While coal has long been the crux of West Virginia’s economy, the industry’s decline has left the state’s future waiting to be reshaped. Intuit President and CEO Brad Smith believes the Mountain State should embrace high technology as its next standout industry.
By Samantha Cart
Landscape and topography have long driven the businesses that thrive in West Virginia. The state’s past is rooted in the precious resources that grow in its mountains and under its soil. However, according to Brad Smith, a native West Virginian and president and CEO of Intuit, Inc., the Mountain State’s future success now lies in the high technology sector.
Brad Smith
Growing up in Kenova, WV, Smith learned about the endurance of Mountaineers and the power of community at a young age. While he has since lived in 10 different states, he has remained highly involved in his home state, watching as it struggles through a variety of difficult circumstances. A professional who has built his career in technology, Smith believes the next chapter of opportunity for West Virginia lies in the cloud.
“I believe the first steps to growing West Virginia’s high technology economy are recognizing the need to change and embracing the opportunity that lies ahead,” says Smith. “As Robert Quillen once stated, ‘Progress involves risk. You can’t steal second base and keep one foot on first base.’”
Growing Critical Areas
According to Smith, West Virginia must invest in three critical areas to embrace a high technology economy: education, infrastructure and entrepreneurship.
“We live in a global economy,” he says. “We’re connected by the cloud with computers in the palms of our hands, powered by this concept of big data. To thrive and survive in this world, we need to teach our children the importance of STEAM—science, technology, engineering, arts and math. Just as we learned to write in cursive, our kids will need to learn how to build apps and write code. We’ll also need to provide ongoing training and tools to educate and help small business owners succeed. Small businesses need to be prepared to compete in a global and digital marketing environment.”
In terms of infrastructure, Smith refers to the Mountain State’s lack of connectivity. He believes that in order to level the playing field in the global market, West Virginia must improve its technology infrastructure with full broadband access and coverage. For inspiration, Smith recommends looking to Ireland as a model for creating change.
“Ireland is a country with many similarities to West Virginia,” he says. “They undertook a long-term strategic plan to retrain their work force, focusing on education and technology. It did not happen overnight, but they have gone from being one of the poorest economies to being one of Europe’s tech hubs. We can do the same thing here through public-private partnerships that focus on connecting individuals and small businesses so they can take full advantage of the cloud and the power of mobile devices.”
With a ready work force and sustainable connectivity in place, Smith says the last step would be to support entrepreneurship, as entrepreneurs are the backbone of the world economy. In the United States’ private sector, 60 percent of all employees work for a small business, and 80 percent of new jobs are created by small businesses.
“It matters less how many Fortune 100 companies have offices or manufacturing plants in your state,” says Smith. “What is more important in terms of long-term job growth is how strong of an entrepreneurial environment and small business community you’ve created. With the talent we have in West Virginia, we’re the only ones who can put a limit on ourselves.”
Overcoming Obstacles
While making these changes would require time and money—two things that are never easy to come by—Smith sees an obstinate mindset as West Virginia’s biggest obstacle.
“There is a part of us that does not want to change because we are worried we might somehow change the character of the state and lose what it is that makes us so unique and special,” he says. “We need to move past this. We can hold on to our values and embrace change. In fact, it is exactly these values, such as hard work and perseverance, that are going to be vital in helping make us successful. We can write the next chapter of greatness for West Virginia without losing who we are or what makes us special.”
By focusing less on the industries of the past and more on the people who made these industries thrive, the Mountain State can blaze a new trail and encourage the same veracity and work ethic that made coal such a successful business.
“The same courage and perseverance it took to tame these mountains will serve us well as we start small businesses and learn new skills,” says Smith. “Our character is tailor-made for these challenges. We don’t have to change our character to embrace the technology economy—we need to rely on the character of our people. This is a state that has a strong culture of integrity, humility and teamwork. Those values shaped me, and I believe these values make us unique as a state. If we can combine these core values with the proper education and training, I think we can create a formidable and attractive work force that can invent great businesses and attract great companies for West Virginia.”
While overcoming an outdated approach is a significant obstacle, West Virginia must also face the reality that technology companies need to relocate to the Mountain State to change the tides. However, Smith believes that by educating the work force, actively demonstrating support for entrepreneurship and investing in infrastructure, the state has the power to attract businesses from across the country and even the world.
“We can make West Virginia very attractive,” he says. “It’s about giving our youth the opportunity to pursue their dreams in this beautiful state by creating an environment that supports entrepreneurs in building their own businesses. If we support entrepreneurs and give them the tools and training they need, that will create a virtuous cycle, building more small businesses that employ skilled workers, driving greater innovation and economic activity and, ultimately, creating an environment that will attract outside talent, investors and companies who will seek to invest in the state.”
Embracing Change
Many West Virginians can still remember times when coal, manufacturing and natural gas created an economic and employment boom. While these industries played a vital role in the state’s past and will play a continuing role in its future, the question remains: how big of a role? Smith offers a common business scenario to help put the answer in perspective.
“In business, we ask ourselves a question to help us focus on building a company that is built to last: what decisions did our predecessors make years ago that we wish we could go back in time and change that would have left us in a better situation today?” he says. “Of course, executives love this question because we have the benefit of hindsight and we’re grading someone else’s work. But then the second question is asked: what will the next generation wish we had done today to set them up for a better future many decades from now? So for any industry, I would apply this same test. What industries should we invest in today that will be in demand and play a vital role for the next several generations to come?”
While many people have expressed doubts about West Virginia’s future after the controversial legislative session, devastating flooding and provocative election cycle, Smith remains optimistic about the state’s future.
“I see leaders committed to shaping the mindset, instilling self-confidence and building new capabilities for the next generation,” he says.
He is particularly excited about two new partnerships he sees as great stepping stones for embracing the technology economy.
Gallup is partnering with West Virginia University (WVU) to identify and train entrepreneurs, one of many educational programs WVU is building to reinvigorate the economy and invest in tomorrow’s work force. The partnership with Gallup will teach students how to build and grow a business.
Additionally, Cultivation Capital is partnering with Marshall University in an effort to create technology jobs in West Virginia. Funding from Cultivation Capital will allow entrepreneurs the opportunity to secure investments in the Mountain State without having to relocate. In turn, Marshall is creating a program that will offer paid scholarships to teach entrepreneurship and technology skills. When students graduate with these skills, they will be able to build careers in West Virginia, giving them a reason to stay.
Through his experience at Intuit, Smith has learned what a vital role education and small business play in the economy, and he is confident West Virginia has everything it needs to succeed in the technology sector and the world market.
“Today in West Virginia, one half of the state is employed by small businesses,” he says. “With focused education, global marketing skills and universal broadband connectivity, we can begin to move the needle and make a real difference in building a vibrant state where small businesses start and succeed. As we pursue this opportunity, we must respect our past, but not revere it; stay true to who we are, but lean into the future.”
