“It’s kind of fun to be able to give a talk that doesn’t have the word ‘budget’ or ‘tax’ in it,” Republican Gov. Rick Snyder said to a large crowd on campus just one day after announcing his state budget plan for the 2012 fiscal year.

Snyder addressed a group of about 400 people in Rackham Auditorium on Friday at the award ceremony for the four finalists of the Clean Energy Prize business plan competition. Created in 2008 by DTE Energy and the University, the Clean Energy Prize is a competition that grants $100,000 to college students across the state who present business plans incorporate clean energy.

This year’s winner was CSquared Innovations, which was started by University students who were rewarded with $50,000 at the competition. Doug Neal, director of the University’s Center for Entrepreneurship, said in his announcement of the winner that the business plan CSquared Innovations proposed provided a cost-efficient way to manufacture lithium-ion battery parts.

Prior to Snyder’s speech, University President Mary Sue Coleman said in an opening address that the University is committed to encouraging students to create original ideas.

“The University of Michigan actively supports entrepreneurs who are committing themselves to making an impact, whether economically, socially or environmentally,” Coleman said. “We can all be proud of the teams that competed in this statewide event because it is a powerful statement about our collective future.”

Gerard Anderson, president and CEO of DTE Energy, introduced Snyder and said the Clean Energy Prize competition promotes a more positive future for Michigan.

“We founded this competition because, like Governor Snyder, we believe that this state’s best days are yet to come,” Anderson said.

Prior to assuming his first public office position in January, Snyder was a public accountant and venture capitalist in Ann Arbor. He said in his speech that his experiences in technological entrepreneurship taught him the importance of understanding the challenges of starting a new business.

It is critical that budding entrepreneurs have passion for the projects they take on, Snyder said. Prospective entrepreneurs should have patience, he said, because a normal venture takes an average of seven years to go from an idea to a successful product.

“That’s a significant commitment,” Snyder said. “But I can tell you personally ... it’s a commitment that’s worth it.”

Snyder said when he became involved with venture capitalism in 1998, many Michigan business leaders weren’t aware of what the business entailed. He said the difficulty of obtaining licenses was a particularly cumbersome obstacle for entrepreneurs.

“We’ve come so far,” Snyder said. “and the best part is we’re going to continue to grow and get better and better.”

He added that he is proud the University has developed strong relationships with technology companies and cited the University as one of the top five institutions in the country involved with technology transfer.

Snyder also said organizations like Ann Arbor SPARK— a locally based business incubator— encourage entrepreneurs to use their ideas to create startup businesses.

Snyder said though morale about the state’s economy might be low, Michigan is a leader in innovation and has much potential.

“We’re up there with the top,” he said. “We don’t actually recognize that yet, so I remind you, hold your head with pride if you’re an entrepreneur or innovator in our state today.”

Addressing the finalists of the competition, Snyder said it is important to look forward to forthcoming opportunities.

“This is about doing new things; this is about building in the future,” he said. “If you don’t win today, don’t lose that fire. Don’t lose that passion. Learn some lessons.