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Entrepreneurial bug has bitten: Wisconsin people are flocking to classes on how to start a business
11:28 PM 2/28/04
Judy Newman Business reporter

Gail Ambrosius used to spend her workdays sitting at a desk, analyzing the computer needs of state Department of Natural Resources employees and creating maps of the agency's forests and fisheries. <

A 10-year DNR employee, Ambrosius felt a chill when Gov. Jim Doyle pledged a year ago to cut state government to help balance the budget. "I just had this gut feeling that I'd better be thinking about my next move," Ambrosius said. <

So when her position ended in November - one of 2,300 jobs being eliminated by state agencies in the 2004 and 2005 fiscal years - Ambrosius, 44, was already on the path toward a new career as a chocolatier. She plans to open an East Side shop this fall. <

Ambrosius is among a growing number of people in the Madison area and statewide hoping to start their own businesses. <

Business development classes are packed, and phones at the state's new Bureau of Entrepreneurship have been ringing non-stop. <

Meanwhile, even with the opening of at least three Madison business incubators in the past couple of years, so many start-up companies are looking for space that two other incubators have a waiting list for the first time in years. <

It's a switch for a state that received a D grade and was ranked 46th in the nation for entrepreneurial energy last year from the Corporation for Enterprise Development in Washington, D.C. <

And, experts say, entrepreneurship is a trend that could help jumpstart Wisconsin's economy after three years in the doldrums. <

"Definitely it's growing and definitely it's the means by which we have to rebound," said Cory Nettles, secretary of the state Department of Commerce. <

These are some of the signs: <

  • Classes at UW-Madison on how to start your own business are filled to capacity, the first time that's happened in about four years. <

  • A UW-Madison small business class in Spanish is filled, with 15 on a waiting list. At UW-Whitewater, the number of undergraduate students taking an entrepreneurship class is up 10 to 15 percent over 18 months ago. <

  • At the Bureau of Entrepreneurship in the state Department of Commerce, established last October, phone calls seeking assistance jumped from 450 in November to 663 in January. <

  • The Governor's Business Plan Contest drew 335 entries by the Jan. 31 deadline, about two to three times as many as state officials had expected. <

    Economic development is the "epicenter of Gov. Jim Doyle's agenda," Nettles said, and helping entrepreneurs is a key element of that. "To get our economy healthy and strong, we need more entrepreneurial activity." <

    Around the globe, the enterprise bug is also biting. As many as 300 million people tried to start new businesses in 2003 - more than the entire United States population - according to the Global Entrepreneurship Monitor, sponsored by the Kauffman Foundation of Kansas City, and 80 percent of those entrepreneurs expect to hire staff when their companies are more established. <

    Nationwide, more than 11.3 percent of adults were involved in some type of entrepreneurial activity in 2003, up from 10.5 percent in 2002. It's the first increase after two years of declines, according to the survey. <

    "The increase in entrepreneurship in the U.S. is a small but positive step that appears to mirror our recovering economy," said Carl Schramm, president and chief executive officer of the Kauffman Foundation. <

    "There's a very strong correlation between the level of entrepreneurship and economic development," said Larry W. Cox, director of the Weinert Center for Entrepreneurship at UW-Madison's School of Business and formerly with the Kauffman Foundation. "Countries that were high in entrepreneurship were also growing at a faster rate." <

    Not everyone will succeed, though, and few will become big hits, said James Bronson, Irvin L. Young professor of entrepreneurship at the UW-Whitewater College of Business and Economics. <

    Often, the most successful startup is "Joe the plumber (who) gets tired of working for someone else and goes into business for himself," Bronson said. "But Joe is not going to create 100 jobs for other people." <

    The economy is a big factor in entrepreneurial activity. <

    "Now that the economy is picking up a little bit and optimism is a little better, it seems that more people are interested in investigating this option," said Neil Lerner, director of the Small Business Development Center at UW-Madison's School of Business. The center's class, Small Business Fundamentals, was filled to capacity in January with 50 students; normally, 25 to 35 attend. <

    Large employers are important, said Lerner. "We want them in our community ... But to solely rely on larger employers to build our economy is putting all our eggs in one basket." <

    Some people think an improved economy increases their chances for success. Others consider starting a business as a fallback, in case they lose their jobs as friends or co-workers have. <

    "I'm still receiving a pretty high number of calls from people (whose) current (employment) is not stable or has just ended," said Jill French, director of the Wisconsin Women's Business Initiative Corp.'s Madison office. <

    The organization enrolled 140 people in its classes in each of the third and fourth quarters of 2003. This year, with five weeks to go in the quarter, the group already tallies 140 people in its training programs, she said. <

    "People are wanting to explore whatever financial options they have other than being employed by someone else," French said. <

    That's what Gail Ambrosius felt when her state DNR job disappeared. "You can't count on the security of other people for a job any more," she said. <

    At the same time, though, Ambrosius had toyed with the idea of becoming a chocolatier for several years. "When the job situation started changing, I thought, maybe this is the time to take action and let it grow." <

    So, while working part-time at the Soap Opera, she has taken business development classes from the UW and elsewhere as well as an online class in chocolate-making, offered by a Vancouver chocolatier. This spring, she will apprentice with Valhrona Chocolate in France. <

    Ambrosius, who is divorced, said she is happy and her son, Isaac May, 15, is very supportive. <

    "I'm an independent person; I'm a risk-taker; I think there's opportunity out there .

  • .
  • . I'm tenacious and hardworking; I think I have a good idea," she said. <

    Rashaun Whitman, 22, and Jerome Hunt, 24, weren't thinking about the economy when they opened a recording studio last April at the Genesis Enterprise Center, 313 W. Beltline Hwy. <

    The Madison-area men, who perform as the Deuce V hip-hop band, weren't happy with the way other studios were handling production of their music. "The things we wanted as artists when we recorded, we wanted to bring that to everyone else," Whitman said. <

    So they started Sound Check Studio and their own recording company, Get Rich Records. Whitman and Hunt haven't exactly gotten rich yet. <

    "It's a lot harder than we thought," said Whitman. "The market is not as solid as we thought it would be." But they are happy to be offering other young musicians a place to hone their skills and "give them hope." <

    There are three main reasons why people start a business, said the Small Business Development Center's Lerner: <

  • Personal development - a chance to apply their skills and interests for their own benefit and that of their families <

  • More control over their lives, which may include more time for family <

  • Money - that the fruits of their labors can comeback to them, rather than to an employer. <

    Those were all factors in Coleen Harty's decision to open a bookstore, "Invest in Yourself," in Middleton last March. The store, which features personal growth materials, was two years in the making. <

    "For the last five or six years, I've been trying to figure out what I've been put on this earth for," said Harty, 50. "I loved to read this kind of book," and after filling out some written exercises, the idea came to her. <

    Harty hasn't given up her "regular" job yet but she scaled back to 30 hours a week as an administrative assistant for a vice president at American Girl, formerly Pleasant Co., in Middleton. The bookstore, she said, has taken "a lot of hours, a lot of work - but I just wanted to do it." <

    Whitman, of Sound Check Studio, agreed. "If this wasn't our love, it would be very hard to keep going. You have to have some kind of passion about what you're doing," he said. <

  • Copyright © 2003 Wisconsin State Journal
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