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Public Policy and Rural Entrepreneurship. National Public Policy Education Conference St. Louis, Missouri September 21, 2004. Entrepreneurial Genome: A Double Helix. Individual. Community. Entrepreneurial Genome. A successful entrepreneur can be viewed as a healthy, functioning organism.

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Public Policy and Rural Entrepreneurship

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Public Policy and Rural Entrepreneurship

National Public Policy Education Conference

St. Louis, Missouri

September 21, 2004


Entrepreneurial Genome: A Double Helix

Individual

Community


Entrepreneurial Genome

  • A successful entrepreneur can be viewed as a healthy, functioning organism.

  • The “switches” in the entrepreneurial genome represent individual and environmental factors.

  • An entrepreneur’s probability of success depends on whether these switches are in the “on” or “off” position.


Putting It Together: The Healthy Entrepreneur

Propensity

Education

Capital

Innovation

Labor

Team

Support Services

Mentors

Policy

Giveback

Networks

Feedback


Environment

Education and Development

K

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Give

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G

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High

Growth

Source: Ewing Marion Kauffman Foundation, 2001


Policy versus Programs


Four Government Roles

Producer

Facilitator

Enabler

Prohibitor


“The System”


Framework for Entrepreneurship Development


Do residents have a propensity

to become entrepreneurs?


Do residents have the

knowledge and skill associated

with entrepreneurship?


Are resident

entrepreneurs

succeeding?


What’s Wrong with This Picture?

Other

99.3%

E-Activity

70%

Other

30%

E-Activity

0.7%

Percentage State Economic Development Resources for Entrepreneurship Development

Percentage Difference in Economic Growth Explained by Entrepreneurial Activity

Source: Global Entrepreneurship Monitor 2000

Source: NASDA Survey of State Expenditures 1999


The Political Challenge

  • Entrepreneurship represents:

    • “patient” economic development.

    • “incremental” economic development.

    • “venture” economic development.

  • For many politicians:

    • “wealth” is still a four-letter word.


Examples of Policy Innovations

  • Entrepreneurship Education

    • Not in addition to state standards; as a technique to teach to standards

  • Unemployment Insurance

    • Give entrepreneurship the same weight as “pounding the pavement” looking for a new job

  • Use of Public Schools and Community Colleges

    • Entrepreneurship Laboratories

    • Adult Entrepreneurship Education

    • Networking events

  • Tax Deferrals (versus abatements)


Readings

  • “The Public Policy Arena,” Jay Kayne, Ewing Marion Kauffman Foundation, 1999

  • “State Entrepreneurship Policies & Programs,” Jay Kayne, Kauffman Center for Entrepreneurial Leadership, 2000

  • “A Governor’s Guide to Strengthening State Entrepreneurship Policy,” National Governors Association, 2004

  • “American Formula for Growth,” National Commission on Entrepreneurship, 2002

  • “Entrepreneurship: A Candidate’s Guide,” National Commission on Entrepreneurship, 2002


Readings

  • The Emergence of Entrepreneurial Policy, David Hart (editor), Cambridge University Press, 2003

  • Global Entrepreneurship Monitor, Executive Report (available for 1999-2003)

  • “Entrepreneurship as an Economic Development Strategy,” Jay Kayne, Center for Rural Entrepreneurship, (forthcoming)


For More Information

Jay Kayne

Cintas Chair & Professor of Entrepreneurship

Richard T. Farmer School of Business

Miami University

513-529-9298

kayneja@muohio.edu


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