A new state law was signed recently creating an Entrepreneur Learner’s Permit. This week’s Q&A talks with Glendowlyn Thames, director of Small Business Innovation and CTNext at Connecticut Innovation.
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A new state law was signed recently creating an Entrepreneur Learner's Permit. This week's Q&A talks with Glendowlyn Thames, director of Small Business Innovation and CTNext at Connecticut Innovations, about the program. She oversees programs that support the state's small businesses and encourage innovation, collaboration and commercialization.
Q: The governor recently signed into law the Entrepreneur Learner's Permit pilot program. What is its purpose and what was its inspiration?
A: The purpose of the Entrepreneur Learner's Permit program is to encourage entrepreneurship and job growth in our state. The new program provides up to $1,500 in reimbursements for state licensing and permitting costs to first-time entrepreneurs in the information services, biotechnology and green technology industries.
Q: The bill has an effective date of July 1. When do you think it will be up and running? What will some of the conditions be for eligibility?
A: The Entrepreneur Learner's Permit program will be up and running in July. We'd like to get it off the ground as soon as possible so entrepreneurs can take advantage of the benefit.
The program allows owners and executives of qualifying small businesses to waive any state or municipal filing, licensing or permitting, and the fees associated with starting a new company. We are currently working through the application and criteria, which will be available on our site in July.
Q: How much of a factor do fees play in discouraging businesses from starting in Connecticut? Are they so high as to be a deterrent to entrepreneurs?
A: Starting and running a business in its earliest stages can be a massive undertaking, no matter the location. This benefit does more than cover fees — it is another step the state has taken to help create a more active ecosystem and assist entrepreneurs when they need it most. Entrepreneurs scrutinize every cost, so while the fees may not deter a company from coming to Connecticut, removing those fees can certainly serve as a benefit.
Q: It's obviously a difficult fiscal time for the state. How can Connecticut afford to wave up to $500,000 in fees?
A: It is a challenging fiscal time for the state, which is why it's important we focus on investing in the areas that can have a positive impact on the state economy. With the recent passage of [a bill that beefs up CTNext — the state's innovation ecosystem], there has been an intensive effort to improve the environment for entrepreneurs in Connecticut. The process of waiving these fees may help to alleviate the initial burden an entrepreneur encounters when starting out.
Q: At this point how would you rate the environment in Connecticut for being an entrepreneur? What's been done to make the state more attractive? What might the state stop doing?
A: The creation of CTNext in 2011 through the Jobs Bill has significantly improved the environment for entrepreneurs. Today, CTNext offers entrepreneurs opportunities to network, receive guidance from experienced entrepreneurs and compete for micro grants to assist with prototyping, performance testing, compliance testing, product or service development, market research and licensing, to name a few.
In addition to the financing companies receive through Connecticut Innovations, they can also access talent through the Technology Talent Bridge Internship program; receive guidance from executives in residence who specialize in operations, marketing, communications finance and government; and access subject-matter experts and investor networks.
And the most recent legislation does even more to support the entrepreneurial environment. It formalizes the structure of CTNext and creates a separate governing board; it adds resources and expands programming for CTNext, which will continue its support of the entrepreneurs in our state to have an even greater impact; and it brings the concept of “innovation places” to life, which supports the theory that innovation occurs in geographic locations that are physically compact, transit-accessible, and technically-wired and offer mixed-used housing, office and retail that creates a community of like-minded people that provides a positive environment for business owners.
The new legislation also introduces the concept of growth-company grants, which are $25,000 grants directly to companies that have been incorporated for less than 10 years; raised private capital; and have seen a 20 percent increase in their annual gross revenues in each of their previous three income years.
Q: What other programs is Connecticut Innovations involved in for attracting entrepreneurs currently?
A: This past year, we launched VentureClash, a $5 million global venture challenge, which is an effort to attract early-stage fintech and digital-health companies around the world.
This effort includes a top investment award of $1.5 million; a second-place investment of $1 million; and up to four runners-up awards for $500,000.
In addition to the investment, winners can access the CTNext partnership network, which includes work space, advisors and other technical programs that can help with creating or expanding a presence in Connecticut.
The finals event will be Oct. 20 at Yale University, where companies will compete in front of a panel of live judges. We [have seen] applications from around the world.
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