Statement of the Problem

Statistics, rankings and comparisons with other cities tell the story best. New
Orleans is dying. Structural issues are at the root of the malady … racism, a failed public
education system, a political system hostile to business and political corruption. As a
consequence, outside businesses refuse to locate here and local entrepreneurs are
reluctant to start or expand their businesses. The result is the death spiral in which we
now are caught. Young New Orleanians, upon whom the future depends, are unable to
conclude that this city offers adequate opportunity. They then seek their opportunities
elsewhere. New Orleans is deprived of their talents and innovations and other cities gain
by the fruits of their productivity. New Orleans is then compared to those other cities and
the perception of New Orleans’ lack of opportunity is reinforced. The cycle continues,
seemingly unbreakable.

Statement of the Solutions

New Orleans’ problems, though severe, are not unique. Other cities, with fewer
natural resources and favorable attributes, have overcome similar challenges. Beyond
doubt, the beginning and the end of the solution lies with New Orleanians themselves –
particularly those who have decided to remain here with their families and businesses.
The enormous diversity and rich lifestyle we enjoy is our greatest asset. All things being
equal, most New Orleanians would probably prefer to remain here than leave, and many
businesses would likely locate here as well. There are many catalysts for change. One is
entrepreneurship. Entrepreneurs create value. Value creates jobs and opportunity, which
begets further entrepreneurship. It is a countercycle to the cycle in which we find
ourselves. As businesses multiply, their needs drive the requirement for educational,
political and other reforms. Entrepreneurship is thus a catalyst for positive social change.
Once reforms are perceived to be underway, outside businesses looking for alternatives to
cities that have experienced rapid growth and its consequent costs, will begin to consider
New Orleans as a viable alternative. The cycle is broken.

A Mission for LOA Group?

The essence of LOA Group has been its founders’ belief that entrepreneurship can
and should flourish in New Orleans. Its business plan contest confirmed that which its
founders understood instinctively. There is a budding movement in New Orleans for
greater entrepreneurship. It may be due, in part, to the lack of opportunity that exists
here. Young New Orleanians may be seeking to create their own opportunities due to the
lack of others. The challenge is now to take LOA to its next level. Below I set forth a
proposed mission, goals and outline of an implementation plan for LOA. This is a “save
the whales” model and not one in which LOA’s individual members will profit directly
through participation in the endeavor. In the end, however, we should all be enriched,
both financially and in non-tangible ways. A rising tide raises all ships.

/opt/scribd/conversion/tmp/scratch2/21427664.doc
1
 Mission Statement (Proposed)

The mission of LOA is to promote and aid in the creation of a vibrant entrepreneurial
community in New Orleans based upon “new economy” businesses. LOA seeks to sow
the seeds for change through entrepreneurship.

Five-Year Goals (Proposed)

1. Create an entrepreneurship institute, which will be the umbrella

organization for implementation of LOA’s mission.

2. Obtain funding through grants, donations and other profit-making

activities, estimated to be $2 million in order to finance LOA’s activities
as follows:

a. Develop a business incubator/accelerator in a physical location that

will serve as a campus of entrepreneurial activity in New Orleans;

b. Create a seed/venture fund to be used to invest in New Orleans

start-up companies;

c. Identify budding entrepreneurs by working through local entities

such as universities, business organizations, professional
organizations, etc. to sponsor business plan contests requiring all
participants to go through a series of seminars given by local
entrepreneurs and professionals. Winners receive grants, incubator
services, professional services, etc.;

d. Create Technology Bank which will receive donations of patented

technologies from entities seeking tax deductions;

e. Create a program to retain New Orleans college graduates in New

Orleans for a specified period following graduation and to assist
them in starting new businesses or going to work for start-up
companies by underwriting their initial salaries;

f. Implement Youth Entrepreneurship Program/ Summer Camp

through local schools and other youth-based organizations;

g. Implement “Bring New Orleanians Home” program marketing

New Orleans to former New Orleanians.

/opt/scribd/conversion/tmp/scratch2/21427664.doc
2
 Implementation/Financing Plan (Proposed)

Implementation should occur in three stages.

Stage One – Long Range Planning and Start-up/ Months 1-4

1. Adoption of a mission statement with a five-year goal;

2. Re-incorporation of LOA as a Louisiana non-profit corporation with a

501(c)(3) designation.

3. Preparation of a five-year plan for purposes of raising funding;

4. Begin identifying sources of financing.

Stage Two - Funding and Non-binding Commitments/ Months 5-11.

During this period, the single objective is to pursue adequate sources of funding
for implementation of LOA’s plan. Also during this period, LOA should begin obtaining
non-binding commitments for aspects of its plan to the extent needed to demonstrate
expressions of intent/commitment to funding sources.

Stage Three– Implementation/ Month 12 and Forward

Recruit and hire an Executive Director and appropriate staff in order to begin
implementation of the LOA mission. Monthly meetings with LOA Board for oversight
and adhesion to LOA mission.

/opt/scribd/conversion/tmp/scratch2/21427664.doc
3