Entrepreneurship and HTC Sam Cordes*, Purdue University Presented at HomeTown Competitiveness Workshop Columbus, Indiana Jan. 28, 2009 * Several slides were “stolen” from Craig Schroeder

What is E-ship? Why is E-ship Important? Who is in the E-ship Talent Pool? What are the Key Elements of E-ship? Programs and Resources to Support E-ship

Why is E-Ship Important?

E-ship Activity is Growing for a Reason Global Entrepreneurship Monitor: “The level of entrepreneurial activity explains 70% of the difference in economic growth among G7 countries.” GEM 2000

The Limits of the Business Attraction Strategy David Birch & Cogenics (on source of job growth) 55%Existing Business 44% Startups 1%Relocations “Keep your tax incentives and highway interchanges, we will go where the highly- skilled people are” - Hewlett-Packard CEO Carly Fiorina

“When you discover you’re riding a dead horse, the best strategy is to dismount.” Dakota Indian Tribal Wisdom

Who is in the E-ship Talent Pool?

Why Assess the Talent Pool? “By understanding the entrepreneurial talent present in your community, it is possible to be more strategic in shaping an economic development program.”

Talent Entrepreneurial Talent Entrepreneurs Business Owners Potential Entrepreneurs Limited Potential Entrepreneurial Growth Companies Serial EsGrowth-Oriented LifestyleSurvival Aspiring Youth Not Working Want to be An Employee Transition Frustrated Startup Dreamers Can’t Work

Aspiring Entrepreneurs Actively Considering Going into Business Actively Researching a Business Idea Attending Business Workshops Networking and Testing Ideas with Others Motivated Towards a Change in Their Life

Startup Entrepreneurs Decision to Go Thought Through Part of It They Have an Idea They Have a Plan They Need Help

Aspiring & Startup Entrepreneurs ProsCons Large pool Primed to go Modest early impact Long-term commitment Subsidized assistance Modest outcomes Medium-term incubation Failure rate

Growth Oriented Entrepreneurs Already in Business Successful Driven to Create Substantial Business (Jobs) Emerging Market New Product or Service

Growth Oriented Entrepreneurs ProsCons Successful in business Motivated to grow Often open to help Opportunity for high impact Opportunity for immediate impact Small pool Some are negative on help Limited ability to help Requires time to build a relationship

High Growth Entrepreneurs Entrepreneurial Growth Companies or EGCs 2/3 of Job Creation 2/3 of Business Growth 50% of Business Innovation 4-5% of All Firms Present Everywhere Difference Makers

What are the Key Elements of E- ship?....A Horse Racing Metaphor

Entrepreneurship vis-à-vis Horse Racing The Horse – The Business Idea

Entrepreneurship vis-à-vis Horse Racing The Horse – The Business Idea The Jockey – The Entrepreneur

Entrepreneurship vis-à-vis Horse Racing The Horse – The Business Idea The Jockey – The Entrepreneur The Track – The Entrepreneurial Ecosystem

Why is the Race Track Important?...AND… Who Has Responsibility for Taking Care of and Improving the Race Track?

Leadership and organizational capacity Support services and resources Rules, regulations and policies Data, information and analysis A history, culture and institutional memory Conversations Networks Other?? Track Ingredients

Final Thought…(Private Sector) E-ship Requires (Social) E-ship and L-ship Goal: Create an entrepreneurial culture and community…..one that includes public and private sectors, including the nonprofit sector

Programs and Resources to Support E-ship See handouts

Contact Sam Cordes Purdue University 1201 West State Street, #236 West Lafayette, Indiana (765) This presentation is available for download and discussion at the Purdue Center for Regional Development blog