Alliance created to help start businesses

KAYSVILLE — Just because the economy is flagging doesn't mean new businesses aren't needed and can't be started, according to Alan Hall, one of the founders of Grow Utah Ventures.

He said this could be a good time to start a business. Microsoft and Apple are two companies that were formed during a previous economic bust, so having success is entirely possible, he said. His comments came Tuesday as Grow Utah Ventures and SEED Weber Davis Morgan announced the creation of the North Front Entrepreneur Alliance, a support service for entrepreneurs who have that next great idea and need help getting to the next step.

There are realities that entrepreneurs face in troubled times, he said. Fewer angel investors are willing or able to provide capital to business startups. More people are seeking opportunities to start businesses because they're worried about their current job or need a second income.

Patience and hard work are of the greatest necessity when starting out. And when the economy recovers, the angel investors will come back, and those who made it through this period will be much deserving of their help, Hall said.

Currently, only 5 percent of new businesses survive their first year, Hall said.

During Tuesday's launch of the alliance at the Davis Applied Technology Center, venture capitalists held a live pitching event, in which four local entrepreneurs pitched their companies and the need for investment to a panel of experts, an experience normally held behind closed doors.

But Tuesday's pitch event was held in front of 120 people so they could see how to sell a company in seven minutes. The four young CEOs received feedback from the investors.

"I have great hope for this state through entrepreneurs," Hall said. "Our state has some of the brightest minds, the best people. We know how to get things done."

E-mail: jdougherty@desnews.com