CorePurpose - Joan Koerber-Walker's Blog

Spreading the Word on the SBIR STTR Race to the Finish Line

Few government programs make a bigger impact on keeping the United States at the forefront of innovation and technology of all kinds than the SBIR/STTR program.

A heat in the race for SBIR/STTR reauthorization was including in it in the Continuing Resolution (CR) that funded the Federal Government through December 16th, The Senate has now included the SBIR/STTR reauthorization in the Senate Defense Bill that passed yesterday by a vote of 93-7. The Bill also authorizes money for military personnel, weapons systems, national security programs in the Energy Department, and the wars in Iraq and Afghanistan in the fiscal year that began Oct. 1.

Senator Mary L. Landrieu, Chair, Senate Committee on Small Business & Entrepreneurship, made the following comments following the Senate's unanimous vote in favor of Amendment 1115 to the National Defense Authorization bill. The amendment would reauthorize the Small Business innovation and Research (SBIR) and Small Business Technology Transfer (STTR) programs for another eight years.

"Tonight, we are closer than we've ever been on achieving a long-term reauthorization for the SBIR and STTR programs," Senator Landrieu said. "My Senate colleagues and I have been working all year to get this done and, with this vote, the Senate has set politics aside and given our support to small business and innovation. This amendment not only keeps these programs alive, it also gives them stability and I thank Senators Levin and McCain for their help in getting tonight's vote. I am hopeful our counterparts in the House will work with us to bring this to the President's desk immediately so that we can continue to keep our nation on the forefront of defense technology and scientific innovation." The amendment, which passed by unanimous voice vote, provides for a long-term extension of SBIR and STTR programs through 2019.

(Source: Congressional Documents and Publications/ContentWorks via COMTEX and Green Technolgy News.)

 

Enacted by Congress in 1982, the SBIR program is the largest federal research and development program for small businesses and one of the largest examples of U.S. public-private partnerships. The program allows small businesses to compete for a portion of federal research dollars in order to help the agencies meet their many missions. By including small businesses in the nation's R&D efforts, SBIR grants and contracts are intended to stimulate innovative solutions to help the agencies meet specific research and development needs, from areas of health and environment to national defense and agriculture, and move the ideas from lab to market, whether for the government or commercial purposes.

Below is a message Senator Landrieu sent (via press release) to the SBIR/STTR community.

[----beginning of letter ----]

From: Senator Mary L. Landrieu, Chair, Senate Committee on Small Business & Entrepreneurship

Subject: Spread the Word: SBIR/STTR One Step Closer to Finish Line

Date: December 1, 2011

Dear SBIR/STTR Advocates, This week, by a unanimous voice vote, the Senate amended the National Defense Authorization bill to include a reauthorization of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs for another eight years giving small businesses confidence that the program is going to go on. Prior to this vote, Congress had passed 14 temporary extensions of the SBIR and STTR programs since 2008. Unfortunately, the fight is not over.

There is one more hurdle to jump over to make it to the finish line. We must make sure our colleagues on the House side do not strip this crucial legislation as with years past. You may think this bill will easily pass the House with bipartisan support given the overwhelming bipartisan support in the Senate and broad support from groups such as the National Small Business Association, the National Federation of Independent Businesses, the U.S Chamber of Commerce and BIO. The Senate version has the most support and we hope the House will join us in getting a long-term SBIR/STTR reauthorization across the finish line.

Please call your Member of the House and urge them to speak to their colleagues who will be involved in these negotiations to reach a compromise before the National Defense bill is sent to the President.

We must stress the importance of this legislation; we must make sure they understand the necessity of these programs to keep our nation on the forefront of defense technology and scientific innovation. You can read more about this wonderful news below.

All the best,

[Mary L. Landrieu]

Did you know?

• This reauthorizes the programs for 8 years.
• The amendment increases the SBIR program allocation by one percent, from 2.5 to 3.5 percent, over ten years, and increases the STTR program allocation from .3 percent to .6 percent over six years.
• It makes firms majority owned and controlled by multiple venture capital firms eligible for up to 25 percent of the SBIR funds at NIH, NSF and DoE and up to 15 percent of the funds at the other eight agencies. The authority is in effect for five years, as modified by Sen. McCain.
• 3 percent of the SBIR allocation will go to administrative, oversight and processing costs if there is an allocation increase.
• The amendment increases the award guidelines for SBIR and STTR awards from $100,000 to $150,000 for Phase I and from $750,000 to $1 million for Phase II, allowing for one sequential Phase II.

[---- end of letter ----]

For more information on the SBIR/STTR program and the journey that has taken us to this point, read http://www.azbio.org/small-business-innovation-and-the-importance-of-the-sbir-and-sttr

Want to contact your member of Congress and share your viewpoint on the SBIR/STTR reauthorization?

The following website makes it easy. www.ContactingTheCongress.org

Sources: A/P, Senator Mary L. Landieu (press release), Rick Shindell (SBIR Insider) , Green Technolgy News.)

About the Author:

Joan Koerber-Walker, MBA is Chairman of CorePurpose, Inc. and the Opportunity Through Entrepreneurship Foundation. She serves as the president and ceo of AZBIO – The Arizona BioIndustry Association.

About AZBio: The statewide voice for Arizona’s bioscience industry, AZBio is dedicated to ensuring that Arizona bioscience companies have the resources, connections and economic environment they need to keep moving forward faster. AZBio efforts monitor, educate, and inform the community on key issues at the national level and key initiatives here in Arizona.

To learn more about the accelerating growth of Arizona’s bioscience industry visit: AZBio: www.AZBIO.org www.AZBioExpo.com Arizona’s Bioscience Roadmap: www.flinn.org Arizona Bioscience 101: www.arizonabiobasics.com Arizona Bioscience on Twitter: @BiozonaNews, @AZBio, @AZBioCEO, @ASUBiodesign, @BIO5

 

Technorati Tags: SBIR STTR Reauthorization 2011,JoMcCain,Senator Mary Landrieu,Innovation and Growth,AZBio,Arizona BioIndustry

‘Super committee’ could put bioscience industry growth and innovation at risk…hopefully they won’t!

Washington's support is critical in protecting the only sector that demonstrated job gains, in Arizona and in Tucson in 2010." 

Last week I had the opportunity to share my opinion on some of the key decisions that the Super Committee is grappling with that could have a lasting impact on our community and our state.  Southern Arizona and especially Tucson is leading in bringing life changing innovation to the world.  This is what I shared as seen in  Inside Tucson Business

“Next Wednesday, Nov. 23, is the deadline when the Congressional "super committee" is supposed to present its cohesive cost-savings plan. This 12-member panel, among them Sen. Jon Kyl, R-Ariz., has been grappling with the monumental task of slashing $1.5 trillion from the federal budget for months.

What's more obscure, however, is that achieving this task could forever change the bioscience sector in Tucson. Talk of program cuts in an effort to ascend to the trillion-dollar-savings-mark has placed programs like Medicare and Medicare Part D at risk. An outcome that would be a serious set back to the bio industry in our state while hindering patient care and healthcare innovation.

Small Business, Innovation, and the Importance of Long Term SBIR and STTR Reauthorization NOW

 

At times like these, when the need for innovation, is greater than ever, the SBIR and STTR Programs hold the keys to the growth of new and innovative products in the U.S. small business sector.  Funding through SBIR and STTR awards provides critical support for new discoveries in both the small business and university research communities across 11 key Federal Agencies and unlocks the vault to bring out new innovations right here at home.

Technorati Tags: Innovation and Growth,SBIR STTR Reauthorization 2011,Economic Recovery,AZBio,OTEF,Joan Koerber-Walker,CorePurpose

Making your mark on the wall

I spend a quite a bit of my time with with innovators and entrepreneurs these days.  As CEO of the Arizona BioIndustry Association or AZBio as we say, I get to connect with teams that are researching and developing products for a better world… Sustainable Health (and health care) , more plentiful food, greener energy… pretty heady stuff.  My job’s not nearly as sexy.  Here at AZBio our job is ground support, providing opportunities for them to connect and engage with each other, pulling together educational and support resources and sharing their stories.  Our job is not to change the world.  Our job at AZBIO is to support them so that they can.

 

An Andertoons Cartoon

Responsibility, Leadership and Noblesse Oblige

Leadership is a popular word these days. Consultants preach it, journalists either praise it or bemoan it, companies, boards investors and customers demand it. 

The days when leaders were anointed at birth, except in a very few cases, are long gone. Today’s leaders may have great power… or none depending on the authority they wield.  But whatever level that may be, with leadership comes a corresponding measure of responsibility.

“For of those to whom much is given, much is required”

Bible (Luke 12:48)

Through the ages it has been written that leadership and responsibility go hand in hand.  Today, leadership takes many forms. We lead people in organizations. We lead with thoughts, ideas, and experience.  We lead in the development of processes and products.  As leaders, however and where ever we may lead, it is important to remember, leadership is not something that is merely handed to us, it is a privilege that must be continually earned.  For when our leadership falters, others cease to follow. If others choose not to follow, we are not leading, we are simply walking alone.

Noblesse oblige is a French phrase literally meaning "nobility obliges".

The Dictionnaire de l’Académie française defines it thus:

1. Whoever claims to be noble must conduct himself nobly.
2. (Figuratively) One must act in a fashion that conforms to one's position, and with the reputation that one has earned.

(Source: Wikipedia)

An Antiquated Concept or a Timely Reminder?

It’s easy to look back historically and find examples of of great leaders who lived by the standard of noblesse oblige just as it is only too easy to find the stories of those who failed.  In the present day, we are surrounded by examples from both sides of the continuum and everything in between.  Just turn on the news or check your favorite social media platform and look at what what is unfolding in the Middle East, in Japan, in Washington or in your own home town. 

Most of us do not lead nations, but we can lead in our organizations, our homes, our industries and our communities.  What we do shapes decisions, creates products and affects the lives of others in a myriad of ways today and in the future.

We each have our gifts: knowledge, experience, abilities, reputation, and authority.  It can be said that we have been given much.  So perhaps a question to ponder is… “What are we going to do with it?”

 

Thanks for stopping by.  Stay tuned…

Joan Koerber-Walker

 

 

 

 

 

 

Joan Koerber-Walker is a two time Stevie Award National Finalist and Chairman of the Board of CorePurpose, Inc. and the Opportunity Through Entrepreneurship Foundation.  She also serves as Executive in Residence for Callaman Ventures and on the boards of for profit and nonprofit organizations.  As the former CEO of the Arizona Small Business Association and a past member of the Board of Trustees of the National Small Business Association she has worked with hundreds of small businesses and on behalf of thousands.  Chat with her on Twitter as @joankw, @JKWgrowth, @JKWinnovation, @JKWleadership and @CorePurpose or at her blog at www.JoanKoerber-Walker.com.

 

Technorati Tags: Joan Koerber-Walker,CorePurpose,Leadership,Leaders,Responsible Leadership,Servant Leadership,Innovation Leadership,Corporate Leadership,Community Leadership,Giving Back,Noblesse Oblige

Success Tip: Check out the BIG Game

Today is the big day, Super Bowl XLV.  Folks will be donning green and gold or gold and black.  Friends will gather around TV sets across the country gobbling up things they know that should not eat and for this one day of the year the DVR is set not to skip the commercials, but to catch them for instant replay.

Teams have sweated and toiled.  Investing  millions for their time in the global spotlight.

Closed door meetings, strategy sessions, the big chase, and surprising twists… all come together on Super Bowl Sunday.

 

 

Chevy provides a behind the scenes look at the drama and strategy of creating a 2011 Super Bowl commercial.

Oh yeah, there is a football game too.

In business, every day is Game Day.

Most of us will never field a team in the world’s most  famous grid iron match up or take the leap to bet around $3 million for a 30 second spot in its commercials although GoDaddy’s Bob Parsons will gleefully tell you what they have done for his team’s business.

It’s not a bet if you know the outcome ~ Bob Parsons

As entrepreneurs, investors, leaders or teammates, success in the BIG game means that every day is game day.  Here are a few things to keep in mind as you watch from the stands or from the couch…

It starts with a coin toss – it does not end there.

Success always has en element of luck to it. Good luck may move you forward faster just as bad luck might slow you down.  But being lucky early does not ensure success. Here is a bit of Super Bowl Trivia:

The team that has won the coin toss is 19-22 all time in the Super Bowl and has lost the past 4 straight and 9 of the last 11. (source)

To win in the big game you need a great team

Don’t kid yourself.  The team with strong players, that plays well together has a definite advantage.  Great teams are balanced.  In football you can have a great quarterback, but if you have no offensive line it is unlikely that you will spend a lot of time in the end  zone and if your defense is weak, the other team will.  Successful teams have the right mix to do the whole job, not just one or two super stars intent on carrying the day.

Give the fans something to talk about.

Winning the big game is about the experience.  In football it is the thrill of the win, the roar of the  crowd and the play that fans will talk about for years to come.  In business it is the achievement of goals inside your company, the praise of customers when you deliver on your promises, and the great results  you deliver to your employees, customers, investors, and partners that keep you ahead in the game.

Innovation = Improvement

Don’t confuse flash and showmanship with innovation.  The victory dance in the end zone is not nearly as important as the fact that you got there and need to get there again to win.  Commercials are entertaining at the break, but the real win will be measured when customers walk through your door or visit your website to buy your products and services.  A bit of flash may bring them in once, but products and services that are new, different, and create value for the  customer are what will bring them back again and again.

Success is not built on just one game.

The Pittsburgh Steelers and the Green Bay Packers are playing in Super Bowl XLV because they won a series of games and more importantly they won when it counted.  Winning at the right time matters, just ask the Jets and the Bears. 

Football is more that a game, it’s a big business. And winning in the world of business is a game where the points are measured in value created.  Take a look at this ranking by Forbes of the most valuable NFL Teams.  You’ll need to keep searching all the way down to #14 for Green Bay and #17 to find  the stats for the Steelers.   Sustained value is a combination of smart investments, the right resources plus  a strong team in the front office, on the bench and on the field that creates long-term, sustainable value together.  Interestingly, the Redskins have one of the best track records for value creation in recent years yet they have LOST 55% of the games they played on the field. It’s not just about winning under the lights, everything matters.

So sit back and enjoy the game…

The Super Bowl is an American tradition.  You may watch it for the game, for the commercials,  or simply as a way to spend time  with family and friends.  But as you dig into that pile of chicken wings, tray of nachos or bowl of chili, keep a look out for the big game changers.  You might have something new to talk about at the office come Monday morning when all the “quarterbacks” come out.

So place your bets, rally your team, and enjoy the game.  It’s almost time for the coin toss whether the Big Game starts at 6:30pm ET on FOX or come Monday morning when you and your team take the field once again.

Thanks for stopping by.  Stay tuned…

Joan Koerber-Walker

About the Joan:

An entrepreneur, author, speaker and corporate advisor, Joan Koerber-Walker's journey has spanned from corporate America to entrepreneurship and non-profits as well as to community leadership and into the halls of Washington D.C.    To learn more about how CorePurpose and the CoreAlliance can help you grow your business in 2011, you can contact her by clicking here.

CorePurpose  is a registered trademark of CorePurpose, Inc.  CoreAlliance is a  service mark of CorePurpose Inc.  All rights reserved

Technorati Tags: Joan Koerber-Walker,CorePurpose,business,entrepreneurs,innovation,success tips,business tips,super bowl xlv,business and sports,Forbes,Chevy,Superbowl Commercials 2011,go daddy,Bob Parsons

Saturday morning, we all got a wake up call

It was a beautiful Saturday morning in Arizona.  As I checked in with friends on Twitter, Facebook and the like, I was chatting about the weather and the sun creeping over the mountains.  That morning, I came across a wonderful quote from Catherine Leyen (@MRIchat).

I shared it with friends on Facebook at 9:07 AM Arizona time. 

  It read:

Never pass up the opportunity to tell somebody how much what they do makes a positive difference in the world. ~ Catherine Leyen

A two hour trip down the road, at the Safeway on Ina and Oracle in Tucson, events were unfolding that would horrify the nation, destroy families, and and send a wake up call to us all.

Visit msnbc.com for breaking news, world news, and news about the economy

Shortly after 10 AM Saturday morning a gun man opened up on a crowd of Arizonans who had come to see Congresswoman Gabrielle Giffords.

As events unfolded, Arizonans and people from around the country watched in horror, misinformation abounded as reports came out that someone had shot into a crowd of people and that Congresswoman Giffords had died. They were later corrected to say that she was fighting for her life – and winning.  Others were not as lucky.  This link from CNN provides the time line, and information on those who were lost on a sunny and crisp Tucson morning, including a Federal Judge, a nine year old  girl who came into this world on 9/11 and left it on another day of terror and tragedy, parents, grandparents, a local pastor,and a young man planning to be married. Two local  physicians who happened to be on the scene gave aide to the wounded while Daniel Hernandez, a trained nurse and a Giffords intern,rushed to see what happened and used his medical training to "apply pressure to the Congresswoman’s wound and keep her active and alert," according to  Arizona state Rep. Steve Farley. Hernandez was Farley's former campaign manager. (source: Jodi Powers- Community Public Relations)

In Tucson, hundreds gathered leave flowers, light candles, sing songs, and pray outside of University Medical Center and outside Gabby’s Tucson office.  

Up on Phoenix, many, including Annie Loyd and Jodi Powers and friends of the The Fusion Foundation rallied friends, community leaders, and others to the Arizona Capital in Phoenix for a candlelight vigil and shared news updates locally as well as the insights that were coming in from friends in the the South. 

As the evening drew to a close, prayers were being sent from around the country and around the state.  At the vigil at the Capitol, Eric Landau used his talents to send the strains of Amazing Grace soaring into the night while later singer Olivia Calderon raised her voice in prayer and song with the Ave Maria.

Saturday, January 8, 2011, began with a glorious Arizona sunrise and ended with the world’s prayers.  But prayers, as important as they are, are not enough.  On Saturday, we also received a wake up call.  A reminder to all of us that…

As parents…

It is important to pay  attention to what our children are saying and doing. In addition we must talk with them, no matter their age, build up their positive values, and help them understand that senseless violence and hate is never an answer. We change the world with our words and actions….not bullets.

As leaders…

We must remember that what we write, what we say, and what we do impacts others.  It’s been speculated that the “virtol” of recent years both locally and nationally combined with the violence that we see on the news, in film and in games fueled these events.  Maybe it did and maybe it didn’t.  We may never know for sure.  But perhaps, what is better to keep in mind is that it can and that with leadership comes the responsibility to build up our community, not tear it or others down.  When we exhibit negative behaviors and beliefs as leaders, we, as leaders, should never be surprised if someone follows our lead whether we intended them to or not.

As Arizonans…

It is a reminder that in our state we have so much to be proud of and to share. We have seen how in times of crisis we can rise up and come together.   Yes, we have challenges, so does the rest of world.  But we also have opportunities to combine our talents, listen to opposing viewpoints, build solutions and coalitions and make things better.  Saturday serves as a reminder that this is the best use of our time, energy, and talents.

And most of all, as People, to remember what Catherine Leyen shared…

Never pass up the opportunity to tell somebody how much what they do makes a positive difference in the world. ~ Catherine Leyen

None of us can change what happened yesterday, but together we can all help with the healing… and never pass up on an opportunity to make a difference.

Thanks for stopping by.  Stay tuned....

Joan Koerber-Walker

To the families of these who lost their life on Saturday (U.S. District Judge John Roll, 63; Christina Greene, 9; Gabe Zimmerman, 30; Dorothy Morris, 76; Dorwin Stoddard, 76; and Phyllis Scheck, 79.) as well as all who were injured in Saturday’s events my thoughts and  prayers as well as those of so many others are with you.

 

About the Joan:

An entrepreneur, author, speaker and corporate advisor, Joan Koerber-Walker's journey has spanned from corporate America to entrepreneurship and non-profits, as well as to community leadership and into the halls of Washington D.C.   She and her family have made their home in Arizona since 1992.

 

The news items and videos included here are the property of the respective news agencies.  Images via  http://ahsc.arizona.edu/

Technorati Tags: Leaders,Leadership,Leadership Responsibilities,Gabrielle Giffords,Tragedy in Arizona,Hope for Arizona,Joan Koerber-Walker,Fusion Foundation,Annie Loyd,Jodi Powers,Catherine Leyen,quotes

When it's too broken to fix, start over

As innovators, one of the most frustrating phrases we hear is "if it's not broke, don't fix it."  Yet, equally dangerous is the ongoing cycle of Band-Aids and patches we often put on existing processes and procedures to "fix" them.  At some point there is always a diminishing level of benefit until it is so complicated and complex that you need to say "enough!" It is time to scrap the whole mess and start over.  Any software developer can tell you that this is the case when it comes to  writing code. Business leaders will tell you the key to business process optimization is simplification.  But when it comes to government we have yet to learn the lesson. 

A case in point is the current system of taxation in the U.S. both at the Federal and the state level.  With over 20 volumes and over 3500 pages when you combine the actual tax laws and the resulting tax regulations, is it any surprise the people get confused.  Even Treasury Secretary Timothy Geithner, who is now responsible for the IRS, has had his challenges.  Listen in to this YouTube Video see what I mean.

 

 

The Code of Federal Regulations a.k.a The Tax Code is incredibly expensive to comply with.  It is estimated that Americans spend $225 billion each year in tax compliance and the Federal governments spends billions (see chart below) to collect, manage, enforce, and educate taxpayers every year.  The IRS Oversight Board recommends a fiscal year (FY) 2011 Internal Revenue Service (IRS) budget of $12.914 billion, an increase of $767.7 million over the enacted IRS FY2010 budget of $12.146 billion.

 

 

   

 

 

 

 

 

 

 

 

 

 

One possible option to start over - The Fair Tax.

A 23-percent, single rate, national retail sales tax, the Fair Tax will be applied to the sale of all consumer goods and services at the final point of consumption. This way, every taxpayer will be subject to the same tax rate with no exceptions and no exclusions. Those who are least able to share in the cost of government will bear no burden at all. Tax rates will depend on the amount of purchases made. Used items will not be taxed, which promotes reutilization. Business-to-business purchases for the production of goods and services will not be taxed. In addition, the Fair Tax will replace the individual federal income tax, the capital gains tax, all payroll taxes, corporate income taxes, the self-employment tax and the estate and gift taxes. (Source: NSBA - http://www.nsba.biz/fairtax.shtml )

Implementing something like the Fair Tax is not a Band-Aid or an overnight fix.  It is estimated would take close to  two  years to put the various support levels in place and then wind things down.  But equally important, once this is done, it is estimated that the cost of citizen and corporate compliance would drop from $225 Billion to approximately $10 Billion.  That's a lot of dollars that can be put to more productive use in our economy. 

The Fair Tax is not a new idea but perhaps it is an idea whose time has come.  It certainly could not be worse that the tangled web of laws, rules and regulations our tax code has become.

Thanks for stopping by.  Stay tuned...

Joan Koerber-Walker

 

About the author:  Joan Koerber-Walker serves as the Chairman of CorePurpose, Inc., as chair of the Opportunity Through Entrepreneurship Foundation, and as Executive in Residence at Callaman Ventures.  She is a past member of the board of trustees of the National Small Business Association and former CEO of the Arizona Small Business Association.

Technorati Tags: Joan Koerber-Walker,CorePurpose,The fair tax,innovation,leadership,Change,economy

Dear President Obama, since you asked...

In his recent remarks on the October Jobs Report, President Obama said...

"I am open to any idea, any proposal, any way we can get the economy growing faster..."

(If you can not see the video, you can find it here on YouTube.)

Thank you for asking Mr. President, here is my list:

First and foremost, focus on the sectors that are proven job creators.

Research from the Kauffman Foundation shows that newly created and young companies are the primary drivers of job creation in the United States. Added to this, data from the Edward Lowe Foundation and their research on Second Stage Companies that shows that establishments with 10 - 100 employees and $1 million to $100 million in revenue have created the vast majority of the net new jobs over time.  (Take a look at the data at www.youreconomy.org)

So if you are looking for job growth, focus on providing early stage and second stage companies what they need - and the American people will get what they need - more jobs.

These businesses need access to capital to grow and to create jobs.

The fuel that drives job growth in these growth sectors is capital.  When there is a steady supply of capital, there is a steady supply of new jobs.  It is capital that funds innovation, that purchases resources for manufacturing and supplies the catalyst for future growth.

Where does the money come from?

The capital that fuels growth in  early stage and second stage businesses comes from the following areas - the life savings of the business owner (including IRA's and 401K's with penalties), credit cards of the business owner (personal or business issue), F&F (Friends and Family), Angel Investors, Private Equity/Venture Capital, SBA Loans, Traditional Lending, Public Equity Markets and most important of all CUSTOMERS. 

In addition, the capital for growth often comes from operational cut backs and efficiencies inside the business, and more often than many would think, a business owner that is forgoing a paycheck while working 60 - 70 hours a week to keep things growing until the cash flow problem gets fixed.  

So if we need capital to grow these businesses and create jobs here are some suggestions:

Life Savings and 401K's

Forgive penalties on withdrawals from IRA's, 401K's, and the like made by business owners for the business or to feed their families while they personally went without wages to keep the business alive AND allow them to put the money back in when things get better again.

Credit Cards

Extend the protections in the CONSUMER CREDIT PROTECTION ACT to include credit cards and charge cards that are issued to a business IF the card is personally guaranteed by the individual card holder.  These "business cards" are actively marketed to small business owners yet do not carry the same protections as those issued to "consumers".

Friends, Family, and Angels

After the business owner, the most common form of early stage capital infusion comes from friends, family and Angel investors.  Interestingly these are the same people that will be adversely affected if the Bush Tax cuts are not renewed AND these are often the same people that are paying the lion's share of taxes already.  It is critically important the that Bush Tax Cuts be made permanent.  The goal should not be to have a few people pay more - the goal needs to be stimulate job growth so that more people can pay something!

Private Equity and Venture Capital

Private Equity and Venture Capital have played major roles in the growth spurts of high growth and high potential companies.  These American businesses and private investors invest in American businesses and can be a supercharger on our growth engine.  Lynn Tilton, chairman  and founder of Patriarch Partners, traveled to Washington with a plan to help companies and spur job growth based on a proven model that she uses in her own companies.  This process is so unique that the US Patent Office issued a patent for it.  (Click to view Lynn Tilton's patent.)

Administrator Karen Mills and her team at the SBA are making real progress with the expansion of the SBIC program but wouldn't it be great to have more leaders and investors involved in this effort to create a lasting solution? Perhaps it time to take another look at her proposed SME Rescue Loan Plan or perhaps give her a call.

Tax breaks for small businesses

Mr. President, you often speak of your support of tax breaks for small business. Any tax break that allows businesses of any size to reinvest in the business and create more jobs is a good thing.  BUT, it is important to remember the tax breaks only benefit companies that are making profits to pay taxes on.  Many of the companies that will grow and create jobs now and in the future are investing ahead of the curve and are not yet profitable.  For these companies, a tax break is an empty promise. 

Instead perhaps a good idea would be tax breaks, tax credits, or other incentives for private equity and angel investors to motivate more of them to get out of the "parking lot" they are currently in and put their money to work in businesses that are creating jobs.  The American people have invested in Wall Street Bailouts, Cash for Clunkers, and credits for energy efficient appliances.  Perhaps its time we invested in American investors who are putting their hard earned money into American businesses.

Promoting innovation

Innovation is my personal passion.  My definition of innovation is simple.  Innovation is doing something in a new way that makes life better.  Just as we as business owners, investors and innovators need to focus on changes that make things better - we need you to do the same in Washington.  This includes:

• Reversing the provision in the Healthcare Bill that will require all businesses to file a 1099 for EVERY supplier over $600.   At a time when you need us to run faster, you are tying our ankles together with red tape.  I know that Congress is the team that needs to fix this problem - but could you whisper in their ear?
• Cut down on the red tape in general.  From an ever growing list of regulations on how we get things done to a multitude of forms in triplicate or worse when we do business with government agencies, it is getting harder to do business when we need it to get easier. 
• Work with Congress to fully support the SBIR program on an ongoing basis instead of continually placing Band-Aid on it to keep it going.  According to the NSBA,  "small R&D companies employ 38 percent of all scientists and engineers in America. This is more than all U.S. universities and more than all large businesses. Furthermore, these small companies produce five times as many patents per dollar as large companies and 20 times as many as universities—and more small-business innovations are commercialized. Yet small companies receive only 4.3 percent of the federal government’s R&D dollars. The SBIR program provides more than half of this amount."  Here's a suggested innovation - set a permanent requirement to allocate government innovation contacts and  SBIR awards to small business based on the proportionate share of innovators they employ.  If we generate results like these at just over 4%, just imagine what would happen if we had almost 40^% to work with. 
• Create a fast track program for new technologies and innovations moving from Phase I to Phase II contracts with government agencies.   With today's backlog, some very promising companies and the technologies they have created could disappear due to delays that in some cases have been more than a year.
• Drive innovation within the US Patent Office to take the costs out of what we need to do to protect American innovation.  Many small businesses can not afford the cost, time and expense as it is.  And for many of them, a patent is a of little value since most small businesses can not afford the cost to defend it.  (Small business patents are being violated on a regular basis and the response from big business is "sue me" when they well know that the small business could never afford to go the distance or carry the burden hundreds of thousands if not millions of dollars in legal fees.)

So Mr. President, you asked for suggestions.  These are mine.  I don't know if you will ever see them, but I truly hope that someone on your team is listening.  We're all in this together after all.

Sincerely,

Joan Koerber-Walker

 

About the author:

Joan Koerber-Walker, MBA is a small business owner and an angel investor who makes her home in Phoenix, Arizona.  As a blogger she has personally interviewed Lynn Tilton on several occasions and has personally worked with Patriarch Partners and its portfolio companies and seen the results of what the Patriarch process can do first hand.  In addition she is a past CEO of the Arizona Small Business Association and  a past member of the board of trustees for the National Small Business Association. During that time she met with and shared ideas with hundreds of small businesses and second stage companies on key issues including health care, workforce development, regulation, taxation, and access to capital.  She currently serves the small business community as a volunteer ambassador for SCORE in Phoenix, Arizona, as chairman of the Opportunity Through Entrepreneurship Foundation and as co-chair of the Arizona Entrepreneurship Conferences (AZEC10) which will gather together over 300 entrepreneurs, small business owners and investors together to share ideas, connect, and hit the "reset" button on their businesses on November 17, 2010 in Phoenix, Arizona.

To contact Joan Koerber-Walker, click here.

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Health Care Legislation on the Brink. Maybe it's time for ... Innovation and Change We Can Agree On

Watching the Massachusetts Senatorial election results yesterday, started me thinking back to the Presidential campaign of not so long ago... 

back in the days when BOTH candidates campaigned on themes of CHANGE. 

If we look back on President Obama's first year in office, few would argue that it has been a Year of Change.  But most would agree, that in one way or another, it was also a year fraught with disagreements across many sectors.  The election of Scott Brown on January 19, 2010 to the Senate seat long held by Senator Ted Kennedy underscores that. 

A Beltway Scramble

Beltway Warriors on both sides of the aisle are now scrambling to develop new strategies on key issues, especially the highly publicized Health Care legislation that is so lengthy, so complicated, and so contentious that if you asked anyone - anywhere  if they agreed with ALL of it,  you would be hard pressed to to find anyone who could answer with a resounding YES!  It's so full of Promise and Compromise that what started out to be a race horse now looks like a camel.  Some fear it may never even make it to the finish line when most would agree that change is needed.  Others fear it might.

It's time for Innovation in Washington D.C. not Change.

Innovation to me has a simple definition.  INNOVATION IS DOING SOMETHING IN A NEW WAY TO MAKE LIFE BETTER FOR THE PEOPLE THAT MATTER. 

So here's my suggestion for a true innovation.  Let's shift from change we can believe in to Change we can AGREE ON and get it done NOW.

This listing from the Wall Street Journal takes a look at the House and Senate Healthcare Proposals side by side.  In it there are some things that most of us can agree on like

• removing the ability for the insurance industry to place restrictions on pre-exiting conditions
• restricting insurance companies from dropping coverage when people actually get sick
• extending the time period that young adults can be covered under their parents insurance policies
• making healthcare accessible and affordable for a broader section of the population through incentives or subsidies. 

A REAL change could be HOW we get it done.

Now is the time when the House and Senate are tasked with bringing the two proposals together in a final form.  This is an opportunity to do something in a NEW WAY.  Instead of more horse trading, side deals, and compromises, SIMPLIFY THE PROCESS. 

Pull out each of the key items/issues one piece at a time, prioritize them based on the degree of agreement, and put them to a vote as a stand alone issue. 

Talk about transparency.  No more thousand page documents with hidden deals.  It's all there nice and clear.  You agree or disagree then vote to decide, send  it over to the appropriate agency to implement if it passes, and move on to the next item.

This would be change the American people could believe in and a change that we could  agree on.  Who knows - we might just make life better for the people - remember us. 

Thanks for stopping by.  Stay Tuned.

Joan Koerber-Walker

[Joan Koerber-Walker is a wife, a mother, a small business person, and a voter who lives in Phoenix, Arizona.  Her journey includes executive roles in corporate America, as an entrepreneur, as a community volunteer, and as a non-profit leader.]

Technorati Tags: Washington DC,Health Care,Healthcare,Innovation,Leadership,President Barack Obama,Senator John McCain,Joan Koeber-Walker,Congress,House of Representatives,Senate,Wall Street Journal Healthcare Proposal Comparison,Change,Small business,Making Decisions