< PreviousAbstractThis study assesses STEM (Science, Technology, Engineering, and Mathematics) workforce dynamics within the context of the resource-based view. As STEM skills may be considered a region’s or a business’s core competency, there has been ongoing debate about whether the U.S. has shortages in STEM elds. Using several databases (Bureau of Labor Statistics, Kauffman Foundation Survey, American Community Survey, and MTSU STEM Survey), this study seeks answers to the following questions: Is the STEM shortage a myth? What impact may a STEM skill shortage have on businesses and regions? How is STEM training related to entrepreneurial activities? The study ndings suggest the lack of the right STEM skill set may have important business and regional implications.Tennessee STEMRESOURCE-BASED THEORY AND STEM WORKFORCE DYNAMICS: STRATEGIC IMPLICATIONS FOR BUSINESSES AND REGIONSMurat Arik, Middle Tennessee State University Patrick Geho, Middle Tennessee State UniversityAs this study demonstrates, STEM shortages manifest as outright shortages in high-technology areas, relative skill gaps in existing occupations, and mismatches between market demand and educational supply.Our Research Continues The debate about STEM workforce shortages is not over. This study suggests the STEM shortage is not a myth but a reality. While some STEM elds have been overproducing/oversupplying for years, many other elds have been experiencing chronic shortages. Given the importance of the STEM skill set for the economy, it is time to treat the STEM skill set as a core competency of rms and regions. This is critically important because the gap in skill and shortage in this area results in signi cant economic losses, as suggested by this research.1615,6803,7619811,74714,433$87,138,214TSBDC Performance DataNumber of businesses assisted in 2016 with counseling and trainingCounseling ServicesEconomic Impact for TSBDC79411,919Training ProgramsThe professionals of the TSBDC network prepare customized training programs to meet speci c needs.Training EventsNumber of AttendeesSales Growth for ClientsTSBDC clients generated $48 million in incremental sales.TSBDC clients retained $133 million in existing sales.** All state research data is from James A. Chrisman, Ph.D., Economic Impact of Small Business Development Center Counseling Activities in Tennessee, 2014–15.Jobs RetainedJobs CreatedCapital Formation(veri ed by clients)Number of ClientsHours of CounselingTSBDC Performance Data / National Economic Impact17$6.9 Billion100,233National Economic ImpactReturn on InvestmentSBDC clients nationwide generated $607 million in tax revenues.SBDC clients generated for every federal dollar $2.33 federal revenue and $3.01 state revenue.Does the SBDC Work? America’s SBDC network is a cost-effective way to create jobs, grow the economy, enhance American competitiveness, and ful ll the American dream. SBDCS HELP SMALL BUSINESSES CREATE JOBS.SBDC clients nationwide generated in incremental sales.Jobs Created(By SBDC Clients in 2014–15)$265 MillionFederal Revenues Generated$113.5 MillionFederal Appropriations$342 MillionState Revenues GeneratedResearch methodology: Data is derived from prior two years in order to measure historical outcomes of client businesses.* All state research data is from James A. Chrisman, Ph.D., Economic Impact of Small Business Development Center Counseling Activities in Tennessee, 2014–15.Financing Obtained by SBDC Clients NationwideSBDC assistance resulted in total nancing of $4.6 billion.$1,662,525,000SBA$1,872,654,000 Other DebtEquity$1,087,272,00018The CPA Outlook Index (CPAOI) is a broad-based indicator of the strength of U.S. business activity and economic direction that re ects the views of CPAs who are AICPA members in Business and Industry, holding executive positions in both public and privately-owned organizations of all sizes and across a broad spectrum of industries.The CPA Outlook IndexOutlook for the U.S. Economy and OrganizationsOptimism increased for economy, organizations, and expansion plansThe number of CPA executives who are optimistic about the U.S. economy increased signi cantly from 38% in the third quarter to 62% in the fourth quarter after declining to 28% in the rst quarter of 2016. The percentage of those pessimistic also dropped from 22% to 11%.Organizational optimism increased from 53% to 61%. The percentage of companies with expansion plans maintained at 62%. Outlook for the U.S. Economy, Organizations, and ExpansionConcerns about in ation and de ation ipped again this quarter, while not a signi cant concern in either direction. After decreasing to 11% in the third quarter, 28% of respondents are now concerned about in ation. Conversely, only 4% are now concerned about de ation, dropping from 18% in the third quarter.Labor costs continue to be the most pressing concern for 43% of respondents, dropping from a high of 55% in third quarter. Interest rate concerns follow as the top concern for 23%. Raw material costs increased from 18% in third quarter to 20%. Energy cost concerns dropped down to 10%, comparable to the 11% in the second quarter of 2016.TSBDC Performance Data / National Economic Impact19Veterans Served TSBDC served 454 military veterans in 2016. Veteran business owners represent 12 percent of TSBDC clients. In addition, TSBDC counseled 123 members on active duty or in the National Guard or Reserves.A planning and resource guide published by the TSBDC in partnership with the U.S. Small Business Administration was distributed to veterans and veterans’ of ces across the state.Featuring notable clients from each of the 14 TSBDC regions representing our 3,761+ clientsNetwork MissionTo enhance economic development in Tennessee by providing quality solutions to the existing and potential small business community through consultation, education, referral, and support services.Mission StatementRecognizing that small business is the economic backbone of the state of Tennessee, the TSBDC’s mission is to be the premier provider of quality solutions to potential and existing small businesses’ needs through consultation, education, referral, and support services. By providing these services through its interactive network of resource partners, the TSBDC promotes growth and prosperity in the domestic and international markets of the business community and enhances its economic impact on the state of Tennessee.TSBDC Client Highlights 2016Female business owners represent 48% of TSBDC counseling clients.50%48%2%Male ClientsFemale ClientsNo ReplyPaci c 0.2%White 67.5%Black 28.3%Asian 2.4%Native American 1.6%Minority business owners represent 32.5% of TSBDC counseling clients.Client DirectoryAPOY 21Solution Scholars & Co. 22Pedego Tennessee Valley 23Phoenix 24hr Fitness Center 24Green Cube Solutions, LLC 25Neighborhood Food Mart 26Fun Time Bowling Center 27The Cleaning Force 28Animal Element Equine, Inc. 29Pro Health Wellness Clinic 30SS Energy Technologies, LLC 31The Smith County Insider 32Veterinary Home Healthcare 33My Veggie Chef 3420Austin Peay State University (APSU)Dr. Alisa White, PresidentThere’s a new product on the market that was the brainchild of one of our clients, Armi Rhodes. It’s a new athletic style shirt called Own the Cold, and you may not have heard about it yet, but you will.Armi Rhodes is the creator of the unique athletic wear which has mittens sewn onto the sleeves of the garment. Her idea has grown from something that she created for her own kids into her very own business, the APOY Clothing Line.Rhodes, who recently retired from Fort Campbell after 20 years as an Army nurse, said the idea came to her when her kids, who are members of the Clarksville Soccer Club, were playing an early morning game in Kentucky.The temperature was around 40 degrees and she said most of the youngsters didn’t have gloves. She said the kids told her that they had either forgotten them or they had lost them and she thought, “Wouldn’t it be a great idea to sew the mittens on their shirts?”“I need it myself personally, my kids need it personally, my team needs it, so I decided to get some fabric because I know how to sew a little bit and see how it works before I proceeded with the concept,” Rhodes said.When the weather is warmer, the mittens on the shirt are designed to fold inside the sleeve out of the way. The front of the shirt also has a pocket with two openings on either side where the hands can be placed.As she began to start up her business Rhodes approached the of ce of the Tennessee Small Business Development Center at Austin Peay State University. Small Business Specialist Len Stolz guided Rhodes in the process of starting her business.The company’s name, APOY, comes from the rst letter of the names of each of her family members. Armi, her husband Paul, and their two children, son Osiris and daughter Ynessa. Rhodes added that APOY is also the Filipino word for re.Adult sizes of the shirts will soon be available, which will bene t parents on the sidelines and in the stands at soccer and football games. Rhodes said she has also heard from walkers, runners, and other outdoor enthusiasts who are interested in having the shirts.To learn more about Own the Cold athletic wear, visit www.apoy.solutions or go the APOY Facebook page. APOYAustin Peay State University TSBDC Client Highlights 20152122Solution Scholars & Co.Chattanooga State Community CollegeDr. Flora Tyding, PresidentChattanooga State Community College (ChSCC)and more. Solution Scholars & Co. delivered 1,268 hours of research to 28 clients, and $2,101,100.00 of infusion has resulted to date. This program has provided important deliverables that have aided these clients to more effectively understand their markets, their products, and the competitive landscape. Solutions Scholars & Co., which operates year-round, anticipates growth in the year to come, with a second cohort of students having entered the program in Fall 2016 and a third to join in Spring 2017. Some students will continue to work as researchers through multiple semesters, providing a unique opportunity for employment while completing a UTC degree. To further integrate the program into the business community, the Solution Scholars team alternates meeting on UTC’s campus and at The Edney Innovation Center. In the summer months, students work from the INCubator.“We have great aspirations for this program,” said Dr. Robert Dooley, Dean of UTC’s College of Business. “It is a mutually-bene cial opportunity for our students to gain real-world experience and our local small businesses to gain insights that can drive their growth.” Solution Scholars & Co., a partnership of Chattanooga’s Tennessee Small Business Development Center (TSBDC) and the University of Tennessee–Chattanooga (UTC) College of Business, has completed its rst year of operation, during which it provided research services to more than 28 local small businesses, from a wide range of industries. The unique program, which includes both in-class and structured, paid internship components, allows both graduate and undergraduate students to gain marketable experience and skills they can leverage as they start their careers. TSBDC Chattanooga and the UTC College of Business saw a lack of resources with regard to business research services that could inform Chattanooga’s small business community about decision-making in support of business growth and job creation. The program’s student-driven research services include market characterization, customer pro le and demographics, competitive analysis, industry trend analysis, macro-environmental scanning, Community, youth, and health have been focus areas for the Mull family. Their commitment to the community is what led them to want to start a small business. Mull has always had an interest in owning and working on two-wheel vehicles. Knee problems led him to investigate the electric bicycle industry and the bene ts of ownership. Once he discovered the Pedego line, he knew it was the right t for his business vision. His decision has proven over and over again to be a sound one as Pedego has provided a tremendous amount of support.Mull recognized the bene t of working with local small business specialists who could assist with all aspects of starting and growing a niche business. He rst became aware of the Tennessee Small Business Development Center through its partnership with the Cleveland Bradley Business Incubator. Over the years, center business counselors have worked with him on cash ow planning, marketing decisions, product expansion, location choice, payroll and employee classi cation, and loan package development. Pedego Tennessee Valley is the recipient of the 2016 Rising Star award for the TSBDC at Cleveland State. Mull’s discipline and drive to make continuous business improvements led to the decision. Pedego Tennessee Valley has seen consistent growth over the last two years, doubling revenue year after year. Mull is planning a store renovation and an inventory expansion for 2017 to capitalize on the area’s market reception of both the Pedego line and pedal bicycle products. He is currently in the process of working with TSBDC staff on a business loan application package to fund this expansion. Dr. Bill Seymour, PresidentCleveland State Community College (CLSCC)Pedego Tennessee Valley is a Cleveland, Tennessee-based electric and pedal bicycle and accessory dealership. Travis Mull began his business in late 2014 under the name Tennessee Valley Trikke. As he explored options in the personal electric vehicle world, Mull decided to become a distributor of the Pedego line of bicycles due to its reputation for quality and reliability. This decision expanded his customer base tremendously. He has built on that over the years by expanding into bicycle accessories, complementary products, and a line of high-quality non-electric bicycles. Being active in the BMX community inspired Travis and his son to add BMX bikes and accessories to their line.23Pedego Tennessee ValleyCleveland State Community CollegeClient Highlights24Dr. Karen A. Bowyer, PresidentDyersburg State Community College (DSCC)passion, than many who come through the doors of Small Business Development Centers all across the nation. After hours of counseling and training from the TSBDC, Proctor was able to discover a creative nancing means which gave him the collateral necessary to begin approaching lenders about possibly funding the remainder needed. The TSBDC worked closely with Proctor and numerous lenders until he was successful in obtaining the necessary funding to not only open his own tness center, but to actually build his own building in which to operate it. The TSBDC assisted Proctor with skill set development in small business ownership, creative nancing, nancial preparedness and management, loan package development, and the eventual launch of the business. To date, the sales projections for The Phoenix 24-hour Fitness Center have exceeded projections by more than 34%. Growth has been phenomenal and the community has embraced this new business with overwhelming support. Projected jobs created were 3 and the actual number of jobs created to date is 5. When recently interviewed by Small Business Administration District Director Walter Perry regarding his experience with the DSCC TSBDC, Proctor stated, “I am really pleased Harold Proctor came to the Tennessee Small Business Development Center (TSBDC) at Dyersburg State Community College (DSCC) as a displaced worker whose background was farming. He was a tness enthusiast who desired to begin a new career as an entrepreneur owning his own 24-hour tness center in his hometown community, Alamo Tennessee. With no job, no capital to begin the venture, no experience as a tness expert or gym owner, and no business plan, it appeared on the surface that all of the odds were stacked against him. However, what was lurking below the surface was a client who had more drive and commitment, more persistence and with the TSBDC. Maleia Evans, the center director, went above and beyond. She helped me get my dream out of my head, into a proposal, and onto paper that I could easily present to bankers. She went beyond what I could have ever imagined the level of service would have been from a no-cost service. . . . I am grateful for the services offered by the TSBDC.” Dyersburg State Community CollegePhoenix 24hr Fitness CenterDr. Brian Noland, PresidentEast Tennessee State University (ETSU)Joey Powers, owner of Green Cube Solution’s, LLC, received the 2016 Rising Star Award from the Tennessee Small Business Development Center (TSBDC) at East Tennessee State University. The Rising Star award is given annually by the TSBDC to the company that best exemplifies not only business success, but an outstanding working relationship with the TSBDC and use of the services it provides.Green Cube Solutions, LLC (GCS) is a residential and commercial roll-off dumpster service located in Blountville, Tennessee. Its service includes portable storage containers and miniature dumpsters for a variety of businesses and industries to either rent or purchase. The company is currently in its fth year of operation and has twelve full-time employees.The TSBDC assisted Powers by providing startup assistance, business plan development, and became a reliable resource to him throughout the process. “The TSBDC helped me take a wild idea and create it into a reality. I must say that I was very impressed with the professionalism and the knowledge that the TSBDC provided me with to work through the processes of forming a new start-up company,” Powers said. 25East Tennessee State UniversityGreen Cube Solutions, LLCClient HighlightsNext >