Regional Economy

'spark plug' brings together incubators and accelerators to boost small biz
The Cuyahoga County Next Generation Council (NGC) will host Spark Plug, an event to celebrate small business growth and the region’s many opportunities for funding and growth, June 6 at Negative Space Gallery. The event kicks off Small Business Incubator Month.
 
“Spark Plug is focused on small business accelerators and incubators,” says Tammy Oliver, program organizer and a member of NGC. “It brings together all of the amazing resources we have in Cleveland and Northeast Ohio for young and innovative people.”
 
More than 20 incubators, accelerators and funding organizations will have tables set up to explain what they do and how they can assist a young business. “There hasn’t been an event before this where all of the incubators and accelerators come together in the same room,” says Oliver. “By supporting each other these organizations are supporting the region and all of the businesses. It’s not a secret that small business drives the economy.”
 
Successful businesses that have benefitted from some of the area’s resources will make presentations. Oliver hopes their stories will encourage other aspiring entrepreneurs. “There are so many people out there with amazing ideas and they don’t know where to start,” she says. “Hopefully, they will walk away with more knowledge and know they can take smart risks and there are a lot of people here to help them.”

Spark Plug runs from 5:30 p.m. to 8:30 p.m. Registration is preferred, but Oliver says walk-ins are welcome. Admission is free.


Source: Tammy Oliver
Writer: Karin Connelly
entrepreneurs riding road to success thanks to growing bike-based economy
As cities continue to become more bike-friendly, new bike-based businesses are springing up to support the movement. These bike-centric businesses are both banking on and promoting a growing interest in riding, and in the process they are boosting their cities' economies.
'father-daughter hackday' encourages girls to become makers of technology
If it's up to Rachel Wilkins Patel, fathers and daughters will create something cool together this Father's Day.

Patel is founder HER Ideas in Motion, Northeast Ohio’s first technology and media program for girls. On June 15, the nonprofit will host a Father-Daughter HackDay featuring hands-on activities and career role-modeling for girls ages 11-14 interested in STEM-focused studies. Participants will create their own projects under the tutelage of female technology professionals.

The workshop "is about fathers encouraging daughters to try new things and become makers of technology, not just users," says Patel, a developer at Progressive Insurance.

Being the only woman in the room is not uncommon in high-tech professions, something that HER Ideas in Motion aims to change.

"The number of women in programming is flat and even decreasing in some areas," Patel says. "We're trying to address social and industry issues."

Launched in 2011, the program has graduated 130 students. Interacting with successful women from Rosetta, LeanDog Software, NetApp and Keybank during the Father's Day program will only motivate teen girls to pursue their high-tech aspirations, believes the nonprofit founder.

Gender should not be an obstacle for creative types hoping to program their own video game or dissect the inner workings of a computer, Patel notes. Middle school is the perfect time to introduce girls to the ever-growing digital space.

"We want to reach them before they know what they're capable of," she says. "They should be comfortable taking technical classes later in their school careers."

 
SOURCE: Rachel Wilkins Patel
WRITER: Douglas J. Guth
forbes takes a sip of cleveland whiskey's novel methods
In a Forbes feature titled “Cleveland Whiskey Ages Bourbon In One Week,” science, technology, and culture writer Alex Knapp explores the unique process Tom Lix developed to bring his product to market.
 
“After making the spirit, a distillery places it into charred, American oak barrels to age. Usually for several years, with premium bourbons often aging for nine years or more,” Knapp writes. “But in Cleveland, Ohio, Tom Lix aims to disrupt the traditional aging process of bourbon. He’s developed a process to accelerate the aging process of whiskey from years into about a week.”
 
While the story does not go into details of the proprietary aging process for obvious reasons, a bare-bones explanation of how it works is revealed.
 
“It definitely does not taste like a young whiskey, a common snark you’ll see at some whiskey tasting websites, where Cleveland Whiskey is seeing plenty of detractors,” Knapp continues.
 
Enjoy the complete feature here.

rta healthline praised as major job creator
In a Huffington Post blog item titled “Transit Initiatives Boosted by Employers,” Laura Barrett writes of the vast amount of good that follows support and investment in public transit.
 
In the piece, Barrett highlights numerous benefits, including job creation, as one of the key factors in drumming up support for new transit creation.
 
“For every $1 billion investment in transit, 60,000 jobs are created, making transit one of the best job generators in our economy.”
 
Our fair city was cited as an example of success when public support paired with corporate involvement work together for the greater good.
 
“Cleveland's two largest employers, The Cleveland Clinic and University Hospitals of Cleveland, were involved in a campaign for the HealthLine, one of the nation's most successful Bus Rapid Transit lines.”
 
Read the full post here.

bizdom looks beyond cleveland for promising companies
Bizdom Cleveland has invested in 16 young companies since it set up shop in January 2012, and the organization is targeting 18 more companies this year. While many of the companies are local startups, Bizdom also scours the country in search of promising businesses to recruit to Cleveland.

So far Bizdom has brought four companies to Cleveland: Queryly from New York, MascotSecret from San Francisco, Firmly Planted from Los Angeles and CourseBuffet from Seattle.
 
“The bottom line is we’re looking for the best and the brightest wherever we can find them,” says Paul Allen, leader of Bizdom Cleveland. “We find them, and then we do our best to sell them on the benefits of doing business in Cleveland.”
 
It’s not difficult to recruit companies to the area, given Cleveland’s support of small startups. “There’s a very large and organized infrastructure here,” Allen explains. “Cleveland has a bunch of organizations that provide support, expertise, resources, investment, equity and debt funding. The continuum of organizations that support small business is unlike other parts of the country.”
 
And the assistance is accessible. “Cleveland has a tight-knit startup community that doesn’t take long to identify the key players,” Allen says. “They exist here and you can access them.” Allen points out that the Dan Gilbert and Quicken Loans name also attracts businesses.
 
One of Bizdom’s requirements is that its portfolio businesses locate in Cleveland. All four relocated companies have chosen downtown for their headquarters.
 
Bizdom companies have created 36 full-time and 10 part-time jobs. Allen hopes more out-of-town companies will come to Cleveland for Bizdom’s fall accelerator program in August. “We have lots of applicants from out of state for August,” says Allen.

 
Source: Paul Allen
Writer: Karin Connelly
brain gain group, bar association link up for cleveland pep rally
The Brain Gain Cleveland Project (BGCP) has teamed up with the Cleveland Metropolitan Bar Association to stage a lunchtime pep rally for the city they love.

The rally will be hosted by the legal organization and serve as its annual meeting, just with a far more diverse crowd than usual, says Debra Mayers Hollander, deputy director of scouting for BGCP.

Hollander is expecting 1,000 guests to make it to the floor of Quicken Loans Arena for the June 28 event. Among the more famous participants scheduled to appear are Cavs owner Dan Gilbert and Senator Sherrod Brown. BGCP members the Cleveland Orchestra and Positively Cleveland will be among the institutions on hand. The event also will include live music, videos about Cleveland, and food from local eateries.

Rally attendees can fill out a registration form online or purchase tickets by calling the bar association at 216-696-3525. Those who miss the daytime event can make up for it that night with a BGCP music and networking get-together at The Tavern Company in Cleveland Heights.

"It's going to feel inspirational," Hollander says. "Everybody coming together in the heart of downtown Cleveland to support one another."

BGCP is a nonprofit advocacy group founded by bar association members to grow the city through the creativity and energy of its citizens. The grassroots effort is led by Jon Leiken, a Jones Day partner and bar association president-elect. BGCP's website launched in 2012 and has attracted about 350 “scouts," a term referring to its members.  

"We hope [the rally] encourages people to join us and become a scout," says Hollander.

 
SOURCE: Debra Mayers Hollander
WRITER: Douglas J. Guth
volunteers needed for tall ship festival sailing into town this july
The Tall Ships are sailing back into the Cleveland harbor this summer, and are going to need some volunteers to stay afloat.

Okay, nobody will be hoisting the mizzenmast or lifting any bales, but there is a call for greeters, ticket takers, crowd control marshals, hospitality workers, docents, and more once the four-day event kicks off on July 3.

The Tall Ships Festival, returning to the lakefront for the first time since 2010,  is being organized and presented by the Rotary Club of Cleveland with support from the Cleveland-Cuyahoga County Port Authority. Some 500 enthusiastic volunteers are needed to ensure everything runs swimmingly, says Rotary Club member Edward Thomas.

"We can use people to carry water, help people get off and on boats, and drive ship crew members to the grocery store," Thomas says. "Virtually anything that's needed to be done, a volunteer is needed to help out."

Volunteers need to be 18-or-over and available for a minimum of two shifts between July 3 and 8, note festival organizers. Applicants can sign up on the festival website.

The family-friendly happening will bring a dozen replica historic vessels, showcasing the Great Lakes' great past and allowing visitors to experience the heritage these historic ships symbolize, says Thomas. Officials expect about 100,000 visitors for the event.

"It's always good to be around something where there's lots of energy and excitment," Thomas says. "It will be a great experience for those willing to help us bring life to the lakefront."

 
SOURCE: Edward Thomas
WRITER: Douglas J. Guth 
rust belt cities reach out to immigrants to boost population
In a The Wall Street Journal feature titled “Rust-Belt Cities Reach Out for Immigrants,” writers Mark Peters and Jack Nicas touch upon how rust belt cities like Pittsburgh, Cleveland and Detroit were a draw to immigrant workers who knew they would be able to find manufacturing jobs.
 
As time went on, those jobs disappeared, populations began to decline, and immigrants no longer looked to those cities to begin their new life in the United States.
 
“During the fresh immigration surge in recent decades, however, newcomers largely bypassed Detroit, Cleveland and St. Louis as manufacturing there -- and other cities in the region -- dwindled. They opted instead for cities such as Phoenix and Dallas.”
 
Peters and Nicas go on to explain the steps many rust belt cities are taking in an effort to grow their populations, one of which is luring immigrants back into the area through various grants and other programs.
 
Read the full feature here.

new online publication to explore rust belt culture and economic development
Building on the success of the book “Rust Belt Chic: The Cleveland Anthology,” a collection of essays and images about Cleveland edited by Anne Trubek and Richey Piiparinen, and subsequent blog, the publishers announced that they will launch an online magazine, Belt, this coming September.

“There was so much interest in 'Rust Belt Chic' that we really wanted to continue to have a space for people to contribute,” says Belt editor-in-chief Trubek. “We wanted to have an outlet that could provide long form pieces as well as criticism and commentary about things around town.”
 
Trubek describes the magazine as having a cultural and urbanism focus that will appeal to both Clevelanders and readers in other Rust Belt cities like Detroit, Pittsburgh and Buffalo. “We realize something is happening in the Rust Belt,” says Trubek. “It’s becoming sort of an interesting place nationally.”
 
The content of Belt will cover many interest areas. “It cuts across different demographics in Cleveland,” adds Trubek. “Our readership is a mix of young people living in the city with a DIY attitude and ex-pats around the country looking for good, meaty writing about Cleveland, but also people interested in the history of Cleveland and how history is important in terms of where we’ve been and what we are doing.”
 
Right now Trubek is looking for financial investors. Belt just launched a Kickstarter campaign to get the magazine off the ground.

 
Source: Anne Trubek
Writer: Karin Connelly
sugar plum cake wins competition, looking for permanent home
Jewels Johnson dabbled in a few different career paths before she found her true calling: baked goods. She grew up in Shaker Heights, went off to London, Charlotte, Las Vegas and Chicago before returning to Shaker in 2006 to work as a teacher at Shaker Heights High School.
 
Then, in 2011, armed with her grandmother’s recipe box, Johnson opened Sugar Plum Cake Company. “I’m a self-taught baker; my grandmother taught my mom and my mom taught me,” she says. “My inheritance was a 1937 KitchenAid mixer, the oldest known certified one that still works.”
 
Sugar Plum specializes in custom made cakes, cupcakes and other goodies. Everything is custom made to order. Johnson’s baked goods are so popular she quit her teaching job this year to concentrate on Sugar Plum full-time.
 
“For me, baking was really something to do during the summer,” Johnson says. “But it allowed me to quit my job two years later.” The business has taken off, and customers usually have to order at least a week in advance. Sugar Plum has 600 clients, with more than 400 being repeat customers. Johnson reports that sales have increased by at least 50 percent per quarter.
 
Earlier this month, Sugar Plum Cake Company was named the grand prize winner of the Spring 2013 Bad Girl Ventures Business Plan Competition. Johnson received a $25,000 loan to grow her business.
 
Johnson recently teamed up with Fresh Fork Market to develop a line of baking mixes using locally sourced flour and natural sweeteners, called Devour! Gourmet Baking Mixes. The line features a variety of cake, brownie, pancake and bread mixes. The line is available through Fresh Fork Market and Sugar Plum. Johnson is working with some additional retail sites to carry the Devour! line.
 
Johnson in the in the process of looking for a permanent location, where she intends to offer pop-up space for local artists while selling her cakes. She employs seasonal workers during peak times to help with deliveries and plans to hire three permanent employees this year to help with the Devour! production.

 
Source: Jewels Johnson
Writer: Karin Connelly
salon features slavic village in housing bubble feature
In a Salon story titled “Cleveland: Ground zero for the housing bubble,” Edward McClelland shares a compelling tale of how the housing collapse hit Cleveland’s Slavic Village neighborhood with a first-hand account from a lifelong resident.
 
“If houses go to heaven, then Classen Avenue, in the Cleveland neighborhood of Slavic Village, has been the scene of a mass Rapture. Ted Michols watched it all happen. A retired trade magazine editor, a bachelor, a man who likes to sit on his porch and share the neighborhood with passersby he’s known fifty years, Michols has lived his entire life in a little square house his grandfather bought in 1923.”
 
McClelland writes of Michols experience from the very beginning of the end up to modern day troubles and turmoil in his lengthy feature.
 
Read the complete piece here.

explorys lands fourth largest catholic healthcare company, expects to add 20 percent more staff
Last month Trinity Health, the fourth largest Catholic healthcare system in the country, hired Explorys to manage its healthcare data analytics in its hospitals, outpatient facilities and other facilities. Trinity will implement Explorys’ suite of cloud-based big data analytics solutions to manage the company’s clinical data.

The deal puts Explorys, which already is a leader in big data, on top in the clinical data market. Explorys has been rapidly growing since its inception nearly four years ago, and continues to grow. “We’re excited about Trinity,” says Charlie Lougheed, Explorys president and chief strategy officer. “We’ve seen a lot of growth in the past year alone, as well as the last three and a half years. The whole healthcare industry is in the midst of this transformation and big data is in the middle of that.”
 
Explorys’ big data solutions allow hospitals to better manage their data and therefore improve patient care. Trinity is the latest addition to more than a dozen healthcare companies that use Explorys’ solutions. “Trinity recognized they needed to select a platform that is going to expand into the future rather than solve a problem right now,” explains Lougheed. “They were looking for a platform that would grow and develop within their network, and Explorys met that need for them.”
 
Explorys continues to grow in its Cleveland offices. The company has close to 100 employees right now and has new-employee orientations every other month. “We plan to continue to hire people over time,” says Lougheed. “By the end of the year I expect, conservatively, to be at 120 people.”

 
Source: Charlie Lougheed
Writer: Karin Connelly
evergreen coop praised in new york times
In a New York Times post titled “The Cure and Feeding of Small Business,” writer and economics professor at UMass explains that while big business is still able to garner generous grants and tax incentives by promising jobs within political boundaries, it often comes at a price to small business and other civic services.
 
Once such model that is working well to foster success for the smaller enterprise as well as create jobs for the community is the worker-owned cooperative, like those at Evergreen Cooperatives in Cleveland.
 
“Promotion of worker-owned cooperatives is a way to create entrepreneurs and jobs at the same time. The Evergreen Cooperatives of Cleveland represent a stellar example, recently called out by the Federal Reserve Board member Sarah Bloom Raskin as an effective model of local economic development.”
 
Check out the full story here.

black achievement the topic of foundation center's first 'rising tide' event
When every sector of a populace thrives, so does the community as a whole. The local chapter of a national philanthropic organization plans to shine a light on this and other issues during a series of programs in 2013.

Philanthropic support of black male achievement will be the subject of the Foundation Center's first Rising Tide program on May 22, says director Cindy Bailie. Nearly every major indicator of economic, social and physical well-being shows that black men and boys in the U.S. do not have access to the structural foundation and opportunities needed to succeed. However, a flood of philanthropic support and social innovation is addressing these challenges head on.

"There's work happening locally aimed at black men of all ages," says Bailie. "This is our chance to change the situation."

The program will consist of three speakers and a panel discussion. The center has also launched a website to spotlight the topic. Connecting people to those working on the problem is only part of the plan.

"We want people to leave inspired," says Bailie. "This is a call to action."

The New York-headquartered Foundation Center is a source of information on U.S. grantmakers. Locally, the organization acts as a library/learning center for those seeking knowledge about the nonprofit sector.

The black achievement program is the first of a planned series of quarterly events "showcasing new ways of solving old problems," says Bailie. Future events could touch on such topics as the impact of arts and culture on the community.

"These [programs] aren't just conversation-starters," Bailie says. "What will you do to keep the conversation going?"

 
SOURCE: Cindy Bailie
WRITER: Douglas J. Guth
organization's eclectic mix of programs 'scoring' points with cleveland students
Soccer, creative writing and volunteerism might seem like an odd mix, just don't tell that to the students helped by America SCORES Cleveland, an organization that has been providing unique after-school programming for almost 10 years.

The local chapter of America SCORES, which launched in 2004, serves more than 500 youths in 10 Cleveland public schools. The program is designed to create "poet-athletes" through an innovative triple threat of soccer, poetry and service learning, says executive director Debi Pence-Meyenberg.
 
The tri-curricular approach creates well-rounded students, maintains Pence-Meyenberg. Soccer was chosen for its accessibility and minimal equipment needs. Writing and performing poetry, meanwhile, gives youths an emotional outlet and promotes creative thinking. Finally, volunteerism instills in children a sense of compassion, social responsibility and personal worth.

"We want urban youth to lead healthy lives and be involved in their community," says Pence-Meyenberg.

Public school students in grades three through eight can stay engaged through sports and creative writing, notes the chapter head. Participants also choose their own neighborhood-based service projects, like working at a community garden or raising money for Haitian earthquake victims.

On June 22, Cleveland's student-poets will collaborate with Cleveland artists during an event at 78th Street Studios. The Inspired Art Project will showcase the poetry of local youths through original artwork from Cleveland creatives, with sales of these items going to America SCORES. The program, along with the other activities America SCORES offers, can have a positive impact on the culture of an entire school district.

"Our kids and becoming healthier and more engaged," Pence-Meyenberg says.

 
SOURCE: Debi Pence-Meyenberg
WRITER: Douglas J. Guth
ndi medical continues to grow rapidly in neuro-stim field
When Geoff Thorpe founded NDI Medical in 2002 with his neurostimulation device for bladder control, he saw a market with a lot of potential. The company sold its MEDSTIM device to Medtronic in 2008, kept the NDI name and branched into developing and commercializing new neurostimulation device companies.
 
The move has proved successful. NDI has launched two companies and has grown to 32 employees, 21 of whom work in NDI’s Cleveland headquarters. The company also has offices in North Carolina and Minnesota. Most recently, NDI Medical named Marilyn Eisele as president of the company. She has been with NDI about a year, previously serving as vice president of finance and CFO.
 
“What attracted me to the company was the innovation coming out of the collective enterprise,” Eisele says. “We took a step back after we sold the company in 2008 and decided to reinvent and continue the business as a development company where we develop new therapies.”
 
Since selling the company and regrouping as a developer of new technologies, NDI Medical has raised $17 million in private equity and another $9 million in grants and loans. In 2010, the company launched Checkpoint Surgical, which makes a device that allows surgeons to locate nerves and muscles before making an incision, and SPR Therapeutics, which develops nerve stimulation devices for pain management. Sales have doubled each year since Checkpoint was launched.
 
“In some ways we are a development company, and in some ways we’re an incubator company,” says Eisele. “We’re able to develop medical devices so each portfolio company doesn’t need its own team of engineers. It’s a very cost-effective way to use research.”
 
NDI Medical is in the process of launching a third company in the next few months.

 
Source: Marilyn Eisele
Writer: Karin Connelly
nbc sports covers nfl-related film in town
In an NBC Sports story titled “Draft Day descends on Cleveland this week,” Mike Florio shares that filming is ready to get underway on the NFL-related movie Draft Day starring Kevin Costner and Jennifer Garner, with the storyline centered on the Cleveland Browns.
 
“The bulk of the filming starts in and around Greater Cleveland on [May 8]. Shaker Heights and Berea, where the Browns are headquartered, appear on the list of sites where scenes will be shot. FirstEnergy Stadium will host some of the filming, too.”
 
Draft Day is not the only filming ready to get underway as Captain America: The Winter Soldier will soon begin production here as well.
 
View the entire blurb here.

area minority entrepreneurs inducted into charter one launch100 leadership circle
Nine young Northeast Ohio businesses were inducted into the Charter One Launch100 Leadership Circle on April 25. Local inductees included Nicole Zmij, CEO of Amplified Wind Solutions in Cleveland, Lindsay Sims, founder and CEO of Renter’s BOOM, Lissette Rivera, founder of SafeCare, all in Cleveland, and Shaquita Graham, CEO of King J Transportation in South Euclid.

“The Launch100 Leadership Circle really focuses on minority entrepreneurs and encourages them to take the risk of starting a new venture, particularly those who have the revenue potential of $10 million,” says Ken Marblestone, president of Charter One and RBS Citizens bank. “The Leadership Circle honors leaders within the Launch 100 group and works to inspire them to take risks and network with each other, and make sure they are recognized for their ideas and entrepreneurism.”
 
Founded in 2012, the Launch100 offers a peer networking opportunity for minority and women business owners with high growth potential.  “We’re focused on how to help these expanding businesses succeed,” says Marblestone. “We recognize them with an award and then offer conversation about the hurdles they’re facing. That whole dialog leaves the entrepreneurs full of motivation and ideas, and ready to tackle another hurdle.”
 
The induction ceremony was held at JumpStart’s offices. Other regional companies inducted included Body Phyx, Design Flux Technologies, On Demand Interpretation Services, OrthoData and Wahconah Group.

 
Source: Ken Marblestone
Writer: Karin Connelly
shaker heights renovates two blighted homes near launchhouse to create 'tech village'
Building off the buzz created by Shaker LaunchHouse, an entrepreneurial incubator, the City of Shaker Heights has partnered with LaunchHouse, Cuyahoga County and Neighborhood Housing Services of Greater Cleveland to renovate two homes on Chelton Road into affordable housing for entrepreneurs.

The homes at 3553 and 3599 Chelton Road, directly behind Shaker Launchhouse in the South Moreland neighborhood, were vacant before the city acquired them. Shaker renovated the homes using $250,000 of Neighborhood Stabilization Funds, and is now in the process of transferring the properties to Neighborhood Housing Services. The agency, which specializes in affordable housing, will own and manage them.

The houses feature a total of nine "units" (a bedroom in a shared house with ample common space) that can be rented for $395 apiece. Amenities include high-speed Internet, free utilities, a comfortable green home with air conditioning, hardwood floors, free laundry and a ceiling projector hook-up in the living room for presentations. The homes are part of a multi-million dollar investment the city has made in the South Moreland community.

"We already have more applicants than we have units," reports Kamla Lewis, Director of Neighborhood Revitalization with the City of Shaker Heights. "We wanted to create a concentrated, collaborative community -- an environment for startups in the neighborhood, but a place where they could afford to live, as well."

Lewis says the first tenants will move into the completed homes as early as this week, and she expects all nine units to be fully occupied by June 1.

Applicants must be entrepreneurs at Shaker LaunchHouse. Its accelerator program begins this summer and has attracted entrepreneurs from outside of Northeast Ohio, who move here while engaged in starting their companies.

Lewis says the project is the first of its kind that she is aware of, and that the city's investment in South Moreland has already attracted further private investment, including several new businesses and a new $5 million apartment complex.


Source: Kamla Lewis
Writer: Lee Chilcote