Franchising is a common choice for people who are considering an entrepreneurial leap, but end up deciding to wade into it first. It offers a structured way to start a business, and, as a new Harvard Business School study shows, franchising also makes sense for the franchiser too. The research examined how convenience stores move into new markets serving different demographic groups. It finds that retailers who employ a franchise model tend to have an easier transition into new markets. Franchisee store managers are more motivated and also more likely to have closer community connections. It also appears that these franchised stores have higher unit sales. The study concludes by noting that organizational designs similar to franchising might be an effective approach for other organizations that are moving into diverse new markets.

Download the 2008 Harvard Business School Working Paper (08-091), “Organizational Design and Control across Multiple Markets: The Case of Franchising in the Convenience Store Industry,” by Dennis Campbell, Srikant M. Datar, and Tatiana Sandino.

Angel investment in the U.S. in 2007 totaled $26 billion, up only slightly (1.8%) over the year before, according to a report by the Center for Venture Research at the University of New Hampshire. However, the number of ventures receiving investments increased 12%, to 57,120; and the average deal size decreased accordingly. Software accounted for the largest share of investments (27%), followed by healthcare (19%) and biotech (12%). Angels continued to be the largest source of seed and start-up capital, with 39% of angel investments in the seed and start-up stage. Overall, angels funded 14% of the deals offered them. Read more about angel investments in 2007 at:
wsbe.unh.edu/files/2007%20Analysis%20Report_0.pdf

A new study issued by the Small Business Administration (SBA) asks and answers the question, “Are Male and Female Entrepreneurs Really That Different?” Their paper reveals more similarities than dissimilarities; however, the differences may be instructive to those who study ventures between genders.

Motivation: Women are more interested in achieving work-family balance, and in seeking work that is personally fulfilling.

• Effort: Female entrepreneurs invest less time in their businesses.
• Identifying opportunity: Women utilize different sources of information about opportunities.
• Type of business: Women are less likely to be in manufacturing and high-tech businesses.
• Venture size: Women’s start-up businesses are smaller.
• Expectations for performance: Women have less confidence in their entrepreneurial abilities and form smaller businesses.
• Start-up problems: Women entrepreneurs face more problems.

The 61-page report contains plenty of data and should stimulate discussion. Download it at www.sba.gov/advo/research/rs309tot.pdf.

University research parks are a big and growing part of America’s innovation system, according to a new study published by the Association of University Research Parks and Battelle. Characteristics and Trends in North American Research Parks: 21st Century Directions. The study surveyed 134 research parks in the US and Canada. Overall, these parks encompass more than 47,000 acres and 124 million square feet of building space. Collectively, the research parks employ more than 300,000 people. Some trends are appearing in this market. Interestingly, research parks are starting to place more emphasis on incubating and nurturing entrepreneurial companies (as opposed to housing established firms) as a means to grow their future tenant base. Another promising trend is that research parks are reaching out more aggressively to support economic development in the surrounding region. As universities become more engaged in these activities are being viewed not simply as business locations, but as key drivers of the local economy.

For small businesses, the next decade will see the reality of technology catch up with the hype of the last decade. The nature of this new reality is the subject of the second report in the Intuit Future of Small Business Series. The study focuses on three emerging technology trends:

The Veterans Corporation, a Federally-chartered non-profit supporting veteran business owners, has announced a new program to seed veteran entrepreneur support efforts across the US. The new Veteran Entrepreneurship Grant program will provide grants of up to $50,000 for organizations who have designed innovative initiatives that help veterans start new businesses or that help entrepreneurs who need to prepare their firms and employees for potential military deployments. The grants are for service organizations, not for individuals.

Learn more about the Veterans Corporation program and download application materials.

Just as the “American Idol” television series is stirring up the music business, a group of entrepreneurs is quietly adopting a similar format to change the face of the venture capital and angel investing industry, according to an analysis on venture financing by the Ewing Marion Kauffman Foundation. According to the paper, while “American Idol” has proved to be a major success in identifying and establishing entertainment stars, the reality show also has tapped industry experts to groom and coach the top talent in the competition, who have gone on to sell tens of millions of albums. A similar formula is emerging among a new wave of entrepreneurs and venture capital funders -- from identifying new entrepreneurs to providing the expert advice and support in launching and accelerating new business operations.

The US Small Business Administration (SBA) is doing its bit to provide some extra support to America’s veterans. SBA officials have recently unveiled their new Patriot Express Loan Initiative. This effort is an extension of SBA’s flagship 7(a) loan guarantee program. The Patriot Express Loans work much like 7(a) loans -- potential customers work with a local bank, and can be eligible for loans of up to $500,000 with up to 75-85% of that total covered by an SBA guarantee. The program will also provide SBA’s lowest interest rate for business loans (anywhere from 2.25% to 4.75% over prime). Learn more about the US Small Business Administration’s Patriot Express Loan Initiative.

Entrepreneurs searching for information on starting and growing their business have a new tool at their disposal. The Biz Info Library, launched during EntrepreneurshipWeek USA, is an online collection of articles featuring practical, results-focused information. Along with some of the top publishers on small business and entrepreneurial success, content providers include world-renowned authors and leading business experts. The online collection is a collaborative effort of The James J. Hill Reference Library, the Ewing Marion Kauffman Foundation and the Edward Lowe Foundation and is free to all users.� Access the Biz Info Library.

Following the culmination of a three year study, the National Academies, the nation's leading scientific advisors, are calling for significant improvements to the mechanisms the government uses to collect information on entrepreneurship. The current business data systems from the federal government do not adequately measure dynamic economic trends, particularly for new businesses. In order for policymakers and researchers to fully understand business births and deaths, worker flows, and growth of productivity and innovation ? and their role in the larger economy ? the report puts forward recommendations that relate loosely to three data and measurement needs: 1) to increase the statistical system's capacity to measure activities of small and young businesses?especially those positioned in fast-growing and innovative sectors of the economy; 2) to improve the coverage and depth of business data through more effective coordination and integration of existing information sources; and, 3) to shift the legal and organizational environment to accommodate data sharing and confidentiality protections in ways that enables the kinds of efficiencies envisioned by the panel to occur.