Transforming the World: How Business Accelerators Facilitate Entrepreneurship and Promote Economic Growth

While big businesses and corporations get all the government and media attention and publicity, it is small businesses and individual entrepreneurs that add the greatest value and diversity to our U.S. and global economy. These smaller entities drive growth in the economy and are the foundation for long term success. Fortunately there are growing numbers of groups and associations that are reaching out to encourage and assist entrepreneurs and start-up businesses in these difficult economic times. One of these organizations is Houston Technology Center (HTC), and this week we had the opportunity to speak with Paul Frison, one of the driving forces behind HTC’s success.

Welcome, Paul Frison!

Paul Frison was the founding President and CEO of the Houston Technology Center, and currently serves as Executive Vice Chairman of the organization. The Houston Technology Center is a not-for-profit organization that was established in 1999 to function as a business accelerator for Houston-based emerging technology companies. The organization seeks to advance Houston’s reputation as a leading city for launching and growing technology companies in key sectors such as energy, information technology, life sciences, nanotechnology, and NASA-originated technologies.

Since 1975, Paul has served as President and/or CEO of three public technology companies in Houston including LifeMark, ComputerCraft, and LifeCell. Additionally, Paul has been engaged in numerous startup companies and organizations, as well as several mergers and acquisitions. He has experience raising multiple rounds of venture capital, as well as, executing two IPOs and over a dozen rounds of public financing. Currently, Paul serves on the Boards of Directors for several organizations in the Houston Area including BioHouston, The Institute of Research and Rehabilitation (TIRR), The Entrepreneurship Institute, and the Advisory Council of the University of Houston – College of Technology. He is involved in the Houston Angel Network, an organization that invests in startup companies. In 2004, the Kaufman Foundation recognized him as a national finalist for his achievements in support of entrepreneurship, and that same year Ernst and Young honored him as part of its Entrepreneur of the Year Award.

Early in his career, Paul gained experience starting and building businesses as an “intrapreneur,” when he received money from his employer to invest in startup businesses that he believed could grow into successful companies. Paul shared that this is a valuable way to gain experience in entrepreneurship and working with startup businesses. Heed the words of a successful pioneer!

The Genesis, Mission, and Vision of Houston Technology Center

Paul founded LifeCell in 1986 and served as the company’s CEO before deciding to get involved with Houston Technology Center in the late 1990s. Paul joined HTC in its nascent stages, and recalled that he was attracted to the concept of using money to turn old buildings into places where individuals could learn how to start and grow businesses. Paul recalled analyzing how to give focus to the organization by deciding which businesses had the greatest potential for development and growth in the Houston market. After recognizing the already pervasive and growing presence of IT, medicine, NASA, and energy in the city, the organization decided to direct its efforts toward assisting startup businesses in the technology sector. In January 1999, Paul became the Founding CEO of the Houston Technology Center, an organization established with a vision “to accelerate the commercialization of emerging technology companies.”

Paul passionately painted a vivid picture of Houston Technology Center and how it achieves its mission. The organization’s vision is built on the idea of “transforming technology innovation into business success.” Paul emphasized that “Business is our business” and HTC seeks to facilitate and accelerate the development of businesses with emerging technologies. In the process it creates jobs and promotes economic growth in Houston. He revealed that one of the organization’s principle goals for the next five years is for Houston to be recognized globally as a center of technology innovation and commercialization. HTC plans to accomplish this by emphasizing the Houston community’s strengths in research and technologies in the life sciences, space, information technology, energy and related industries. Paul explained that the organization’s day-to-day operations involve helping individuals with businesses in the technology sector learn how to build their establishments. As part of this learning component, Houston Technology Center provides networking connections for new technology businesses by facilitating meetings between industry leaders and/or potential investors and HTC clients.

Becoming a Houston Technology Center Client

Paul briefly explained how Houston Technology Center reviews potential businesses and selects its clients. Qualified applicants already have a technology and a business, as well as detailed plans for the future of their enterprises, have demonstrated knowledge of the competition, a sales forecast, and the ability to reach a net worth of $30-35 million within five years. Applicants present business plans to review committees made up of individuals and leaders from the applicants’ individual fields. After review, Houston Technology Center extends an offer to work with a business and begins to explore plans and initiatives to ensure business success.

Paul mentioned that many experienced and successful executives and leaders join the HTC organization as mentors and advisors to business owners and entrepreneurs. HTC relies on these individuals’ industry expertise and business savvy to help make plans and direct new businesses. In some cases experienced professionals have pursued employment opportunities with new businesses. Others are volunteer advisors and members of review committees.

Job Creation

One of Houston Technology Center’s cardinal goals is to create job opportunities from emerging technologies. Paul put it this way, “Houston Technology center hires the client who is most likely to be disruptive.” In other words, start ups with ideas, technologies, and businesses that pose new and improved ways of solving problems or creating opportunities have the greatest potential by surpassing older ways of thinking and doing. The success of a client’s technology will promote business growth, resulting in new opportunities and hiring needs to accommodate the expansion.

Entrepreneurship in Today’s Economy

In the midst of the present economic angst, it is without a doubt intimidating for potential entrepreneurs and business owners to seriously think about investing time and money in new enterprises. However, we are confident that the American Dream is alive and flourishing today! In fact, we believe that the entrepreneurial spirit thrives in slow economic times. Entrepreneurs recognize problems or issues and implement solutions to improve the situations or hardships that an economic crisis imposes on people. Paul cautioned that the current global crisis has put noticeable strains on the loan industry, yet he affirmed that now could be potentially the best time to take on the challenges of entrepreneurship.

How HTC is Helping Houston ACE the Entreprenuerial Mission

As we closed our enlightening discussion of Houston Technology Center’s activities and influence on the economic environment and entrepreneurship in Houston, Paul shared an acronym from HTC that encompasses the organization’s tripartite campaign to Accelerate, Communicate, and Educate (ACE). The first component of the ACE principle consists of its mission to help accelerate the commercialization of emerging technology companies. It helps educate entrepreneurs and provides coaching on how to build and grow a business to achieve maximum success and to contribute to overall economic expansion and increased opportunity. Houston Technology Center also affirms a commitment to communicate with the larger population about what is going on in the world of technology and commercialization. The organization seeks to facilitate information exchange within the community and to share news of these exciting innovations, expansions, and diverse opportunities with the city and the world. Finally, Houston Technology Center seeks to educate entrepreneurs on how to run successful businesses and the community on the enormous potential and opportunity in Houston.

Paul recalled employing the McKinsey Company to study and analyze Houston Technology Center as a business incubator and accelerator and to compare it to similar organizations across the nation. The McKinsey Company summarized Houston in two words: sleeping giant. With four large sectors each possessing enormous strength and potential for growth, the opportunities for technology businesses in Houston are enormous. Technologies in the fields of energy, medicine, information technology, and space are transforming Houston into a world-class center for emerging technologies.

Houston Technology Center not only is helping new businesses emerge as technology innovators par excellence in Houston, but by forming connections and exchanging information with foreign companies is having a global impact. Paul revealed that over 50 businesses work out of HTC’s facility, and countless others conduct their activities there, including many businesses and companies from around the globe. As a result Houston is becoming a hub of global information exchange and technology innovation.

The Entrepreneurial Spirit Inspires Us

On the macro level, stories of job losses, massive government, consumer and corporate debt, and global economic gloom-and-doom seem overwhelming. Yet on the micro level it is refreshing to know organizations like the Houston Technology Center and the start ups they support provide hope for future growth and economic vitality. Be inspired by their visions and the opportunities they promise. The entrepreneurial spirit reminds us that there is no bad time to innovate and improve our world. Though times are challenging, the lesson of the entrepreneur is to believe in your skills, focus your energy, and commit to your plan of action, and you too can overcome obstacles and achieve success!

Listen to the entire show!