Entrepreneurship:Keys to Rural Community

Sustainability

Prepared for the Rural Community College Initiative2004 Training Institute – Nashville, Tennessee

the nelson instituteMary EmeryNorth Central Regional Center for Rural Developmentmemery@heartlandcenter.info(404) 474-7667

the nelson institute

Institute formed in 1998 by U.S. Senator Ben Nelson for purpose of supporting rural economic development

Strategic alliance formed with McCook Community College in 1999

Underlying objective to identify and integrate projects which meet immediate, specific needs with long-term strategies for sustainability

Five main principles:– Awareness & education– Mentoring & apprenticeship– Training– Business development (entrepreneurship)– Leadership development

- and -McCook Community College,a division of Mid-Plains Community College

Breaking the Cycle…

Greatest challenge to rural communities is breaking cycles of downward economic trends and outmigration

Strong agreement among community leaders, educators, and development agencies that a perceived lack of economic/career opportunities is a core factor in the current population trend in rural communities

Perception is directly related to several factors: the discouraging environment of agriculture, the overall declining economy, and the lack of capacity in rural communities to support services and infrastructure

Formula: Fewer producers = fewer people = fewer businesses = fewer opportunities for young people

Entrepreneurship:Keys to Rural Community

Sustainability

Three Keys:

Youth Supportive community

environment Business development capacity

Key #1 - Engaging Youth: the Southwest Nebraska YEP Model

Designed with three basic objectives:

• Reduce outmigration from rural communities;

• Diversify ag base of rural economies;

• Facilitate small business transfer.

YEP Program Goals:Business planning class–

teach students to “make a job and not just take a job”; provide important life skills; introduce the idea of owning their own business; and demonstrate variety of opportunities available.

Mentoring – increase the interaction of students with community leaders and business owners.

Micro-loan funds – yes, we really believe you can do it!

Community improvement – both projects and training to connect young people in a meaningful way to the community. “This is my home and it’s important to contribute.”

Internships – not just job exploration but with ultimate goal of small business transfer.

YEP Program FormatIntroductory Level:

Entrepreneur Exploration & Business Plan DevelopmentBusiness Plan Development Community Engagement Level:

Students receive preparatory training for their community projects in areas such as:

•Community Asset Mapping (What’s Here & What Can I Contribute?)•Project Organization & Planning •Making & Giving Presentations•Working with the Media•Holding Community Meetings•Team Building & Conflict Resolution•Decision Making•Time Management

Internships Business experience potentially leading to business ownership

Business Start-Up or Transition PlanningRevolving loan funds for business development and growthTechnical assistancePrivate financingScholarships for students planning to returnPlanning for post-college business opportunities

Key #2: Supportive Community Environment

According to research from the Center for Rural Entrepreneurship, communities will be most successful when they create a positive, supportive environment for growing entrepreneurial businesses.

Steps in the process to creating such an environment include:

Define and identify different types of entrepreneurs and attributes of each;

Conduct entrepreneurial assessment to identify appropriate target for development efforts;

Employ an asset mapping tool to identify and assess development capacity within a community;

Understand and utilize successful models from other communities;

Draft & implement strategy for implementation of entrepreneur development.

Programs such as the Center’s E2 (Energizing Entrepreneurship in Rural America) provide both professionals, and volunteers, working in rural economic development with the skills needed to help their communities develop and sustain entrepreneurial businesses. A session is planned at McCook Community College in August.

Key #3 - Business Development Capacity

According to the 2000 census: 93% of the communities in the state of Nebraska currently

have populations of 2,000 or less and 79% have populations of 1,000 or less; and

Over 50% of the population now resides in six counties along the eastern edge of the state.

These trends continue to present a challenge for rural communities in accessing business development services.

Most rural communities work with minimal or no professional staff supported by volunteer boards.

McCook Community College and the Nelson Institute are currently developing an innovative program of study to provide both professionals and volunteers working in economic development with the necessary skills to recognize, develop and sustain entrepreneurial businesses.