Creating Entrepreneurial Friendly Communities

Westmoreland County Community and Economic Development Summit   Sept 9, 2010

Walt Whitmer, Extension Associate, Penn State Cooperative Extension, Assoc. Director, Northeast Regional Center for Rural Development  

IDEAS WE’LL EXPLORE..

• Why Focus on Entrepreneurs?• Hallmarks of Entrepreneurial‐Friendly Communities• Exploring The Role of Local Governments in Entrepreneurial Development• Assessing Your Community• Building a Strategy for Making Your Community More Entrepreneur Friendly

THE STARTING POINT…

• Many rural communities are facing serious challenges and/or changes to their economic vitality and sustainability• Many are facing shrinking resource bases –human and tax • Others face the challenges of making the most of emerging economic and entrepreneurial activity

WHAT WE KNOW…• Traditional economic development approaches 

are generally not working

• There is a strong positive relationship between economic growth and entrepreneurship▫ Counties with high levels of entrepreneurial activity have exhibited greater rates of economic growth 

• Most new job growth (2/3rds) and innovation are coming from small firms

SOURCE: RUPRI Center for Rural Entrepreneurship

WHY SHOULD COMMUNITIES CARE?

Almost everything local governments do either affects or is affected by local economic vitalityEntrepreneur development is an increasingly important aspect of this vitality 

COMMUNITIES ARE INCREASINGLY...Looking to re‐energize their economies from withinRecognizing the role of entrepreneurship as a key rural economic development strategyTaking account of their assets Mobilizing inclusive partnerships Developing a systematic approach to revitalizing communitiesThinking regionally 

How well are you competing in this evolving environment? 

SOURCE: RUPRI Center for Rural Entrepreneurship

KEY DISTINCTIONS…Entrepreneurshipprocess through which entrepreneurs create and grow enterprises

Entrepreneurial developmentthe infrastructure of public and private supports that facilitate entrepreneurship

Entrepreneurial communitiesthose where significant economic and social entrepreneurial activity exists and where there is an effective system of entrepreneurship development

SOURCE: WK Kellogg Foundation

LOCAL GOVERNMENT OPPORTUNITIES & OPTIONS• Entrepreneur development, while driven by private sector opportunities is most successful in communities that pay attention to entrepreneur’s needs and the environment in which they operate.

This requires purposeful, objective and well informed decision‐making

HALLMARKS OF AN ENTREPRENEURIAL FRIENDLY COMMUNITY

ENTREPRENEURIAL COMMUNITIES HAVE…

• Effective Leadership that can be mobilized• A Belief that local people can make a difference • Presence of entrepreneurs & potential entrepreneurs in the pipeline• A Business friendly environment that ▫ encourages new business starts ▫ allows business expansion with a minimum amount of red tape and bureaucracy

• Nourishment of entrepreneurial activity ‐ civic recognition & support

SOURCE: RUPRI Center for Rural Entrepreneurship

ENTREPRENEURIAL COMMUNITIES HAVE…

Business and entrepreneurial development opportunities ◦ training, mentoring, & network‐building programsAvailability of financing through local, regional and national investor channelsLocal and regional networks for ◦ business growth and expansion ◦ specialized assistance (e.g. marketing and international trade)

A culture that embraces diversity that recognizes the importance of creativity, new ideas and innovation

SOURCE: RUPRI Center for Rural Entrepreneurship

DEVELOPING A STRATEGY -MAKING YOUR COMMUNITY MORE ENTREPRENEUR FRIENDLY

KEYS TO SUCCESS

• Knowledge• Commitment •Development • Coordination 

ASSESSING YOUR COMMUNITY’S ENTREPRENEURIAL FRIENDLlNESS

• Community Organizations and Services Impacting Entrepreneurs

• Community InfrastructureImpacting Entrepreneurs

Assessment Areas To ConsiderOrganizations & Services

Municipal and County Government Small Business Development CentersTourismEconomic Development Agencies/OrgsMain Street and Downtown ProgramsBusiness AssociationsK-12 Education Post Secondary Education Financial Institutions FoundationsWorkforce Investment Bds, Career Links, State Government

Infrastructure TelecommunicationsBroadband AccessTransportation - networks, capacityEnergy – cost, availability, capacitySewerWater

INITIAL STEPS• Put together a broad‐based, and well rounded team or advisory committee• Gather local and regional partners • Get the facts• Organize your efforts• Ask the right questions• Keep a close eye on outcomes, 

timelines, and accountability• Leverage your resources! 

POLICY STEPS

Focus on entrepreneurship as a core, longstanding economic development strategy Invest in innovative community and regional projects Invest in community capacity‐building Encourage: ◦ entrepreneur networks◦ systems of service providers◦ No “wrong door” 

SOURCE: RUPRI Center for Rural Entrepreneurship

EXPLORE COMMUNITY ROLES • Zoning and subdivision – setbacks, 

signage, parking, mixed use etc• Transportation – access, flow etc• Infrastructure – water, sewer, 

telecommunications• Regional issues and considerations• Residential and recreational amenities• Quality of life and education resources• Taxation 

LEVERAGE REGIONAL ASSETS

• Build Economies of Scale• Compile Information About Complimentary 

Regional Assets• Share Resources• Provide Opportunities for Entrepreneurs to 

Network and Share• Catch The Eye of Grantors and Other 

Supporting Organizations

SOURCE: University of New Hampshire Cooperative Extension

LEVERAGE REGIONAL ASSETS

• Expand the pool of human capital• Get political powers to notice• Create a vested public • Don’t be afraid to ask for help• Exercise patience 

SOURCE: University of New Hampshire Cooperative Extension

BUILD COMMUNITY AWARENESS• Utilize the media• Organize a community 

entrepreneur seminar or lecture series

• Implement a community visitation program

• Use case studies • Develop information 

directories• Invest in existing 

entrepreneurs

• Provide hands‐on trainings and workshops for community leaders

• Hold community‐action planning sessions

• Incorporate principles of entrepreneur into K‐12 curriculum

• Focus on successes but learn from mistakes

SOURCE: University of New Hampshire Cooperative Extension

QUESTIONS TO CONSIDER…What are the greatest unmet needs of  entrepreneurs needs in your community/region?How vibrant is the network of entrepreneurs in your community/region?Do you have the commitment, resources, and/or information you need to begin assessing how entrepreneurially friendly your region or community is?  

SELECTED RESOURCES• Regional Listening Sessions – Lessons from the Northeast ▫ http//www.nercrd.psu.edu/Publications/rdppapers/rdp37.pdf

• Penn State Cooperative Extension▫ http://www.economicdevelopment.psu.edu/Programs/entrepreneur.html

• eXtension – Entrepreneurs and Their Communities ▫ http://www.extension.org/pages/Entrepreneurs_and_Their

_Communities_Information_Briefs

ADDITIONAL RESOURCES• Mapping Rural Entrepreneurship▫ http://www.wkkf.org/DesktopModules/WKF.00_DmaSupport/ViewDoc.aspx?LanguageID=0&CID=294&ListID=28&ItemID=2743791&fld=PDFFile

• 2008 New State Economy Index▫ http://www.kauffman.org/uploadedfiles/2008_state_new_economy_index_120908.pdf

• RUPRI Center for Rural Entrepreneurship▫ http://www.energizingentrepreneurs.org/

KEEP IN MIND…

• Entrepreneur development is a process• Successful entrepreneurship can be facilitated by a supportive infrastructure of public and private support• “Home Grown” economic development  = jobs, income, tax revenue, and very often enhanced quality of life  • Any individual, group, entity or community can be entrepreneurial

SOURCE: RUPRI Center for Rural Entrepreneurship