Sunday, March 31, 2013

The Importance of Education + Legal Incentives

In class, we talked about the importance of considering the legal, political, economic environment, etc. when starting a business and being able to justify the chosen location for one's principal place of business.  I wanted to further explore what some of these factors might look like and came across this article, "8 cities that want your business."  Jennifer Lawinski, a CNNMoney contributor, has identified elements within each of these cities that would justify starting a business there.  To my delight, Pittsburgh - my home and the chosen location for our venture - is one of the eight identified cities.

Let's take a look at some of the factors that she thought were important...

First up, Pittsburgh: Jennifer highlighted the strength of InnovationWorks and AlphaLab, an economic development organization that is the region's largest seed-stage investor.  She also pointed out that business consulting is available, a grant program helps small manufacturers improve their efficiency and that there are a number of strong universities providing support in the region.

Next, Miami: Lawinski focuses on the Launch Pad, an assistance network which supports University of Miami students and alumni who want to launch ventures, especially in the south Florida area, by offering "business education, one-on-one consulting, networking events and other resources" to entrepreneurs affiliated with the university's schools.  The focus is not so much on starting the business but is on educating the entrepreneur.

Menlo Park: The highlight here is the Foundry, an incubator that helps transform ideas for medical devices into successful companies.  It offers "business development advice, fundraising assistance, market analysis, management training, work space," etc.

As you can see from the above examples, a key element of a positive environment for entrepreneurs seems to be education and support.  A main legal component, as evidenced by Arlington, Gahanna, Ohio, is offering tax breaks.  Arlington offers tax incentives for businesses that add employees determined by how many and where.  Gahanna, on the other hand, offers up to a 50% rebate on the city income tax for up to five years.

In summary, it is beneficial for my partner and I that Pittsburgh offers an economic environment that is becoming more conducive to entrepreneurship with the presence of existing and up-and-coming incubators.  However, Pittsburgh still has a way to go in terms of venture capital and the legal environment.  As someone who is pursuing a joint law degree, I hope to advocate throughout my career for ways to make Pittsburgh a more friendly legal environment for start-ups.

What other factors do you think are important for a thriving entrepreneurship community?





No comments:

Post a Comment