, but only 24% agree that their firms participate in a local cluster. At first glance, few differences exist between cluster-based firms and non-cluster based firms. But, cluster-based firms are slightly larger and more stable. Nonetheless, firms do attribute important benefits to cluster participation. These include better access to skilled workers, nurturing of the entrepreneurial spirit, and access to better market information. Finally, the survey indicates the cluster-based firms may be more innovative. These firms are more likely to introduce new products, processes, and services than are other European-based firms.

To view the July 2006 European Commission’s 2006 Innobarometer on Cluster’s Role in Facilitating Innovation in Europe: Analytical Report, can be accessed at: http://cordis.europa.eu/innovation/en/policy/innobarometer2006.htm.
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Capital Formation Institute Blogs

If you’re interested in hearing the latest on issues related to the innovation economy, the Capital Formation Institute (www.cfi-institute.org) has developed a helpful new resource. The CFI’s new Audio Blogs bring in leading experts to discuss important topics in areas such as technology transfer, early stage investing, and angel capital. The latest edition examines investment opportunities in the energy sector, featuring Dr. John Sibert of GFG China Holdings. Lots of other interesting discussions can be found in the Audio Blog archives.

To learn more about the Capital Formation Institute’s Audio Blog series, visit
http://www.cfi-institute.org/AudioBlog/index.html.

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