Purdue Tech Center a key piece of the entrepreneurial puzzle

Employment statistics over the last twenty years provide some unusual advice for economic development gurus — if you want to win big, you have to think small, at least when it comes to job creation.

Since 1980, Fortune 500 companies have gradually cut back on their collective workforce, eliminating more than 5 million positions. Over that same time period, however, entrepreneurs and small businesses are responsible for creating more than 34 million jobs! Today, it’s estimated that seven of every 10 new jobs are being created by entrepreneurial companies — entrepreneurs are the pioneers of our economic recovery.

In Northwest Indiana, our economy has traditionally depended on big business — large manufacturers and the steel mills. The jobs provided by these companies continue to be a vital part of our employment base and we must do everything we can to keep them. But it’s also clear that we have to diversify our economy. Supporting new business ventures must be a priority, especially in high-wage, high-growth industries like technology and healthcare.

Looking back, that’s why the most important business story of 2004 may be the development of the Purdue Technology Center of Northwest Indiana. The Purdue Technology Center is a business incubator that provides a variety of support services for fledgling companies; focusing on high-tech firms, the Center also gives entrepreneurs access to cutting-edge research and management expertise through Purdue University.

The Purdue Technology Center will be an important part of our region’s entrepreneurial infrastructure. By offering office space, management consulting, mentoring and other services, incubators like the Center dramatically increase the chances of success for new companies. According to the National Business Incubation Association, 87 percent of entrepreneurial companies based in incubators succeed; just as important, more than 80 percent stay in their communities after "graduating" from the facilities.

The Purdue Technology Center of Northwest Indiana was made possible in part by a $7 million federal grant secured by Congressman Pete Visclosky, who recognizes that "high-paying jobs come from high-tech ideas." Two Northwest Indiana natives, Robert Wichlinski and Kathy DeGuilo-Fox, are leading the Center’s operational efforts; both have extensive experience helping young companies grow and attracting the grants and seed capital necessary to take an idea from the business plan to the marketplace. Cal Bellamy, CEO of Bank Calumet, serves as chairman of the Center’s advisory board.

It’s a solid team, and they have history on their side. The Purdue Technology Center of Northwest Indiana is based on a successful model — the Purdue Research Park, the university’s incubator based in West Lafayette. The Research Park is home to Indiana’s largest concentration of high-tech companies, and over 100 businesses overall. The Technology Center of Northwest Indiana has the same kind of potential.

On December 3, the National Federation of Independent Businesses released a survey indicating that 51 percent of small businesses have sought to create new jobs over the last three months — an exceptionally high percentage. Northwest Indiana must capitalize on this trend and nurture our entrepreneurs and small businesses. The Purdue Technology Center of Northwest Indiana means progress towards this goal; when the Center opens its doors in early January, it will be a red-letter day for our region’s economic development efforts.