Public-private partnership a good model

What is the right balance of government support for business? Too much and it’s interfering with the free market. Too little and government isn’t doing enough to create jobs. But you don’t have to look far to see examples of public-private partnerships that are working to provide a foundation for start-up companies.

Less than an hour down the road in Davidson you’ll find the Project for Innovation, Energy & Sustainability (PiES), a public-private partnership that provides assistance to green business start-ups and early stage businesses through shared office facilities, business advisory services, and access to funding. PiES focuses on providing three key elements that are critical to the success of new businesses: incubation, networking and education.

PiES was created by Kathleen Rose, who serves as executive director, with the help of Ian Ferguson, PhD, who is a professor at UNC-Charlotte and serves as chair of PiES’ advisory board.

With two decades of experience with public and private land development projects, Rose has seen many business incubators throughout the Southeast and developed a sense of what works and what doesn’t. “There are general incubators and specialized incubators,” said Rose, “and incubators which specialize in one industry or one area are usually more successful.”

Rose knew that green business would appeal to many in Davidson, so 18 months ago she convinced the town to join PiES in a partnership that also included Davidson College, Central Piedmont Community College, and UNC-Charlotte. The town of Davidson provides subsidies that allow green start-ups accepted into PiES to receive lower, more affordable rent at an Energy Star-certified office complex that serves as the PiES’ headquarters. In addition to office space, PiES companies share common areas and office equipment.

The town, each educational partner, and private companies combined to form an advisory board that must approve applicants and meet with them throughout the year to insure they are making progress on their business plans. The educational institutions provide technical support as needed. Private partners provide PiES companies with access to funding opportunities that would be difficult to obtain without PiES support.

Companies interested in PiES go through an application process and must offer an innovative, energy and sustainability-based product, idea, or business concept. Acceptance criteria include a business plan that provides for creating energy and sustainability jobs and a commitment to “economic gardening,” which means staying in the Davidson area for three to five years.

PiES companies are community-based, often in need of technical support from the educational institutions. Currently there are six companies working within PiES, with the most recent additions including a home energy management company and a company that assists in transitioning corporations from traditional light bulbs to energy efficient LED and induction lighting products. PiES has also accepted virtual tenants who are planning to move into the area. Although the current PiES business plan calls for eight companies, Rose sees growth opportunities. “Over time these companies will grow and graduate out of the current building,” explains Rose, “and we’ll bring in new companies to go through this process.” Rose also believes there is an opportunity to expand PiES to more cities in the future.

More local jobs. Support for business start-ups. Revitalizing and using existing buildings. That’s a pretty impressive combination. And a model other areas should take note of.

Do you have a business question or topic that would make a good column? Send your ideas or questions to me at jeff.neuville@b-assistnc.com and share your business experience with others.