ABCtech #11 18FEB14 Small Business Growth

ABCtech 18FEB14 Small Business Growth

        The “Growing” Challenge – from Starting-up to Growing-up

EDITORIAL. Why don’t small businesses grow? Who cares? And are the issues similar for technology enterprises? We are inviting editorials about small technology businesses in Alberta and the challenge of growth. Please share your views for a future newsletter and/or by attending our SME site consultations – see below. The following editorial assumes that entrepreneurship is adequate; its “growth” that’s the problem. – Editor

Stalled at small and comfortable. Most small businesses never grow up.  Only 1 – 2 of 100 survivors, ever grow to medium -100 or more employees, a statistic surprisingly consistent across all Provinces. Why?

“I’m tired, the kids don’t want it, and Emily and I want to retire to Arizona.  Time to sell.”  That was how Brian in Red Deer explained to me his decision to wrap up his lifetime small manufacturing venture. Several of his friends operate small businesses in the oil patch, but they too echo the sentiment of selling out, usually to a US company.  I probed further, asking him about his business that obviously prospered. “You grew to almost 50 staff; why stop there,” I asked.  “Money, management, markets, manpower – lots of reasons. I just could never put all the pieces together. And I think I just got comfortable – the orders were there, the business was good.  Our customers were happy and plentiful. My challenges were simply to stay steady.”

His son Adam, already a serial entrepreneur, was starting his third tech start-up. He chimed in  “My pattern is straight forward. I take a web-based app and me and my friend finance the development. If it grows, that is if we can test it on a base of buyers, and – if there is any chance of a positive cash-flow, I float the idea with friends in Calgary or California.  So far we have 2 exits. Someday I’ll move to California.”  He is happy.  His friends are happy.  And Alberta exports another innovation and maybe the innovator.  These are but two small businesses, failing to grow but hardly a failure in the minds of the owner/operators.

Technology inspired entrepreneurs.  Adam has caught the fever, a new wave of entrepreneurs in cleanTech and environment, infoTech and analytics, bioTech and health ventures, inspired by the rapid rate at which new technologies are entering the market. Entrepreneurship is alive and well, but is there hope that any will grow and/or stay in Alberta. A “lifestyle” of comfort and security predominates for most of the 2 of 10 small businesses that survive the “Valley of Death”. Growth for them may not be as appealing as “comfort and security”. For growing up can be frustratingly arduous and slow, one of continuous learning – a never-ending journey.  Many survivors are small family businesses like Brian’s, often of immigrant families, confronted with succession issues, like Adam, children who don’t want to work as hard as their parents or may just want to do it their way.

Consider also the parallel between growing up as a child and a start-up enterprise. Today children take 10 years longer to leave home than a generation ago. Costs and fewer jobs are only part of the explanation, home comforts, the other.  Sounds like an over-protective business incubator.  So for those who choose “not to grow”, “no growth” is not a failure; survival is hard enough.

– Esir Pretne, Serial entrepreneur and passionate Albertan

SME SURVEY Open – Engage now!

Are you interested in the growth of Alberta’s small technology businesses?  Please complete – and circulate, the 10-point Survey  <spanarial”,”sans-serif””>CLICK HERE  The results will contribute to the design of site consultations across Alberta, April through September.

Certified Management Consultants of Alberta Joins the Alberta Council of Technologies Provincial Co-host

The Certified Management Consultants of Alberta (CMC Alberta) has joined the Alberta Council of Technologies Society (ABCtech) to co-host the 2014 <spanarial”,”sans-serif””>Missing ‘M’ in SME program. “Our objective is to identify the challenges faced by Alberta’s SMEs and work collaboratively to strengthen relationships between Alberta’s small businesses and the consulting community. This is a huge opportunity to increase productivity,” says Patrick Binns, “The two organizations will serve as Provincial co-hosts for the local site consultations for Alberta’s entrepreneurs and small technology business interests.  Consultations of up to 25 entrepreneurs and small businesses per site are being scheduled for Tuesdays or Thursdays, April through September across Alberta.

First Sites and Local Co-hosts Identified – panAlberta

The first 15 organizations (*) have been appointed for co-hosting local site consultations across the Province. Additional sites are available and opportunities for other co-hosts to be paired with those already identified.   <spanarial”,”sans-serif””>Please reply  if your organization is interested in serving as a local co-host for selecting the date and site, and marketing the event with podium access.  Contact – pkinkaide@ABCtech.ca or local (780)990-5874 or Toll Free 1(866)241-7535 Registration for the Site Consultations scheduled from April through September is expected to open in March with Marketing ongoing.

Northeast – Fort MacMurray*

Red Deer*

Northwest – Grande Prairie

Central Rural

North Rural

Calgary* including Banff/Canmore and Cochrane

Edmonton* including St. Albert* and Leduc-Nisku*

South Rural

Drayton Valley*

Medicine Hat*

Other

Lethbridge*

*First of two co-hosts Co-hosts identified

DATA ANALYTICS

APOLOGIES Bruce.<spanarial”,”sans-serif””>  Your article’s link in our Winter issue was broken, but now fixed …

<spanarial”,”sans-serif””>Artificial intelligence (AI) and analytics: The new semiconductor – Alberta needs to embrace AI with a sense of urgency.   <spanarial”,”sans-serif””>For more Thank you <spanarial”,”sans-serif””>Bruce Matichuk See also

INDUSTRY CONFERENCES

<spanarial”,”sans-serif””>Attend Alberta’s Premier Green Building Event — Alberta Sustainable Building Symposium. May 6 at the BMO Centre, Stampede Park,Calgary.    <spanarial”,”sans-serif””>For more  Register before April 14 and save!

<spanarial”,”sans-serif””>Canada 3.0 – <spanarial”,”sans-serif””>“Digita<spanarial”,”sans-serif””>l Innovation Enabling the<spanarial”,”sans-serif””> <spanarial”,”sans-serif””>Energy Economy” – Marrying Energy & Innovation.   May 26th-28th at the Calgary TELUS Convention Centre, Calgary   <span” “arial”,”sans-serif””>For more  Endorsed by the Alberta Analytics Industry Advisory, organizer of Analytics, Big Data, & The Cloud Conferences

GOVERNMENT CONSULTATIONS

Study – seeking public input, for high-speed rail in Alberta.   February meetings in Calgary – the 24th, Red Deer – the 25th, and Edmonton – the 26th.  For more  And the list of questions posed by ABCtech  VISIT HERE

Start Something Small (SHAPE) – The four strategic directions identified for making “Alberta the best place to start and scale up a business”. For more