1. The 3-Legged Stool of Entrepreneurship Dr. Deborah M. Markley Co-Director RUPRI Center for Rural Entrepreneurship and Dr. Sam Cordes Purdue University 7th Annual National Value-Added Ag Conference Indianapolis, Indiana June 16-17, 2005

2. Why are we talking about entrepreneurship? • “Part of our mission … is to challenge the old assumptions, stretch our thinking, and provide new tools and methods in order to improve our effectiveness with those we serve.” conference brochure • Rural leaders are looking for ways to re-energize local economies and bring hope to community residents. • Many leaders recognize the limited returns from traditional ED approaches and are considering new “grow from within” or entrepreneurship strategies.

3. Making the Case for Entrepreneurship • Global Entrepreneurship Monitor Project (www.gemconsortium.org) – comparative international study concludes: • Positive and significant relationship between entrepreneurial activity and economic growth • No countries with high levels of entrepreneurial activity have low levels of economic growth

4. Making the Case – cont’d. • National Commission on Entrepreneurship report (Embracing Innovation: Entrepreneurship and American Economic Growth): • Small entrepreneurs responsible for 67% of inventions and 95% of radical innovations since WWII • Small group of high growth entrepreneurs (5-15% of all firms) created 2/3 of net new jobs in late 1990s • 1997-2001, 2.2 million nonemployee firms added in U.S., 31% increase in sales (Census).

5. Making the Case – cont’d. • Panel Study on Entrepreneurial Dynamics (Kauffman Foundation) found: • At any time, 10 million Americans engaged in starting a business • Gender and racial differences (men twice as likely and African Americans twice as likely to start businesses) • Place matters: Rates of entrepreneurship higher in urban than rural

6. What about rural entrepreneurship? • NCOE and CFED Mapping Rural Entrepreneurship found: • Entrepreneurial Growth Companies in all regions • Hot spots of entrepreneurship activity across rural America (Nebraska, Kentucky) • RUPRI Center’s work suggests: • Fewer entrepreneurs in rural places • Less well developed systems of support • But, examples of successful entrepreneurship development initiatives across rural America

7. New Way of Thinking about Economic Development • Entrepreneurship as the bedrock for economic development. • Creating an entrepreneur-friendly community/region/state makes it easier to attract and retain industry and other business. • Entrepreneur-friendly relates to both business and community environment. Talk about what we’ve learned from those rural places that are adopting this new way of thinking.

8. What Is the 3-Legged Stool? • The Entrepreneur • The Business • The Community Culture and Context

9. Successful Entrepreneurship Development Programs… • Focus on entrepreneurs – understanding entrepreneurial talent • Potential entrepreneurs • Existing business owners • Entrepreneurs Nebraska’s Home Town Competitiveness program

10. Successful Entrepreneurship Development Programs… • Build on assets • Traditional economic development assets – sites, utilities, etc.) • Non-traditional assets – high speed Internet, quality of life features, access to lifelong learning resources, etc. • Entrepreneurs as assets!

11. Successful Entrepreneurship Development Programs… • Encourage collaboration • Public • Private • Non-profit North Carolina’s Business Resource Alliance Kellogg Foundation Entrepreneurship Development Systems grant competition

12. Successful Entrepreneurship Development Programs… • Strategically target entrepreneurs • No “one size fits all” approach • Target to specifically address community’s or region’s entrepreneurial talent • Target for early success Entrepreneurial League System® (West Virginia)

13. Creating an Entrepreneurial Culture • Entrepreneurship development is about more than helping entrepreneurs start businesses. • Need to embed those businesses in supportive community environment. • Successful initiatives do this by… • Engaging youth • Celebrating success

14. Engaging Youth • Gallop poll: 69% of high school students want to start a business; 84% are not prepared to do so! • Proven resources: REAL Enterprises (www.realenterprises.org), BizTech (www.nfte.com), Mini-Society (Kauffman Foundation) • WV’s Dreamquest High School Business Plan Competition (www.wvdreamquest.com) Youth can be powerful change agents!

15. Celebrating Success • Celebrate to reinforce cultural change • Celebrate to maintain and build momentum • Celebrate to influence policy makers • Joint Ribbon Cuttings • Business Plan Competitions • Fairfield, Iowa • E of the Year, E Hall of Fame, “Silicorn Valley”, Fairfield Business Showcase • www.fairfieldiowa.com

16. Preparing the Bed for Entrepreneurship • It’s all about the entrepreneurs – this is as much a human development process as a business development process. • Entrepreneurship development is about helping entrepreneurs embark and move forward with the creative process. • But…

17. It takes a system to grow an entrepreneur! • This system of support includes… • People who can direct entrepreneurs to the right services • People who can help an innovative entrepreneur turn an idea into a viable business plan • People who can identify management weaknesses and help build an entrepreneurial team • People who can work with entrepreneurs to develop skills, such as financial skills • People who can help identify market opportunities • People who can excite young people about entrepreneurship

18. Going Forth • Remaining sessions at this conference will help you… • Better understand the skills needed to work directly with entrepreneurs to help them grow • Better understand the skills and tools needed to prepare the community bed in which these entrepreneurs will grow • The RUPRI Center for Rural Entrepreneurship is ready to help!

19. For More Information • Deb Markley, Co-Director • dmarkley@nc.rr.com • Don Macke, Co-Director • don@ruraleship.org • Brian Dabson, Co-Director • brian@rupri.org • www.ruraleship.org