Entrepreneurship As a Community Development Strategy John Gruidl and Deborah M. Markley

A profound change in community economic development strategy over the past decade has been the emergence of entrepreneurship. Now, as never before, community developers recognize that entrepreneurship is critical to the vitality of the local economy. This emerging strategic change is due to several factors. Primary reason - impact of globalization in driving many manufacturing jobs to overseas locations. Another factor - is the evidence that entrepreneurs are driving economic growth and job creation throughout the world.

“A person who creates and grows an enterprise” It reminds that focus is the person, not the venture itself. Not all small business owners are entrepreneurs. Definition is intended to include civic entrepreneurs. “A business owner works ‘in’ the business while an entrepreneur works ‘on’ the business.” Civic entrepreneurs Create programs and resources that benefit our communities and our lives Need skills in planning their enterprise, marketing their product or service, earning revenues or obtaining funding to keep the organization financially solvent, and creating value.

Ingredients of the entrepreneurial spirit  Creativity  Innovation  Motivation  Capacity (Creativity is characterized by originality, expressiveness, and imagination) Entrepreneurship five capacities  Ability to perceive opportunities.  Ability to access and manage risks.  Ability to build a team.  Ability to mobilize resources.  Ability to sustain creativity.

There are three main types of entrepreneurial talent  Potential (those who may become entrepreneurs)  Existing business owners (some of whom may be entrepreneurs)  Entrepreneurs (including those with growth and even high growth potential).

 Early in the venture creation process  Motivated toward making a life change  Researching and developing business idea  Crossed the bridge and made decision to start business  Gave thought to the business model, although there may still be some gaps  Some have formal business plan, although most do not Entrepreneurship training and business counselling programs Networking & Mentoring The specific needs of aspiring and start-up entrepreneurs are closely related and can be met with moral support, networking and mentoring, business counselling, and entrepreneurship training.

Have successful ventures but often do not have the motivation or capacity to grow Need support services as start-up entrepreneurs: Networking opportunities Training to build their skill sets One-on-one assistance Developing e-commerce tools Tapping new markets

Entrepreneurs - Growth Customized assistance Higher order assistance Networking Expanding/strengthening the management team Entrepreneurs – serial Potential – youth Civic entrepreneurship Networking and mentoring Entrepreneurial training and experience

There is no single set of actions that a community should adopt to become entrepreneur-friendly. There are three levels of support that help to think about creating an environment in community that is supportive of entrepreneurs. Basic Support Advanced Support High Performing Support

 Investment in basic support package is starting point to building a broader and more sophisticated community support system for entrepreneurs.  To provide basic level of support in your community, leaders need to: Address any issues related to creating a positive entrepreneurial climate Take stock of current access to appropriate business services Create a focus on entrepreneurs, both business and civic Provide regular opportunities for networking and mentoring

 Once the basic elements of a support system are in place, a community can consider a number of advanced activities to further energize entrepreneurs.  Leaders providing advanced support typically: Link closely to the regional Small Business Development Centre office Ensure that an entrepreneur has access to appropriate financial capital beyond that provided by local banking institutions Implement programs that increase local entrepreneurs’ awareness of and access to new markets Encourage programming that introduces youth to entrepreneurship

 To be a high-performing community that is optimally supporting entrepreneurs requires considerable community commitment and investment.  High performing communities are characterized by: Using strategies that offer customized help to the full range of local entrepreneurs. Building on current financing resources by creating area- based “angel” investment networks Integrating entrepreneurial opportunities into the core curricula of educational systems High-capacity organizations dedicated to supporting entrepreneurs.

 The desire to start business extends across racial & ethnic lines.  Communities should be aware of the high propensity of minorities, especially recent immigrants, to start new businesses.  It presents an opportunity to communities, but only if community leaders understand and serve their minority entrepreneurs.  The community entrepreneurship team should provide minority entrepreneurs with the information to serve a broader market.  Importance of building broad networks is important to success.

 If there is little current support for entrepreneurs in community, they can start the ball rolling by forming a team of leaders and interested citizens to lead the entrepreneurial effort.  Once the team has come together, one of its first actions would be to examine what the community is currently doing to foster entrepreneurship.  Team should identify the entrepreneurial talent in your community.  Once group has focused on the type of entrepreneurial talent it will be supporting, plan visits to each and every entrepreneur on your list.  It is important to identify the assets and resources in your community that can help entrepreneurs.  Take action! Keeping in mind that entrepreneurs need better networks, not simply more programs

 Communities recognizing - entrepreneurship is important strategy of community economic development.  Communities – flexible & responsive to meet varying needs of entrepreneurs.  All types of entrepreneurs benefit from networking and mentoring opportunities.  Basic support provides a positive climate and infrastructure.  Advanced support provides training, capital and access to new markets.  Finally, the highest order of support promotes customized assistance, “angel” investment networks, and entrepreneurial curricula in local schools.