Our Guest Columnist today is Jeff Thompson, (@thomjeff) of Fredericton, who exited his tech company Conseros when it was bought by Genesys in 2009. Jeff recently announced his departure from Genesys and is now a tireless and sage mentor (according to several people we know) with Launch36 and the Canadian Youth Business Foundation.

 By Jeff Thompson

The Atlantic region has long been a source of natural resources, including forestry. As a region we’ve been challenged to diversify our economies and ensure we have a place in the so-called new economy.

I heard the New Brunswick Government will be making some announcements on its own innovation strategy. Before they spin their report, I thought I’d share my own thoughts, many shaped by discussions over the last couple of weeks.

In no order of priority…

1. Stop Thinking Local. In New Brunswick, there are far too many agencies, boards, and industry associations for a province our size. I’m not sure how some of these groups are funded, but I’m a firm believer that we, as a small jurisdiction, are doing ourselves a huge disservice by further diluting ourselves.

 •Recommendation: fold many of these into one overarching provincial group that can be an advocate for the innovation sector. This new group should be open and welcome technology academia, and well established firms who want to innovate. In addition, I’d recommend having a specific focus on a quasi-mentorship program focused solely on new/young entrepreneurs. They are the rocket-fuel for the next decade.

2. Innovation/Economic Development Plan. As voters, we need to take a stand and let our politicians know we are looking for long-term, sustainable growth even if that exceeds its four-year mandate. I believe building a startup eco-system in this region will take 10-years. This mandate will span the life of three governments, and it’s not likely all three will be under same party or leader.

 •Recommendation: Within 6 months, have a plan all provincial parties support. The plan should come from, and be driven by, industry - not government. I may be wrong, but I don’t know too many politicians who have started a business. This also means politicians need to move away from “shovel photo op” projects and voters need to stop rewarding them by re-electing them for these “buying your vote” moments.

3. Business-Friendly Environment. Whether a new technology, or traditional small company startup, all new businesses need a business-friendly environment. Those that need hand-outs, repayable or forgivable loans, are likely not going to succeed.

 •Recommendation: for technology companies, the Jenkins Report recommendations will be a huge step forward. But NB can do more. Look at what Quebec has done to grow the game development industry. I propose NB waive the provincial payroll and worker compensation for up to 24 months for any startup established in the last 24 months. I’ll call it the 24/24 plan. Although small in the grand scheme of things, every little bit of cash-flow assistance can help a new startup. 

4. Talent. We have a ton of great universities and post-secondary institutions and many attract foreign students. My guess is many of these students leave the province after graduation for opportunities that will start their career on the “right foot”.

 •Recommendation: Foreign students made the decision to come to New Brunswick. Why not encourage them to stay, start or join a business? Forget Provincial Nominee Programs - if a student wants to start a business in NB, he/she can stay.

5. Capital. I started a company in 2006 and there weren’t too many angel investors in New Brunswick. Since then, I’ve sold my business, as have others. You know who they are. But I wonder how many have the incentive to invest in an NB startup?

 •Recommendation: Take a serious look at the NB Small Business Investor Tax Credit program to see if it is as attractive as it can be. I’d also take a hard look at a Crowd Funding model – overall business has changed, so has raising capital.

These are my thoughts on how we, as New Brunswick can build a startup ecosystem. I welcome your thoughts and ideas.

Entrevestor Note: We reproduced this from Jeff's Random Thoughts blog. Thanks for sharing it, Jeff.