Eastern Regional Competitiveness Forum Atlanta - June 6 & 7, 2002

1. National Governors Association EasternRegional CompetitivenessForumAtlanta - June 6 & 7, 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. 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.

7. NCOE Report: • 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. • Most regions’ high-growth companies concentrate in certain specific industry sectors.

8. High Performing ESOs

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

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

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

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

13. Opportunity: Energizing Rural Entrepreneurs How?

14. Clusters & Energizing Rural Entrepreneurs

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

16. Rural Reality: Place Sector

17. 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

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

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

20. Central Nevada Lander Eureka

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

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

24. Central Nevada Clusters

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

26. Other Mini-Cluster Examples. . . . • NE - Niobrara Valley • Delta - Recreational Tourism • 4 Corners - Forest Products • MI - Light Manufacturing • ME - Furniture Making • AZ - Retirement

27. Policy Considerations . . . . • Area Strategies • Entrepreneurial Focus • Mini-Cluster Focus • Build & Support ESOs • Public/Private Partnerships

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