Community-Based Models Community-Based Models for Entrepreneurshipfor Entrepreneurship

February 7, 2008 -IP Video

Scott Hutcheson, Assistant Program Leader, ECD

Jeff Sanson, Director, Programs ICEE

Objectives

1. Increase understanding of community-based entrepreneurship models

2. Learn how other communities are implementing elements of these models

3. Explore Extension’s role in helping communities implement these principles

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

Introduction

• Economic Development 101

• We’ve been here before and communities have responded

• A new way to think about economic growth

Economic Development 101

Industrial Attraction

The economic development tool of choice for the last 30 years

2007 Industrial Attraction

• IEDC announced 15 industrial location projects 75+ jobs)

• 91 local economic development organizations in Indiana

• 1 in 6 bagged an elephant

A New Model

Open Source Economic Development

OSED

Integrates multiple perspectives

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

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

The Billion $ QuestionThe Billion $ Question

What makes a community “sticky” when it comes to its entrepreneurs?

Were finally beginning to learn Were finally beginning to learn about Entrepreneursabout Entrepreneurs

Think of Entrepreneurship Think of Entrepreneurship as a Horseraceas a Horserace

Entrepreneurship: A Horse Race

• The Horse – The Business Idea

Entrepreneurship: A Horse Race

• The Horse – The Business Idea

• The Jockey – The Entrepreneur

Entrepreneurship

• The Horse – The Business Idea

• The Jockey – The Entrepreneur

• The Track – The Community

Community Support Systems for Community Support Systems for EntrepreneurshipEntrepreneurship

Taking Care of Taking Care of the Trackthe Track

The Entrepreneurship-Supportive Community

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

Who’s Job Is it to Tend Who’s Job Is it to Tend to the Track?to the Track?

• Chamber• LEDO• Elected Officials• Banks• Schools/University• Extension• ???????

Some Models

• Supporting Youth Entrepreneurs

• Entrepreneurial League System

• Economic Gardening

• Entrepreneurship Coaching

Supporting Youth Entrepreneurship

Presented byJeff Sanson

Director, ProgramsIndiana Council for Economic Education

February 7, 2008

Youth Interest in Entrepreneurship

• Kauffman Foundation survey

• http://www.kauffman.org/items.cfm?itemID=939

What do Youth Entrepreneurs Need?

• Opportunities for growth and skill development

• Supportive communities

• Role models and mentors

• Access to networks and resources and markets

An Entrepreneur Lifelong Learning Model

Entrepreneur Lifelong Learning Model– From the Consortium for Entrepreneurship Education

www.entre-ed.org/– Image available at

www.entre-ed.org/Standards_Toolkit/nurturing.htm

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

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

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)

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

Entrepreneurship Week USA 2008

• FEBRUARY 23 - MARCH 1, 2008

Entrepreneurial League System®

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

ELS ® Skill Categories

• Technical

• Managerial

• Entrepreneurial

• Personal Maturity Skills

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

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

Where is ELS®

• Advantage Valley (WV, OH, KY)

• Central Louisiana

• North Carolina

Economic Gardening

http://www.littletongov.org/bia/economicgardening/

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

Economic Gardening

• Information

• Infrastructure

• Connections

Economic Gardening• Information

– Business information– Real estate activity (using GIS)– eCommerce training– Advanced management techniques

• systems thinking, • temperament, • complexity theory, and • customer service strategies

Economic Gardening

• Infrastructure– Physical– Quality of Life– Intellectual

Entrepreneurship Coaching

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

Entrepreneurship Coaching

• University of Kentucky Extension

• Regional in Scope

• Specialized Training for Coaches

• Each coach works with 8-10 entrepreneurs

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?

For More InformationFor More InformationScott Hutcheson

Assistant Program Leader, Economic & Community DevelopmentPurdue University

Purdue Extension & Purdue Center for Regional Development

Burton D. Morgan Center for Entrepreneurship1207 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)