April 20, 2004

Redrawing DC’s Entrepreneurial Landscape

By Jeanne Hickman

Over the past 12 years several thousand GW students have provided consulting services to more than 2,100 DC-area businesses as part of their small business and entrepreneurship courses at GW’s School of Business. With businesses ranging from restaurants to engineering firms to yoga studios, and consulting projects covering a similarly wide range, graduate and undergraduate teams have made a substantial impact on the local small business landscape and helped put GW on the map.

In the spirit of community service, the Small Business and Entrepreneurship program developed a unique curriculum focusing heavily on practical “field work” and team-based learning. Local businesses get low- or no-cost consulting on their most urgent problems, students get the chance to build a network and invaluable hands-on experience in a “safe” environment, and the business school continues to enroll top-notch students attracted to this unique program. According to Charles Toftoy, associate professor of management science and director of the Small Business and Entrepreneurship program, the philosophy behind the structure of the program is simple: “student teams learn more by doing.”

Before the semester gets underway a significant amount of prep work goes into establishing teams and recruiting businesses. Forming strategic alliances with local businesses is the crucial first step. Through resources such as the DC Chamber of Commerce, the Greater Washington Board of Trade, the Young Entrepreneurs Organization, and the World Resources Institute, among others, contact with reputable local businesses becomes easier.

“Frankly, it often becomes a problem choosing between all the businesses,” said Toftoy. “Businesses are eager to have students with fresh perspectives address their urgent issues at basically no cost to themselves.”

Such willingness from area companies means the selection of businesses can be based on relatively strict criteria such as the scope of the project, the academic rigor the analysis requires, the location, the size and the diversity in relation to other “short list” candidates, as well as the internal culture or the personalities of the owners. Participating faculty visit each business on the short list to check out some of these issues and ensure that student teams will mesh well with existing operations.

“Diverse, balanced teams of bright, motivated entrepreneurship students can create magical results,” says John Rollins, adjunct professor of small business and entrepreneurship.

The GW student base is known for its diversity of ethnic, economic and social backgrounds, and the best student teams reflect not only this diversity but also the excellent practical skills required of team members. Ideally, each team will have a mix of race, gender and functional strength (i.e. marketing, finance, operations, etc.). Instruction on positive team dynamics and successful team development is an important part of the lectures early in the semester.

Once students are broken into teams and the semester gets underway, they meet with top management of their businesses to learn about the business and discuss its most urgent needs. This pivotal first meeting provides exposure to the dynamics between business representatives and consultants and establishes trust between the students and the business.

It’s a challenging balance between the needs of the students and the needs of the businesses. Getting all parties involved to agree to the project parameters is key. Establishing an appropriate match between the project and the team helps ensure a memorable learning opportunity. On the flip side, confirming that businesses receive valuable consulting assistance helps ensure the growth and development of the program.

The overall success of the program can be measured in the mountain of testimonials from students and the businesses alike.

Marc Wallace, founder and owner of SwapDrive, a DC-based high-tech firm said, “We found the program very helpful to us. The results were of better quality than we get from some paid consultants. The energy level and attitude of the students is outstanding.”

“I think the student teams have helped us stay up with trends in business and try to stay ahead of the competition,” added Manuel Pena, owner of La Fonda Restaurant. “Student teams helped us develop a customer survey, which has changed our outlook and our customer base. We have made changes to address customer needs… . Teams learn from the practical experience and learn that a textbook approach cannot be applied to all situations. It is a good exchange. We learn from them and they learn from us.”

The practical nature of lessons learned in the workplace and the team-based approach to solving real business needs often dominate student evaluations of the program. After taking Small Business Management last semester, one undergraduate said, “I made friends for life. A real-world assignment like the course project was a great experience to get a feeling of how businesses operate.” Another stated simply, “It puts you in the heart of a CEO and what they go through on a daily basis.” One former graduate student said, “I felt I had a competitive edge above and beyond the degree itself thanks to my involvement in this program and my team’s successful completion of the project. Hands-on experience while still gaining tools in the classroom made for a very rich and very practical educational experience.”

After a successful 12 years the program is reaching out internationally. Steps are already underway through a strategic partnership between GW’s Small Business and Entrepreneurship Program and the World Resources Institute. Following the same basic model as the existing program, graduate students have begun working with companies in Latin America assisting approximately 20 companies there with strategic plans, exporting strategies and other urgent problems. As a result, many of these companies have received additional funding to strengthen and grow their businesses.

Send feedback to: bygeorge@gwu.edu