Category: Entreprenuer

WE BOS Supports Women Entrepreneurs in MA

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A new initiative in Boston seeks to close the gender gap in business ownership and success. In 2012, women owned about 36% of all small businesses in the US; however, men-owned firms average a 67.9% higher profit margin. Boston Mayor Marty Walsh recently announced WE BOS, a plan to help establish and grow women-owned businesses in Massachusetts with training, networking, and business counsel.

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Problem #1: Massachusetts Lags in Female-Owned Mid-Markets

A recent report by American Express and Dun and Bradstreet examined women and minority ownership of “middle-market” businesses. These are defined as businesses with annual revenue above $10 million but below $1 billion. There are approximately 4,000 such businesses in Massachusetts. Only 5% of these businesses are owned mostly by women; a paltry 14% have female chief executives.

Problem #2: Obstacles Include Lack of Access to Funding

Women-owned businesses often face obstacles when trying to get the necessary funding and support to grow. About 2% of venture capital funding is dedicated to women-owned businesses. This may be a consequence of Problem #1—that there aren’t enough women in leadership positions to even receive funding. A recent study by Babson College found that only 6% of venture capital firms have even a single female partner. Over the past ten years, the number of women-owned businesses in MA (and their success rates) has steadily increased, but not nearly as fast we’d like it to.

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Solution: WE BOS Seeks to Boost Women in Business

The news is not all bleak. The AMEX and Dun and Bradstreet survey indicates that women-owned businesses able to crack into the middle-market tend to have higher rates of both revenue and employment growth—they just need a little help getting through the door. Massachusetts leaders have taken the initiative to get women-owned businesses on their feet and put them in a position for growth.


The initiative is called Women Entrepreneurs Boston (WE BOS). The group, which will offer skill training, technical assistance, and other services to women-owned businesses, will be led by Kara Miller. Miller said “I am thrilled to expand our reach to women-owned businesses through WE BOS.” She mentioned that the organization’s goals are to both support and create women entrepreneurs in Boston.

we boston weekWE BOS Becomes Part of Women Entrepreneurs Week in October 2015

Miller’s initiative has been up-and-coming for a couple years now and will finally launch on October 12th. The date also marks the beginning of Boston’s inaugural Women Entrepreneurs Week. Throughout the week, women entrepreneurs will be able to attend workshops, speakers, roundtable discussions, and will have the opportunity to meet and connect with others. You can find a full list of events here, many of which are free to attend.

 

WE BOS joins other local endeavors designed to assist women in business such as Innovation Women and the Women on Main Initiative. Although Massachusetts businesses—along with those of the rest of the nation—are still far less diversified as they should be, these recent efforts will hopefully move us in a better direction.

Are you interested in attending any of the events at Women Entrepreneurs Week? Do you have any advice for women-owned businesses in MA, or business owners in general? 

MA Craft Beer Industry Pours Money Into the Massachusetts Economy

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According to a report compiled by John Dunham & Associates, more than 25,900 new jobs in the commonwealth could be directly attributed to the the growing MA craft beer industry. Not only has craft brewing brought a rush of jobs into Massachusetts, it has generated over $2.5 billion in sales and taxes for the commonwealth.

MA Craft Breweries: Profit by the Barrel

Craft beer is a growing industry throughout the country—it has grown by 32% over the past few years. Simultaneously, though, large companies like Anheuser-Busch have seen their market shares decrease by as much as 7%. American beer palates seem to be evolving—or have at least begun to align more closely with the flavors of smaller craft breweries. In 1980, the Brewers Association reported that there were just 50 craft breweries in the country. As of June 2015, that number has risen to 3,739.

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Craft Brewing’s Early Days in Massachusetts

There is disagreement about the official “beginning” of the craft beer business, but it has early roots in Massachusetts. In the mid-1980s, Jim Koch went door-to-door in Boston selling his family’s home brew to local bars. He then founded the Boston Beer Company, following the huge success of his flagship beer, Samuel Adams. The company, which recorded a gross 2014 profit of over $465 million, is still dedicated to the growth of the MA craft beer industry. Early in 2015, the Boston Beer Company partnered with Accion to offer microloans of between $500 and $25,000 to small breweries. They also sponsor a hops-sharing program that helps smaller breweries obtain the hops necessary to brew India Pale Ales (IPA), one of the most popular styles of beer.

MA Craft Beer Taps Into Other Industries

Craft beer sales have significantly improved the Massachusetts economy in a number of ways. Twenty-nine cents of every dollar spent on craft beer in Massachusetts go toward personal and business taxes paid by brewers—that’s $766 million in additional tax revenue. Craft brewing has had a ripple effect on other industries as well. The agricultural industry, for example, benefits from brewers’ incorporation of fruits, vegetables, spices, and other seasonings into their beers. This experimentation has catalyzed a flux of new brews that were previously unavailable. Construction companies and contractors have been hired to renovate old warehouses and abandoned buildings into breweries, like Abandoned Building Brewery in Easthampton, MA. The manufacturing industry has benefitted from craft brewing’s bottling, canning, and labeling processes. In Massachusetts alone, brewing has created over 7,000 supplier jobs.

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Guests enjoy food and brew at Mayflower Brewery Company in Plymouth, Massachusetts.

Craft Brewing Expected to Grow Lager and Lager

As a growing industry, craft brewing has created a nationwide economic swell, with microbreweries cropping up in towns and cities across the United States. Not sure where to start? Visit a local Massachusetts craft brewery today. Recommend your favorite beers in the comments below!

Craft brewing has shaped up to be a hugely profitable and flourishing industry. We don’t know about you, but we’ll toast to that. Cheers!

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TechSandBox Targets Unusual Demographic of Entrepreneurs with the Techubator

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Hopkinton may soon be the home to a new start-up program for entrepreneurs, inviting not at the expected demographic of up-and-coming Millennials, but rather their parents, to join the startup revolution. This bucolic haven, snuggled in a collection of small communities and serene lakes, might not seem like a likely place for business innovation— but it is already home to one of the area’s biggest tech companies, EMC, and start-up accelerator program, TechSandbox. Barb Finer, founder of TechSandbox, is currently in talks with angel investors to gather together the $1 million necessary to get the newest program up and running.

The new program, called Techubator, would target entrepreneurs in their 40s and 50s, rather than the usual crowd of recent college graduates. The structure is loosely based on a similar company, Techstars of Boulder, Colorado. In exchange for a 6% equity, eight startups would be given 3 to 4 months of training, a co-working space, and an investment of $18,000. Employees for each venture are provided with educational programs and mentorship opportunities.

TechSandBox understands the difficulties facing new business creators. Their Piranha Pond concept has already made strides in helping entrepreneurs from the Metrowest area over the past three years. The new Techubator initiative would specifically target middle-aged entrepreneurs in the process developing prototypes for tech products.

Techubator will be designated to help a demographic that may not have the same advantages as the Millennial crowd when it comes to growing up in an entrepreneurial environment. Younger entrepreneurs have the advantage of being more at home with a typically younger crowd of business investors.  Some of the older entrepreneurs Techubator will target are launching start-ups late in life because they lost a job in another industry. Some are “reluctant entrepreneurs,”; people who have ideas but delayed pursuing investors because they don’t feel that they “fit in” with the typical innovation crowd. Serial entrepreneurs who have been around the block, but may need that little extra help to get initial momentum are also the perfect candidates for this program.

TechSandBox is working hard to make this exciting idea a reality. The company has set a fundraising goal of $1 million to support its new program, as well as an additional $500,000 to expand Techsandbox’s “makerspace” where entrepreneurs can work on prototypes and hardware. Estimated launch time for the Hopkinton Techubator program is  January 2016.

Piranha Pond Investing Opportunity—Entrepreneurs Latch On

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Hopeful entrepreneurs and established businesses are always looking for more money to develop and expand. Finding investors through pitching to “angels” has become a popular way to make the connections necessary to learn the ropes and get the money necessary to make it big with a great idea.

When it comes to finding investors, television has brought the idea of sharks to the forefront of the entrepreneurial mind, but it can be very hard to find the people in everyday life that have that kind of influence and backing. That is where the Piranha Pond investing opportunity comes in. It is a program developed to encourage new entrepreneurs and help them meet with the movers and shakers who have the power to make their dreams come true.

Bringing Entrepreneurs and Sharks Together with a “Pitch Party”

For the third time, the annual “Pitch Party” gives hopeful entrepreneurs the ability to talk with investors. For a $50 application fee, worthy business owners can submit a resume for their business online for the chance to connect with venture capitalists with the money to finance start ups and business expansions.

The TechSandBox CEO, Barb Finer, worked with her team to create the Piranha Pond. Every year the program gets up to 40 applications from a nationwide pool of entrepreneurs. They are filtered through an approval process that determines eight finalists who will then have the opportunity to face a panel of five angel investors who, if their interest is peaked, compete to finance the business.  This year, the numbers were strong enough that there were nine companies chosen: Femme Forte, Enflux, SmartDiet, Intagora, Innoblative Technologies, ThinkInsite, Fremont Scientific, Rumi Spice and Ridgewing.

How the Piranha Pond Works

Applications are submitted via an online application form that allows entrepreneurs only a  one paragraph description of their idea to grab the interests of the investors reviewing the applications. The finalists are chosen from that pool of applicants. Prior to the entrepreneur’s official pitch to the Piranha Pond’s panel of investors, there is a Pitch Practice Session. This allows the presenters to practice their full presentation and receive feedback from a panel of experts about how to make their pitch more effective and successful. Though participating in the practice session is not a requirement for the process, it is highly recommended that applicants take the opportunity to fine tune their presentations.

The next step is just like the famous television show “Shark Tank.” The finalists from the TechSandBox applicants face the panel of investors, the entrepreneur has five minutes to pitch their idea or developing business. After which, the investors let the presenters know if they are interested in backing the idea or not. If the investors chose to back an idea, then the presenters are given the opportunity to meet with potential stakeholders at the end of the pitch session.

Learning Business Methods

One of the most difficult parts of getting funding can be gathering the courage to approach investors. Piranha Pond investing helps by providing feedback and experience. The Piranha Pond pitch meeting is open to the public with tickets ranging from $28 for TechSandbox members and $35 for the general public.