Community-Based Models for Entrepreneurship

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Community-Based Models for Entrepreneurship
February 7, 2008 -IP Video Scott Hutcheson,
Assistant Program Leader, ECD Jeff Sanson,
Director, Programs ICEE
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Objectives

1. Increase understanding of community-based
   entrepreneurship models
2. Learn how other communities are implementing
   elements of these models
3. Explore Extensions role in helping communities
   implement these principles

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Agenda

• Introduction Overview of Survey 30 min
• Supporting Youth Entrepreneurs 30 min
• Entrepreneurial League System 15 min
• Economic Gardening 15 min
• Entrepreneurship Coaching 15 min
• Extensions Role in Community-Support Systems for
  Entrepreneurship 30 min

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Introduction

• Economic Development 101
• Weve been here before and communities have
  responded
• A new way to think about economic growth

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Economic Development 101
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Industrial Attraction

• The economic development tool of choice for the
  last 30 years

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2007 Industrial Attraction

• IEDC announced 15 industrial location projects
  75 jobs)
• 91 local economic development organizations in
  Indiana
• 1 in 6 bagged an elephant

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A New Model
Open Source Economic Development
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OSED
Integrates multiple perspectives
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Innovation Entrepreneurship

• Introduction of new products processes each
  year
• Only 15 of businesses are typically innovators
  usually have high growth trajectory
• When 50 of business are innovators you have an
  entrepreneurship/innovation culture

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Not Always High Tech

• A BBQ restaurant starts bottling and selling
  sauce
• A dry cleaners develops a new green process and
  licenses the new process
• A beauty shop develops a new way to train
  stylists and goes nationwide
• http//www.acenetworks.org/upload_files/file/Regio
  nal20Flavor20June.pdf

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The Billion Question

• What makes a community sticky when it comes to
  its entrepreneurs?

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Were finally beginning to learn about
Entrepreneurs
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Think of Entrepreneurship as a Horserace
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Entrepreneurship A Horse Race

• The Horse The Business Idea

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Entrepreneurship A Horse Race

• The Horse The Business Idea
• The Jockey The Entrepreneur

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Entrepreneurship

• The Horse The Business Idea
• The Jockey The Entrepreneur
• The Track The Community

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Community Support Systems for Entrepreneurship
Taking Care of the Track
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The Entrepreneurship-Supportive Community

• Supportive policy environment
• History, culture, institutional memory
• Attitudes about failure
• Collaborative support organizations
• Celebrate entrepreneurs
• An information-rich environment

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Whos Job Is it to Tend to the Track?

• Chamber
• LEDO
• Elected Officials
• Banks
• Schools/University
• Extension
• ???????

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Some Models

• Supporting Youth Entrepreneurs
• Entrepreneurial League System
• Economic Gardening
• Entrepreneurship Coaching

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Supporting Youth Entrepreneurship

• Presented by
• Jeff Sanson
• Director, Programs
• Indiana Council for Economic Education
• February 7, 2008

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Youth Interest in Entrepreneurship

• Kauffman Foundation survey
• http//www.kauffman.org/items.cfm?itemID939

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What do Youth Entrepreneurs Need?

• Opportunities for growth and skill development
• Supportive communities
• Role models and mentors
• Access to networks and resources and markets

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An Entrepreneur Lifelong Learning Model

• Entrepreneur Lifelong Learning Model
• From the Consortium for Entrepreneurship
  Educationwww.entre-ed.org/
• Image available at
• www.entre-ed.org/Standards_Toolkit/nurturing.htm

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• Available at http//www.entre-ed.org/Standards_Too
  lkit/nurturing.htm

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Models of Youth Entrepreneurship Support and
Education

• Youth activities 4H, FFA
• Entrepreneurship "Boot" Camps
• Entrepreneur Showcases / Fairs
• Integrated Classrooms overarching theme
• Courses / Units - Primarily High School and
  Middle School guided by textbook
• Business Plan Competitions

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For more information

• Energizing Youth Entrepreneurs in Rural
  Communitieshttp//www.energizingentrepreneurs.org
  /content/cr_7/2_000240.pdf
• Article from RUPRI Center for Rural
  Entrepreneurship and the staff of HomeTown
  Competitiveness (HTC)

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Resources

• Youth Entrepreneurship links
• www.entre-ed.org (good starting point)
• www.extension.org/pages/Seeding_a_Successful_Futur
  e_Youth_Entrepreneurship
• RUPRI - Energizing Entrepreneurs
  Websitehttp//www.energizingentrepreneurs.org/
• JOE article on Youth Entrepreneurshiphttp//www.j
  oe.org/joe/1998october/rb2.html

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Entrepreneurship Week USA 2008

• FEBRUARY 23 - MARCH 1, 2008

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Entrepreneurial League System
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About the ELS

• Based on two assumptions
• Entrepreneurs possess a set of skills
• No two entrepreneurs come with the same set of
  skills
• Designed after a pro baseball league
• Addresses needs of entrepreneurs by level

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ELS Skill Categories

• Technical
• Managerial
• Entrepreneurial
• Personal Maturity Skills

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Entry into the ELS

• One entry point
• Gatekeeper organization has 6 functions
• Entrepreneurs' skills are assessed and designated
  into a league
• Rookie, A, AA, AAA

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Benefits

• Assistance to entrepreneurs based on
  entrepreneurs needs
• Service providers dont need to be all things to
  all entrepreneurs
• For the community, the program is scalable and
  shows gaps and overlap in services

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Where is ELS

• Advantage Valley (WV, OH, KY)
• Central Louisiana
• North Carolina

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Economic Gardening
http//www.littletongov.org/bia/economicgardening/
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Economic Gardening

• Littleton, CO developed and began to execute the
  strategy in 1989
• Focused on wealth creation not job creation
• Eliminated all incentives and tax breaks for
  business recruitment
• Since 1989, more than doubled the number of jobs
  from 15,000 to 35
• Sales tax revenue tripled from 6.8 million to
  19.6 million

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Economic Gardening

• Information
• Infrastructure
• Connections

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Economic Gardening

• Information
• Business information
• Real estate activity (using GIS)
• eCommerce training
• Advanced management techniques
• systems thinking,
• temperament,
• complexity theory, and
• customer service strategies

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Economic Gardening

• Infrastructure
• Physical
• Quality of Life
• Intellectual

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Entrepreneurship Coaching
http//www.uky.edu/Ag/CLD/KECI/welcomekeci.html
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Entrepreneurship Coaching

• University of Kentucky Extension
• Regional in Scope
• Specialized Training for Coaches
• Each coach works with 8-10 entrepreneurs

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Extensions Role

• What work are we currently playing?
• What roles could we play?
• What barriers might exist?
• What do we need to do next?

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For More Information

• Scott Hutcheson
• Assistant Program Leader, Economic Community
  Development
• Purdue University
• Purdue Extension Purdue Center for Regional
  Development
• Burton D. Morgan Center for Entrepreneurship
• 1207 W. State Street, Room 227
• 765-494-7273 (office)
• 765-494-3200 (fax)
• 765-479-7704 (mobile)
• hutcheson_at_purdue.edu
• http//pcrd.typepad.com/ecd (blog)