Open 2013: Developing an Entrepreneurial Environment for Rural Southeastern North Carolina

Developing Entrepreneurship and Innovation in Rural Southeastern North Carolina: An Update

Dr. Michael Menefee, Dr. Len Holmes & Floyd L. Inman III

University of North Carolina at Pembroke

Pembroke, NC 28372 USA

UNC Pembroke Entrepreneurship and

Economic Development

Dr. Michael MenefeeUniversity of North Carolina at Pembroke

Robeson County

• Founded in 1787 with Lumberton as its seat

• Named after Col. Thomas Robeson, a Revolutionary War hero

• Area (951 sq. mi):– Land (949 sq. mi)– Water (2 sq. mi)

• Population density approximately 129 per mi2

Website: www.co.robeson.nc.us

38.0%

32.0%

25.0%

5.0%1.0%

Native AmericansCaucasiansAfrican-AmericansHispanicsAsians

Ethnic Populations of Robeson County

Total population in Robeson County = 123,339*

*Based on 2000 U.S. Census

Economic Issues

• Between 1997 and 2009, Robeson County lost 9,000 manufacturing jobs (41% of workforce)

• Significant increases are still seen in:– Unemployment– Crime– Poverty– Bankruptcies

• Teen pregnancy and school dropout rates are continually high

Economic Issues

• Neighboring Scotland County lost 3 major manufacturers and 3 smaller firms

• Scotland County has the highest unemployment rate in the state at 17%

• According to the state economic rating system, 7 out of 10 counties within the UNCP area were ranked as tier 1*

*(in most need of economic development)

University of North Carolina-Pembroke

• UNC Pembroke has three Centers that aim to stimulate economic development and growth:

– Small Business Technology and Development Center

– Thomas Family Center for Entrepreneurship

– Biotechnology Research and Training Center

Small Business Technology and Development Center

• Provide management and educational services

• Assist businesses meet challenges and plan for the future.

• Offers specialize market development assistance for:

– Procurements– International business– Technology development – Technology commercialization

Thomas Family Center for Entrepreneurship

• Created to improve economic development by:1. Encouraging entrepreneurship among citizens

2. Training students to open and run small businesses

3. Providing assistance to existing businesses

4. Address social problems

5. Attracting new businesses to the area

“Economic development and personal success are attained through entrepreneurs and innovators who thrive on imagination, creativity, and passion.”

Thomas Family Center for Entrepreneurship

• Goals are to:1. Stimulate entrepreneurial thinking through

education

2. Support entrepreneurs and new ventures in Southeastern North Carolina

• The Center focuses on:1. Education

2. Research

3. Planning

4. Community engagement

Thomas Family Center for Entrepreneurship

• Strives to stimulate small business development to create jobs and build community wealth

• Uses the history of entrepreneurial success to build a base for future prosperity

• Supports the business community by:1. Providing one-on-one consulting and evaluation

services

2. Help students to develop entrepreneurial competencies and knowledge

Entrepreneurship and Biotechnology

• Entrepreneurship of UNCP Biotechnology is supported by the NCIIA

• NCIIA granted UNCP a Course and a Program Grant for two years (2011-2013)

• Grant and matching funds provided for:1. Enhancing entrepreneurship programs

2. Purchasing equipment for nematode project

3. Project consulting and prototyping support

4. Supplies for biotechnology research

5. Development of e-teams

6. Faculty research and travel

UNC Pembroke Biotechnology

Dr. Len Holmes & Floyd L. Inman IIIUniversity of North Carolina at Pembroke

Biotechnology Research and Training Center

• With an area of 5,000 ft2, the facility provides laboratories for:

• The Center has the capacity to address most research problems in most sectors of biotechnology:

AgriculturalBiomanufacturing

EnvironmentalBiomedical

FermentationChemistryMolecular biology

MicrobiologyOther life science

technologies

Biotechnology Research and Training Center

• The goal of the Center is to stimulate the transformation of knowledge to increase the economic well-being of Southeastern North Carolina

• Core activity of the Center is to establish and develop innovative training and research opportunities.

Biotechnology Research and Training Center

• The Center’s specific aims are to:

1. Increase the number of higher-paying biotechnology positions

2. Increase the availability of a trained work force

3. Offer entrepreneurs technology, business support and connection to capital sources

Biotechnology Research and Training Center

• The Center’s main sustainable research project are:

1. Honey Bees and Honey Bee Products

2. Mass production of beneficial nematodes

UNC Pembroke Honey Bee Research

• New Director: Dr. Reggie Oxendine Jr.

• Research promotes the art and business of beekeeping.

• Honey bee industry injects $6 million into N.C. agriculture

• From 2006-2011, bees accounted for 68% fruit and vegetable production in N.C. (~25% of total crop productivity)

UNC Pembroke Honey Bee Research

• UNCP gifted, sold, and established hives for:

Farmers Gardeners University faculty High schools Community colleges

• Consults with regional master beekeepers and the Robeson County Beekeepers Association

UNC Pembroke Honey Bee Research

• Future honey bee initiatives include:Use of beneficial nematodes to

protect hives from hive beetles and wax moths

Rearing queen honey bees for commercialization

Production and harvesting honey, honeycomb and other honey bee related products for commercialization

Mass Production of Beneficial Nematodes

• Beneficial nematodes are a safe and organic alternative to chemical insecticides

• These nematodes parasitize crop insect pests

• Species that are currently researched are Heterorhabditis bacteriophora and Steinernema carpocapsae.

Mass Production of Beneficial Nematodes

• Nematodes are mass produced in fermentation systems with their microbial counterparts

• Counterparts are Photorhabdus luminescens and Xenorhabdus nematophila

• Mass production has significant economic potential due to minimum global producers

Mass Production of Beneficial Nematodes

• Mass production technology is mainly proprietary and complex

• Mass production approach heavily focuses on:

Fermentation technology Bacteriology Nematology

Entomology Symbiosis

Mass Production of Beneficial Nematodes

• Partnerships with local farmers and gardeners will enable the Center to field-test nematode products such as efficacy, safety and application rates.

Mass Production of Beneficial Nematodes

• During one month, two maximum capacities (40 liters) of medium can be processed.

• Current technologies allow for batch production yields* of:

– 4 billion (H. bacteriophora)• 8 billion nematodes per month

– 8 billion (S. carpocapsae)• 16 billion nematodes per month

*Yields results from nematode recovery, life cycle, & egg production

Potential Profit Margin of Nematodes

Theoretically based upon current distributor pricing:

 H. bacteriophora S. carpocapsae

Package quantity

UNCP Retail price

Production cost per package*

Profit per package

UNCP Retail price

Production cost per package*

Profit per package

10 million $29.95 -$5.69 $24.26 $29.95 -$2.84 $27.11

50 million $67.75 -$28.44 $39.31 $67.75 -$14.22 $53.53

250 million $198.00 -$142.19 $55.81 $198.00 -$71.10 $126.90

*Indirect and packaging costs not included

Monthly Analysis of Nematode Production

*Indirect and packaging costs not included

Theoretically based upon current retail pricing:

H. bacteriophora

Package quantity

Packages produced

Retail price Total sales Production

cost * Profit

10 million 800 $29.95 $23,960.00 $4,555.00 $19,405.00

50 million 160 $67.75 $10,840.00 $4,555.00 $6,285.00

250 million 32 $198.00 $6,336.00 $4,555.00 $1,781.00

S. carpocapsae

Package quantity

Packages produced

Retail price Total sales Production

cost * Profit

10 million 1,600 $29.95 $47,920.00 $4,555.00 $43,365.00

50 million 320 $67.75 $21,680.00 $4,555.00 $17,125.00

250 million 64 $198.00 $12,672.00 $4,555.00 $8,117.00

Mass Production of Beneficial Nematodes

• Current product produced by UNCP Biotechnology is Brave-Guard.

• Product consisting of Heterorhabditis bacteriophora nematodes

• Patent application for media formulation and process technology has been initiated through University channels

Current Situation

• UNCP has the ability to commercialize beneficial nematodes.

• Production scale-up is the next challenge

• The employment of three full-time scientists by the University

• The development of Brave-Guard

Current Situation

• A course involving invention and new product development has been proposed for UNCP curricula.

• Elevator competitions have been created from outside support

• The development of four business startups

• $350,000 has been raised for a new business incubator in downtown Pembroke.