The USDA and Small Business Innovation Research (SBIR) Grants – Seeding Innovation

In 1982 the Small Business Innovation Research (SBIR) Development program was established by Congress to provide seed capital for research and development through 11 Government Agencies. For profit companies with less than 500 employees that are majority owned by US Citizens or permanent resident aliens are invited to submit proposals for a chance at funding for their innovative idea. Eleven Government Agencies (such as USDA, NSF, and DoD) participate, and each agency handles the grant proposals, review, and selection differently.

For winning proposals, the USDA provides funding of $100,000 for eight (8) months to cover concept development. This is called a Phase I grant. If a company successfully navigates concept development, they may apply for a Phase II grant. If awarded, a Phase II grant supplies up to $600,000 for two more years of concept development. The ultimate goal is commercialization of a new technology or innovation.

Liz and Ann

Liz and Ann – Founders of Green Heron Tools

One company that at least in part owes its existence to the USDA SBIR program is Green Heron Tools. Based on the premise that garden tools work well for male body structures but not female, two dynamos, Liz Brensinger and Ann Adams, rounded up a team consisting of engineers, farmers and occupational therapists to develop a new concept: ergonomic garden tools for women. In 2008, Green Heron Tools launched.

Both women had full time day jobs and a dream to farm and sell their produce at farmers’ markets and restaurants. One of the women was a nurse and the other a public health educator by trade. They parlayed those skills into a consulting business, writing grants for not-for-profits. In their spare time they farmed a small plot of land in Pennsylvania. The women soon realized that the tools they were using on their small acreage farm were difficult to maneuver, inefficient, and not ergonomically correct. Because of their health backgrounds and aching bodies, they were painfully aware that this discomfort could lead to injury including cumulative trauma.

At one of the farmers’ markets where they sold their produce, the women struck up a conversation with a customer who just happened to be a mechanical engineer. They shared their idea for ergonomically designed garden tools with him. He was intrigued and quickly whipped up initial calculations proving ergonomically improved tools were possible. This motivated the women to conduct an on-line survey of women farmers. Through this they learned that THE single most important tool that needed a new design was a shovel. The women reached out to a state farming resource who told them about the USDA SBIR grants. The women applied, and in January 2009 they were awarded a $100,000 Phase I grant to develop their concept.

The team they recruited worked with them to bring that concept to reality. They conducted research and collected data. One of their team members turned out to be a doctoral student who decided to write his dissertation on designing ergonomic tools for women. Another, an engineer, used the research data collected to design several shovels and then created prototypes that were tested by women – students, gardeners, and farmers in the field. The researchers determined that women dig differently than men and thus need a different shovel design. The research data that was collected proved their hypothesis about ergonomics, shovel design, and the female anatomy.

It took months to fine tune the shovel design, locate a fabricator to do the manufacturing, determine sources for assembly and all the parts. Then, the fun part, what to call their new shovel. Team Liz and Ann decided to hold a Facebook contest to name their invention. This is where the term hergonomic was invented and where the “Hergonomic Shovel-Spade Hybrid” was born! Along the way there were wins and losses, but eventually the product launch occurred when Liz, Ann, and a car load of shovels made their way to the Mother Earth News Fair. More than two years after receiving the USDA Grant, HERS (the hershovel Hergonomic Shovel-spade hybrid) hit the market in 2011.

Ann and Liz have received a total of four Small Business Innovation Research (SBIR) grants from the US Department of Agriculture, two Phase I grants and two Phase II grants. They are dedicated to staying true to their health-focused mission of creating sustainable green yard and farm tools ergonomically designed for women. Liz and Ann are the only full time employees of Green Heron tools, but jobs and the economy of the region and state are boosted because they are dedicated to sourcing their supply chain through state and regional manufacturers and suppliers.

I called Liz Brensinger for this article. She told me that she and her partner, Ann Adams, have a passion for health and experience in grant writing. Together they identified a need, found resources to develop an innovative product to fill that need, and continue to develop other ergonomic products that further their mission. Through survey results they identified a shovel held the greatest potential because it was identified as an ergonomic need and women were willing to pay a premium for it.

Along the way the women learned lessons such as, the price that people say they are willing to pay based on survey results doesn’t necessarily translate into what they are willing to pay when the product is available in the store. They learned that distribution of ergonomically correct tools is a challenge because inherently, ergonomic correctness is based on variables such as height. At the same time, many retail establishments can’t provide the space or buy the inventory for every size of tool. Also, the yard and farm tool business is somewhat cost prohibitive to break into and historically is male dominated. Despite business challenges, the women forge forward with new, innovative “hergonomic” products that fulfill their corporate mission.

Advice from these two trailblazers is simple. Follow your passion, don’t cut corners, and don’t chase money. Stay true to what got you started in the first place.

To all of you budding innovators out there — I am mentoring and coaching candidates for USDA SBIR Phase I grants. If you would like assistance in preparing a proposal for a Phase I SBIR grant, shoot me an e-mail at white.2811@osu.edu. The RFA for the next award will be released in early July 2018, and the proposals are due in early October 2018. The grant money itself will be released in January 2019.  If you have the passion, time, and drive, I am here to help.

I have heard it said that everyone has one idea a year that if followed through, could result in a million-dollar business. What is your idea? Maybe a better question is, are you like Liz and Ann? Do you have what it takes to see it through to the end?


Kyle White is a County Extension Educator (Lorain County) & Area Leader (Area 4) for OSU Extension.

Small Business Innovation Research – New Initiative to Launch in Ohio!

Did you know that nearly half (46%) of Ohio’s workforce is employed by small business enterprises? According to the Small Business Administration, Ohio is home to 927,691 small businesses, roughly 80% of all business in Ohio.

In 2018 I will be working with other Extension professionals from across the United States to bring the Small Business Innovation Research (SBIR) programming – coaching and support – to Ohio. I will be learning about the intricacies of the program and will be disseminating that information to each of our county offices. The ultimate goal: to attract and support Ohio’s entrepreneurs via SBIR funding.

The mission of the SBIR program is to support scientific excellence and technological innovation through investment of Federal research funds in key U.S. technologies. The ultimate goal is to support a strong economy through small business innovation and application. SBIR is a highly competitive program that encourages small businesses to engage in federal research and research and development efforts with potential for commercialization.

Car of the future?

SBIR specifically targets entrepreneurs, innovators, idea guys and gals, because this group is where most innovation and innovators thrive. The problem for this population historically has been the expense of conducting research and development. Many are boot strapping or funding their projects and start-ups. To combat this challenge, funds have been earmarked for these innovators and are distributed to qualified candidates through the competitive approval process.

The SBIR program blends four goals:

  • nurturing technological innovation
  • meeting federal research and development needs
  • extending special attention to under-represented groups (women, socially or economically disadvantaged individuals)
  • and driving private sector commercialization.

In short, the SBIR program offers an “incubator” of sorts that begins with innovation and ends with commercialization.

Annually, SBIR recognizes success stories from their alumna companies. I reviewed the list of those recognized by SBIR in 2015 and 2016. Of those 23 recognized by SBIR in 2015, only one was located in Ohio (Frontier Technology Inc.). And none were from Ohio in 2016. During 2015 and 2016 only 20 states had any companies recognized through SBIR for their work. But SBIR funding is available! Perhaps entrepreneurs are not aware?! It is my goal to present the SBIR challenge/opportunity throughout the state of Ohio and encourage would-be techies to give it a shot. Look for the date of the upcoming training, coming soon and plan to join us!

Here are two examples of the types of companies that received SBIR program funds:


Kyle White is an Extension educator, Medina County.

Economic Gardening: Changing Community Culture to Grow Entrepreneurs

Who among us doesn’t want to live, work and play in a vibrant community? In addition to supporting local entrepreneurs, each of us can help to cultivate community vitality by understanding the larger strategies designed to assist small businesses to grow and thrive. Programs that help to develop business plans, obtain financing and market and manage enterprises are frequently included in a community’s economic “tool box.” Universities, Small Business Development Centers and local Chambers of Commerce often provide direct assistance that can range from one-on-one consultation to classroom instruction and group workshops.

Pioneered in Littleton, Colorado in 1987, and based on David Birch’s research at MIT, the concept of “Economic Gardening” recognizes that small businesses create most of the new jobs in local economies. While providing skill training for individual entrepreneurs is a very important component of economic gardening, it is only part of the picture. If entrepreneurs are to have their best chance to grow and thrive, being part of a community culture that understands, values and supports entrepreneurship is also important.

Communities are sometimes unaware of the depth and breadth of the local entrepreneur base and its contribution to their overall economy. They might not understand the support the community can provide and the importance of a supportive culture. “Culture is a mindset built on commonly held and shared beliefs …about starting, owning encouraging and supporting our own companies and entrepreneurs. It is a way of thinking that drives a group to act.” (EDA University Center/Center of Northern Iowa) The actions of local leaders and residents demonstrating their support for entrepreneurship are at the core of this mindset.

There are various dimensions to entrepreneur friendly communities and many players need to contribute toward its creation. It is not just the responsibility of local leaders or economic developers. Cultural change is broad in its scope and goes beyond positional leadership to less formal social networks embedded in the community. With that said, local leaders – private and public – can be “change masters” by championing initiatives and attitudes that support entrepreneurs. The following are some examples. This list is not meant to be exhaustive, but to describe supportive services that emerge from a community mindset that nurtures entrepreneurs:

  1. Risk tolerance: At the most basic level, entrepreneurial communities embrace a mindset that tolerates risk and does not see trying and failing at an enterprise as a character flaw. It supports and encourages innovators who are willing to try time and again before reaching success.
  2. Consumer support of local business: Supportive communities have a “buy local” initiative, encouraging residents to support and patronize their businesses and services first.
  3. Celebration of success: Economic development organizations such as the Chamber promote the successes of local entrepreneurs and small businesses. Start-ups and expansions are recognized and championed through media coverage.
  4. Commitment of Public Officials and Offices: Local elected and appointed officials set a tone of appreciation for business innovators. They take the lead in insuring that local governmental offices and agencies, often the first stop for entrepreneurial enterprises, cut through red tape, streamline approvals, and coordinate with each other, perhaps through a “one stop” center approach.
  5. Public and private financing alternatives: It is important to offer a variety of different financing avenues for entrepreneurs in recognition of their special need for start-up capital and a fast turn-around time for project implementation. Building partnerships between private and public financing sources to reduce/share risks and provide incentive financing, shows support for entrepreneurs.
  6. Networks: Entrepreneurs benefit greatly from opportunities to network with their peers. Facilitating the creation of an entrepreneur network which can then take on a life of its own provides a supportive and strategically beneficial environment.
  7. Supportive services and spaces: Incubators for start-ups and expansions help to reduce initial expenses for facilities and services. Maker spaces are community centers that provide access to tools, equipment and other technology needed to test and launch new products and ideas.
  8. Infrastructure: Entrepreneurs need access to markets and resources. Broadband Internet capacity is a critical component of an entrepreneurial friendly community.

In short, the challenge for communities is to create an environment that nurtures, appreciates and values entrepreneurs and their unique needs and contributions. An adaptation of a quote by Roger Blackwell, Professor Emeritus in Marketing at The Ohio State University, is as follows:

To create a community culture, mindset and initiatives that support entrepreneurship, and to realize the benefits and investment from this economic development approach, what does a community need to become?

The following resources provide additional information:

EDA University Center/University of Northern Iowa: eda.uni.edu/supportive-culture

Ewing Marion Kauffman Foundation: kauffman.org/what-we-do/resources/policy/economic-gardening

Myra Moss is an Associate Professor and Extension Educator (Heart of Ohio EERA).

Financing Entrepreneurship and Business Expansion

Revolving Loan Fund - cropped

In 2015, the Van Wert City Revolving Loan made five loans totaling over $252,000, which supported the creation of 12 jobs.

Entrepreneurship is a critical component of any community. So, how can we support entrepreneurial growth? One tool available to communities interested in helping entrepreneurs start businesses and facilitating the expansion or relocation of existing businesses is a Revolving Loan Fund (RLF). The principal goal of the RLF is to create and retain private sector jobs, of which 51 percent must be held by persons from low-to-moderate income households. Applicants must document job creation for any RLF money borrowed and one (1) full time equivalent job must be created for every $25,000 increment borrowed. Applicants have two years to fulfill the job requirements. Loans can be made to businesses for land and building acquisition, new construction, building renovations and improvements, machinery and equipment purchases, and working capital. Loans involving construction and building renovations and improvements are subject to national prevailing wage requirements should the labor exceed $2,000.

This program allows businesses to secure fixed low interest rate loans. Two types of loans exist: Economic Development loans and Micro loans; however, each community may not offer both loan types. Most businesses apply for an Economic Development loan, which is a combination of owner equity, private funding (bank loan), and RLF money, to secure their project financing. Economic Development loans can be made for up to 50 percent of the project total. The Micro Loan option allows for RLF money to be the sole funding source for businesses with five or fewer employees undergoing projects less than $35,000 and capable of meeting the income requirements.

For more information, please visit the Ohio Development Services Agency Community and Economic Development Programs page. Communities interested in starting a revolving loan fund should review the information on the PY 2016 CDBG Community Development Program Notice of Funding Availability (NOFA) and Training Forum announcement and submit their application by Friday, June 17, 2016.

(Submitted by Caitlin Jones, Program Coordinator, Van Wert County & Maumee Valley EERA)

Financial Literacy and Entrepreneurship: Helping high school seniors consider a future in small business

With only a few weeks of school to go before graduation, Van Wert City School seniors were offered yet another option to consider for their future:  becoming an entrepreneur and owning their own business.

Members of the Van Wert City Schools senior class are required to take Senior Government which includes a segment focused on Financial Literacy within the overall curriculum. The Financial Literacy portion of the class offers several aspects of personal finance, from car loans to credit cards. Missing in the program was an opportunity that involved owning your own business. Last year, Ohio State University Extension and the Wright State Lake Campus Business Enterprise collaborated with school administrators to teach students about starting their own business.

Van Wert HS EntrepreneurshipWith the program finishing its second year, Senior Government teacher, Bob Priest, was again impressed with the students’ interest and excitement about owning their own business. “Van Wert High School government students had the good fortune of participating with two universities at the local level for a three-day introduction to entrepreneurship, business planning and financing,” stated Priest. “I was impressed with the ideas the students created for the betterment of Van Wert, and then they had to put the numbers to their business plan. That was the difficult part. I think students now have a better understanding of how expensive and time consuming it can be to own a business.”

The program involved personal entrepreneurship assessments, identifying local market opportunities, and creating a business plan. In addition to a visit from local entrepreneur and business owner of Firehouse Pizza in Middle Point, the students learned about start-up expenses, on-going operating costs, pricing and break-even analysis.

Post-program evaluation results indicated that 98% of the students felt the program was suitable for graduating seniors and 95% recommended Van Wert High School continue to offer the program. Surprisingly, 48% of the students responded they would be interested in owning their own business in the future. “Because of this, I may now think about starting my own business while I may not have wanted to before,” remarked one of the participating students.

(Submitted by Cindy Leis, County Extension Educator, Van Wert County & Maumee Valley EERA and Van Wert City Economic Development Director)

People First. Employment First. A Promising Model Unfolds.

People with disabilities are the nation’s largest minority and cross all racial, gender, educational and socioeconomic lines. Throughout history, people with disabilities have been subject to prejudice, stereotyping and discrimination. These experiences have occurred in many venues, especially in the workplace. In a recent study (Mansour, 2009), 40% of people with disabilities have said they have encountered job discrimination, and 33% have reported encountering “unfavorable attitudes” while on the job. For individuals who experience developmental disabilities, these negative realities coupled with high rates of unemployment and underemployment often result in isolation, exclusion and feelings of not being valued.

Cleveland CropsHowever, progress has been made over the past several decades to improve legislation, policy, practice and attitudes for individuals with disabilities so that they might have better access to integrated and competitive (community) employment. In Ohio, the Governor’s Employment First initiative furthers this vision of community employment for individuals with developmental disabilities by creating a new culture that values every person as having abilities, skills and talents to enrich communities and providing them opportunities to explore career options and seek jobs that fit their skills and interests. An integral component to this new culture is assuring that relevant training and education exists to prepare individuals with developmental disabilities for their desired careers and available jobs. In Greater Cleveland, where traditional sources of employment for people with disabilities are shrinking rapidly, entrepreneurial ventures in the booming local foods and urban agriculture movement hold much promise in providing hands-on training and creating new jobs in the community. Cleveland Crops is one such example of this promising model.

The Cuyahoga County Board of Developmental Disabilities, along with its nonprofit affiliate, SAW, Inc., and with support and technical assistance from Ohio State University Extension, has turned to entrepreneurship as a new avenue for community employment opportunities for nearly 100 of the Board’s adult consumers, many of whom have struggled to find meaningful, integrated jobs. Cleveland Crops is an agriculture and food processing training and employment program designed to create innovative work opportunities and new career choices for adults with developmental disabilities. Through the development of several urban farms and a 5,000 square foot Food Innovation Center that supports consumers in producing food products and co-packing for others, Cleveland Crops is an entrepreneurial and promising model in achieving the goals of the Employment First initiative by providing training and education on the skills needed for jobs (community employment) within the robust, local food economy. Its integrated approach of learning in the community is also significant in fostering inclusion and valuing diversity as a positive influence.

Click here to learn more about Cleveland Crops.

(Submitted by Marie Barni, Program Director – CD and County Extension Director, Cuyahoga County & Western Reserve EERA)

Growing the economy with entrepreneurial talent

Entrepreneur

What community doesn’t want to learn about identifying and growing its entrepreneurs? Communities of all sizes, large and small, are looking for ways to bolster economic growth. While research shows about 60 to 80 percent of new jobs created annually are the result of existing business expansion, new business start-ups create about 40 percent of new jobs annually (about 6.5 jobs per new business on average) (Badal, 2010).

How can we partner with the chambers of commerce, economic development offices and youth leadership programs to cultivate interest in growing new businesses in these communities?

We recently had the opportunity to tour the world headquarters of Gallup (the longtime ‘polling’ organization that has more recently gotten into the business of ‘StrengthsFinder’ among other things). In addition to hearing an interesting overview of the company’s history, we also learned of the newly unveiled ‘Entrepreneurship StrengthsFinder’ from Gallup representatives. We left there convinced that this tool provides us opportunities to stimulate interest in exercising entrepreneurial talents and abilities with audiences of all ages and walks of life.

To learn more about this new tool for identifying entrepreneurial talent, click here.

(Submitted by Greg Davis, Professor and Assistant Director, OSU Extension – Community Development, and Rose Fisher Merkowitz, Associate Professor and Extension Educator, Miami Valley EERA)

High School Seniors explore another Path to their Futures

Van Wert HS Starting Right for the Student Workshop 2014 - #2Where have nearly two of every three new jobs come from since 1995? That would be small businesses, according to the SBA and U.S. Census. How can we stimulate entrepreneurial interest? How about a special workshop for getting high school seniors interested in and thinking about their futures as entrepreneurs and business owners? Such an effort was recently conducted with Van Wert High School seniors, 53 percent of which indicated, at the program’s conclusion, an interest in owning their own business sometime in the future.

For more information about the program and to read about the pilot project at Van Wert City Schools, click here.

(Submitted by Cindy Leis, County Extension Educator and Van Wert Economic Development Director)