building entrepreneurial communities in maryland erik r. pages entreworks consulting maryland rural...
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Building Entrepreneurial Building Entrepreneurial Communities in MarylandCommunities in Maryland
Erik R. Pages
EntreWorks Consulting
Maryland Rural Summit 2005
October 27, 2005
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What Do We Know about What Do We Know about Entrepreneurship?Entrepreneurship?
Jobs! 5-15% of U.S. firms create 2/3 of net new jobs.
Innovation. Entrepreneurs account for more than half of all technological innovation.
Prosperity. 1/3 of difference in national growth rates is due to entrepreneurship.
Presence. 11% of US adult population is trying to start a business.
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What Do We Know about What Do We Know about Entrepreneurship in Rural Entrepreneurship in Rural
America?America?Breadth not DepthRural America has lots of
entrepreneurs, but few high-growth businesses.
We must grow all businesses, but especially world-class businesses!
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How to Do It?: A New Economy How to Do It?: A New Economy Demands A New ApproachDemands A New Approach
It’s Not the Ingredients, it’s the recipe– There is no silver bullet
We don’t need new programs– We need a new mindset
Culture of Collaboration– Collapse of old Community Anchors– Opportunities for New Leaders
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Entrepreneurship Policy: Entrepreneurship Policy: What’s Different?What’s Different?
Focused on Individuals, Not CompaniesOperates Through Business NetworksTraining/Education as Key Policy
Levers
Ultimate Objective: Create an Entrepreneurial Eco-System
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The Entrepreneurial Eco-SystemThe Entrepreneurial Eco-System
Business Culture that Embraces Start-Ups– Higher Risk Tolerance– Entrepreneurs vs. Large Firms
Networks of Entrepreneurs Networks of Service Providers
– A Start-up Cluster? Creates a Virtuous Cycle
– Civic/Philanthropic Leaders– Mentors/Angels
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Myths About EntrepreneurshipMyths About Entrepreneurship
We need technology!– Most entrepreneurs are low-tech.
We need venture capital!– Funds only 2,000-3,000 firms per year.– 70% of funds to 5 states.
We can’t be Silicon Valley!– Entrepreneurs exist everywhere.
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Creating the Ecosystem: Creating the Ecosystem: What Works?What Works?
Increase the Supply of Entrepreneurs
Build Entrepreneurial NetworksEnhance Capital AccessReward Entrepreneurial Behavior
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1) Increase the Supply of 1) Increase the Supply of EntrepreneursEntrepreneurs
Entrepreneurship Education from K-16Adult Training--Focus on Technical
SchoolsOpenness to Newcomers—Immigrant
EntrepreneursUniversities as Talent Magnets
– Hit Underserved Markets (e.g. Engineers, not MBAs)
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Building the Pipeline: Some Building the Pipeline: Some ModelsModels
Utah—Training for Guidance Counselors Louisiana Tech (and others):
Entrepreneurship programs in Engineering Schools
REAL Enterprises (www.realenterprises.org)
National Foundation for Teaching Entrepreneurship (www.nfte.com)
Nebraska EDGE: State Funds for Customized Training (www.nebraskaedge.unl.edu)
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2) Build Entrepreneurial 2) Build Entrepreneurial NetworksNetworks
Networks as the Hub of the Eco-SystemPeer Learning as Central RoleActivities: Training, Mentoring,
Investment Screening and Matching, Networking
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Building Networks: Some Building Networks: Some ModelsModels
Blue Ridge Entrepreneurial Council (http://www.ncmtns.biz/)
Kansas Enterprise FacilitationEastern Maine Development
Corporation (Incubator w/o Walls)Nevada/California: V3 Accelerator
Program (www.goldencapital.net/V3/)
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3) CAPITAL ACCESS3) CAPITAL ACCESS
If you build it, will they come? – Demand vs. Supply of Capital
Myths about Venture CapitalFilling the Gaps
– Equity vs. Debt– Seed Capital
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Best Practices?Best Practices?
Capital LiteracyBuild Better Deals—Back to the
Pipeline!Angel Networks
(www.angelcapitalassociation.org)– Minnesota, Kansas
Equity Funds– www.cdvca.org
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4) Reward Entrepreneurial 4) Reward Entrepreneurial BehaviorBehavior
Entrepreneurs as New Civic Leaders– Issues around Old Economy Culture
Tell Stories– Importance of “Local Stars” and “Anchor
Firms”Create Awards Programs
– Entrepreneur of the Year
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Honoring Entrepreneurs: Honoring Entrepreneurs: Some IdeasSome Ideas
Ernst & Young Entrepreneur of the YearAppalachian Regional Commission
Springboard Awards (www.arc.gov)
Springboard: Women Entrepreneurs (www.springboardenterprises.org)
Kentucky Science and Technology Corporation: IdeaFestival; Newspaper Profiles (www.kstc.com)
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The Big Picture: A New The Big Picture: A New ModelModel
Few new program initiatives– No “Silver Bullets”
Initiatives are Low-Cost, but Long-Term “Soft” cultural factors predominate
BOTTOM LINE: An economic development challenge requiring non-economic
development solutions.
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Your Challenge: What to Do When Your Challenge: What to Do When You Go Home TodayYou Go Home Today
Become a Champion! (Or Help Recruit One): Do It Yourself!
Collaborate: Bring Everyone in the Tent!Experiment
– Start Small– But Think Big!
Start Fast!
For More Information:For More Information:Erik R. Pages
EntreWorks Consulting
3407 North Edison Street
Arlington, VA 22207
703-237-2506www.entreworks.net