Fairfield’s Story and

Entrepreneurial Support Services Bob Phipps, Ed Malloy, Ken Ross & Burt Chojnowski

21st Century Model of Rural Living

Academy on Entrepreneurship October 20, 2004

Fairfield, Iowa

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

• 50 Startups Have Attracted $220 Million in Venture Capital Since 1990

• 1/3 of Iowa’s Venture Capital Investment

• Software, Marketing, Financial Services, Media & Telecom

• 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

• Maharishi University of Management - Students from 60+ Countries

• Influx of New Comers

• Chain Reaction - • 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

• 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

• 100 year old Company - 10 years ago – $3 million in Revenues

• Today - Growing 30% in 2004 to $60 Million

• 20 year old Company – 5 Employees and $500K Revenues 10 Years Ago• Today – 120 Employees, $70 million in Revenue, $9 Billion Under Management

2002 Fairfield Entrepreneur of the Year – Barry Harper

2003 Fairfield Entrepreneur of the Year – Eric Schwartz

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– 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 IowaSohodojo.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 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 FairfieldFairfield Area Chamber of CommerceFairfield 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