1. Developing Entrepreneurship and
Innovation in Rural Southeastern
North Carolina: An Update
Dr. Michael Menefee, Dr. Len Holmes &
Floyd L. Inman III
University of North Carolina at Pembroke
Pembroke, NC 28372 USA

2. UNC Pembroke
Entrepreneurship and
Economic Development
Dr. Michael Menefee
University of North Carolina at Pembroke

3. Robeson County
• Founded in 1787 with Lumberton as its seat
• Named after Col. Thomas Robeson, a
Revolutionary War hero
• Area (951 sq. mi):
– Land (949 sq. mi)
– Water (2 sq. mi)
• Population density approximately 129 per mi2
Website: www.co.robeson.nc.us

4. Ethnic Populations of Robeson County
1.0%
5.0%
25.0% 38.0% Native Americans
Caucasians
African-Americans
32.0% Hispanics
Asians
Total population in Robeson County = 123,339*
*Based on 2000 U.S. Census

5. Economic Issues
• Between 1997 and 2009, Robeson County lost
9,000 manufacturing jobs (41% of workforce)
• Significant increases are still seen in:
– Unemployment
– Crime
– Poverty
– Bankruptcies
• Teen pregnancy and school dropout rates are
continually high

6. Economic Issues
• Neighboring Scotland County lost 3 major
manufacturers and 3 smaller firms
• Scotland County has the highest
unemployment rate in the state at 17%
• According to the state economic rating system,
7 out of 10 counties within the UNCP area
were ranked as tier 1*
*(in most need of economic development)

7. University of North Carolina-Pembroke
• UNC Pembroke has three Centers
that aim to stimulate economic
development and growth:
– Small Business Technology and
Development Center
– Thomas Family Center for
Entrepreneurship
– Biotechnology Research and
Training Center

8. Small Business Technology and
Development Center
• Provide management and educational services
• Assist businesses meet challenges and plan for the
future.
• Offers specialize market development assistance for:
– Procurements
– International business
– Technology development
– Technology commercialization

9. Thomas Family Center for Entrepreneurship
• Created to improve economic development by:
1. Encouraging entrepreneurship among citizens
2. Training students to open and run small
businesses
3. Providing assistance to existing businesses
4. Address social problems
5. Attracting new businesses to the area
“Economic development and personal success are attained through
entrepreneurs and innovators who thrive on imagination, creativity, and
passion.”

10. Thomas Family Center for Entrepreneurship
• Goals are to:
1. Stimulate entrepreneurial thinking through
education
2. Support entrepreneurs and new ventures in
Southeastern North Carolina
• The Center focuses on:
1. Education
2. Research
3. Planning
4. Community engagement

11. Thomas Family Center for Entrepreneurship
• Strives to stimulate small business development
to create jobs and build community wealth
• Uses the history of entrepreneurial success to
build a base for future prosperity
• Supports the business community by:
1. Providing one-on-one consulting and evaluation
services
2. Help students to develop entrepreneurial
competencies and knowledge

12. Entrepreneurship and Biotechnology
• Entrepreneurship of UNCP
Biotechnology is supported by the
NCIIA
• NCIIA granted UNCP a Course and a
Program Grant for two years
(2011-2013)
• Grant and matching funds provided
for:
1. Enhancing entrepreneurship programs
2. Purchasing equipment for nematode
project
3. Project consulting and prototyping
support
4. Supplies for biotechnology research
5. Development of e-teams
6. Faculty research and travel

13. UNC Pembroke
Biotechnology
Dr. Len Holmes & Floyd L. Inman III
University of North Carolina at Pembroke

14. Biotechnology Research and Training Center
• With an area of 5,000 ft2, the facility provides
laboratories for:
Fermentation Microbiology
Chemistry Other life science
Molecular biology technologies
• The Center has the capacity to address most
research problems in most sectors of
biotechnology:
Agricultural Environmental
Biomanufacturing Biomedical

15. Biotechnology Research and Training Center
• The goal of the Center is to stimulate the
transformation of knowledge to increase the
economic well-being of Southeastern North Carolina
• Core activity of the Center is to establish and
develop innovative training and research
opportunities.

16. Biotechnology Research and Training Center
• The Center’s specific
aims are to:
1. Increase the number of
higher-paying
biotechnology positions
2. Increase the availability
of a trained work force
3. Offer entrepreneurs
technology, business
support and connection
to capital sources

17. Biotechnology Research and Training Center
• The Center’s main sustainable research project are:
1. Honey Bees and Honey Bee Products
2. Mass production of beneficial nematodes

18. UNC Pembroke Honey Bee Research
• New Director: Dr. Reggie Oxendine Jr.
• Research promotes the art and business
of beekeeping.
• Honey bee industry injects $6 million
into N.C. agriculture
• From 2006-2011, bees accounted for
68% fruit and vegetable production in
N.C. (~25% of total crop productivity)

19. UNC Pembroke Honey Bee Research
• UNCP gifted, sold, and established
hives for:
 Farmers
 Gardeners
 University faculty
 High schools
 Community colleges
• Consults with regional master
beekeepers and the Robeson County
Beekeepers Association

20. UNC Pembroke Honey Bee Research
• Future honey bee initiatives include:
 Use of beneficial nematodes to
protect hives from hive beetles
and wax moths
 Rearing queen honey bees for
commercialization
 Production and harvesting honey,
honeycomb and other honey bee
related products for
commercialization

21. Mass Production of Beneficial Nematodes
• Beneficial nematodes are a
safe and organic alternative
to chemical insecticides
• These nematodes parasitize
crop insect pests
• Species that are currently
researched are
Heterorhabditis
bacteriophora and
Steinernema carpocapsae.

22. Mass Production of Beneficial Nematodes
• Nematodes are mass
produced in fermentation
systems with their
microbial counterparts
• Counterparts are
Photorhabdus luminescens
and Xenorhabdus
nematophila
• Mass production has
significant economic
potential due to minimum
global producers

23. Mass Production of Beneficial Nematodes
• Mass production technology is
mainly proprietary and complex
• Mass production approach heavily
focuses on:
 Fermentation technology  Entomology
 Bacteriology  Symbiosis
 Nematology

24. Mass Production of Beneficial Nematodes
• Partnerships with local
farmers and gardeners will
enable the Center to field-
test nematode products
such as efficacy, safety
and application rates.

25. Mass Production of Beneficial Nematodes
• During one month, two
maximum capacities (40 liters)
of medium can be processed.
• Current technologies allow for
batch production yields* of:
– 4 billion (H. bacteriophora)
• 8 billion nematodes per month
– 8 billion (S. carpocapsae)
• 16 billion nematodes per month
*Yields results from nematode recovery, life cycle, & egg production

26. Potential Profit Margin of Nematodes
Theoretically based upon current distributor pricing:
H. bacteriophora S. carpocapsae
Package UNCP Retail Production cost Profit per UNCP Retail Production cost Profit per
quantity price per package* package price per package* package
10
$29.95 -$5.69 $24.26 $29.95 -$2.84 $27.11
million
50
$67.75 -$28.44 $39.31 $67.75 -$14.22 $53.53
million
250
$198.00 -$142.19 $55.81 $198.00 -$71.10 $126.90
million
*Indirect and packaging costs not included

27. Monthly Analysis of Nematode Production
Theoretically based upon current retail pricing:
H. bacteriophora
Package Packages Retail Production
Total sales Profit
quantity produced price cost *
10
800 $29.95 $23,960.00 $4,555.00 $19,405.00
million
50
160 $67.75 $10,840.00 $4,555.00 $6,285.00
million
250
32 $198.00 $6,336.00 $4,555.00 $1,781.00
million
S. carpocapsae
Package Packages Retail Production
Total sales Profit
quantity produced price cost *
*Indirect 10
and packaging million
1,600 $29.95 $47,920.00 $4,555.00 $43,365.00
costs not included 50
320 $67.75 $21,680.00 $4,555.00 $17,125.00
million
250
64 $198.00 $12,672.00 $4,555.00 $8,117.00
million

28. Mass Production of Beneficial Nematodes
• Current product produced by UNCP
Biotechnology is Brave-Guard.
• Product consisting of
Heterorhabditis bacteriophora
nematodes
• Patent application for media
formulation and process technology
has been initiated through
University channels

29. Current Situation
• UNCP has the ability to
commercialize beneficial
nematodes.
• Production scale-up is the next
challenge
• The employment of three full-time
scientists by the University
• The development of Brave-Guard

30. Current Situation
• A course involving invention and new product development
has been proposed for UNCP curricula.
• Elevator competitions have been created from outside
support
• The development of four business startups
• $350,000 has been raised for a new business incubator in
downtown Pembroke.