< Previous48 A R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S Srkansas’ entrepreneurial spirit runs deep, and with resources across the state, a new wave of innovative companies is already breaking across the Natural State. Startups thrive in the Natural State thanks to its highly skilled talent pool, entrepreneurial support systems, and extremely low cost of living and doing business. In fact, Arkansas is one of the least expensive states to live in and has one of the lowest cost of doing business in the country. The state also offers a variety of tax refunds, credits and rebates to help attract fledgling companies. Targeted business incentives are available for young companies in several emerging technology sectors including: advanced materials and manufacturing systems; agriculture, food and environmental science; bio-based products; by S AVA N N A H K I N GAE N T R E P R E N E U R S H I PStartup StateArkansas’ entrepreneurial ecosystem is the right place for small business and startup success.Little Rock Tech Park houses The Venture Center, one of Arkansas’ most innovative entrepreneurship programs.Photos courtesy of The Venture CenterA R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S S 49“That’s one of the great things about the program — these companies will come in and they’ll see how affordable it is to live in Little Rock. They’ll see the access they have to talent and how accessible it is to meet the movers and shakers and get introductions to investors.”— Laura Waliski, marketing manager for Venture Center.biotechnology, bioengineering and life science; information technology; and transportation and logistics. With entrepreneurial ecosystems around the state, small businesses in Arkansas don’t stay small for long. Cities around the state including Bentonville, Fayetteville, Jonesboro, West Memphis, Conway, Little Rock, Monticello, El Dorado, and Arkadelphia, among others, boast multiple resources for entrepreneurs and small business owners. Entrepreneurs in this region can find support through numerous organizations including WalmartLabs in Bentonville which helps companies take their ideas from incubation to an international scale, and Startup Junkie, based in Fayetteville, which works with startups and existing companies across industries. Startup Junkie provides entrepreneurs with guidance on everything from budget development to venture financing and risk management. The global social venture focuses on supporting companies in retail, consumer packaged goods, supply chain, food and data analytics. Central Arkansas is a hotbed for innovation as well. Little Rock was ranked No. 5 in Smart Asset’s list of cities with the lowest startup costs. Just outside of Little Rock, Conway was listed as one of the “Seven Places in the U.S. So Cheap You Can Afford to be An Entrepreneur” by Forbes magazine. In Little Rock, Innovate Arkansas helps turn technology startups into viable commercial companies. The state-funded initiative has helped more than 575 clients raise $325 million in investments, generate $330 million in revenue and created more than 750 jobs in the state. The Venture Center, also in Little Rock, is one of the state’s most innovative incubator and accelerator programs. The center offers several engaging community and member programs as well as a pre-accelerator program that helps to guide and validate new businesses as they make their first steps.A recent economic impact analysis by the University of Arkansas found that members of The Venture Center created 637 jobs since its founding in 2014. Over the last year, the center saw a 43 percent increase in the annual number of jobs created by its members. The report also indicated member startups have raised $57 million to date. The VC FinTech Accelerator is a 12-week program that works with a select group of 10 early-stage startups to help them grow through training, networking and mentorships. The accelerator is the only one to partner with Florida-based financial services technology leader FIS and its 20,000 financial institution customers around the globe.The program is in its third year and is highly selective in choosing viable companies from around the globe to participate. In 2018, the program received 281 applications from 46 countries, 29 states and six continents. Bringing global companies to the region has other benefits outside of seeing startups succeed. “Out of the 20 companies that have come through, four of them are now located in Little Rock,” said Laura Waliski, marketing manager for Venture Center. “That’s one of the great things about the program — these companies will come in and they’ll see how affordable it is to live in Little Rock. They’ll see the access they have to talent and how accessible it is to meet the movers and shakers and get introductions to investors.” 50 AR K AN S AS : TH E S T A TE TH A T R U N S LI K E A B U S I N E S SW OR K F OR C E DE V E L OP M E N TA R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S S 51Arkansas approaches workforce development the way a business would. rough innovation, strategic partnerships, key initiatives and a common-sense approach to education, the state’s highly trained talent pool is becoming a godsend for the businesses that call the state home.Arkansas is home to more than higher education institutions. As a result, the state’s skilled labor force of . million is well-educated with nearly percent having attended at least some college and more than percent having a bachelor’s degree or higher.One of the state’s more innovative programs was launched in when Gov. Asa Hutchinson enacted the Governor’s Computer Science Initiative. e initiative was the fi rst of its kind in the country and mandates that all public and charter high schools off er computer science courses. e success of the program has led to the expansion Arkansas students pursue high-tech opportunities and experiences. by SAVANNAH KINGArkansas was the fi rst state in the country to mandate all public and charter high schools o er computer science courses and set standards for K-12.Photo: GettyImagesin middle and elementary schools. Since the initiative began, other states have followed Arkansas’ lead and implemented similar programs. Nationally, percent of school systems teach computer science. e state has begun to see the “school-fi rst” strategy play out in creating a stronger, more technologically prepared workforce. Over the last three years, percent more high school students in Arkansas are taking computer science courses. Between and , the number of students graduating with a computer science degree jumped by . percent in the state.“Arkansas is known as the leading state in this space, and part of being in the lead is that we get to write the book of what should be done,” said Anthony Owen, Chief State STEM Offi cer and Director of Computer Science for the Arkansas Department of Education. “We get to be innovative and refl ective of industry needs, and we get to throw a lot of the old-guard thought process in education out. And you know, it doesn’t have to be perfect because nothing in the world is perfect. So, we’re going to do things to support our industry, and if we wait for it to be perfect, it’ll be fi ve years out of date by the time we’re ready to implement.”According to Code.org, computer science majors in the Natural State earn more than percent above the state’s average salary. is is a major motivator for students to pursue careers in the fi eld, especially as the job outlook for software developers has grown by percent.“Obviously, on the education side, we’ve seen phenomenal responses to the computer science initiative with just great acceptance across the state,” said Owen. “And on the industry side, honestly, it’s resulted in tangible economic growth and just excitement around the tech industry. We’ve been able to attract companies, and one has relocated its headquarters here from another state and indicated to us that it was partly based on the pipeline that we’re building.” e state is also leading the charge for 144.4%Arkansas is home to more than 48 higher education institutions. Between 2012 and 2017, the number of students graduating with a computer science degree jumped by 144.4 percent in the state.Photo: GettyImages52 AR K AN S AS : TH E S T A TE TH A T R U N S LI K E A B U S I N E S SA R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S S 53a more robust cybersecurity workforce. In May , Arkansas awarded a $, Military Aff airs Grant Program award to the Little Rock Air Force Base and Jacksonville High School for the implementation of a cyber training curriculum and a new cyber range. e University of Central Arkansas has also added a cybersecurity range and will off er a bachelor’s degree in cybersecurity in fall . anks to a half-million-dollar grant from the Arkansas Department of Higher Education, the university is building a state-of-the-art cyber range to train students in cybersecurity in real time. e range allows for the creation of virtual computer networks that students use to learn how to both anticipate and defeat a cyber-attack. When the students encounter a virus within the network, they learn how to create antivirus programs to defeat it.“ e cyber range is the next logical step in our computer science initiative,” Gov. Hutchinson said. “ is will keep Arkansas on the leading edge of computer education, which will continue to attract industry that needs a well-trained workforce.” “We’ve been able to attract companies, and one has relocated its headquarters here from another state and indicated to us that it was partly based on the pipeline that we’re building. ” — Anthony Owen, Chief State STEM O cer and Director of Computer Science for the Arkansas Department of Education54 A R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S Srkansas has a reputation for growing industry giants. An economic powerhouse boasting more than 95 Fortune 500 companies including DXC Technology, Lockheed Martin, FedEx, AutoZone, Kimberly-Clark Corporation, Tyson Foods, Murphy USA, Windstream, J.B. Hunt and Walmart, it has no shortage of success stories. Over the last few years, the state has turned its attention to growing one sector in particular — technology. While these efforts may have started recently, the state has a long history of supporting tech growth. Acxiom Corporation began as a small data processing company in Conway in 1969 but has since grown into a market leader. The tech titan employs more than 2,000 Arkansans and powers more than 1 trillion transactions for its more than 7,000 global clients each week. Hewlett-Packard, now DXC Technology after its merger with Computer Sciences Corp., chose to locate its large customer support center in Conway in 2010 and has since announced it will open a regional industry development center at that location. Arkansas’ high-tech industry is growing quickly with no signs of slowing down.by S AVA N N A H K I N GTHE HIGH-TECH REPUTATIONG R O W I N G T E C H I N D U S T RYAA R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S S 55Good to GrowEmerging technology companies are finding fertile ground with plenty of room to grow in Arkansas as well, particularly in Little Rock, which is known as the birthplace of financial technology and home to some of the biggest players in the fintech scene including Acxiom, ABC Financial and FIS. BOND.ai, a financial growth platform that uses artificial intelligence to help its users meet financial goals, relocated its headquarters from New York City to Little Rock in 2017. The company decided to make the move after graduating from The Venture Center’s 2017 FinTech Accelerator program. “Capital, talent and a cost-effective environment — a young company needs these three things to grow rapidly,” Uday Akkaraju, BOND.AI’s CEO, said. “You either get one or two of those things in cities like San Francisco and New York. I believe Little Rock is the only city in the U.S. that provides all three in perfect proportions. It truly is an unexplored goldmine for startups.”Another startup that’s found success in the state is Apptegy. Founded in 2015, Apptegy is an education-technology company based in Little Rock. The company’s software product, Thrillshare, allows schools to share information and content through linked social media accounts, text messages, voice calls and websites. In less than three years, Apptegy has become one of the fastest growing ed-tech companies in the country. The company currently works with more than 1,000 schools in 40 states. It has 58 employees on staff at its Little Rock headquarters. “Apptegy’s story is different than other technology companies in the area because we are an Arkansas story through and through,” said Jeston THE HIGH-TECH REPUTATIONGov. Asa Hutchinson learns coding with students at the Clinton Center.Photo courtesy of the Governor’s OfficeGeorge, founder and CEO of Apptegy. “We started the company in a spare bedroom in my house here in Little Rock, raised all our early funds from Arkansas investors, and received support from Arkansas school superintendents who took a chance on working with a startup because they saw the importance of supporting an Arkansas company.” Metova Inc., an emerging technology company that develops mobile, web and cybersecurity solutions for companies like Yelp, Dropbox, eHarmony and the U.S. Department of Defense, expanded from its home base of Franklin, Tennessee, in 2015 into Arkansas and has offices in Conway and Fayetteville. “After researching many locales, an anchor in Conway, with its great pool of talent, higher education opportunities, welcoming business environment and excellent living conditions, was clearly the right choice,” said John Adams, CEO of Metova. “Capital, talent and a cost-effective environment — a young company needs these three things to grow rapidly. You either get one or two of those things in cities like San Francisco and New York. I believe Little Rock is the only city in the U.S. that provides all three in perfect proportions. It truly is an unexplored goldmine for startups.” — Uday Akkaraju, BOND.ai’s CEOA R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S S 57Elyxor was founded in Boston in 2010 and chose to expand into North Little Rock in 2016. The company works with clients in fintech, heath care, e-commerce, industrial products and supply chain sectors to help companies use emerging technologies to create new products. “As Elyxor has grown as a firm, we have been seeking a location where we can build a strong relationship with the local business community and find great talent,” Mark Carleo, managing partner, said at the time. “We hired our first engineer in Little Rock in 2014 and we have been growing ever since.”Building the PipelineThe tech industry is seeing a powerup thanks to the state’s skilled tech workforce. The Governor’s Computer Science Initiative, started in 2015, was the first such program that requires all public and charter high schools in the state to offer computer science education. Because of the initiative, more students are entering STEM and computer science fields upon graduation. In fact, between 2012 and 2017, the state witnessed a 144.4 percent increase in students who graduated with a computer science degree. The success of the initative has led some of the biggest names in technology to make commitments to help Arkansas with its goal of preparing students for careers in technology. In 2017, Facebook donated virtual reality kits to all the public high schools in Arkansas to help generate interest in computer science. And in 2016, Microsoft partnered with Arkansas to bring technology-based education and digital literacy training to students across the state. “Microsoft is committed to supporting the workforce of today, and growing the workforce of the future, by ensuring that all students, regardless of economic background, have the opportunity to learn computer science and computational thinking. These skills are needed in every industry,” said Fred Humphries, corporate vice president of U.S. Government Affairs for Microsoft. “This digital alliance builds on Arkansas’ commitment to increase access to computer science education and help close the skills gap.” Next >