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No Regrets
West
Michigan entrepreneurs haven’t always
listened to wise advice and statistical
analysis, preferring to forge ahead on “a feeling, a hunch and a vision.”
By
Marty Primeau
Photography by Michael Buck
Perhaps G.A.
Krause said it best: “There is some
opportunity here.”
The founder of
the small shoe factory that would become
Wolverine World Wide was talking
about West Michigan. In 1903 he and his
sons built a shoe factory in Rockford, making
300 pairs a day. Today Wolverine’s
products, including leading casual brands,
are sold globally in nearly 200 countries
and territories.
And Krause wasn’t
alone.
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The West Michigan region has produced a myriad
of innovative ideas and products, from Pop-Tarts
to private-label pills. Entrepreneurs thrive
here, and a high percentage of family-owned businesses
have remained here for several generations.
“We’re awfully lucky that we’ve
had people in West Michigan who are willing to
try things,” said Hank Meijer, whose father
and grandfather founded a grocery store empire
75 years ago. “The current thinking is
that creative ideas will be fostered in larger
cities. But there is something in the scale of
Grand Rapids that makes it big enough to find
the tools and talents, yet small enough to foster
experimentation.”
Simply put, said Peter Secchia, former CEO and
chairman of Universal Forest Products Inc. and
U.S. ambassador to Italy, “People here
are willing to take risks.”
Consider Melville Bissell, who built a carpet
sweeper machine to help his wife clean the sawdust
particles in their small crockery shop. He patented
the invention in 1876 and built the first Bissell
manufacturing plant seven years later. It’s
still in Grand Rapids, and Melville’s great
grandson, Mark Bissell, runs the company.
Or Dan and Dorothy Gerber, a young couple looking
for an easier way to strain and mash their baby
daughter’s peas and carrots. Dorothy suggested
Dan talk to his father about using the family’s
Fremont Canning Co. to simplify the process.
Gerber Baby Food was developed, eventually selling
to Nestle, but the plant remains in West Michigan
and is currently the site of a $75 million expansion
related to infant/toddler food research, Nestle’s
key site internationally.
Luther Perrigo was proprietor of a general store
and apple-drying business in Allegan. In 1887
he had the notion to package and distribute patented
medicines for country stores. His company developed
the “private label” concept as a
way to build company loyalty. Through the years,
Perrigo has acquired several businesses throughout
the world, but remains in West Michigan. Last
year the company announced plans to invest $10.5
million to expand its Allegan headquarters and
add 400 jobs over the next five years.
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Photography
courtesy Meijer
In 1962, the Meijer
family opened the first Thrifty Acres,
the original supercenter combining
food and general merchandise under
one roof.
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“All of these people took huge gambles,” Meijer
said. “It wasn’t always the result
of a careful analysis — it was more of
a feeling, a hunch and a vision.”
In the mid-1800s, household furniture put Grand
Rapids on the map. It was an industry that gradually
evolved as craftsmen recognized a future in high-tech
office systems. Today, Grand Rapids has gained
a reputation as a leader in “green” furniture
design.
But even with the nickname “Furniture
City,” the area never has been dominated
by a single industry, said Gordon Olson, city
historian. “As a result, there’s
been more of an opportunity for mid-size corporations
to emerge here and stay here.”
Many are family-owned and passed from generation
to generation, he said. “The owners continue
to live here and support others. For instance,
Win Irwin of Irwin Seating Co. will tell you
about his grandfather and two brothers who started
one furniture company after another.” Irwin
Seating is the world’s leading manufacturer
of public seating for movie theaters, auditoriums,
arenas, performing arts centers and more, and
is headquartered in Grand Rapids.
Olson also cites Herman Miller, an icon of office
furniture manufacturing, who taught his son,
Howard, the fine art of clock making. Howard
took over the company’s clock division
in 1926 and renamed it; today Howard Miller Clock
Co. still is located in Zeeland, across the street
from Herman Miller Inc.
Just as important as family values is the role
of religion, Olson said, referring to R.H. Tawney’s
book, “Religion and the Rise of Capitalism,” which
makes the connection between spiritual salvation
and economic success.
“Basically, it says that strong values
toward family and community are keys to success — and
those things certainly exist in West Michigan,” Olson
said.
Jeanne
Englehart, president of the Grand Rapids Area
Chamber of Commerce and former business owner,
agrees. “People here respect and reward
hard work,” she said. “It’s
part of your religious or family heritage. When
you look at Grand Rapids, you see a wealth of
knowledge passed down in family businesses through
two, three and four generations,” she said. “And
people here have such strong philanthropic expectations.”
Just look at Amway.
Rich DeVos and Jay Van Andel were best friends
in high school when they decided to be business
partners. They tried a number of ventures before
starting Amway, a direct-sales company, in the
basements of their neighboring homes. Amway — short
for American Way — developed into a multibillion-dollar
global business.
Not only has the company remained in Ada, the
founders dedicate time and money to improve the
quality of life in Grand Rapids, from funding
museums, research, hospitals and arenas, to underwriting
the July 4 Family Fireworks Event.
“There’s a direct tie between the
great philanthropic activity in West Michigan
and our entrepreneurial spirit,” said Bob
Roth, president of RoMan Manufacturing Inc.,
a leading manufacturer of water-cooled AC transformers
and other stacked-core transformers, founded
by his father and Robert Hoffman — and
still owned by their families.
“Having worked together in the industry
since 1959, our fathers started RoMan as a means
of working for themselves,” Roth said as
he accepted the 2008 Jeffrey Butland Michigan
Family-Owned Business Award by the U.S. Small
Business Administration. “As a family business,
their philosophy was humble: Grow the pie and
expand everyone’s piece.”
And that dynamic of being open and sharing is
prevalent in West Michigan, he said. Roth serves
on the board of Grand Valley State University’s
Family Owned Business Institute, whose mission
is to promote and support family businesses.
Looking forward, Mark Bissell believes Grand
Rapids will continue to be ripe for entrepreneurs. “Grand
Rapids offers a competitive community with excellent
schools, a growing presence in the arts and an
abundance of leisure activities year round.” GR
Marty Primeau is managing editor of Grand
Rapids Magazine.
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