Fairfield’s Story
and
Entrepreneurial Support Services
Bob Phipps, Ed Malloy, Ken Ross & Burt Chojnowski
Academy on Entrepreneurship
October 20, 2004
Fairfield, Iowa
21st Century Model of Rural Living
Fairfield’s History
• 60 Miles from Nearest Interstate Highway
• 120 miles from Major Metro - Des Moines
• Parsons College Closed in 1973 after 98 Years
• Loss of Major Manufacturers
• Scores of New Business Sputters
Fairfield’s Entrepreneurial Roots
– Dairy Barn and Manure Spreader Invented by William
Louden
– 1st Carnegie Library
– Oldest Golf Club West of the Mississippi
– 1st Iowa State Fair
– 1st Municipal Utility and 1st City With Street Lights in the
Midwest
– Growth of New Manufacturing in 60’s and 70’s
Fairfield’s Recognition
• 2003 Grassroots Rural Entrepreneurship Award
– National Center for Small Communities and Kauffman Foundation
• Known as SiliCorn Valley –
• Entrepreneurial Community of the Month - October 2004
Entrepreneurial Capital of Iowa
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50 Startups Have Attracted $220 Million in Venture
Capital Since 1990
•
1/3 of Iowa’s Venture Capital Investment
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Software, Marketing, Financial Services, Media & Telecom
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Population: 9,500
Impact & Results
• Nearly a $1 Billion in New Equity
• Two Thousand New Jobs in Fairfield - 12,000 globally
• Per-Capita Income has Tripled
• Headquarters for 70 Companies
• $10 million in New Construction (per year)
• New $6.5 million Civic Center Under Development Theater and Convention Space
• Ranked #3 County in the Nation in Per-Capita Giving
Catalysts for
Fairfield’s Success
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Maharishi University of Management - Students from 60+
Countries
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Influx of New Comers
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Chain Reaction •
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Info-mercial
Callback and International Telecom
Chicken Soup for the Soul
Smart Investors including Band of Angels, Sam Zell and
Garage.com
How Did Fairfield Do it?
• A Lot of Trial and Error and Innovation
• Peer Networking vs. Agency Approach
• Fairfield Entrepreneur Association (FEA) started in 1989
– No Budget; Volunteer Organization
• Second Stage Companies moved from “Good to Great”
• Attracted Capital - Private, Public and Venture
Changing The Culture
• Changing the Attitude About Startups
• Re-Define Failure as a Step of Innovation
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Peer Support – to Share Experience and Wisdom
Fairfield=Creativity
•
Maharishi University of Management – Science of Creative Intelligence and Transcendental Meditation
•
Leading Art, Theater and Music Scene in the Rural Midwest
–1st Friday’s Art Walk Attracts Thousands Every Month
•
More Restaurants Per-Capita than San Francisco
• 3 Local Newspapers and One Monthly Magazine
• Art-Based Businesses:
Fairfield’s Entrepreneurial
Learning Community
• Entrepreneur of the Year and Hall of Fame Awards
– 2004 Award Winner – Alan Unger, Polar Dreams - 11,500 New Jobs
• Workshops and Seminars:
–Average Attendance is 40, once or twice a month
–Shown on Public Access TV Channel
• Peer-to-Peer Mentoring Support:
–Entrepreneurs
–2nd Stage CEO’s
–Civic and Social Entrepreneurs, Artists, Value Added Ag
• Conferences:
–First Iowa Rural Investment Conference (2003)
–Iowa Boot Camp for Entrepreneurs (2004)
–Bioneers (Oct 15-17)
–Boot Camp for Art-Preneurs - Nov 6, 2004
Success Breeds Success
2002 Fairfield Entrepreneur of the Year – Barry Harper
• 100 year old Company - 10 years ago – $3
million in Revenues
• Today - Growing 30% in 2004 to $60 Million
2003 Fairfield Entrepreneur of the Year – Eric Schwartz
• 20 year old Company – 5 Employees and $500K
Revenues 10 Years Ago
• Today – 120 Employees, $70 million in Revenue,
$9 Billion Under Management
Compost for New Startups
• Acquisitions and IPO’s of Fairfield Companies Have
Freed Up Millions in Equity, Key Personnel and Other
Resources
– Books are Fun - $380 Million Acquisition by Reader’s Digest
– Telegroup IPO – A Dozen Millionaires
• Bankruptcies Yield Top Employees, Cheap Office Furniture
and A Renewed Desire To Grow Something New
We Can’t Rest on Our Laurels
• Fairfield Entrepreneur Relocation Program
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Welcome Mat Out for Entrepreneurs and Start Up Companies
Office and Warehouse Space
Special Offers on Bandwidth and Telecom Services
Reduced Rents
Support Services through FEA
Arts, Music and Theater Scene
Top Schools in Iowa
Sohodojo.com - James Salmon and Timlynn Babitsky
–Think Tank on Micro Enterprise Networks
–Advisors include Richard Florida, Rise of the Creative Class
–Recently Moved From Montana (Last Saturday)
Up and Coming
• Retail Incubation Program
– Test Market Retail Products in a co-op environment
• Kitchen Incubation Program
– Robust “Buy Fresh, Buy Local” Campaign
– Success of “Taste of Fairfield”
– Collaboration with Sustainable Living Coalition
Strategic Plan for Innovative
Growth
Key 10 Year Objectives
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Positive Job and Population Growth
Downtown Revitalization
Improve Physical Assets
Promote Cultural and Recreation
Buy-in from 70 Community Groups
Fairfield’s Economic
Development Groups
Fairfield Economic Development Association (FEDA)
Fairfield Entrepreneurs Association (FEA)
City of Fairfield
Fairfield Area Chamber of Commerce
Fairfield Manufacturer’s Association
– Marketing Plan
– Economic Development Plan
– Attracting Startup Companies
– Banks and Chamber - $1 million Downtown Revitalization
Loan Program for Retail Businesses
Thank You !
For Visiting Fairfield
www.FairfieldIowa.com
Fairfield Entrepreneurs
Julie Stephens – Revelations
Eric Schwartz – Cambridge Investment Research
2003 Fairfield Entrepreneur of the Year
Tim Hawthorne – hawthorne direct
1994 Fairfield Entrepreneur of the Year
Fred Gratzon – Great Midwestern Ice Cream Company, Telegroup, etc.
1992 Fairfield Entrepreneur of the Year