Page 207 - 1-Entrepreneurship and Local Economic Development by Norman Walzer (z-lib.org)

196 Michael D. Woods and Glenn Muske

As noted already, another typical request by start-ups, which is supported
by research (Audretsch and Keibach 2004), is a need for capital and/or fi-
nancial assistance. Although research suggests that many firms successfully
start with only minimal capital, this identified request has several possible
underlying reasons. First, although able to start with funds the owner has
available, additional capital may enhance the speed of the start-up process
as well as allow it to take advantage of opportunities that come along soon
in its development cycle.
Second, the financial need may not be for money per se but for assistance
in developing a financial management system and then in the analysis of
reports generated by such a system. Efforts to connect financial manage-
ment assistance and experts from local, state, and federal tax agencies can
facilitate better business decisions.
Finally, a third reason for financial start-up assistance may come not as
much from the business itself but from the individual and his or her fam-
ily. If the owner has quit a job to start the business, it is the family that may
have the financial needs. Certainly one way to minimize this is to have fam-
ily members keep working, even if only to retain medical insurance. Re-
search has found that family businesses often intermingle money between
the business and the family. Thus the need may be more personal than fam-
ily (Haynes et al. 1999).
Another often identified need is in the broad area of marketing assis-
tance. Again, this request can take many forms. It may represent help with
a market analysis. Programs exist that provide guidelines for building a
business plan, including a market analysis segment (FastTrac 2006). Recent
efforts have focused on aid to help business owners locate market data for
analysis. With the increasing availability and user-friendliness of the Inter-
net, such information can today be readily found and manipulated using
Web-based sources. At a 2006 conference, the Oklahoma Cooperative Ex-
tension Service identified sources of useful Web-based information and
then showed how each source can manipulate the data to more closely fit a
business owners’ needs. The Internet represents a wealth of information,
and the educational program provided suggestions for “best” or vetted Web-
sites and then offered help in adding value to the data found at each site
(Barta, Muske, and Woods 2006).
Businesses and communities are always seeking opportunities in local
markets. Businesses want to know what new products could be offered to
an existing market or what market segments are untapped. Communities
are interested in identifying the types of potential businesses that might
be added to the area. When businesses and communities assess opportu-
nities, they usually ask basic questions such as “What businesses are miss-
ing?” “Where are local consumers shopping and why?” and “Are there po-
tential market opportunities that might be considered by entrepreneurs?”