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Western Regional Competitiveness Forum Denver - April 4 & 5, 2002

National Governor’s Association. Western Regional Competitiveness Forum Denver - April 4 & 5, 2002. Clusters in Rural America. Don Macke. U.S. Forest Service. $. $. $. $. $. $. $. $. $. $. $. $. $. Academies RUPRI Capital Case Study Sites TNC Sites USFS Sites

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Western Regional Competitiveness Forum Denver - April 4 & 5, 2002

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  1. National Governor’s Association WesternRegional CompetitivenessForumDenver - April 4 & 5, 2002

  2. Clusters in Rural America Don Macke U.S. Forest Service

  3. $ $ $ $ $ $ $ $ $ $ $ $ $ Academies RUPRI Capital Case Study Sites TNC Sites USFS Sites NGA Academy Sites Other Learning Sites $

  4. Entrepreneurship & Rural America

  5. Importance of Entrepreneurs • Pursues Opportunity • Lives Proactively • Leverages Resources • Builds Networks • Creates Value

  6. Global Entrepreneurship Monitor • KCEL & Others • 3rd Year • Comparative International Study • 1999 - 10 Counties • 2000 - 21 Counties • 2001 - 29 Counties

  7. 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.

  8. National Commission on Entrepreneurship High-Growth Companies: Mapping America’s Entrepreneurial Landscape. July 2001

  9. 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.

  10. 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

  11. High Performing ESOs

  12. Mini-Wrapup: • Entrepreneurs are Important • EGCs are Critical • ESOs make the Difference

  13. Our Position. . .. Weaker Rural Economic Performance is Due in Part to Lower Levels of Entrepreneurial Activity?

  14. Rural Challenges: • People are Entrepreneurial • Fewer Entrepreneurs • Far Fewer EGCs • Inconsistent ESOs • Dominance of Extractive Industries

  15. NCOE -

  16. GEM-Trends Entrepreneurs are Powerful Economic Drivers Entrepreneurship Rates by Industry Grouping. . . Extractive 4% Transforming 30% Business 21% Consumer 45%

  17. Opportunity: Energizing Rural Entrepreneurs How?

  18. Clusters & Energizing Rural Entrepreneurs

  19. Why Clusters? • Many reasons • It is a remarkably convenient way to organize the rural landscape. • Matches state’s sectoral approaches.

  20. Rural Reality: Place Sector

  21. Rural America’s Economy · Resource Processing · Manufacturing · Forestry · Mining Processing · Energy · Health Care Industries · Agriculture · Housing · Fisheries · Services Natural · Waste · Retail Resource Elderly Industries & Retirees Support Activities America’s · · Second Homes Playground Prisons · · Tourism Military B ases Government · · Federal Lands Recreation · · Indian Reservations Retirement Homes · Corridor Waste Sites Industries · Telecom · Highways · Railroads

  22. Rural Reality: • Increase in Primary Industry Output • Decrease in Massive Restructuring • Decrease in Secondary Industry Output

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

  24. Central Nevada Lander Eureka

  25. Layered Analysis: • Area’s Economic Clusters • Entrepreneurs within Clusters • GAP Analysis • Opportunity Identification

  26. Cycle of Development Opportunity Knowledge Energizes Area Entrepreneurs Increased Deal Flow

  27. Central Nevada Clusters

  28. Entrepreneurs: • Identify Them • Focus on Them • Customized Support • Connect Them

  29. Entrepreneurs within Rural America EGCs Survival Lifestyle Hobby Active Aspiring Growth Potential

  30. Supporting Entrepreneurs & an Entrepreneurial Climate Market Awareness Perceived Real Opportunities Motivation to Growth Enterprises Business Capacity

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

  32. For More Information. . . . • Center for Rural Entrepreneurship – http://www.ruraleship.org • Kauffman Center – http://www.entreworld.org • RUPRI - http://www.rupri.org

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