The Charlotte Regional Fund for Entrepreneurship
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Sponsored By THE CHARLOTTE REGIONAL FUND FOR ENTREPRENEURSHIP Sponsored By Prepared By Julie Nance Principal Consultant 7/10/2013 Mapping the Ecosystem An in-depth look at the Charlotte region’s entrepreneurial ecosystem and the programs that impact high growth entrepreneurs. The Charlotte Regional Fund for Entrepreneurship Table of Contents EXECUTIVE SUMMARY ........................................................................................................... III A Focus on High Growth Entrepreneurs ...................................................................................... iii A Complex Environment ................................................................................................................ iii The Charlotte Entrepreneur Ecosystem ....................................................................................... iv Community Interviews..................................................................................................................... iv Recommendations for the Charlotte Regional Fund for Entrepreneurship (CRFE) ............. vii Summary of Findings ..................................................................................................................... vii INTRODUCTION ...................................................................................................................... 1 STUDY FOCUS ........................................................................................................................................ 1 APPROACH ............................................................................................................................................. 2 Study Methodology........................................................................................................................ 2 Regional Approach ........................................................................................................................ 3 Community Interviews..................................................................................................................... 3 BEST PRACTICES IN ENTREPRENEURSHIP DEVELOPMENT AND GROWTH ............................. 4 What is an Entrepreneurial Ecosystem? ............................................................................................. 4 Definitions and Concepts in Entrepreneurship .................................................................................. 6 Key Factors for Ecosystem Success ..................................................................................................... 7 Innovation Initiatives of Note ............................................................................................................... 8 CHARLOTTE-REGION’S ENTREPRENEURIAL ECOSYSTEM ..................................................... 17 Current State of the Market .............................................................................................................. 17 Charlotte’s Ecosystem Map ................................................................................................................ 19 A. Entrepreneur Support Organizations .................................................................................. 21 Strategy & Coordination of Networks .............................................................................. 21 Local Entrepreneurship Networks........................................................................................ 21 Incubators, Accelerators, Co-working ................................................................................ 27 B. Business...................................................................................................................................... 28 Corporations ........................................................................................................................... 28 Industry Cluster Support Organizations ............................................................................ 29 C. Capital Resources .................................................................................................................... 33 Investors ................................................................................................................................... 33 Financing .................................................................................................................................. 34 Foundations ............................................................................................................................. 35 D. Educational Institutions .......................................................................................................... 37 Primary and Secondary Schools ......................................................................................... 37 Higher Educational Institutions ............................................................................................. 37 E. Government and Quasi-Governmental Agencies .......................................................... 42 Federal Departments ............................................................................................................ 42 State Departments ................................................................................................................. 43 Page i The Charlotte Regional Fund for Entrepreneurship Regional-Local Departments ................................................................................................ 43 Research Institutions ............................................................................................................... 43 Workforce Boards ................................................................................................................. 44 Economic Development Organizations............................................................................... 44 ECOSYSTEM GAPS - FINDINGS ............................................................................................. 46 Culture ............................................................................................................................................. 46 Talent Availability and Development ....................................................................................... 46 Networking and Mentoring ........................................................................................................ 46 Media.............................................................................................................................................. 46 Open Participation ....................................................................................................................... 47 Venture Capital and Funding ..................................................................................................... 47 Higher Education Partnerships ................................................................................................... 47 Large Company Partnerships and Clusters ............................................................................. 47 The Chamber and Economic Development .............................................................................. 47 The Need for CRFE and Unified Coordination ....................................................................... 47 RECOMMENDATIONS FOR CRFE FUND DEVELOPMENT ...................................................... 48 CRFE Fund Mission ................................................................................................................................ 48 Recommended Program Priorities..................................................................................................... 48 Fundable Opportunity Areas ..................................................................................................... 48 Eligibility ................................................................................................................................................ 49 The CRFE Process for Grant Making ................................................................................................ 49 CRFE Advisory Committee and Board Structure ............................................................................ 50 Evaluation Criteria ............................................................................................................................... 50 Selection ................................................................................................................................................. 51 CRFE Effectiveness Review ................................................................................................................. 51 SUMMARY............................................................................................................................. 52 APPENDIX ............................................................................................................................... 1 Community interviews ............................................................................................................................ 2 Page ii The Charlotte Regional Fund for Entrepreneurship EXECUTIVE SUMMARY The City of Charlotte and Foundation For The Carolinas (FFTC) have come together to sponsor a review and recommendations on the Charlotte USA region entrepreneurial ecosystem. After a year of coordination and educational meetings with stakeholders in the ecosystem, the City agreed to participate financially with a