Small companies bring big opportunities to Michigan

Further emphasizing the important role of small companies, on April 29th about 1,000 guests will recognize the achievements of small enterprises at the annual “Michigan Celebrates Small Business” event, conducted by the Michigan Small Business and Technology Development Center (SBTDC), the SBA, and others.

This annual awards program was created to recognize the importance of successful entrepreneurs to the future of Michigan’s economic growth.

There can be little doubt about the critical role that small companies play in fueling economic growth and creating jobs, and universities need to connect in robust ways to this vital segment of the business community.

Historically, two programs administered by the SBA’s Office of Technology have catalyzed such connections. The Small Business Innovation Research (SBIR) program funnels funding from eleven different government agencies, and the Small Business Technology Transfer (STTR) program handles funds from five departments.

Companies applying for these grants often team with university researchers in developing innovative ideas and commercializing results.

Here at the University of Michigan we have been experimenting with additional programs to encourage collaboration. One of the most successful has been the small company career fair. The student entrepreneurial group MPowered hosted over 80 companies at the third annual event this past Jan. 26. This gathering is designed to connect students to job opportunities with smaller, high-growth companies, most of them Michigan-based.

Closely associated with the MPowered career fair is the Small Company Internship Program. This competitive program provides scholarship funding for undergraduate students to work as interns with small companies in the state of Michigan on projects that are both beneficial to the company and academically relevant to the student. Companies match university funding to pay students for 30-40 hours of work each week for a 12-week period over the summer.

On the research front, the university has developed a Small Company Innovation Program for Michigan-based firms. This program provides financial incentives to small companies to establish research partnerships with the University of Michigan.

Essentially the university and small business jointly fund the cost of graduate student researchers to develop and refine new technologies with commercialization potential. This is a competitive program and proposals are judged on three main criteria: the originality and innovativeness of the proposed research, the ability of the team to seek continued support from other sources after the first year, and the potential economic impact for the state of Michigan.

Other avenues of collaboration with universities ideally suited to small business include student project sponsorship and faculty consulting. Many schools and colleges in the state offer project-based class work that engages undergraduate and graduate students with local companies. Student teams work closely with company representatives to address challenging problems and to formulate creative solutions that ultimately drive innovation and productivity. For companies it is a low-cost way to harness the energy of creative minds to address nagging business or technology challenges.

Similarly, faculty knowledge can be tapped when short-term expertise is needed to tackle unique problems. Many do not realize faculty can spend a percentage of their time on outside consulting engagements. This can be a fantastic way for a company to expand its knowledge base and tap into a reservoir of world-class talent in Michigan’s academic institutions.

For more information on resources for business, visit www.bec.umich.edu.

Daryl Weinert is the Executive Director of the University of Michigan’s Business Engagement Center.