U.S. program helps execs of small firms position for growth

The concept of the program is simple -- gather key leaders from companies poised for breakout growth and give them the contacts, mentors and information they need to take their businesses to the next level.

Recently the state's first class of the U.S. Small Business Administration's Emerging Leaders Initiative met in Little Rock to make the concept a reality.

Over seven months, the class participants will take part in workshops, and meet fellow business people, city leaders and people in finance. The goal is focused business development that's aimed at expansion strategies, obtaining new investments or other streams of capital, and snagging government contracts.

Edward Haddock, senior area manager for Northwest Arkansas for the Small Business Administration, is heading the project. He said the 14 participants were selected from applicants who had been in business for three years, and had a minimum of $400,000 in annual revenue and at least one employee other than the business owner.

A milestone for small businesses is surviving for three years. At that point, they've made it past the "valley of death" and often are poised for expansion but are not outfitted with the proper skills, Haddock said.

"At this point the CEO tends to be up to his neck in work," Haddock explained. "But the CEO is often working in the business, rather than on the business."

That's why the emerging leaders initiative is vital, he said. It provides a place where the CEO can learn and take the steps needed to drive the business into its next growth phase. That often requires making new connections, thinking more strategically, and taking the time to prepare and plan.

CEOs of new businesses can become trapped in the work -- isolated -- and may end up doubtful about the direction they need to take to move ahead.

"Sometimes we can become our own worst enemies," Haddock said.

Participants will have to invest a great deal of time in the program. In return, they'll learn how to scale their operations for growth, meet a network of other business leaders who are facing the same challenges, and will be exposed to industry experts who can give advice about finance, contract management and human resources issues. One element of the program is the development of a three-year strategic growth plan for each participating business.

Janet Roderick, state director of the Arkansas Small Business and Technology Development Center at the University of Arkansas at Little Rock, said training is important to businesses at this stage of their development.

She said it often takes a whole different set of skills to take a "second stage" business into expansion mode. She added the networking part of the program is important because small-business owners can feel alone and need the support of like-minded peers, and they often can learn from one another's successes and failures.

The Small Business Administration contends that supporting and nurturing these types of business operations is good for the overall economy. The theory is that smarter, better-prepared business leaders can provide more, better and secure jobs that are less likely to evaporate when economic downturns arrive. These businesses in turn help their communities thrive.

The Emerging Leaders program began in 2008. This year, it has 48 cities and communities across the nation. This year, there are 22 new cities, including Little Rock.

Since its inception, the program has trained more than 2,400 small-business owners who have secured more than $1 billion in government contracts and obtained $73 million in financing. According to surveys of past participants, the program has created close to 2,000 new jobs.

SundayMonday Business on 05/03/2015

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