Our time in Charleston, S.C. has come to a close; however, our visit was more rewarding than we could have ever imagined.  While we were certainly looking forward to the warm weather, we learned quickly that Charleston has much more to offer aside from sun and sand. After meeting with various economic organizations and businesses in the city of Charleston, S.C, we learned there are many things that Michigan could duplicate in moving forward to improve our local economy.  Our first visit was with SC Launch, a branch of South Carolina Research Alliance.

SC Launch

- SC Launch helps spin off high tech science start-ups through wet lab incubation space, venture capital investments (via its own funds), and access to local economic development resources/organizations.

-The state passed an investment act which allows investors to write off dollar for dollar amount up to six millions dollars, which SC Launch can use to invest in new ventures.

- Although there is a tremendous opportunity, SC Launch has not fully tapped into university students as interns as a valuable resource for growing businesses.  However, they do work closely with Clemson University and University South Carolina.

Charleston Chamber of Commerce

- The Charleston Chamber of Commerce is doing a great job providing services to start up companies that are less than ten employees.

-The four services that Chamber provides start up companies are: 1) Idea competitions (new ideas for new Carolina, www.newideassc.com) 2) Fasttracks (Kauffman foundation) 3) Execnet (connects formers C-level individuals with start-up companies) and their 4) Entrepreneurship Center (helps start-ups with market research).

-The Chamber works closely with SC Launch, but like SC Launch the Chamber is having trouble connecting with college student.

Digital Corridor

- The Charleston Digital Corridor is a incubation organization that has physical space which helps create a network of new knowledge based start-ups.  In addition to providing them with a sense of community, the Digital Corridor provides them with collective services such as low rate utilities, shared workspace amenities.

-The Digital Corridor keeps a comprehensive list of hiring tech firms (www.charlestonworks.com)

-  The two companies we meet with in the Digital Corridor (Peoplematter & Sparc) gave us great insight into how second stage business recruit talent.  But like the second-stage businesses in Michigan, Peoplematter & Sparc are having trouble connecting to college talent. Specifically, they mentioned how the classic career fairs drown out the second stage businesses by giving preference to bigger corporations.

City Slickers

-A small based tech company that creates easy to use applications for use on the Apple iPod, iPhone, and iPad.

-Capital is key! Venture capital is can be difficult to obtain in the Charleston area for small start up companies. Especially for companies that are not receiving funding from economic development organizations.

-They have a real need for IT talent. But they cannot afford it or they cannot find it.

-City Slickers works to connect with local colleges to bring in internships. Unfortunately, they are doing little to recruit students from the two large universities in South Carolina, USC and Clemson

-There is room for growth in their company though. They have currently expanded into other cities such as London and the University of South Carolina to create interactive maps for these areas. They are now working on creating interactive maps for malls around the countries.

Take Away Points

- Policy Matters: Investment and tax policies have a significant impact on the success of start-ups. Start-up’s need access to capital from economic development organizations, venture capitalists, and private investors as they look to expand their business and hire new employees. However, investors need solid returns and smart incentives before they being investing.

-Connection Matters: As businesses grow they need access to the right kind of talent that will add value and help the business grow. Incubation centers, economic development organizations and government agencies need to develop connections with universities to encourage internships, college level entrepreneurship, and hopefully develop the local talent for regional economic development

-Integrate with colleges: colleges and local businesses need to collaborate to develop the types of curriculum that will provide businesses with the talent they are seeking. The integration of computer sciences into college curriculums will help prepare graduates as they enter the workforce and ensure that business can obtain the skills they need.

Our trip to Charleston has been extremely insightful and it would not have been possible without the help Lansing Economic Area Partnership, Michigan Economic Development Corporation, Dean Transportation, and Symbiosis International.