A recently released Wisconsin Policy Forum report that examines Milwaukee’s small business supports found that while the city does have a strong network of business support organizations, there is a need for one organization to help convene all these resources, and to better educate entrepreneurs on the help available to them.
The report mentions 50 public and private sector organizations created to help support Milwaukee entrepreneurs, whether that be through training and coaching or through networking opportunities.
“Overall, it appears that a sufficient number of service providers exist and that there are no major service types that are needed but entirely absent,” reads the report.
While Milwaukee does have a strong network of business support organizations, one of the key challenges highlighted in the Wisconsin Policy Forum report is the lack of a single entity serving as the “backbone” of the city’s support ecosystem.
“Although some groups convene business support organizations in Milwaukee regularly, our analysis shows that in other large Midwest cities, one or two organizations have emerged to take on clearer leadership roles in their local business support ecosystems,” reads the report.
The report compares Milwaukee to the peer metros of Kansas City and Detroit. In Kansas City, an organization called KCSourceLink serves as the city’s backbone and helps entrepreneurs navigate the resources available to them, while convening key leaders and stakeholders to identify service gaps and develop solutions.
Detroit has a “funder collaborative” called New Economy Initiative that is made up of 13 local and national philanthropic organizations. New Economy Initiative identifies itself as a “network steward, convener, analyst and catalyst” for Detroit’s entrepreneurship support system.
Another key challenge Milwaukee faces is educating entrepreneurs on the business supports available to them. Several local leaders interviewed by the Wisconsin Policy Forum said new and expanded efforts are needed to make entrepreneurs aware of these supports.
“This may be particularly helpful for reaching those in lower-income Milwaukee neighborhoods,” according to the report. “Establishing some sort of ‘front door’ may be beneficial, whether through one organization taking the lead on navigation services (like KCSourceLink has done in Kansas City) or through other means.”
The report points to the possibility of establishing a business center in the city where multiple business service organizations could provide assistance to local entrepreneurs in one place – something similar to the model used by the Milwaukee Rental Housing Resource Center.
Several of the local leaders interviewed by the Wisconsin Policy Forum also stressed the importance of the need for a “no wrong door” approach. This would make sure business owners can receive referrals to other area service providers regardless of which organization they first talked to.
There are a few categories of business support services organizations where demand is outpacing capacity in Milwaukee, according to the report. The three types of services most commonly mentioned by interviewees include one-on-one business coaching, financial education and access to capital. The report also states poor financial management skills among Milwaukee entrepreneurs is a common concern, so expanded programming in this area could be helpful.
A final key takeaway from the Wisconsin Policy Forum report is that the city’s local philanthropic organizations could play a bigger role in supporting entrepreneurs.
In addition to Detroit, Chicago has also developed a “funder collaborative” focused on supporting local entrepreneurs. In Milwaukee, no such collaborative effort exists.
Part of the reason Kansas City’s KCSourceLink has been so successful is because the organization is linked to the Kauffman Foundation, which is one of the nation’s biggest philanthropic supporters of entrepreneurship.
“Our research suggests that with more focused leadership, coordination, and financial support, the city’s current small business support ecosystem could become even healthier and achieve greater effectiveness in addressing the varied needs of small business owners and entrepreneurs,” reads the report.
