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Pitt's Institute for Entrepreneurial Excellence works with local companies large and small
Friday, February 05, 2010

Mary DiCarlo won a "Good Morning America" invention contest three years ago for her Diaper-To-Go, a portable diaper that has a pocket containing pads, wipes and deodorizers.

Now she's taking that unexpected business to the next step -- and age level -- by designing a portable diaper for adults and the handicapped. That meant entering the intimidating world of entrepreneurs, a place with its own processes, language and priorities.

Ms. DiCarlo, a mother of five from Fox Chapel, has no formal business training, so she joined forces with the University of Pittsburgh's Institute for Entrepreneurial Excellence for a makeshift graduate school.

The institute this year broke its by-invitation-only policy, in place since its founding in 1995, and began allowing all Pittsburgh entrepreneurs to flood its ranks.

The decision to change the institute's rules came in early 2009 and was implemented on Jan. 3. When it was invitation only, about 70 companies were involved with the institute and usually had one representative, institute founder Ann Dugan said. Now, more than 175 companies are institute members and typically have three to five representatives each.

Ms. Dugan hopes for a membership total of 350 companies by the end of the year.

Since 1996, institute membership had been limited to closely held business workers who joined through Pitt's educational programs or were referred to the organization.

Ms. Dugan said the decision to end that practice arose in response to strong demand from the business community.

"A lot of the emphasis has been focused on our large companies -- places like Alcoa and Bayer," she said. "But there's a lot of other suppliers and entrepreneurs that service those larger companies."

Membership fees start at the bronze level, which is $500 for one individual with limited access to the educational programs, peer forums and consulting services.

The top level, platinum, is $3,000 annually for up to five members of a business. They're privy to up to seven educational programs (out of nine total) and all other services.

Interested entrepreneurs can join the institute by visiting www.entrepreneur.pitt.edu or calling 412-648-1544.

Peer forums are a bit like Entrepreneurs Anonymous -- places for leaders from all industries to get together, vent problems and exchange advice.

On-hand consultants offer sessions with owners to discuss the business world's favorite things, such as strategic plans, synergy and boards of directors.

The institute recently held a power breakfast at the Duquesne Club that included a talk on "Building Sustainable Governance," a topic especially tricky for small-business owners who must juggle business liabilities with family dynamics.

The businesses represented at that meeting ranged from storied companies built on several generations to young efforts just out of the gate.

But even though it's now open to the general business community, Ms. Dugan said it was still not a place for unformed ideas.

"You have to be in business to join, not in the idea stage," she said. "This isn't for kicking the tires."

The Heinz Endowments and PNC are the main benefactors currently underwriting some of the cost.

Unsurprisingly, the recession (and its anticipated recovery) have revised how the institute and its members do business.

Thomas Walsh, president of the human resources agency the Callos Companies, sat out of the institute for 2009 when his company took a hit from the recession.

But business is back -- up about 30 percent so far this year compared with last -- and he wants to "get back in play."

He's gone into work with fellow institute members -- everyone, he said, from a health-care company to a fire extinguisher manufacturer.

Ms. Dugan said the socializing and networking could help entrepreneurs feel connected to the region -- and less apt to leave.

"Our companies are being courted all the time to places like North Carolina or Texas, but there are venture capitalists here willing to give you money," she said.

But any business more sophisticated than a lemonade stand knows how tough it can be to secure funding.

That's why an institute priority is helping young companies navigate the minutia that separate different lending policies.

"Every bank has different requirements, and we know what the funding sources are looking for," said Ms. Dugan.

At this week's breakfast, Noreen Campbell, owner of the McGinnis Sisters Special Food Stores, said she'd been an annual member for about 10 years and now turns to the institute for guidance as her generation hands the company over to the next.

She joined her parents in 1981 as the go-to expert on a new device confusing the older generation: the computer.

Not much has changed. Now the next generation comes bearing unknown terms such as "brand evangelism," she said, even though the most common confusion with her company's name can't go away anytime soon.

"We're not nuns," she said.

Erich Schwartzel: eschwartzel@post-gazette.com or 412-263-1455.
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First published on February 5, 2010 at 12:00 am