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Entrepreneurs remain confident, largely self-reliant, in tough times, CED says

Many entrepreneurs have global reach, are optimistic about growth, CED survey finds Image 1 of 2 · Next Image…

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RESEARCH TRIANGLE PARK, N.C. – What’s the successful entrepreneur’s most important quality? Smarts or optimism? Brilliant idea, perhaps an invention, or resilience?

There’s no clear answer, but in these tough – and getting tougher –economic times, the smartest inventor is going nowhere without a healthy dose of optimism and a determination to gut it out.

That being said, it’s encouraging to see just how optimistic and how self reliant most entrepreneurs are who participated in a Council for Entrepreneurial Development survey.

For example, even as a new Manpower survey says the region’s and nation’s employment picture remains murky, more than 70 percent of the CED respondents expect to expand over the next 12 months. Fewer than 10 percent expect to “contract.” Overall, 60 percent of the respondents reported growth in 2008.

And many of these entrepreneurs are not backed by high-flying venture capitalists with deep pockets.

In fact, the highest percentage of backing at nearly 25 percent are “boot strapping” themselves.

Ten percent have angel investors, but a scant 6 percent have VC support. Another 7 percent have federal support.

More than 10 percent have friends and family dollars, and a similar percentage of entrepreneurs have a line of credit. Eight percent are using credit cards. Three percentage are using a mortgage on their home.

The survey, which the CED conducted with the help of RTI International and percept Research, also pointed out just how international CED members are,

Although most of the survey participants work for companies with 50 or fewer employees, 54 percent of them have either customers or suppliers from outside the U.S.

CED plans to pick up on that point, according to President Joan Siefert Rose.

“In future conversations with members, we will work to better understand the implications to companies and identify ways that CED can help entrepreneurs in the global economy,” she wrote in the survey’s summary.

To its credit, the CED published in its survey summary numerous comments that were critical of the organization. And Rose said the organization will strive to help members who are seeking to grow businesses.

“The message from respondents was clear: CED should concentrate on helping (entrepreneurs) improve their bottom line through strategic partnerships and introductions,” she said. “Top of the list is connecting them to sources of capital, including notification of new funds, grant programs, and business competitions. Many said we need to provide better service to companies that are self funded.”

Rose pledged to review the criticisms and suggestions - and to make some changes. "Over the coming months, we will try new programs and services, and seek your advice to determine those that provide the greatest value," she wrote.

To the credit of the entrepreneurs, they are optimistic, largely self-reliant, and ready to keep fighting - come what may.

The Skinny

WRAL Local Tech Wire Publisher and Editor Rick Smith dishes out tidbits from the local technology sector. Read more articles…