Youngstown Daily Legal News

Dell endorses entrepreneur-based pilot program

TIFFANY L. PARKS
Special to the Legal News
Published: April 30, 2013

Computer technology corporation Dell is backing an initiative in Senate Bill 3 that would require the Small Business Advisory Council to establish and operate an Entrepreneur in Residence pilot program.

Fran Valluzzo, Dell manager of government affairs, said entrepreneurs are driving the economy.

“Entrepreneurs are responsible for the creation of thousands of jobs in our economy and are a key to the economic recovery of the state and the nation,” he said.

SB 3, sponsored by Sen. Frank LaRose, R-Copley, is known as the Job Creation Empowerment Act and is one of the legislative priorities of the Senate majority.

In addition to carving out a “rule watch” system to make it easier for Ohioans and employers to be notified when a rule affecting them is up for review, the measure also calls for the creation of the EIR pilot.

An analysis of SB 3 states that the program would be rooted in providing better outreach by state government to small businesses, strengthening coordination and interaction between state government and small businesses and making state government programs and functions more easier to access and more efficient.

Valluzzo said the concept of EIR programs dates back to the 1980s and that Dell recognizes the value of entrepreneurs with regard to economic recovery.

“After all, we were founded by an entrepreneur, Michael Dell (and) we work with entrepreneurs every day to help them grow their businesses,” he said, noting that the Texas-based corporation has created an EIR venture within its company.

Under SB 3, the Small Business Advisory Council would have to select three to five state agencies that have programs or perform functions affecting small businesses to participate in the pilot program. One entrepreneur in residence would be assigned to each state agency that is participating in the program.

The council would have to select an EIR from among individuals who are representatives of small businesses and who are successful in their fields, the analysis states. The assignment would be for one year.

EIRs would have to facilitate meetings or forums to educate small business owners and operators about the programs or functions of the state agency that affect small businesses; facilitate in-service sessions with employees of the state agency on issues of concern to small business owners and operators; and advise the state agency on how its programs and functions that affect small business might be improved and provide technical assistance or mentorships to small businesses in accessing state programs.

Over the past year, Valluzzo said Dell’s EIR has met with dozens of federal and state officials to discuss the idea of expanding the EIR model into government.

“The idea is very simple,” he said. “Successful entrepreneurs would serve as EIRs in government agencies to provide outreach to small businesses and entrepreneurs and to make government more responsive to their needs.”

Valluzzo said states have varying approaches to the idea.

“Some would provide compensation for EIRs from existing budget resources. Others, like Ohio, are considering a voluntary program, similar to ‘executives on loan.’ Some states would set the number of agencies that can appoint EIRs, while others would provide authority for one agency that works with other agencies to place EIRs,” he said.

If the measure is enacted in Ohio, Valluzzo said at the conclusion of the pilot program, the EIRs and small business council would develop reports on best practices, experiences, opportunities and obstacles impacting entrepreneurs.

In supporting the idea of the program, Valluzzo said he’s been asked two questions often.

“First: ‘Is this program necessary? Can’t agencies already do this?’ The answer is probably yes,” he said. “Many state agencies have programs focusing on the needs of small businesses. But by bringing in an entrepreneur, one who has navigated the financial, technical, marketing and government challenges to launching a successful business, we believe that this initiative could create significant change in government.”

Valluzzo said bringing an EIR into state government would be a “very visible commitment to Ohio’s entrepreneurs and small businesses, demonstrating that the state is committed to ensuring that government is supporting, not hindering, innovators and dreamers.”

Valluzzo said the second question he gets focuses on Dell’s involvement in lobbying for the idea.

“... ‘Why is Dell doing this, and what’s in it for Dell?’ Dell is not seeking anything from the federal or state governments in advocating for EIRs. We don’t want to appoint the EIRs,” he said, but added that the company would be glad to make recommendations.

“We don’t want to have a role in running the agencies’ EIR programs. We simply view our advocacy for government EIRs as part of our overall effort to help entrepreneurs succeed.”

SB 3 is co-sponsored by Republican Reps. Keith Faber, John Eklund, Randy Gardner, Larry Obhof, Christopher Widener, Joe Uecker, Cliff Hite, Troy Balderson, Bill Beagle, William Coley, Tom Patton, Shannon Jones, Gayle Manning, Peggy Lehner and Bill Seitz.

The bill is before the Senate State Government Oversight and Reform committee.

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