Stimulating Entrepreneurship in Resource Dependent Communities Eric Scorsone Ron Hustedde Larry Jones Cooperative Extension Service University of Kentucky

The Setting KY Tobacco cash receipts have declined from $1 billion to $ million KY Tobacco cash receipts have declined from $1 billion to $ million Nearly 45,000 of Kentucky’s 85,000 farms produce tobacco Nearly 45,000 of Kentucky’s 85,000 farms produce tobacco In northeast KY, 75% of farms are tobacco dependent In northeast KY, 75% of farms are tobacco dependent Tobacco Settlement money Tobacco Settlement money 50% designated to agricultural diversification 50% designated to agricultural diversification $60 million for 20 years $60 million for 20 years Tobacco buyout has been proposed and end of federal tobacco marketing system Tobacco buyout has been proposed and end of federal tobacco marketing system

Problem Statement Tobacco dependent counties have not, up to now, needed entrepreneurial farmers or communities Tobacco dependent counties have not, up to now, needed entrepreneurial farmers or communities Traditional entrepreneurial support mechanisms Traditional entrepreneurial support mechanisms Financing Financing Technical Assistance (Small Bus. Dev Center) Technical Assistance (Small Bus. Dev Center) Traditional support system is not geared towards tobacco farmers and rural communities Traditional support system is not geared towards tobacco farmers and rural communities New support mechanisms are needed New support mechanisms are needed

Our hypotheses for working in tobacco dependent counties: Economic development has to come from within the region We have to improve the environment and culture in tobacco dependent counties for entrepreneurs to emerge; Local entrepreneurial coaches and facilitators are important in order to strengthen an entrepreneurial culture; If you strengthen the knowledge, skills, imagination, attitudes and networking of entrepreneurial coaches, it will lead to more entrepreneurial events and more business starts If you nurture and train local entrepreneurial coaches and turn them loose, they will become self-sustaining.

Program Mission Statement Kentucky Entrepreneurial Coaches Institute (KECI) Kentucky Entrepreneurial Coaches Institute (KECI) This is an entrepreneurship leadership program This is an entrepreneurship leadership program “A program designed to stimulate economic diversification and the entrepreneurial culture of 19 tobacco dependent counties in Northeast Kentucky” “A program designed to stimulate economic diversification and the entrepreneurial culture of 19 tobacco dependent counties in Northeast Kentucky”

Farm Diversification Survey Surveyed 2,500 farmers in 19 counties of Northeast Kentucky (40% rate) Surveyed 2,500 farmers in 19 counties of Northeast Kentucky (40% rate) 24% report some diversification in last three years 24% report some diversification in last three years Consistent with reports from USDA Agricultural Census Consistent with reports from USDA Agricultural Census Intention to diversify next year indicates little change in numbers Intention to diversify next year indicates little change in numbers Enterprises include: vegetables, goats, agritourism, direct marketing Enterprises include: vegetables, goats, agritourism, direct marketing

Who are Entrepreneurial Coaches? Coaches: Coaches: Leaders in their communities who will support entrepreneurs and build a culture that is entrepreneurship friendly Leaders in their communities who will support entrepreneurs and build a culture that is entrepreneurship friendly Coaches can be: Coaches can be: Chamber of Commerce Directors Chamber of Commerce Directors Bankers, Lawyers, Accountants Bankers, Lawyers, Accountants High School teachers High School teachers Extension agents Extension agents Retirees Retirees Others……. Others……. Anyone interested in the process of counseling and assisting local entrepreneurs Anyone interested in the process of counseling and assisting local entrepreneurs

Coaching is: supportive, questioning, encouraging, about helping people to solve problems; clarifying individual and community visions/directions; holistic; embraces the whole person (community) helps people to set goals and deadlines, action-oriented, change, proactive relationship

Coaches do: Nurture and encourage entrepreneurs in a variety of activities including: Nurture and encourage entrepreneurs in a variety of activities including: Idea generation Idea generation Business Planning Business Planning Financing Financing Team Building Team Building Marketing Marketing Assist local communities in stimulating entrepreneurial climate and culture Assist local communities in stimulating entrepreneurial climate and culture School curriculum activities School curriculum activities Local entrepreneurial fairs or centers Local entrepreneurial fairs or centers Marketing the benefits of entrepreneurship to the community Marketing the benefits of entrepreneurship to the community

Coaches do: Networking and brokering Networking and brokering Connect entrepreneurs to people Connect entrepreneurs to people Resource Facilitator Resource Facilitator Connect to SBDC and other technical and financial assistance Connect to SBDC and other technical and financial assistance Industry Content and Trends Industry Content and Trends Knowledgeable of industry trends and opportunities Knowledgeable of industry trends and opportunities Psychology and Self-Awareness Psychology and Self-Awareness Community Support and Climate Community Support and Climate

Coaching is not: teaching, telling people what to do, pushing personal agendas on others

Coaches do not: Conflict with existing business service providers Conflict with existing business service providers At the appropriate time, coaches feed entrepreneurs into SBDC system or other provider systems At the appropriate time, coaches feed entrepreneurs into SBDC system or other provider systems Provide Business Financing Provide Business Financing Coaches direct entrepreneurs to appropriate bank or financial institutions or other private investors Coaches direct entrepreneurs to appropriate bank or financial institutions or other private investors Manage Businesses Manage Businesses Coaches help entrepreneurs find resource providers or build management teams Coaches help entrepreneurs find resource providers or build management teams

Leadership Program: Classes Two classes of entrepreneurial coaches trained Two classes of entrepreneurial coaches trained 30 coaches in each class 30 coaches in each class 1 st class: Sept 2004-August st class: Sept 2004-August nd class: Sept 2005 – August nd class: Sept 2005 – August 2006 Coaches must apply to program (June 2004, 2005) Coaches must apply to program (June 2004, 2005) program selection committee is KY Agricultural Development Board, Entrepreneurship Committee program selection committee is KY Agricultural Development Board, Entrepreneurship Committee Classes meet monthly (2 days a month) Classes meet monthly (2 days a month) Class participates in international trip Class participates in international trip

Some Key Trends in Leadership programs: 1) 1) Leadership programs are growing in popularity because of their need and impact in shaping community life; 2) Personal, business and executive coaching is a new and growing profession because it helps people to solve problems, meet challenges, reach goals and focus and achieve results more quickly.

Anticipated products: their entrepreneurial support network; imagination about entrepreneurship potentials; coaching skills (i.e., asking challenging questions; helping others to set goals) their self-identity as "entrepreneurial coaches" -- not just a teacher, banker or farmer. their understanding about nurturing entrepreneurs (ie. best practices;sensitivity to youth, women) technical skills outreach capacity --- minimum outreach of 50 per year reflection on what it means to be an entrepreneurial coach -- lessons learned

and this will lead to: more entrepreneurial support activity in counties and region; more outreach-focused entrepreneurs; self-sustaining entrepreneurial support group new sense of regional identity and cooperation (not just one county versus another).

Coaching Curriculum I Seminar 1: Creativity and Idea Generation (Jay Kane) Seminar 1: Creativity and Idea Generation (Jay Kane) Seminar 2: Visiting an Entrepreneurial Community (Athens, Ohio) Seminar 2: Visiting an Entrepreneurial Community (Athens, Ohio) Seminar 3: Entrepreneurial Coaching Seminar 3: Entrepreneurial Coaching Seminar leaders from Scotland’s Hunter Center for Entrep. University of Strathclyde Seminar leaders from Scotland’s Hunter Center for Entrep. University of Strathclyde Seminar 4: Meeting other entrepreneurship support providers Seminar 4: Meeting other entrepreneurship support providers Seminar 5: Where are the Markets: New Trends in the Regional, National and Global Markets Seminar 5: Where are the Markets: New Trends in the Regional, National and Global Markets

Coaching Curriculum II Seminar 6: Building entrepreneurial capacity Seminar 6: Building entrepreneurial capacity Seminar 7: Envisioning a new entrepreneurial support system (Trip to rural Scotland) Seminar 7: Envisioning a new entrepreneurial support system (Trip to rural Scotland) Working with Scottish Enterprise, Highlands and Islands Enterprise, John Bryden (University of the Highlands) and many others Working with Scottish Enterprise, Highlands and Islands Enterprise, John Bryden (University of the Highlands) and many others Seminar 8: Bringing it all together Seminar 8: Bringing it all together

Long Term Sustainability Coaches will be able to maintain membership and network through a Entrepreneurial Coaches Alumni Network and annual meetings Coaches will be able to maintain membership and network through a Entrepreneurial Coaches Alumni Network and annual meetings Coaches will participate in activities with other entrepreneurship support providers Coaches will participate in activities with other entrepreneurship support providers Goal is to secure finding for statewide and continued training via KY Agricultural Development Board Goal is to secure finding for statewide and continued training via KY Agricultural Development Board Extension agents will also be able to participate in training in future Extension agents will also be able to participate in training in future

What will it take to do this in my community? Strong Community Buy-in Strong Community Buy-in Community and business leaders should be committed to supporting project Community and business leaders should be committed to supporting project In-kind And monetary support In-kind And monetary support Program marketing assistance (nominating candidates) Program marketing assistance (nominating candidates) An issue that is driving the need for changing in the community or region An issue that is driving the need for changing in the community or region Traditional industry or agricultural decline Traditional industry or agricultural decline Community dissatisfaction with status quo Community dissatisfaction with status quo Internal social or demographic changes in community Internal social or demographic changes in community

What you need?..... A little or lot of money A little or lot of money Program is flexible and can be run on a variety of budgets Program is flexible and can be run on a variety of budgets National or regional speakers (speaker fees) or conduct in-house training National or regional speakers (speaker fees) or conduct in-house training Field trips? Field trips? Overnight or one day seminars (lodging and food expenses) Overnight or one day seminars (lodging and food expenses) Transportation to and from seminar sites Transportation to and from seminar sites

What you need?.... Seminar Participants and Selection Process Seminar Participants and Selection Process Key part of conducting coaching program Key part of conducting coaching program Need a strong and widespread marketing campaign to generate interest Need a strong and widespread marketing campaign to generate interest Selection committee Selection committee Should consist of neutral set of selectors to avoid political or personal conflict of interest Should consist of neutral set of selectors to avoid political or personal conflict of interest Good excuse for why someone wasn’t selected Good excuse for why someone wasn’t selected Diverse candidate background Diverse candidate background Committed candidates Committed candidates

What’s available? Coaching curriculum is being developed by Kentucky team and available for others to use Coaching curriculum is being developed by Kentucky team and available for others to use Center for Rural Entrepreneurship and others are aware of coaching concept and willing to assist Center for Rural Entrepreneurship and others are aware of coaching concept and willing to assist In the future, a process and outcome evaluation will be available In the future, a process and outcome evaluation will be available