Educational Materials for Rural Entrepreneurship Jason Henderson Center for the Study of Rural America Federal Reserve Bank of Kansas City Presented to the National Public Policy Education Conference September 20, 2004 St. Louis, Missouri

What is the Center for the Study of Rural America? Part of the Federal Reserve System –Monetary policy –Bank regulator –Check and cash clearinghouse The Center provides economic analysis and insight into the rural economy. What makes rural economies grow?

What Do We Tell Entrepreneurs? Entrepreneurship matters.

What Do We Tell Entrepreneurs? Entrepreneurship matters. Do not reinvent the wheel !!!!!Lots of information is available. Do not reinvent the wheel !!!!!

What Do We Tell Entrepreneurs? Entrepreneurship matters. Do not reinvent the wheel !!!!!Lots of information is available. Do not reinvent the wheel !!!!! We do not finance businesses.We do not finance businesses.

Entrepreneurship Matters at the State Level Source: Dept. of Commerce, REIS Annualized percent change State Proprietor and Employment Growth, (1970 to 2000) Correlation = 0.74

Entrepreneurship Matters at the Local Level U.S. Personal Income (by Class of Worker, 2000) Source: March 2000 Current Population Survey, Dept.of Commerce

Information is Available The Center’s 2003 Conference Main Streets of Tomorrow: Growing and Financing Rural Entrepreneurs 1.Entrepreneurs are Made not Born 2.Entrepreneurial Skills Can be Developed –Technical Skills – ability to perform key operations of business –Managerial Skills – ability to organize and manage the operations –Entrepreneurial Skills –ability to identify market opportunities –Personal Maturity Skills – self-awareness, accountability, emotional and creative development

A Major League System for Entrepreneurial Development TechnicalManagerialEntrepre.Personal Maturity Major League: Outstand./ Exceptional Outstanding AAA:High AA:HighMedium A:High/ Medium Low Rookie League Low/No Source: Thomas S. Lyons, “Policies for Creating an Entrepreneurial Region”, Main Streets of Tomorrow: Growing and Financing Rural Entrepreneurs, 2003.Policies for Creating an Entrepreneurial Region

The A Level A Major League Farm System The A Level Skill Levels –Technical Skills: High/Medium –Other Skills: Low/No Enterprise Development Assistance Providers –Microenterprise programs –Small business development centers –Business incubation programs Weblinks –Association for Enterprise Opportunity: –Small Business Development Centers –National Business Incubator Association

The AA Level A Major League Farm System The AA Level Skill Levels –Technical Skills: High –Other Skills: Medium Enterprise Development Assistance Providers –Manufacturing extension programs –Small business development centers –High-technology incubation programs –Small specialized venture funds Weblinks –Manufacturing Extension Partnerships –National Institute of Science and Technology –National Association of Seed and Venture Funds –Community Development Venture Capital Alliance

The AAA Level A Major League Farm System The AAA Level Skill Levels –Technical Skills: High –Other Skills: High Enterprise Development Assistance Providers –Angel investors –Emerging Business Consulting practices –University tech transfer offices Weblinks –Association of University Technology Managers –Lists of Angel investors

The Major League A Major League Farm System The Major League Skill Levels –Technical Skills: Outstanding –Other Skills: Outstanding Enterprise Development Assistance Providers –Venture capitalists –Professional consulting practices –Investment bankers If they come to you for assistance, are they really in the majors?Beyond my resource level If they come to you for assistance, are they really in the majors?

Do Not Forget … The Scout who looks for prospective entrepreneurs. The Diagnostician who assesses the needs of entrepreneurs entering the system. The Performance Coach who helps entrepreneurs with mental and emotional needs. A Team Manager who brokers networks of firms at the league level. Alliance Brokers that facilitate partnerships across league levels. A General Manager who oversees the whole farm system.

Conclusions Entrepreneurship matters. Do Not Reinvent The WheelLots of information is available – Do Not Reinvent The Wheel. Create a farm system that matches information with the skill levels of entrepreneurs. Good Luck in Spurring Entrepreneurs – The Pioneers of the 21 st Century