MSU to administer nearly $3M in statewide entrepreneurial support

Rachel Munday: Federal funding will expand business aid resources across the state.

Missouri State University is tasked with administering nearly $3 million in entrepreneurial support funding from the federal government through creation of a statewide program.

The announcement from the Missouri Department of Economic Development is intended to build on work that Innovate SOMO, a regional network created to boost the tech workforce in southern Missouri, has undertaken since 2022.

The Efactory, MSU’s downtown Springfield business incubator, will partner with Cape Girardeau-based technology incubator Codefi LLC and others to utilize the $2.9 million in funding, which calls for the creation of the Missouri Technical Assistance Program, according to a news release. The funding comes from the U.S. Department of the Treasury’s State Small Business Credit Initiative, with financial backing from the American Rescue Plan Act.

The new program, dubbed MOTA, calls on training programs, in-person and virtual classes, and one-on-one consultations for entrepreneurs statewide, including in rural areas. It is intended to build upon Innovate SOMO, also called the Southern Missouri Innovation Network, through which the Efactory and Codefi provide entrepreneurial support in southern Missouri.

Innovate SOMO’s programming includes training and education programs, business-building assistance and help in creating jobs for entrepreneurs in 47 counties in southern Missouri.

“Many entrepreneurs are passionate about growing their businesses while staying rooted in their communities,” said Rachel Munday, executive director of the Efactory, in the release. “By expanding resources to all corners of the state, we can provide more assistance and connections that help small businesses thrive no matter their location. This grant will enable us to open doors to new opportunities for many entrepreneurs and small-business owners who are eager to grow and make an impact.”

The official announcement of MOTA was set for April 25 at Codefi’s headquarters in Cape Girardeau, as Efactory and Codefi held a week of programming and announcements April 21-25 in conjunction with Innovate SOMO week.

In service
At an April 21 kickoff event at the Efactory for Innovate SOMO week, Munday said the regional network was announced almost three years ago to the day. According to Innovate SOMO’s website, it has since served over 1,150 individuals, leading to the creation of 60 new businesses and 511 jobs. Those served include participants in tech programs such as Code Labs for software developer training and Youth Coding League, which introduces fifth through eighth graders to computer science and coding education.

It has utilized grant funding to expand its programs, including a pair from the DED in 2023 totaling roughly $3.5 million funded via ARPA. Since launching in 2022, total investment in Innovate SOMO has exceeded $16.7 million, including over $7 million in federal and state competitive grants, according to its website.

“Innovate SOMO wouldn’t be possible without a lot of people saying yes to collaborating and partnering together,” Munday said at the kickoff event. “Through these regional connectors, we’re building a regional ecosystem that supports entrepreneurship and innovation to create better jobs and opportunities for the entire southern Missouri region.”

Munday said Efactory’s partnership with Codefi has allowed both of their teams to “focus and double down on what we know, plus grow our expertise and reach what would otherwise not be possible.”

Another program offered as part of Innovate SOMO is an early-stage business boot camp, which targets aspiring or current small-business owners. The program provided by Efactory and Missouri SBDC at MSU covers eight sessions over roughly two months. In them, attendees learn best practices, such as creating an LLC and setting up a business bank account, and discover local resources designed to help small businesses grow.

Chrystal Irons, director of Missouri SBDC at MSU, said at the kickoff event that initial funding for the program came from the U.S. Bank Foundation. Since its 2023 debut, the program has partnered with over 17 organizations to deliver 25 cohorts and reach over 470 participants, she said.

In the program, participants receive ongoing coaching and mentoring through Missouri SBDC and Efactory to develop a growth plan and financial budget by its conclusion, according to SBDC officials. Topics include learning market research and analysis, finding and accessing capital resources, developing a marketing strategy, and hiring and managing employees.

“These boot camps reflect what Innovate SOMO is all about – local success, local leadership and local investment,” Irons said.

Innovate SOMO is a contributor in the state’s pursuit to be an emerging hub for the tech sector. A new report this month from the Missouri Chamber of Commerce and Industry projects the state will be a top 10 state in tech manufacturing job growth over the next five years. According to the report, technology accounts for over 5% of Missouri’s employment and 10% of the state’s gross domestic product. Over the last five years, the tech industry added over 14,000 net new jobs, the fourth highest number of jobs added by any industry in the state.

The U.S. Bureau of Labor Statistics projects overall employment in computer and information technology jobs will grow much more quickly than the average for all occupations from 2023 to 2033. An average of roughly 356,700 openings are projected each year in these occupations based on demand and to replace those exiting the field.

Expanded partnership
Irons said Efactory and Missouri SBDC are also partnering with open-book style management system company Great Game of Business Inc. on expanding access to business consultation. Two Missouri SBDC business consultants will be certified GGOB coaches, enabling them to support small-business clients across the region with customized consulting and implementation strategies.

“Through Innovate SOMO, we’re making this system more accessible than ever,” she said. “Our partnership allows us to offer coaching to help businesses understand and implement the Great Game of Business.”

The Efactory plans to launch a calendar of in-person GGOB training opportunities beginning this fall, Irons said. These sessions, which include financial literacy, will be available to businesses already using GGOB, as well as those looking to strengthen financial understanding, improve team alignment and build more engaged, results-driven teams.

“Our goal is to help more businesses across southern Missouri grow – not just by expanding their revenue but by helping them set goals and build stronger cultures and more informed decision makers at every level,” she said.

GGOB is the open-book management division of SRC Holdings Corp., led by President and CEO Jack Stack. In 1992, Stack wrote “The Great Game of Business,” which details his democratic style of running companies, advocating for employers to be open about and discuss financial decisions and situations with employees, according to Springfield Business Journal archives.

The Efactory has already begun integrating GGOB tools into its entrepreneurship intern pilot program, which is available to Efactory incubator members and MSU students, according to past reporting. The program seeks to pair students with startup companies for a semester.

The partnership with GGOB is funded through a community revitalization grant program from the DED. Codefi and Efactory received over $2 million from the grant, which was funded through ARPA, according to a separate news release. The local funding is in support of Innovate SOMO.

Jeff Schrag, who was sworn in April 21 as Springfield’s new mayor, served as keynote speaker at the Innovate SOMO week kickoff event. The businessperson, who owns legal publication The Daily Events and is founder and minority owner of Mother’s Brewing Co., said entrepreneurism can exist anywhere within an organization and people’s work.

“For me, what I see as the biggest tenets of entrepreneurialism is the ability to imitate, the ability to tap into organizations and entities that will help further you along the way,” he said.

Still, for any aspiring entrepreneurs, he said at some point you must take a leap.

“That is something I really can’t help you with today,” he said, regarding when to act. “It’s deep within your soul. It’s deep within who you are.

“If you wait until you know everything, that leap will probably pass you by. If you wait until you are comfortable, you oftentimes have waited too long.”