November 1, 2006

UPS Awards Three Small Businesses Big Prizes for Their Innovation

Financial lessons for children and alzheimer’s products helping students make it through college in four years. Teaching children the basics of money management. Providing products and compassion to Alzheimer’s patients and their caretakers. These “out-of-the-box” ideas from their innovative creators are helping to drive the small business economy.

And the companies behind these ideas are the winners of the 2nd annual UPS Best “Out-of-the-Box” Small Business Contest. UPS (NYSE:UPS), the world’s largest package delivery company and a global leader in supply chain services, today announced the winners of the contest launched in May to recognize innovation in small business.

The first-place winner is Application 2 Graduation, LLC of Chicago, founded by Mary Wayman. Second place goes to Money Savvy Generation of Lake Bluff, Ill., started by Michael and Susan Beacham. The Alzheimer’s Store of Cumming, Ga., founded by Mark and Ellen Warner, garners the third-place prize.

“UPS has always been a partner of small businesses and, in fact, the company was started in 1907 as a bicycle messenger service on just $100,” said Kurt Kuehn, UPS senior vice president, worldwide sales and marketing. “UPS understands that a small business owner’s passion and focus is on running and building their business, not operational details like shipping. UPS makes shipping easy and fast for small businesses whether they’re shipping around the corner or around the world.”

This year’s winner said her inspiration came from a desire for her son to attend a good college and obtain a degree in four years. “The business grew from the goal I had set for my child. It’s nice to know some of the big companies, like UPS, are looking for ways to help small businesses continue to grow and prosper,” Ms. Wayman said.

Each of the winners has a compelling and unique story of innovation.

Application to Graduation (A2G) – Ms. Wayman was determined to see her son graduate from college in four years. Realizing other parents had the same goal, she developed a business that begins assisting college-bound students while they’re still in high school. A2G assesses a student’s learning style, recommends colleges that best suit the student, reviews college applications and essays, completes financial aid information and accompanies the student on college visits.

Once the student is admitted, A2G assigns an Advocate with whom the student meets once a week. The Advocate monitors the student’s class load, assists with any meetings with deans or professors and supports the student through the emotional changes associated with this new stage of life.

Money Savvy Generation – The Beachams wanted to make sure their two daughters grew up to be financially competent by teaching them good money choices as children. They created a curriculum that meets social studies and math standards for students in K-12.

They also developed the Money Savvy Pig®, a piggy bank with four slots and four chambers – each representing a key financial principle -- save, spend, invest, or give. Money Savvy Generation has expanded its line based on feedback from customers and now carries several types of banks and lessons adapted for home use. A DVD series and activity books also accompany the line. To date, the products have reached more than 500,000 students.

The Alzheimer’s Store – The Warners began this online business after Mark, who had a career designing buildings for the aging, wrote a book, The Complete Guide to Alzheimer’s-Proofing Your Home, which identified strategies and products to make homes dementia-friendly.

Once the book was published, readers began calling and asking for the products featured in it. Today, The Alzheimer’s Store sells nearly 300 products and compiles a free newsletter that provides briefings and links to articles on dementia and care-giving issues.

The UPS Best “Out-of-the-Box” Small Business Contest was designed for U.S. small businesses with annual revenues in 2005 of at least $250,000 but not exceeding $10 million. More than 800 businesses submitted 500-word essays explaining how they were innovative. The winners were chosen based on originality, business implementation and results.

The entries were reviewed by a panel of business experts including: Ed Baker, publisher of the Atlanta Business Chronicle; Delia Passi, president, Medelia Communications; Eileen O’Brien, vice president, Worldwide Small and Medium Business, Personal Systems Group, HP; Brian Dumaine, editorial director, Fortune Small Business; Rich Bradshaw, senior vice president, UPS Capital, the financial services arm of UPS, and Lucinda Yates, founder of Designs By Lucinda and the 2005 contest winner.

The first-place prize package contains: $10,000 in cash or UPS package delivery services; a personal computer provided by HP and equipped with UPS OnLine Tools; $5,000 worth of UPS consulting services, and $1,000 of document services from the nearest The UPS Store. The second-place winner receives $5,000 in cash or package delivery services along with the HP computer package, while the third-place winner receives the HP computer package.

According to a 2006 White House press release, small businesses create two out of every three new jobs and account for nearly half of America's overall employment. They also have played a vital role in helping the U.S. economy add more than 5.1 million new jobs since August 2003.

UPS helps small businesses participate in global commerce by synchronizing package delivery, supply chain and financial services. Additionally, UPS’s broad portfolio of technology solutions can help small businesses go global, go online or simply conduct their operations more efficiently. The UPS Store provides document and shipping services at convenient locations worldwide. Meanwhile, UPS Capital, the financial services arm of UPS, serves small businesses with a number of innovative products and services designed to help them accelerate their payments, gain access to crucial working capital and minimize the risks of international trade.

UPS is the world’s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at UPS.com. To get UPS news direct, visit pressroom.ups.com/RSS.

For more information on the contest and winners, visit www.ups.com/outofthebox.

Posted by David at 9:58 PM | TrackBack

November 24, 2005

Why UK Innovation And Entrepreneurship Could Be Heading In The Right Direction

Much has been written lately on the UK’s inability to develop innovative ideas that grow into global brands but this could now change…

I've been posting my views on the Financial Times web site in reply to Gordon Brown's statement on the subject of entrepreneurship and innovation and how vital this is to the future of the UK. Here's what I had to say on the subject starting with my first posting on 14 November 2005:

First Poting On The Call For Entrepreneurs

"Everyday I get 400 or so visitors to my website all searching for small business ideas. Of those who arrive, the majority is looking for government grant or small business finance. I point them towards Business Link, the DTI, and Local Enterprise Agencies, but they come back to my web site because they meet blank walls.

How on earth can Gordon Brown expect entrepreneurs to take their ideas and build businesses that create wealth for this country when many aspiring entrepreneurs cannot even navigate the first hurdle to starting a small business?I watch with envy at the American system for helping small businesses with grants, loans and Small Business Innovations Research funding.

The Small Business Administration (SBA) that's responsible for providing grant / loan funding operates within a legal framework and is empowered to champion all small businesses; every type of small businesses including those owned by ethnic minorities. The SBA is set targets and is evaluated on performance. Compared to the SBA and associated State structured funding agencies our system falls way short.

Not only that, entrepreneurs in the UK are confused about where to go for funding and whether they’ll even qualify.

Every week I receive announcements of yet another small US companies being granted Small Business Innovations Research (SBIR) funding that allows them to research and develop innovative technological and other products with the USA government as possible stakeholder.

When I read about our research grant scheme that is suppose to be equivalent to the USA's SBIR scheme I smile because I know there's no comparison.

Our scheme falls way short!

When I read about young Londoner's not wanting to start a business of their own, but would rather work in paid jobs because they are adverse to stress, I'm saddened because at the same time, young people in the USA are winning prizes for showing entrepreneurial flair and starting businesses.

If the Chancellor or Prime Minister in waiting truly believes that entrepreneurs are the key to Britain’s future my advice to him is "don't tinker with tax incentives, instead create an environment that supports, encourages and mentors budding entrepreneurs to build thriving businesses".

Here's my second posting two days later:

"Following my previous post on 14 November 2005, here's a classic example that illustrates why the Chancellor should concentrate on substance rather than tinkering with incentives like tax to encourage entrepreneurialism.

In his article on November 9, 2005 Jonathan Guthrie wrote an article with the headline: "Why Tax Credits Are For Business, Not Mad Scientists."

The salient point on which the article was based was the performance shortfalls of HM Revenue and Customs, and ignorance and inertia among companies on the R&D tax Credit scheme.

Apparently George, the Treasury Official who oversees tax credits for companies undertaking cutting-edge research and development spends his working hours in hope of receiving calls from companies that are interested in applying for R&D tax credits.

Ironically, Gordon Brown regularly trumpets the R&D tax credit scheme but the scheme has fallen short of its full potential largely due to administrative snarl-ups at HM Revenue and Customs and ignorance and inertia among companies that are eligible for the scheme.

There is suspicion by companies of the Revenue handing out money instead of its normal role of collecting money but the main concern for companies over the R&D tax credit is that of uncertain administration and the long waiting period (up to two years in some instances) claimants face in receiving their cash.

This is the reality of the R&D tax credit scheme!

In the context of encouraging entrepreneurialism among Britain’s innovative companies the R&D tax credit scheme should be restructured to encourage SMEs (Small and medium size enterprises), on similar lines as the USA’s SBIR scheme.

The scheme should also accommodate larger companies, but should be biased towards helping innovative SMEs, particularly technology type companies.

Clearly, if Gordon Brown wants to infuse in Britain a bias towards taking risks then he should recognize that fundamental changes are needed in all areas of government provision and that changes MUST involve business experts (SMEs and large companies) and not be left solely to the public sector."

And following the good news on 24 November 2005 that Gordon Brown will leave innovations funding to business instead of the public sector, here's my letter to the FT Editor"

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"Sir

A week in politics is a long time but following Gordon Brown’s recent statement that the future of the UK is dependent on entrepreneurs, who are the wealth creators, and the recent announcement to allow businesses to shape the Innovations budget, I can barely catch my breath.

Instead of tinkering with tax incentives to wow entrepreneurs, Gordon Brown it seems has been looking at what has been happening in the USA.

Instead of the R&D tax credit scheme being administered by HM Revenue with all its conflicts, uncertainties and poor performance there is now the prospect that entrepreneurs will be the rightful champions of innovation.

I watch with envy at the American system for helping small businesses with grants, loans and Small Business Innovations Research funding. While there’s no such thing as a perfect system, my hope is that we can finally create an environment where entrepreneurs with innovative ideas, especially those that are technology driven, will be encouraged to seek funding for their projects.

Everyday I point visitors who are seeking funding for their innovative ideas to Business Link, the DTI, and Local Enterprise Agencies, but they come back to my web site because they run into blank walls.

How on earth can Gordon Brown expect entrepreneurs to take their ideas and build businesses that create wealth for this country when many aspiring entrepreneurs cannot even navigate this first hurdle?

At last, there’s the real prospect that some of these companies could finally receive funding that could see them grow into global brands.

The challenges to our economy and way of life whether from of climate change energy shortages, caring for an ageing population, technology change cannot solely rest on the City of London, it must surely rest on people of vision who can transform ideas and, with financial support, create real wealth.

David Davis
Small Business Resource Ltd
www.2-small-business.com
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Finally, what about you, followng the announcement that funding for innovations should be administered by businesses, what is your view?

If you want to contribute to the debate go to the
FT's small business forum

Posted by David at 5:29 PM | Comments (0)