A welcome RAIN. What does it take to successfully encourage entrepreneurship in underserved and rural communities? Apparently two collaborating economic development organizations, an entrepreneur-focused nonprofit, an intense six-month timeframe — and a nearly $1.2 million state grant.
At least that was the combination that seemed to have worked in a just-completed program in adjacent Northwest Washington counties. Formally titled, “Elevating & Investing in Underserved Small Businesses in Rural Island County + Skagit County,” the multi-faceted effort is said to have served nearly 300 small businesses, roughly triple its objective.
Sharon Sappington, executive director of the Economic Development Council (EDC) for Island County, said the idea was inspired by years of feedback.
“Over the last five years as the executive director of the EDC engaging in conversations with local entrepreneurs and helping small businesses, it was clear that our entrepreneurial community was not being supported adequately,” she said. “The recurring theme I heard was access to resources such as educational opportunities, mentorship and capital was insufficient.”
So when the opportunity arose to apply for a Washington State Department of Commerce Small Business Innovation Fund grant, Sappington did. She pulled in her counterparts next door at the Economic Development Alliance of Skagit County (EDASC) because, she said, of her firm belief in a regional approach.
“The result is a greater opportunity to leverage resources, thinking and inspiration,” Sappington said. “Economically, our two counties are connected in many ways. Some Island County residents work or have businesses in Skagit and vice versa.”
The six-month state grant funded a five-month program that ran in both counties through the beginning of June.
It had many pieces. Courses on raising capital and increasing demand, one conducted completely in Spanish. A mentor network, matching experts with rural entrepreneurs. Access to business planning and financial software. Celebratory showcase events in each county. And competitive business development grants for course graduates.
Importantly, all elements of the program were free to startups and small businesses. They were coordinated and delivered by a third nonprofit: Eugene, Oregon-based Regional Accelerator & Innovation Network (RAIN) Catalysts.
If the varied ingredients had a secret sauce poured over them, it was likely RAIN, which said it has worked with more than 50 communities in Oregon and Washington since 2014.
“We invited RAIN Catalysts to partner with us in the program because of their proven knowledge and experience in strengthening entrepreneurial ecosystems in rural communities, and their ability to mobilize quickly to help deliver and manage programs,” Sappington said. “The program’s structural rigor they provided, and the stellar delivery of the educational programs were exceptional.”
RAIN, which already had been working for several months with EDASC under a separate two-year-plus agreement for Skagit County, brought what CEO Caroline Cummings said was its “investigative and not prescriptive” approach to the dual-county effort. Cummings said earlier conversations with Island County EDC and EDASC had helped identify the needs of hard-to-reach entrepreneurs and allowed them to launch the new project’s activities more quickly.
“We also know that most rural and underserved entrepreneurs struggle in common areas when it comes to starting and growing a small business,” she said. “These areas include proper financial management, accessing capital, identifying and engaging mentors, reaching customers, marketing in new and creative ways, and finding a cohort of other like-minded entrepreneurs and small business owners who are going through some of the same challenges.”
For example, one course — RAINcap Bootcamp — had four sessions (in English and Spanish) covering funding sources, how much a company should raise, making strategic financial decisions and pitching a business story. Closing “Elevate” events in Burlington and Langley weren’t just celebrations, but had keynote talks, lightning rounds of entrepreneurial pitches and business showcases featuring course graduates.
The heads of Island County EDC, EDASC and RAIN all expressed satisfaction, and even some surprise, at the program’s results.
The first two courses on raising money and managing finances, and on turning businesses or communities into consumer destinations, were either filled or blew past attendance expectations, according to one RAIN representative. Cummings said all metrics were achieved and several surpassed, including serving 283 small businesses (target 75–100), 178 women-owned businesses (target 35–45) and 92 minority-owned businesses (target 15–20).
“The only thing that was unexpected was the volume of interest from Skagit County entrepreneurs — especially from the Spanish-speaking entrepreneurs,” Cummings said.
“We were delighted that so many Skagit businesses wanted to participate,” said John Sternlicht, EDASC’s CEO. “If anything surprised us, it was the extent of the interest out there.”
“What impresses me the most is that we really accomplished it,” Island County’s Sappington said. “When we were awarded the grant, it was a moment of, ‘Oh my goodness, can we really do this in only six months?’”
Now that the two-county project has ended, RAIN will continue working with EDASC through the end of 2024 under a separate agreement to “develop and foster an entrepreneurial ecosystem,” Sternlicht said. “This was a good introduction to the process to kickstart how we and RAIN support our entrepreneurs in Skagit County.”
Island County EDC’s Sappington said she plans to pursue additional funding “to carry on the program’s momentum within our Island County entrepreneurial ecosystem.”
Cummings said ultimately, RAIN wants to make sure these ecosystems are set up to function on their own, moved forward by local entrepreneurs. RAIN’s role would effectively be obsolete.
“Because we’re catalysts,” she said, “the goal is eventually leadership in the community steps up, and they start to do what’s needed to fill the gaps.”
Places & Things
The Foxhole opened in downtown Bellingham on June 16 in the former location of Lorikeet Bar. Touting “new ownership,” the “modern cocktail and coffee lounge” said on Instagram to “think: absinthe, delirium, fun takes on old drinks, and lite bites under low-lite with your friends.” One of the owners described the decor as “mostly Victorian, dark and romantic.” The bar at 215 W. Holly St. is open Tuesday through Saturday starting at 3 p.m. Lorikeet closed on March 11.
(For the latest Places & Things, check here throughout the week.)
Frank Catalano’s column appears weekly, and moves to Fridays online and in print starting July 7. Email: frankcatalano@cascadiadaily.com; Twitter @FrankCatalano.
