KCSourceLink’s budget clapback: Startups generated $37.6M in KCMO earnings taxes
February 28, 2020 | Tommy Felts
Editor’s note: Startland News is a program of STARTLAND, an ecosystem-building organization that is among the participants in an informal coalition of entrepreneur support groups hoping to increase funding for small business support in the 2020-2021 Kansas City, Missouri, budget. This story was produced independently by Startland News’ nonprofit newsroom.
Financial backing for entrepreneur support is an investment with a tangible impact — on the city’s own bottom line, according to data released Friday by KCSourceLink and the UMKC Innovation Center.
Nearly two out of three net new jobs in Kansas City come from startups — defined as new firms with fewer than 20 employees — and in 2018 the small business owners and entrepreneurs running those startups generated $37.6 million in KCMO earnings taxes, said KCSourceLink representatives through a series of documents released late this week to show the city’s return on investment with startup support organizations.
“Entrepreneurs are hungry for just-in-time training that helps them start or grow a business,” KCSourceLink said Friday.
KCSourceLink — a hotline- and email-based clearinghouse built to assist aspiring and existing business owners via a collaborative, 240-member regional resource network — is among the support organizations that would see a significant reduction in funding if a budget proposed by Mayor Quinton Lucas is passed March 26 by the City Council.
Click here to learn more about KCSourceLink.
The submitted $1.7 billion budget reduces small business support allocations from $400,000 to $250,000, said Sarah Mote, marketing director for UMKC Innovation Center and KCSourceLink. (The proposed budget also removes $50,000 for LaunchKC and $300,000 for the planned Keystone innovation district project.)
Click here to read more about the potential impact of the proposed budget and how entrepreneur groups are rallying to reinstate funding.
“The most important message here is that entrepreneurship is vital to the Kansas City economy and should be supported at all levels. Entrepreneurs create 58 percent of net new jobs and contribute millions in earnings taxes,” Mote said. “We’re grateful for the support the city has shown its entrepreneurs in the past, support that has allowed several entrepreneurship programs, including KCSourceLink, to leverage the FY20 $400,000 investment into $2,000,000-plus in matching funds for entrepreneurship support programs and direct grants to entrepreneurs.”
Highlighting the impact of matching funds and programs, KCSourceLink noted a 2019 KCMO investment of $25,000 from which the support organization leveraged $300,000 from other sources.
That initial KCMO investment was part of a five-year pledge ($25,000 per year) made in 2018 to match a federal grant from the U.S. Department of Commerce in partnership with local corporate and philanthropic partners. Local support of $812,500 matches an additional $812,500 federal grant that provides core funding for KCSourceLink over five years.
Two more KCMO Resident Speakeasy Sessions are planned in the coming days — Saturday, Feb. 29 and Tuesday, March 3 — to serve as public budget hearings ahead of the proposed budget’s expected adoption by the Kansas City City Council on March 26.
Click here to learn more about a planned Budget Feedback Takeover.
Top requests for training and resources from KCSourceLink include assistance with marketing/sales, startups, business plans, financing and mentoring.
Many of those requests represent an opportunity for wealth generation and building in some of Kansas City’s most underserved communities, the support group said.
In 2019, KCSourceLink had 54,831 website users (54 percent from KCMO) and 9,489 hotline interactions (33 percent from KCMO), according to the organization’s data. Requests for assistance from KCMO’s lowest income/highest minority zip codes accounted for 68 percent of those local interactions.
The final two budget-related Speakeasy Sessions are set for:
- 9 a.m. — Saturday, Feb. 29 — Southeast Community Center, 4201 E. 63rd St., Kansas City, MO 64130
- 11:30 a.m. — Tuesday, March 3 — KC Health Department, 2400 Troost Ave., Kansas City, MO 64108
Featured Business
2020 Startups to Watch
stats here
Related Posts on Startland News
Lawrence-based Ainstein predicts radar tech will push self-driving automotive advances
From Kansas, Ainstein’s radar technology can have a profound impact on industries across the globe, said Zongbo Wang. “We wanted to design radar that can be very affordable and play different roles in the industry,” said Wang, CEO of the radar tech firm. “Over the past three years, we’ve experienced a time of tremendous growth.”…
Hustle in the making: Startups scaling ‘maker’ concept with high-growth models (Photos)
Andy Talbert is in no way crafty, the Snow Pops co-founder said. “At all,” he emphasized, eliciting laughter from the crowd at Startland’s “Hustle in the Making” Innovation Exchange. The event — sponsored by Plexpod and Polsinelli — explored the evolving spectrum of startup businesses that could be considered “makers” in modern entrepreneurial culture. Kansas…
Innovation district will look to black community for insight, McGinnis tells GEW crowd
Developing an innovation district takes a village, Kevin McGinnis told a packed room of Global Entrepreneurship Week attendees — a cross-section of Kansas Citians eager to learn more about how his proposed Keystone innovation district could re-shape diversity and inclusion efforts in the startup space. “I’m not going to suggest that I’m bringing a bunch…
Fiercely independent, together: CoCreate KC feeds talent through coworking pipeline
A new coworking space in the Crossroads — CoCreate KC — plans to mix commercial and fine artists to stoke creative energy, with each member able to lend their talents to the founding firm, BrandWell Partners, said Brad Lang. “There are so many Kansas City, successful freelancers out there working on the ground,” said Lang, co-founder…