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By Nathan Peck | MiBiz
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Scott Hill, partner with Varnum, looks to entrepreneurs as a talent attraction tool for the state and the firm has pledged $1 million in pro bono legal help for small businesses. PHOTO; NATHAN PECK PHOTO; NATHAN PECK

GRAND RAPIDS — Economic gardening has been at the center of Gov. Rick Snyder’s economic development strategy since his campaign for office a year ago.

West Michigan business leaders got a look into the toolbox the Michigan Economic Development Corp. is employing in efforts to help the state’s businesses grow and find new opportunities.

Tom Rico, manager of sales support for the MEDC, said that the agency is taking a broad approach to economic gardening, ranging from early-stage entrepreneurs up to mature companies. While some would focus economic gardening on second-stage growth companies, Rico emphasized that the MEDC is looking to help the entire spectrum of businesses from entrepreneurs to the most mature companies in the state through its Pure Michigan Business Connect program.

“For the whole state of Michigan and the way the governor is looking at it, we look at it much more broadly. We are covering a lot of ground. There is a lot that goes into that garden,” Rico said.

The MEDC will be leaning on the infrastructure of the Michigan Small Business & Technology Development Center and the expertise of private companies, among them Huntington Bank, utility companies Consumers Energy and DTE, and law firm Varnum LLP. Whether a company is starting up and needs help with writing contracts or responding to an RFP from companies like Consumers, Pure Michigan Business Connect will be an online portal for the MEDC’s activities.

The SBTDC would be the first contact with the program, responding to online inquiries and helping triage the needs of companies reaching out for assistance. From there, specialists will direct businesses to the services that they need. As part of those services, Varnum has pledged $1 million in pro bono legal services to entrepreneurs as part of its MiSpringboard program, said Eric Mills, partner at the firm. Varnum expects to assist 60 clients annually and has helped 13 businesses in the first 60 days of the program.

“We are committed to the success of Michigan businesses. …We want our clients to thrive and remain in Michigan,” Mills said. “We view (entrepreneurship) as a means to attract and retain talent.”

Making connections

With an eye toward building the connections between businesses of all sizes, the MEDC is building the Business-To-Business Network, an online database of businesses that will enable companies to release and bid on contracts. Among the first clients is Consumers Energy, which will utilize the program to help smaller firms bid for contracts that might not otherwise be available to them. Consumers Energy is directing $250 million in contracts to be awarded to Michigan-based and minority- and women-owned businesses.

“This is a way of getting our companies in the door at least in the procurement at DTE and Consumers,” Rico said.

Huntington Bank directed $2 billion in loans toward Michigan business lending over the next four years. Of that amount, $1 billion would be directed to loans targeting new and innovative commercial business growth and the remaining $1 billion would go for small business lending.

Second-stage growth

Taking up the charge from the Edward Lowe Foundation, MEDC is launching an Economic Gardening Pilot program, providing strategic and management consulting to 50 companies from around the state with assistance from the SBTDC, Small Business Association of Michigan, Michigan Manufacturers Association, and the Michigan Manufacturing Technology Center.

For these second-stage growth companies, business owners will be paired with consultants who will provide 35 hours of short-term, intensive assistance to help them take their businesses to the next level of growth. Rico said the state will evaluate the effectiveness of the program in late 2011 and the MEDC may look to expand the program further in 2012.

Starting small

As the SBTDC is providing the bulk of the infrastructure to the initiative, handling inquiries from businesses around the state, rolling out these programs in pilots made sense. Rico said that response after the soft start to the program has been positive, with dozens of business reaching out for services.

“I don’t know that we would be able to handle it if 800 businesses came to us at once. We are still looking into the limitations of the network,” Rico said. “We are working out the kinks and testing these programs. As we get comfortable with the network, we may begin to look at (SBTDC Director) Carol Lopucki’s needs and whether we need to add more staff or funding.”