State economic development officials often tout Arkansas as the birthplace of entrepreneurism though a new report makes it clear there is still work to do to sustain that claim.
The study released last week -- by a think tank based in the state and backed by the Walton family -- ranks Arkansas near the bottom of the nation in supporting entrepreneurial ecosystems. The state came in 46th overall.
The study by Heartland Forward of Bentonville paints a bleak portrait of entrepreneurism in Arkansas and for states across the middle of America as a whole. The heartland states were tapped for 16 of the bottom 20 positions in the study.
The organization defines the heartland region as stretching from the Canadian border to the Gulf of Mexico and west to include the Dakotas, Nebraska, Iowa, Oklahoma and Texas and bordered on the east by Ohio, Kentucky, Tennessee and Alabama.
"Heartland states do not provide the opportunities and support needed for entrepreneurs to thrive and be successful," the report said. "Entrepreneurs today could be labeled as the first remote workers who can choose where they want to build their business and live.
"It is no wonder they choose mountains and coastline if the middle of the country does not value entrepreneurship in the same way. What worked in the past will not work in our future."
Multiple factors were used to rank the states, including the percentage of total private sector employment combined with the percentage of employees with at least a bachelor's degree. It also measured the percentage of households with computers and how much businesses invested in research and development.
Who did Arkansas beat? Indiana, Iowa, Mississippi and West Virginia trailed Arkansas in the rankings.
The top five states were California, New York, Utah, New Jersey and Colorado
Arkansas fared well in two individual categories: business research and development spending and government grants to businesses, both based on spending and grants per million people. The state ranked 7th in the R&D category and 16th in government grants.
However, Arkansas ranked 45th with 88.6% of homes with computers; 48th based on adults with a bachelor's degree or higher (23.3%); 44th in young-firm deals per million population; and 48th in young-firm capital per million people. The young-firm rankings highlight economic development opportunities and jobs provided by firms in the early stages of development.
Heartland Forward said the report indicates the state's need to improve policies that expand entrepreneurial activities and development.
Its key recommendations include opening more government contracting opportunities to young entrepreneurs, expanding high-speed internet access, funding entrepreneurial support organizations, dedicating more funds to higher education and teaching entrepreneurial thinking in K-12 schools
PITCHING BUSINESS
Save a few bucks and buy your tickets now for the Little Rock Venture Center's next Pitch N' Pint competition on Nov. 10. The annual competition is being held in conjunction with Global Entrepreneurship Week.
This year's event features the 2021 Spark! cohort! Those eight entrepreneurs will compete in a Shark Tank-style pitch event where winners leave with cash and connections to help their businesses.
Tickets are $5 for early bird registration and $10 at the door -- including two drink tickets along with appetizers. The event will be held from 6-8 p.m. at Brewski's in downtown Little Rock. Covid alert: temperatures will be taken at the door to protect health and safety of all.
Entrepreneurs will deliver a two-minute pitch to investors, judges and a crowd of supporters. Participants are involved in the entertainment, retail, beauty and transportation industries.
The winner gets $5,000, second place $3,000 and third takes home $2,000.
On deck to pitch their companies and specialty areas are:
• Ayana Baraka of Edamame Films in education and entertainment
• Miya Blackmon of Little Rock Lightning in sports entertainment
• Whitney Gray of Whit's End featuring home services
• Benjamin Harrison of FareMarket, specializing in agriculture and food retail
• Moesha Howard of Infidimensional Skin, which offers beauty products
• Tammy Iosbaker of The Frame Maker, a retail operation
• Kissa Kimble of Elite Recruiting, offering transportation services
• Soroya Tucker of VLS Waste Solutions, a waste management provider
CIRCUMFERENCE EXPANDS
Circumference Group of Little Rock has added three team members to expand the company's private-investing strategy and portfolio.
Kurt Silverman, Luca Sechi and Virgil Prewitt have taken newly created leadership positions to strengthen the support Circumference gives to its partner companies.
Former Alltel Wireless Chief Operating Officer Jeff Fox formed the firm in 2009 to invest in public and private companies by providing long-term capital and ongoing support to help them build sustainable and successful businesses. After leaving Alltel, Fox also has served as chief executive officer of Endurance International Group and Convergys Corp.
"At Circumference Group, we believe the long-term success of a company is based on its ability to deliver sustainable value to customers," Fox said in a news release. "I have personally worked with Kurt, Luca and Virgil in multiple situations over the last decade, and I am thrilled to welcome them to Circumference Group as we continue to expand our investing platform."
OOPS...MY MISTAKE
Pardon my mess. Last week's column incorrectly reported some trade figures related to the United Kingdom. The correct information: the U.K. and the United States have invested about $1 trillion in each other's economies. The trade relationship was mischaracterized last Sunday.
Column ideas or recommendations? Thoughts or musings that need pursuing? Contact me at amoreau@adgnewsroom.com or at 501-378-3567.