Community-Based Models for Entrepreneurship

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

2. Objectives • Increase understanding of community-based entrepreneurship models • Learn how other communities are implementing elements of these models • Explore Extension’s role in helping communities implement these principles

3. 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 • Extension’s Role in Community-Support Systems for Entrepreneurship – 30 min

4. Introduction • Economic Development 101 • We’ve been here before and communities have responded • A new way to think about economic growth

5. Economic Development 101

6. Industrial Attraction The economic development tool of choice for the last 30 years

7. 2007 Industrial Attraction • IEDC announced 15 industrial location projects 75+ jobs) • 91 local economic development organizations in Indiana • 1 in 6 bagged an elephant

8. A New Model Open Source Economic Development

9. OSED Integrates multiple perspectives

10. 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

11. 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/Regional%20Flavor%20June.pdf

12. The Billion $ Question What makes a community “sticky” when it comes to its entrepreneurs?

13. Were finally beginning to learn about Entrepreneurs

14. Think of Entrepreneurship as a Horserace

15. Entrepreneurship: A Horse Race • The Horse – The Business Idea

16. Entrepreneurship: A Horse Race • The Horse – The Business Idea • The Jockey – The Entrepreneur

17. Entrepreneurship • The Horse – The Business Idea • The Jockey – The Entrepreneur • The Track – The Community

18. Community Support Systems for Entrepreneurship Taking Care of the Track

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

20. Who’s Job Is it to Tend to the Track? • Chamber • LEDO • Elected Officials • Banks • Schools/University • Extension • ???????

21. Some Models • Supporting Youth Entrepreneurs • Entrepreneurial League System • Economic Gardening • Entrepreneurship Coaching

22. Supporting Youth Entrepreneurship Presented by Jeff Sanson Director, Programs Indiana Council for Economic Education February 7, 2008

23. Youth Interest in Entrepreneurship • Kauffman Foundation survey • http://www.kauffman.org/items.cfm?itemID=939

24. What do Youth Entrepreneurs Need? • Opportunities for growth and skill development • Supportive communities • Role models and mentors • Access to networks and resources and markets

25. 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

26. Available at http://www.entre-ed.org/Standards_Toolkit/nurturing.htm

27. 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

28. 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)

29. Resources • Youth Entrepreneurship links • www.entre-ed.org (good starting point) • www.extension.org/pages/Seeding_a_Successful_Future:_Youth_Entrepreneurship • RUPRI - Energizing Entrepreneurs Websitehttp://www.energizingentrepreneurs.org/ • JOE article on Youth Entrepreneurshiphttp://www.joe.org/joe/1998october/rb2.html

30. Entrepreneurship Week USA 2008 • FEBRUARY 23 - MARCH 1, 2008

31. Entrepreneurial League System®

32. 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

33. ELS ® Skill Categories • Technical • Managerial • Entrepreneurial • Personal Maturity Skills

34. 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

35. Benefits • Assistance to entrepreneurs based on entrepreneurs needs • Service providers don’t need to be all things to all entrepreneurs • For the community, the program is scalable and shows gaps and overlap in services

36. Where is ELS® • Advantage Valley (WV, OH, KY) • Central Louisiana • North Carolina

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

38. 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

39. Economic Gardening • Information • Infrastructure • Connections

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

41. Economic Gardening • Infrastructure • Physical • Quality of Life • Intellectual

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

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

44. Extension’s Role • What work are we currently playing? • What roles could we play? • What barriers might exist? • What do we need to do next?

45. 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@purdue.edu http://pcrd.typepad.com/ecd (blog)