Ohio University's Voinovich Center Receives
$500,000 from Governor's Technology Action Fund
Contact: Hugh Sherman, (740) 593-9415
ATHENS, Ohio (June 9, 2000) -- Ohio University's Voinovich Center for Leadership and Public Affairs will receive a $500,000 grant from the Governor's Technology Action Fund. Gov. Bob Taft announced recipients of the funds at a reception Wednesday night at the Center of Science and Industry in Columbus.
The money will be used to help fund the Regional Entrepreneurship Initiative project, which will build an infrastructure of support for high-growth potential, technology-related businesses in Ohio's 29-county Appalachian region. The project's mission will be accomplished by developing a high-quality, comprehensive, integrated program of business assistance, including the development of a major equity fund targeted at small technology growth businesses.
"Appalachia's future economic vitality depends on developing home-grown firms, encouraging innovation and risk-taking and enhancing investment in new businesses," Project Director Hugh Sherman said.
The REI project plan has four key components. First it wants to develop a "one-stop shop" via a virtual online technical assistance Web service, which will improve the business management skills of small businesses and entrepreneurs in the region.
The second step is to implement the $15 million Appalachian Ohio Development Fund project, created as a venture capital effort to help small businesses committed to staying in Appalachian Ohio. The fund was developed with the help of Ohio alumnus and fund creator David Wilhelm of public strategy group Wilhelm & Conlon.
Third, the project will offer high-end custom consulting services to high-growth technology businesses seeking financing. The final component entails providing specialized services and technology support training to regional economic development organizations.
The REI project hopes to overcome several inherent obstacles in Appalachian Ohio. Geography makes it difficult for entrepreneurs to access training, development and support services. There's also a lack of venture capital funding in the $200,000 to $2 million range, and entrepreneurs lack the needed information and assistance to prepare their businesses to effectively utilize equity investment.
The project's governing body will consist of a five-to-seven member Strategy Group and an Executive Business Advisory Council. Regional partners in the project include the Appalachian Ohio Development Fund, The Enterprise Fund, Community Action Committee of Pike County, The Appalachian Center for Economic Networks, Mountain Association for Community Economic Development, Center for Business and Industry at Hocking College and the National Business Incubation Association.
"By the end of the two-year program, we plan to be working with 50 to 75 firms in our integrated consulting program, eight to 12 of which will be moving toward equity investment and another three to five that have received equity investment," Sherman said.
"This grant will help southeastern Ohio create high-tech jobs and become a much more sophisticated region to live in," Sherman said.
