Building Entrepreneurial Communities
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Building Entrepreneurial Communities

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Building Entrepreneurial Communities Building Entrepreneurial Communities Presentation Transcript

  • Building Entrepreneurial Communities Oklahoma Regional Economic Development Conference June 15, 2007 Craig Schroeder, Sr. Associate
  • Session Outline:
    • Entrepreneurs and Entrepreneurship
    • Making the Case
    • Understanding and Targeting E Talent
    • Entrepreneurship Development Systems
    • Getting Started and Q & A
  • Entrepreneurs & Entrepreneurship Working Definitions
    • “ A person who creates and grows a venture .” Jay Kayne, Miami University
    Entrepreneur
  • Entrepreneurial Attributes Perceive Opportunities Risk Tolerant Flexible & Resourceful Creative & Innovative Smart & Dynamic Growth Oriented Independent ? ?
    • “ The process through which ventures are created .” Deb Markley, RUPRI Center for Rural
    • Entrepreneurship
    Entrepreneurship
  • Entrepreneurship Development
    • Environment that fosters and supports entrepreneurs and entrepreneurship
    • through public and private partnerships and practices.
  • The Many Faces of Entrepreneurs Aspiring Lifestyle Serial Growth Startups
  • Vanceboro Apparel Owner: Shirley Williams Vanceboro, NC Two-time “victim” of industrial flight Decided owning her own shop was the best bet
  • Who’s a Business Entrepreneur in Your Region?
  • Civic Entrepreneur – Haley Kilpatrick
  • Who’s a Civic Entrepreneur in Your Region?
  • Rural Context
    • More aspiring entrepreneurs
    • Fewer entrepreneurs
    • Far fewer growth entrepreneurs
    • Far fewer serial entrepreneurs
  • Challenges for Rural Entrepreneurs
    • Physical & psychological isolation / distance
    • Limited access to technology
    • Limited sources of funding/resources
    • Poor connections to markets
    • Limited opportunities for networking
  • Entrepreneurial Communities
    • It is about an environment that fosters entrepreneurs .
  • Fairfield, Iowa – pop. 9,600
    • Recognizes and celebrates entrepreneurs
    • Over 20 years: created 3,000 jobs; tripled per capita income; increased charitable giving; HQ for 75 companies
  • Are There Entrepreneurial Communities in Your Region?
  • Making the Case The Value of Taking an Entrepreneurial Approach
  • Growing Body of Research
  • Entrepreneurship and Economic Development
    • Promote entrepreneurship as the bedrock for economic development
    • Creating an entrepreneur-friendly community makes it easier to attract and retain industry and other businesses
    • Entrepreneur-friendly refers to both the business and community environment
    Recruitment Retention Entrepreneurship
  • Evidence - Data
      • Positive net job growth from small businesses vs. large – 2002-2003, US businesses with <500 employees gained 1.990 M jobs while businesses with >500 employees lost 995K
      • Jobs come from expanding businesses (55%), new businesses (44%), and business re-locations (1%) (SBA, 2003)
            • Increase in self-employment – 5.7 % in US 2002-2003 biggest increase ever (US Dept. of Commerce)
            • Importance of microenterprise (<5 employees) – 22.5 million establishments in US (AEO, 2006)
  • Evidence - Historical Trends
    • Small entrepreneurial growth companies account for:
      • 5-15% of all US businesses
      • 2/3 of net new jobs in the 1990s (60-80% in 2003 – SBA)
      • 2/3 of inventions since WWII
      • 95% of radical innovations since WWII
    • Of the Inc 500 “best” entrepreneurs:
      • 69% started with <$50,000
      • 50% are non-tech related
      • 56% started at home
      • Only 18% used venture capital
    • National Commission on Entrepreneurship , A Candidate’s Guide, 2002, http://www.entreworks.net/library/reports/4249_NCOE_GUIDE.pdf .
  • Defining Your “Vision”
    • What do I hope to accomplish through entrepreneurial development and how will my approach help me get there?
  • Two Examples of Vision
    • Entrepreneurial Development
    • Nurture local firms
    • Stimulate others to “take the leap”
    • Create jobs
    • Generate and reinvest wealth
    • Healthy community
    • Industrial Recruitment
    • Attract new plant
    • from outside
    • Create jobs
    • New residents
    • New taxes
    • Healthy
    • community
  • Recruit Validators
    • You can’t do it alone!
      • It takes a sustained community effort
      • Must “recruit” others who support your vision
      • Target 1: Successful Entrepreneurs
      • Target 2: Other Local Champions
      • Target 3: Entrepreneurial Youth
  • Hot Buttons -- Vision
    • Why Should People Care About E-ship in Your Region?
      • Wealth Creation (and Reinvestment)
      • Job Creation
      • Citizen Empowerment
      • Youth Attraction
      • Civic Capacity-Building
  • Be Creative!
    • Create your own “ribbon-cutting” opportunities
    • Give politicians what they want
      • Access to Publicity, Information,
      • Time, Voters
    • Provide
      • Information on Local Economy
      • Access to Entrepreneurs
      • Success Stories and Field Trips
  • Understanding & Targeting E Talent Every community has it--- e -talent
  • Understanding Entrepreneurial Talent Understanding the e-talent in your region can lead to more strategic shaping of your economic development program .
  • Entrepreneurial Talent Growth Entrepreneurs Entrepreneurs EGCs – Serial Es Potential Entrepreneurs Aspiring Dreamers Startups Youth Survival Restarts Lifestyle Transitional
  • Entrepreneurial Talent & Development Opportunity Large Immediate High-Growth Potentially Large Short-Term Growth-Oriented Modest Medium-Term Start-Ups Wide Range Long-Term Aspiring Scale of Impact Time to Impact E Talent
  • Common Needs
    • A supportive environment
    • Freedom and encouragement to innovate
    • Technical assistance that meets their needs
    • Entrepreneurial networks
    • Various forms of capital for different types of entrepreneurs
  • Youth Engagement and Entrepreneurship Be sure to include your young entrepreneurs!
  • Critical Issues & Youth Impact
    • Historical Youth Out-Migration Trends
    • Loss of Farms and Small Businesses
    • Erosion of Leadership Capacity
    • Generational Wealth Transfer
  •  
  • Why Target Youth “E” Talent?
    • Youth currently in your region may well represent your greatest resource for economic growth and community sustainability.
    • The challenge is to: engage these youth,
    • equip them with the skills and knowledge to be successful,
    • and then support them and their enterprising ventures.
  • Teen Survey Results 49% 49% 48% 47% Picture yourself living in the area in the future? 19% 7% 9% 17% Have a business right now? 51% 43% 41% 47% Interested in owning your own business in the future? 6.2 5.1 5.3 6.6 Rate your community (1-10) Garden County Pop. 2,292 Columbus Pop. 20,971 McCook Pop. 7,994 Cambridge Pop. 1,041 Survey Questions
  • Youth Engagement System © Community Support of Youth and Their Ideas Entrepreneurial Education & Career Development Youth Involvement & Leadership in Community Engage Equip Support
    • 4-H
    • Jr. Achievement
    • FFA, FCCLA, DECA, FBLA
    • Youth Led Projects
    • Community Scholarships
    Vehicles to Consider
  • Targeting Entrepreneurs Entrepreneur Expertise
  • Why Target?
    • Different E talent = different needs
    • Limited resources = making strategic decisions about what types of talent to target in your community
  • What Aspiring E’s Need and Want
    • Clarification:
      • Idea
      • Feasibility
      • How
    • Decision:
      • Go or No Go
  • Appropriate Approaches Training Networking Moral Support Business Counseling Micro
  • What Startups Need and Want
    • Game Plan
    • Team
    • Some Capital
    • Markets
    • Management
  • Appropriate Approaches Facilitation Micro Networking Training Mentors
  • Key Insight
    • The success rate of startups rises dramatically with strong supportive environments!
  • What Growth Entrepreneurs Need and Want
    • Customized Assistance
    • Higher Order Assistance
    • Real Time Assistance
    • Perspective
    • Peer Support
  • Appropriate Approaches Networks Capital Incubators Facilitation Peer Groups
  • What High-Growth Entrepreneurs Need & Want
    • Room to Grow
    • Capital
    • Workforce
    • Infrastructure
    • Listening & Responsiveness
  • Appropriate Approaches ESO Capital Environment Networks
  • Key Insight
    • Keeping high-growth companies in rural areas is as challenging as helping to create them.
  • Finding the “Sweet Spot” Entrepreneurial Talent Development Goals Development Capacity The Sweet Spot or Strategic Focus
  • Infrastructure Elements
    • Move beyond traditional economic development notion of infrastructure
      • Sites and buildings
      • Roads, utilities, etc
    • Think outside the box
      • Leadership
      • Service providers (public, private, non-profit)
      • Educational institutions
    Demand-Driven Approach
  • Support Elements
    • Basic
    • Advanced
    • High Performing
  • Basic
    • Positive Climate
    • Necessary Infrastructure
    • Focus on Entrepreneurs
    • Business Services
    • Networks & Mentors
  • Advanced
    • Financing
    • Market Opportunities
    • Entrepreneurial Training
    • Youth Entrepreneurship
    • Support Organizations
  • High Performing
    • Enterprise Facilitator or Coach
    • Equity Capital
    • Entrepreneurship in the Schools
    • Entrepreneurial Support Organizations
  • Rural Culture
    • Entrepreneurship is a creative process. Local culture can enable or limit this process .
  • Cultural Check: How Do We Treat Our Entrepreneurs? Do we value, encourage and support them? Or do we gossip about and criticize them?
  • Creating an Entrepreneurial Culture
    • Create climate and culture in which entrepreneurs and entrepreneurship can flourish
    • 4 organizing principles:
      • Community-driven
      • Regionally-oriented
      • Entrepreneur-focused
      • Continuously learning
  • Tools to Help Your Region Move Ahead…
    • Community Readiness Factors
    • How do you know if your region is “ready” for entrepreneurship?
    • www.energizingentrepreneurs.org
  • Entrepreneurship Development Systems (EDS) It takes a system….
  • Successful Entrepreneurship Development Systems (EDS)
    • Focus on entrepreneurs
    • Build on assets
    • Encourage collaboration & take regional approach
    • Engage youth, minorities, aging and others who are not usually invited to the table
    • Strategically target & respond to entrepreneurs
    • Celebrate community and entrepreneurial success!!
  • Getting Started
    • Is your region ready to focus on entrepreneurship development?
    • What kind of culture of support for entrepreneurs exists in your region right now?
    • What elements of a support infrastructure do you already have in place that you can build upon?
  • Q & A Craig Schroeder [email_address] www.energizingentrepreneurs.org