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Antrereneryste Ir Ekonomikos Strategija
Antrereneryste Ir Ekonomikos Strategija
University of Wisconsin Extension Center for Community & Economic Development Web Training Session March 14, 2008
Center for Community & Economic Development
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Center for Community & Economic Development
What is an entrepreneur?
A person who organizes and manages a business undertaking, assuming the risk for the sake of the profit
RuralPolicyResearchInstitute
What is an entrepreneur?
Visionary entrepreneurs develop innovations, create jobs, and contribute to a more vibrant national and global economy
RuralPolicyResearchInstitute
What is entrepreneurship?
RuralPolicyResearchInstitute
Some Definitions
Entrepreneurspeople who create and grow enterprises Entrepreneurshipthe process through which entrepreneurs create and grow enterprises. Entrepreneurship development the infrastructure of public and private policies and practices that foster and support entrepreneurship.
Center for Community & Economic Development
BrianDabson:Entrepreneurship&Regional Development
By the Numbers
20 million microenterprises (0-4 employees) in the US (Aspen) Microenterprises represent >86% of total number of businesses (Aspen) 9% of Americans are entrepreneurs employing others; 60% of new business owners offer jobs to others (GEM)
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Althoughsmallandyoungfirmshaveonly amodesteconomicimpact
Davis,Haltwinger &Jarmin (2005)
pl oy
Em
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n-
Em
pl o
Nonemployerfirms accountforonly4% of total businessrevenues Smallfirmsaccountfor 5% ofemployer businessrevenues Youngfirmsaccountfor 20% ofemployer businessrevenues
120 100 80 60 40 20 0
er ye r
10
theyarelargeinnumber
Davis,Haltwinger &Jarmin (2005)
pl oy
Em
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N on
-E m
pl o
ye r
Of21millionfirms inUS, 76% arenonemployer firms 16millionsmallfirms (<$90K); 25%ofemployer firmsand95% ofnon employerfirmsaresmall 8millionyoungfirms (<4years);35% ofemployer firms,40% ofnonemployer firmsareyoung
100 90 80 70 60 50 40 30 20 10 0
er
11
andtheyarecriticalto USbusinessdynamics
Davis,Haltwinger &Jarmin (2005)
Firms
750,000 businesses
Revenues
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1in10
1in20
Startupsandnewlyformedbusinesses
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10 8
6 4 2 0 0 5 10
U.S.
15 20 25 30 35
TotalEntrepreneurshipActivityIndex(2003)
Center for Community & Economic Development
Source:GlobalEntrepreneurshipMonitor,2003andInternationalMonetaryFund BrianDabson:Entrepreneurship&Regional Development
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atthecountylevel.
CountyEntrepreneurialGrowthandEmploymentGrowth
EmploymentGrowth(WageandSalary:19902004)
Policy Goals
More entrepreneurs
Increase the numbers
Stronger entrepreneurs
Increase the survival rate
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Program Goals
More entrepreneurs in the pipeline More entrepreneurs staying in their community Better informed entrepreneurs Better skilled entrepreneurs More job creating entrepreneurs Greater business productivity
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Key Concepts
Pipeline:
Infrastructure of lifelong learning never too early or too late to be an entrepreneur Creating a large, diverse pool of people with many motivations out of which flow a steady stream of high achievers
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Key Concepts
Seamless systems:
Focus on graduating significant numbers of start-ups into companies that offer quality jobs Coordinates multiplicity of programs tailors them to meet diverse needs of entrepreneurs Comprehensive, flexible, culturally sensitive, integrated, collaborative
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Key Components
Pipelines
Entrepreneurship education Entrepreneurship networks
Systems
Access to training and technical assistance Access to equity and debt capital
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EntrepreneurshipDevelopment
Entrepreneurship Education
Training & TA
ED
Supportive Environment
Entrepreneur Networks
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Entrepreneurship Education
Entre-ed and youth development critical part of any rural economic development strategy
Population retention, leadership development, economic growth Elementary through high school and postsecondary
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Entrepreneurship Education
Elementary through high school
Vocational tracks DECA, FFA, BPA Junior Achievement NCEE/Economics America REAL NFTE Kauffman Foundation/Mini-Society/4-H Boys & Girls Clubs
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Entrepreneurship Education
Community colleges & universities
National Association of Community College Entrepreneurship USDA Regional Rural Development Centers/RCCI Lifelong Learning for Entrepreneurship Professionals Kauffman Collegiate Entrepreneurship Network
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Access to Capital
Debt Capital
Commercial banking system CDFIs
Equity Capital
National SBICs, NMVCCs, NMTC, Angel Capital Electronics Network State KY Rural Innovation Act, IA Capital Investment Tax Credit Private Kentucky Highlands, RAIN (MN)
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Entrepreneurship Networks
Essential as links to sources of capital, new employees, strategic alliance partners, service providers, information & intelligence on markets and technology Initiatives incubators, business-tobusiness websites, buyers groups
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Economic Development
Attraction
Persuading companies to come to your community
Retention
Looking after what you already have
Entrepreneurship
Growing your own jobs and wealth
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Retention
Retention
Recruitment
Entrepreneurship
MEDCNovember14,2007
29
Strategic Thinking
Attraction Competition
Narrow-mindedness
Retention
Resistance to change
Entrepreneurship
Unprincipled individualism
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31
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Regional Competitiveness
Economic regions are basic unit of global competitiveness (Michael Porter) Innovation and entrepreneurship in a regional context are the engines of job creation, growth, prosperity (SACI Committee) Creativity is what distinguishes successful regions in new economy (Richard Florida)
Center for Community & Economic Development
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Regional Competitiveness
Council on Competitiveness
Sustained productivity growth regional prosperity = Converting assets into intellectual capital, added value; exploitation of location, natural resources, low cost labor Depends on productivity of all industries and assets; productivity based on continuous innovation Entrepreneurs through innovation turn assets into productivity growth
Center for Community & Economic Development
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Entrepreneurial Response
Create climate and culture in which entrepreneurs and entrepreneurship can flourish 3 organizing principles:
Community-driven Regionally-orientated Entrepreneur-focused
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#1 Community-driven
Communities provide immediate environment heavily influences entrepreneurial success Communities need tools, resources to identify/build upon assets, make choices, learn, innovate All sectors of community should be invited/expected to contribute
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#2 Regionally-oriented
Political jurisdictions have no economic rationale; few have resources to match opportunity/need; regional cooperative an imperative Arbitrary distinctions between urban & rural interests mask issues of common concern, prevent regional solutions Entrepreneurs need access to regional economic drivers
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#3 Entrepreneur-focused
Entrepreneurship development efforts ineffective when programmatic and uncoordinated Most programs fail to differentiate between entrepreneurs with different education, skills, motivation (L&L) Requires systems thinking
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Six Finalists
Hometown Competitiveness, NE Advantage Valley EDS, WV/OH/KY North Carolinas Rural Outreach Collaborative Oweesta Collaborative, SD/WY Connecting Oregons Rural Entrepreneurs (CORE) Northern New Mexico EDS
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For more information visit: Rural Policy Research Institute (RUPRI) www.rupri.org RUPRI Center for Rural Entrepreneurship www.ruraleship.org
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Next session
May 9, 2008, 10:00 - 11:00 A.M., C.T.
Sustainable Development - Is It Going Mainstream? UW-Superior/Extension Associate Professor Jerry Hembd explores the emerging topic of sustainable development. What challenges and lessons does it offer to those of us working to enhance our communities? What does it suggest in terms of new ways of doing business? Join in as Jerry shares his research on the sustainable development movement and how we might employ key elements in our community development efforts.
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