Western Regional Competitiveness Forum Denver April 4

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WesternRegional CompetitivenessForumDenver
- April 4 5, 2002
National Governors Association
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Clusters in Rural America
Don Macke
U.S. Forest Service
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Academies RUPRI Capital Case Study Sites TNC
Sites USFS Sites NGA Academy Sites Other Learning
Sites

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Entrepreneurship Rural America
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Importance of Entrepreneurs

• Pursues Opportunity
• Lives Proactively
• Leverages Resources
• Builds Networks
• Creates Value

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Global Entrepreneurship Monitor

• KCEL Others
• 3rd Year
• Comparative International Study
• 1999 - 10 Counties
• 2000 - 21 Counties
• 2001 - 29 Counties

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GEM 2000 Entrepreneurship is strongly
associated with economic growth!

• The level of entrepreneurial activity explains 70
  percent of the difference in economic growth
  among nations.
• All nations with high levels of entrepreneurial
  activity have above average rates of economic
  growth.
• Only a few nations that have above average rates
  of economic growth have low levels of
  entrepreneurship.

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National Commission on Entrepreneurship

• High-Growth Companies Mapping Americas
  Entrepreneurial Landscape.
• July 2001

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Major Findings

• High-growth companies are truly extraordinary in
  the economy fewer than one in twenty U.S.
  businesses achieve high-growth rates.
• High-growth companies are found in all regions of
  the country, often concentrated in the most
  surprising areas.
• Most fast-growing, entrepreneurial companies are
  not in high-tech industries.
• Each one of the 394 regions in the country
  contains some high-growth companies.
• Most regions high-growth companies concentrate
  in certain specific industry sectors.

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Entrepreneurial Growth Company Index
128 Fort Collins, CO
127 Laramie, WY
28 North Platte, NE
80 Rock Springs, WY
173 Denver, CO
125 Grand Junction, CO
69 Pueblo, CO
161 Flagstaff, AZ
198 Farmington, NM
112 Sante Fe, NM
126 Colorado Springs, CO
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High Performing ESOs
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Mini-Wrapup

• Entrepreneurs are Important
• EGCs are Critical
• ESOs make the Difference

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Our Position. . ..

• Weaker Rural Economic Performance is Due in Part
  to Lower Levels of Entrepreneurial Activity?

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Rural Challenges

• People are Entrepreneurial
• Fewer Entrepreneurs
• Far Fewer EGCs
• Inconsistent ESOs
• Dominance of Extractive Industries

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NCOE -
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GEM-Trends Entrepreneurs are Powerful Economic
Drivers

• Entrepreneurship Rates by Industry Grouping. . .
• Extractive 4
• Transforming 30
• Business 21
• Consumer 45

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Opportunity

• Energizing
• Rural Entrepreneurs

How?
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Clusters Energizing Rural Entrepreneurs
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Why Clusters?

• Many reasons
• It is a remarkably convenient way to organize the
  rural landscape.
• Matches states sectoral approaches.

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Rural Reality
Sector
Place
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Rural Americas Economy




Resource Processing



Manufacturing



Forestry




Mining

Processing



Energy



Health Care

Industries


Agriculture




Housing



Fisheries



Services


Natural



Waste



Retail


Resource
Elderly


Industries



Retirees

Support

Activities


Americas






Playground
Prisons

Second Homes







Military B
ases

Tourism

Government




Federal Lands

Recreation



Indian Reservations


Retirement Homes



Corridor
Waste Sites


Industries

Telecom


Highways

Railroads






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Rural Reality

• Increase in Primary Industry Output
• Decrease in Massive Restructuring
• Decrease in Secondary Industry Output

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Central Nevada Story

• U.S. Forest Service
• Center for Economic Development,
• University of Nevada at Reno
• KCEL
• RUPRI
• Area Develop Interests

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Central Nevada
Eureka
Lander
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Layered Analysis

• Areas Economic Clusters
• Entrepreneurs within Clusters
• GAP Analysis
• Opportunity Identification

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Cycle of Development
Opportunity Knowledge
Energizes Area Entrepreneurs
Increased Deal Flow
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Central Nevada Clusters
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Entrepreneurs

• Identify Them
• Focus on Them
• Customized Support
• Connect Them

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Entrepreneurs within Rural America
EGCs
Survival
Lifestyle
Hobby
Active
Aspiring
Growth
Potential
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Supporting Entrepreneurs an Entrepreneurial
Climate
Market Awareness
Perceived Real Opportunities
Motivation to Growth Enterprises
Business Capacity
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Future Work

• U.S. Forest Service
• Four Corners Area
• Nature Conservancy
• Sustainable Practices
• Northern Great Plains
• Agriculture
• State Academies
• Targeted Research

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For More Information. . . .

• Center for Rural Entrepreneurship
  http//www.ruraleship.org
• Kauffman Center http//www.entreworld.org
• RUPRI - http//www.rupri.org