The Body Electric
Shedding light on utility deregulation.
URL:
http://www.entrepreneur.com/magazine/entrepreneur/1997/may/14200.html
No matter how you look at it, electric utility deregulation will
not be simple. With California adopting a competitive system
beginning in January 1998, at least two major congressional bills
pending, and 49 states addressing the issue in some form (including
Massachusetts, New Hampshire, Pennsylvania and Rhode Island, which
have passed laws), small-business owners may soon face a decision
about choosing an electricity provider that could profoundly impact
their bottom lines.
But to make sure the decision doesn't put them between a
rock and a hard place, entrepreneurs must make their views heard.
"Major corporations have the wherewithal to attend hearings.
Residential users have clout because they're a big voter
block," explains Julie Scofield of the six-state Smaller
Business Association of New England. If entrepreneurs don't
offer input, Scofield worries, their concerns will be ignored.
According to Betty Jo Toccoli of the California Small Business
Association (CSBA), small-business concerns include service
reliability (will my lights go on when I hit the switch?),
accountability (who will I call for repairs?) and price. The CSBA
weighed in on these issues when it helped California lawmakers
craft legislation small business can live with. Assembly Bill 1890
gives an immediate 10 percent rate reduction to all residential and
small commercial customers of the state's three largest
investor-owned utilities. By 2002, there should be a 20 percent
rate reduction.
More entrepreneurs need to follow the CSBA's lead. While
utility restructuring is in its infancy, the movement is gathering
steam and will soon become a pressing small-business issue.
By Holly Celeste Fick
American-Indian businesses get a boost from SBA
centers.
American-Indian businesses have been reaping the benefits of
Tribal Business Information Centers (TBICs) since their institution
by the Small Business Administration (SBA) in 1995.
"The original TBIC site was able to [help] start over 100
businesses in just 18 months," says Quanah Crossland Stamps,
assistant administrator of Native-American Affairs for the SBA.
There are 22 TBICs now, and Stamps hopes there will be 50 by
1999.
The centers provide essentially the same services as the
SBA's Small Business Development Centers (SBDCs): tax
workshops, bookkeeping help, computer access, packaging and pricing
assistance, and so on. The difference is, TBICs are located on
reservations.
Another advantage is that TBICs help entrepreneurs start
businesses on the reservations. "The [aid] money that comes
into the reservation communities is [largely] spent off the
reservations," explains Stamps, "so they've never
been able to build an economy."
Now that resources have found their way onto the reservations,
predicts Stamps, "Native Americans will be a major economic
force in this country."
The TBIC on the Blackfeet Indian Reservation has been a boon to
Bernadette Trombley, one of 13 employee co-owners of Blackfeet
Writing Instruments Inc. in Browning, Montana.
Trombley, 42 (below, far right), purchased the pen and pencil
manufacturing company from the Blackfeet Indian tribe in 1993. She
worked at various jobs before taking over the company, from
bartending to packaging at the very plant she now oversees.
The Montana TBIC helped grow Blackfeet Writing Instruments to $1
million in sales last year. "They've helped us with
setting up our sales and marketing," she says. "They
helped us with software." And the list goes on.
"We're in a real rural area," says Trombley,
explaining that she'd have to drive 150 miles to find similar
resources at the nearest SBDC.
Trombley has lived on the Blackfeet Reservation her whole life.
Without Blackfeet Writing Instruments, she says, "I can't
imagine what my life would be like."
Opportunity didn't have to knock twice for Lisa Little
Chief, who started a specialty food company at home in the heart of
South Dakota's Rosebud Sioux Indian Reservation in the summer
of 1993.
She knew she had a saleable product before she finished college
at Black Hills State University in Spearfish, South Dakota. Little
Chief's Indian tacos, made with her homemade fry-bread recipe,
sold like hotcakes at campus Indian club fund-raisers.
"Students loved them," says Little Chief, 30, so she
began doing research and subscribing to specialty food trade
magazines before deciding to wholesale her Indian fry-bread mix to
specialty stores.
Starting out was tough, but growing the company has been less
difficult, thanks to the opening of a TBIC in Mission, South
Dakota.
"I use [the TBIC] almost on a daily basis," says
Little Chief. "I look up economic data, census data; I use
Excel. [Without the TBIC,] I'd have to travel two-and-a-half
hours to do my research."
And that research is beginning to pay off. With 1996 sales of
nearly $100,000, Little Chief has begun exploring retailing as a
way to sell her products: Her fry-bread mix is now carried on
home-shopping channel QVC. She has also added a line of jellies and
wojapi--Indian choke cherry pudding--to her specialty food
line.
Little Chief's advice to other entrepreneurs: "Be
prepared to take advantage of opportunities when they come
along." That's certainly advice she's followed.
Blackfeet Writing Instruments Inc., P.O. Box 729,
Blackfeet Industrial Park, Browning, MT 59417, (406) 338-2535;
California Small Business Association, 5300 Beethoven
St., Los Angeles, CA 90066, (310) 827-2531;
Lisa Little Chief Specialty Foods Inc., P.O. Box 453,
White River, SD 57579, (605) 259-3456;
Office of Native American Affairs, U.S. Small Business
Administration, 409 Third St. S.W., #8150, MC 7102, Washington, DC
20416, (202) 205-7364;
Smaller Business Association of New England, 204 Second
Ave., Waltham, MA 02154, (800) 366-6803, (617) 890-9070.
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