Hidden in the midst of Michigan's population exodus and economic crisis may be a subtle upside.

James Herbert, CEO of Lansing-based Neogen, vividly recalls crossing the Michigan-Indiana border during Michigan's economic crisis of 1982 and pondering the implications of the state's treacherous economic conditions.

"I remember thinking, 'If everybody’s leaving, they must be leaving behind things you can build a company with,'" Herbert said tonight at the 10th Annual Collaboration for Entrepreneurship, which drew 1,000 people to Ann Arbor's Skyline High School.

Neogen was born in 1982 as Michigan's economy plummeted in the midst of the oil crisis. But the firm now has 550 employees and $114 million in annual sales for its test kit products.

Herbert said a targeted business plan helped his company survive.

"Developing strategy and a vision is a responsibility of the entrepreneur, because hope is not a strategy," he said.

The massive turnout for the ACE event, which nearly doubled its 2009 attendance of 550 people, reflected meaningful momentum for Michigan's entrepreneurial movement. The event is a collaborative effort among a variety of organizations, including the Ann Arbor-based New Enterprise Forum, Ann Arbor-based Great Lakes Entrepreneur's Quest, Ann Arbor SPARK and the University of Michigan's Technology Transfer Office and Center for Entrepreneurship.

"I’m wowed," Herbert said. "Almost a thousand people speaks well to what’s happening in the state. Sometimes necessity is the mother of invention. Maybe that’s a little bit of what we’re seeing."

Jeff Bocan, managing director of $400 million global investment firm Beringea's Farmington Hills office, said his friends told him there were "no entrepreneurs" and "no innovation" in Michigan before he moved here from California last year.

"I’m going to take some pictures with my phone and forward them to some of my friends," Bocan said while peering at the huge crowd at the ACE event.

Momentum for Michigan's entrepreneurial movement is palpable, but major hurdles remain. Among them: Michigan's culture is largely risk-averse. People aren't used to taking chances - a key element for revitalizing a broken economy.

The state must embrace culture change, too, said Rick Galdi, president of the Detroit-based Great Lakes Angels investment group.

Understanding that risk-taking is a key element of entrepreneurialism is crucial, he said.

"Failure is seen as a scarlet letter out here as opposed to the West Coast or the East Coast, where failure is a badge of honor and tenacity wins, talent wins," Galdi said. "If you think you're going to hit a home run on your first swing, you're kidding yourself."

Contact AnnArbor.com’s Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter.