Building Entrepreneurial Communities
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1 Building Entrepreneurial Communities Oklahoma Regional Economic Development Conference June 15, 2007 Craig Schroeder, Sr. Associate
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Transcript of Building Entrepreneurial Communities
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Building Entrepreneurial
Communities
Oklahoma Regional Economic Development
ConferenceJune 15, 2007
Craig Schroeder, Sr. Associate
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Session Outline: Entrepreneurs and Entrepreneurship Making the Case Understanding and Targeting E Talent Entrepreneurship Development Systems Getting Started and Q & A
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Entrepreneurs & Entrepreneurship
Working Definitions
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“A person who creates and grows a venture.” Jay Kayne, Miami University
Entrepreneur
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PerceiveOpportunities
RiskTolerant
Flexible &Resourceful Creative &
Innovative
Smart &Dynamic
GrowthOriented
Independent
Entrepreneurial Attributes
?
?
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“The process through which ventures are created.” Deb Markley, RUPRI Center for Rural
Entrepreneurship
Entrepreneurship
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Entrepreneurship Development
Environment that fosters and supports entrepreneurs and
entrepreneurship through public and private partnerships and practices.
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The Many Faces of Entrepreneurs
Aspiring
Lifestyle
SerialGrowth
Startups
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Owner: Shirley WilliamsVanceboro, NC
Two-time “victim” of industrial flight Decided owning her own shop was the best bet
Vanceboro Apparel
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Who’s a Business Entrepreneur in Your Region?
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Civic Entrepreneur – Haley Kilpatrick
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Who’s a Civic Entrepreneur in Your Region?
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Rural ContextMore aspiring entrepreneurs
Fewer entrepreneursFar fewer growth
entrepreneursFar fewer serial entrepreneurs
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Challenges for Rural EntrepreneursPhysical & psychological
isolation/distanceLimited access to technologyLimited sources of funding/resourcesPoor connections to marketsLimited opportunities for networking
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Entrepreneurial Communities
It is about an environment that fosters
entrepreneurs.
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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
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Are There Entrepreneurial Communities in Your Region?
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Making the Case
The Value of Taking an Entrepreneurial
Approach
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Growing Body of Research
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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
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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 995KJobs 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)
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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.
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Defining Your “Vision” What do I hope to
accomplish through entrepreneurial development and how will my approach help me get there?
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Two Examples of VisionEntrepreneurial
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
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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
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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
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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
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Understanding & Targeting E Talent
Every community has it---e-talent
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Understanding Entrepreneurial Talent
Understanding the e-talent in your region can lead to more strategic shaping of your economic development program.
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EntrepreneurialEntrepreneurialTalentTalent
Growth Entreprene
urs
Entrepreneurs
EGCs – Serial Es
PotentialEntreprene
ursAspiring
Dreamers Startups
Youth
SurvivalRestartsLifestyle
Transitional
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Entrepreneurial Talent & Development Opportunity
E Talent Time to Impact
Scale of Impact
Aspiring Long-Term Wide Range
Start-Ups Medium-Term Modest
Growth-Oriented
Short-Term Potentially Large
High-Growth Immediate Large
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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
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Youth Engagement Youth Engagement and Entrepreneurship and Entrepreneurship
Be sure to include Be sure to include your young your young
entrepreneurs!entrepreneurs!
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Critical Issues & Youth Impact
Historical Youth Out-Migration Trends
Loss of Farms and Small Businesses
Erosion of Leadership Capacity
Generational Wealth Transfer
America's Wealth Transfer:A Likely Scenario
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1999 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
% o
f Wea
lth R
elea
sed
United States Nebraska Rural Nebraska
Rural NebraskaEstimated WealthTransfer = $94 billion
Nebraska Estimated Wealth Transfer = $258 billion
United States Estimated WealthTransfer = $41 trillion
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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.
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Survey QuestionsCambridgePop. 1,041
McCookPop. 7,994
ColumbusPop. 20,971
Garden County
Pop. 2,292
Rate your community (1-10) 6.6 5.3 5.1 6.2
Interested in owning your own business in the future? 47% 41% 43% 51%Have a business right now? 17% 9% 7% 19%Picture yourself living in the area in the future? 47% 48% 49% 49%
Teen Survey Results
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Youth Engagement System©
Community Support of Youth and Their Ideas
Entrepreneurial Education &
Career Development
Youth Involvement & Leadership in Community
Engage
Equip
Support
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4-H Jr. Achievement FFA, FCCLA, DECA, FBLA Youth Led Projects Community Scholarships
Vehicles to Consider
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Targeting Entrepreneurs
Entrepreneur Expertise
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Why Target?
Different E talent = different needs Limited resources = making
strategic decisions about what types of talent to target in your community
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What Aspiring E’s Need and Want
Clarification:•Idea•Feasibility•How
Decision:•Go or No Go
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Training
Appropriate Approaches
Networking
MoralSupport
BusinessCounseling
Micro
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What Startups Need and Want
Game PlanTeamSome CapitalMarketsManagement
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Appropriate Approaches
Facilitation
Micro
Networking
Training
Mentors
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Key Insight
The success rate of startups rises dramatically with strong
supportive environments!
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What Growth Entrepreneurs Need and Want
Customized Assistance
Higher Order Assistance
Real Time Assistance Perspective Peer Support
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Appropriate Approaches
NetworksCapital
IncubatorsFacilitation
PeerGroups
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What High-Growth Entrepreneurs Need & Want
Room to Grow Capital Workforce Infrastructure Listening &
Responsiveness
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Appropriate Approaches
ESO
Capital Environment
Networks
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Key InsightKeeping high-growth companies
in rural areas is as challenging as helping to create them.
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Finding the “Sweet Spot”
Entrepreneurial Talent
Development Goals
Development Capacity
The Sweet Spotor Strategic Focus
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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
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Support Elements
BasicAdvancedHigh Performing
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BasicPositive ClimateNecessary InfrastructureFocus on EntrepreneursBusiness ServicesNetworks & Mentors
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Advanced
FinancingMarket OpportunitiesEntrepreneurial
TrainingYouth EntrepreneurshipSupport Organizations
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High Performing
Enterprise Facilitator or CoachEquity CapitalEntrepreneurship in the
SchoolsEntrepreneurial Support
Organizations
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Rural Culture
Entrepreneurship is a creative process. Local culture can
enable or limit this process.
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Cultural Check:How Do We Treat Our Entrepreneurs?
Do we value,
encourage and
support them?
Or do we
gossip about and
criticize them?
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Creating an Entrepreneurial Culture Create climate and culture in which
entrepreneurs and entrepreneurship can flourish
4 organizing principles:oCommunity-drivenoRegionally-orientedoEntrepreneur-focusedoContinuously learning
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Tools to Help Your Region Move Ahead…Community Readiness Factors
How do you know if your region is “ready” for entrepreneurship?
www.energizingentrepreneurs.org
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Entrepreneurship Entrepreneurship Development Systems (EDS)Development Systems (EDS)
It takes a system….It takes a system….
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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!!
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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?
