Many Hands Make Light Work: Alternative Financing Promotes Collaboration for Competition

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The film industry is very competitive and can be a difficult arena for individuals to begin and maintain a successful career. The stereotypes are those of backstabbing assistants, conniving talent, stubborn directors, power hungry producers, and lying studio executives. Although these horror stories can still be prevalent, the film industry is actually a tight knit group of professionals who work together and create communities built on respect and collaboration.

Small businesses such as production studios, talent agencies, distribution specialists, post production engineers, and special effects companies must establish themselves and band together collectively in order to compete with major motion picture studios. To start a small production company or film business, most entrepreneurs seek out traditional funding methods such as investors, bank loans, friends, and family. While these staples are ideal for expanding businesses with proven track records, it is substantially more difficult for novice companies to obtain financing.

Small businesses do have an advocate in the form of alternative financing groups that are dedicated to helping entrepreneurs realize their dreams of starting their own enterprises. One such supporter is the Association for Enterprise Opportunity (AEO), a membership based organization that aims to assist small business professionals obtain federal and private financing as well as technology and equity awards. Their tactics involve mentoring, advocacy, strategic planning and collaboration. Their mission is to create connections and build communities that foster small business growth and give normally rejected entrepreneurs a chance to realize their dreams. Assistance from AEO requires an interested entrepreneur to simply fill out a questionnaire stating what they are seeking and what type of community development focus their company is built upon. Whether it be environmental, women’s advocacy, people with disabilities, or veterans; AEO is committed to assisting and promoting companies who strive to better their neighborhoods.  Their goal is to foster the visions of the “micro businesses”, those with fewer than 10 employees, who would otherwise be ignored or deemed inconsequential by banks and venture capitalists. They believe that funding these “micro businesses” builds strong communities and support systems that in turn build a strong economy.

The concept of supporting local growth in order to promote a competitive marketplace is also the mission of the U.S. Economic Development Administration (EDA). Their focus lies on providing job growth opportunities and strengthening local economies that can weather the changing times and grow to make a global impact. Their methods involve creating communities that bind together to support and encourage one another through investing in qualified entrepreneurs with established public and private resources. A stringent qualification procedure is in place to ensure that applicants strive to create strategic local and global partnerships that may compete on a global level, respect the environment and assist underserved communities.

The Association for Enterprise Opportunity and the U.S. Economic Development Administration both pride themselves on developing local and underserved communities that can compete on a larger and even global scale. They promote collaboration between organizations in order to make an impact and grow the economy. Their funding requirements and sources of money are fairly vague however and could appear confusing to an entrepreneur looking for an alternative financing partner. 

Teamwork and collaboration have long been the principals for survival. Whether it is military strategies, sporting events, film productions, or business creation; teamwork is at the core. There are many funding institutions that see the value in smaller and less experienced entrepreneurs as a piece of the larger entity, even when dismissed by standard financing associations. In an industry such as film where success is reliant on “who you know” and the names of those who support you, starting a business follows a similar concept. In the end, if the project, whether it is a film or a business, speaks to an audience, a strong and connected support system can assist in seeing ideas become reality.