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Energizing Rural Communities Through Entrepreneurship. Spring 2005 Symposium March 30, 2005 WRDC. Don Macke Co-Director. American Legacy. Eleanor Roosevelt. Henry Ford. Tupelo, MS. Bill Gates. Mayo Clinic. E 2 What? Case E Talent Pathways. Model Practices California
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Energizing Rural Communities Through Entrepreneurship Spring 2005 SymposiumMarch 30, 2005WRDC
American Legacy Eleanor Roosevelt Henry Ford Tupelo, MS Bill Gates Mayo Clinic
E2 What? Case E Talent Pathways Model Practices California Colorado/Wyoming Great Plains Kansas West Virginia Today’s Presentation
What? Successes! Why? OVERVIEW
Origins of Change Failing Strategies Performing Strategies
Growth Entrepreneurs • 2/3 of New Job Creation • 2/3 of Business Growth • 2/3 of Innovation National Commission on Entrepreneurship
Industrial Attraction: • Annual Job Loss 7-8% • Job Creation: • Business Expansions 55% • Business Startups 44% • Business Relocations 1% David Birch
Community Wisdom. . . . • Rural Challenges and Decline • Loss of Natural Resource Industries • Erosion of Business Attraction Opportunity • Challenges with Small Businesses “Bottomline, the development strategies that got us to the 21st Century are not getting the job done today.”
Proof from the Field. . . . • Humboldt County, California • Jefferson County, Washington • Wyoming • Tupelo, Mississippi • Fairfield, Iowa • Littleton, Colorado • Down East Maine • Kentucky Highlands • Douglas, Georgia • Kearney, Nebraska
Douglas, Georgia Fact Sheet. . . • Georgia Entrepreneur-Friendly Communities • Part of Georgia Tech’s E-Net Program • Population 38,000 • Focused Entrepreneur Revenue Strategy • Population Grew by 30% (1990-2002) • Employment Grew by 47% (1990-2002)
Kearney, Nebraska Fact Sheet. . . • Rural Central Nebraska • Second Fastest Growing Community in Nebraska • Long-Term Home Grown Strategy • Diversified Economy • Knowledge Economy • Adding Jobs Faster than Population • Futures Process
ENTREPRENEURIAL TALENT “By understanding the entrepreneurial talent present in your community, it is possible to be more strategic in shaping an economic development program.”
Entrepreneurial Talent Entrepreneurial Growth Companies Entrepreneurs Serial Es Growth-Oriented Business Owners Restarts Lifestyle Survival Potential Entrepreneurs Startups Aspiring Dreamers Frustrated Youth Want to be An Employee Not Working Limited Potential Can’t Work
Likely Opportunity Markets Aspiring Restarts Startups Transfers Growth Oriented
PATHWAY STRATEGIES “Pathways provide a way for entrepreneurs to develop and succeed in this creative process of visioning and growing ventures.” Center Research
Aspiring and Startups • Characteristics: • Motivated to Change Life • An Idea (exploring an) • Unsure, Afraid • Secretative • Don’t Know How to Proceed • Needs & Wants: • Moral Support • Ideal Processing • Self-Awareness • Risk Assessment • Framework for Going Forward • Good Personal Choice • Viable Concept • Stories: • Lilly Warren • Cody Foster • Shirley Williams • Rah Trost • Brenda Emery • Strategies: • REAP – NE • Sirolli – KS • WV Options – WV • NC Real Enterprises – NC • Shenandoah, IA • Best Practices: • Listener • Coach or Facilitator • Sorting Out Framework • Business Planning • Eship Course • Feasibility Study • Counseling • Why? • Moral Support • Opportunity • Equity • Diversity • Pipe Line • Creativity
Aspiring and Startups • Needs & Wants: • Moral Support • Ideal Processing • Self-Awareness • Risk Assessment • Framework for Going Forward • Good Personal Choice • Viable Concept • Characteristics: • Motivated to Change Life • An Idea (exploring an) • Unsure, Afraid • Secretative • Don’t Know How to Proceed • Stories: • Lilly Warren • Cody Foster • Shirley Williams • Rah Trost • Brenda Emery • Strategies: • REAP – NE • Sirolli – KS • WV Options – WV • NC Real Enterprises – NC • Shenandoah, IA • Best Practices: • Listener • Coach or Facilitator • Sorting Out Framework • Business Planning • Eship Course • Feasibility Study • Counseling • Why? • Moral Support • Opportunity • Equity • Diversity • Pipe Line • Creativity
Aspiring and Startups • Characteristics: • Motivated to Change Life • An Idea (exploring an) • Unsure, Afraid • Secretative • Don’t Know How to Proceed • Best Practices: • Listener • Coach or Facilitator • Sorting Out Framework • Business Planning • Eship Course • Feasibility Study • Counseling • Needs & Wants: • Moral Support • Ideal Processing • Self-Awareness • Risk Assessment • Framework for Going Forward • Good Personal Choice • Viable Concept • Stories: • Lilly Warren • Cody Foster • Shirley Williams • Rah Trost • Brenda Emery • Strategies: • REAP – NE • Sirolli – KS • WV Options – WV • NC Real Enterprises – NC • Shenandoah, IA • Why? • Moral Support • Opportunity • Equity • Diversity • Pipe Line • Creativity
Growth Oriented • Characteristics: • Existing Businesses • Successful • Motivation to Grow • Clear Venture Ideas (Products, Services & Markets) • A Risk/Gain Challenge • Needs & Wants: • Space • Growing vs Running Business • Market Research • Growth Plan • Venture Capital • Stories: • Good Life Pharmacy • Krotter Inc. • Sky West Airlines • Cabellas • Fairfield Direct • Strategies: • AceNet • GROW Nebraska • Kentucky Highlands • Northern Initiatives • Fairfield, IA • Littleton, CO • Best Practices: • Mentors • Peer Group • Advisory Board • Customized Technical Assistance (Real Time Growth Plan) • Capital Access • Why? • They Are There • They Might Leave • They Might Not Act • Development Impact • Environment
Growth Oriented • Needs & Wants: • Space • Growing vs Running Business • Market Research • Growth Plan • Venture Capital • Characteristics: • Existing Businesses • Successful • Motivation to Grow • Clear Venture Ideas (Products, Services & Markets) • A Risk/Gain Challenge • Stories: • Good Life Pharmacy • Krotter Inc. • Sky West Airlines • Cabellas • Fairfield Direct • Strategies: • AceNet • GROW Nebraska • Kentucky Highlands • Northern Initiatives • Fairfield, IA • Littleton, CO • Best Practices: • Mentors • Peer Group • Advisory Board • Customized Technical Assistance (Real Time Growth Plan) • Capital Access • Why? • They Are There • They Might Leave • They Might Not Act • Development Impact • Environment
Growth Oriented • Characteristics: • Existing Businesses • Successful • Motivation to Grow • Clear Venture Ideas (Products, Services & Markets) • A Risk/Gain Challenge • Best Practices: • Mentors • Peer Group • Advisory Board • Customized Technical Assistance (Real Time Growth Plan) • Capital Access • Needs & Wants: • Space • Growing vs Running Business • Market Research • Growth Plan • Venture Capital • Stories: • Good Life Pharmacy • Krotter Inc. • Sky West Airlines • Cabellas • Fairfield Direct • Strategies: • AceNet • GROW Nebraska • Kentucky Highlands • Northern Initiatives • Fairfield, IA • Littleton, CO • Why? • They Are There • They Might Leave • They Might Not Act • Development Impact • Environment
Targeting Development Discovery Prioritization Management Identification External Resource Team Coach Local Resource Team Visitation Portfolio Pathway Strategies Support
Active Learning Sites High Engagement Collaborate Tracking Activity
Model Practices • California • Colorado/Wyoming • Great Plains • Kansas • West Virginia
Economic Gardening • Littleton, Colorado – Urban • Wyoming – Rural • Very Sophisticated • Particularly Good with Markets • Littleton Results: • Doubled Number of Jobs • Tripled City Sales Tax-Revenues
Heartland Center for Leadership Development Who Are We?
Putting the Pieces Together Entrepreneurship Capital Leadership Youth
Orientation Elements of the Plan Readiness Performance Assessment Implementation Strategy Building
Capacity & Layering • Limited Capacity • Categorical Programs • Layering Challenges • Decreases Capacity • Focused and Simple • Builds Capacity
Results Hope Game Plan Capacity Building Impacts
Sirolli’s Enterprise Facilitation • Five Regions in Rural Kansas • Simple and Direct Model • Can Foster Regional Collaboration • SE Kansas - June 2002 to March 2004 • 28 New Businesses • 9 Business Expansions • 2 Retentions • 118 net New Jobs
Entrepreneurial League System • Developed in Kentucky • Adapted to Rural West Virginia • Baseball Model • Rationalizes Services • Customized for Entrepreneurs • Organizes Resource Providers
don@ruraleship.org For More Information. . . . • Center for Rural Entrepreneurship – http://www.ruraleship.org • Ewing Marion Kauffman Foundation – http://www.emkf.org • RUPRI – http://www.rupri.org