Fighting the coronavirus has cut sales for most small businesses and stalled startup efforts for many entrepreneurs unable to open because of government-imposed closings of restaurants, retail shops and entertainment events.
But amid the struggles for many small businesses hurt by the coronavirus, Tennessee's business development agency is looking for ways to nurture businesses that develop and make goods and services to meet the emerging needs caused by the virus.
"We have created a partnership with LaunchTN and we have opened up an opportunity for any company or nonprofit that wants to participate in the development, production or distribution of supplies and equipment for this," Gov. Bill Lee said last week during a visit to Chattanooga.
By Tuesday, LaunchTN Director Margaret Dolan said 655 companies across Tennessee had registered on the crowdsource platform setup for the new initiative and 210 proposals had already been forwarded to the state's Unified Command which is coordinating the state's response to the pandemic.
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The Chattanooga Area Chamber of Commerce is hosting an online panel discussion on COVID-19 financial resources at 2 p.m. Wednesday for small businesses with Lynn Chesnutt, Tennessee Small Business Development Center; Jermaine Freeman, City of Chattanooga and Meagan Jones, Community Foundation. Discuss SBA loans, City grants, resilience funds for nonprofits and more. The panel will be moderated by Marcus Shaw, Co.Lab.
LaunchTN is a state-supported public-private partnership that supports the CO.LAB in Chattanooga and similar entrepreneurial development programs across the state. The agency established the Tennessee Innovation Crowdsource Platform on March 30 as a way for businesses to offer products and ideas for state agencies to buy or use during the current crisis.
"We've heard from a lot of companies that manufacturer clothing and want to retool their plants to make gowns, masks or other PPE [personal protection equipment]," Dolan said. "We're trying to connect those businesses with others who have the designs and specification for such equipment to facilitate these opportunities."
Using Knoxville-based startup Vendor Registry, LaunchTN is inviting proposals to rapidly connect business resources and capabilities to equipment and supply needs facing the state, including medical materials such as testing kids, sanitizers and PPE and health care management tools to aid in planning and responding to the developing crisis.
"We're eager to put that creative power of our statewide ecosystem to work to expedite solutions to the critical needs our state faces right now," Dolan said. "In true Tennessee fashion, we've already witnessed an outpouring of offers to assist our state leaders and medical professionals, and the new Tennessee Innovation Crowdsource Platform provides a protocol to quickly vet those proposals."
One such company is Enexor, a 5-year-old bioenergy company in Franklin, Tennessee, that is developing a 3D printing process for making masks that function like the N-95 medical masks but require only one-sixth as much filter material using the so-called "Montana mask" design. If successful, Dolan said the new approach could help boost 3D face shield and PPE production being done at Austin Peay State University and the University of Tennessee as well as private producers in the state.
LaunchTN screens such companies, works to develop and connect their ideas and recommends potential products for the state to consider as it works to build up more testing, protection and treatment for COVID-19.
Many such small businesses have already been hard hit by the economic slowdown from the shutdown of so many businesses and activities. A survey of small businesses by NFIB last week found that 80% had suffered from slower sales, 31% were experiencing supply chain disruptions and 23% had concerns over sick employees.
"Early stage companies are particularly vulnerable during this period of disruption and downturn in our economy, but we're working to use their creative genius in ways that can help all of us to be successful," Dolan said.
Lee said the virus "threatens the physical health and economic well-being of our state" and he has charged the Unified Command to look for Tennessee-based innovations to fight the virus.
"LaunchTN will be a critical partner in syncing together businesses, entrepreneurs, and startups who stand ready to address needs like health care system demand and the expanded production of medical supplies," he said.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340.