1. Rural Entrepreneurship: Best Practices & Practical Advice
Chuck Palmer
Iowans for Social & Economic Development
Des Moines, IA

2. Iowans For Social & Economic Development: Mission, Vision & History
Mission: To create opportunities for low and moderate income Iowans to increase income and achieve financial stability.
Vision: To see vibrant Iowa communities where all families and individuals have the opportunity to find financial stability and success.

3. ISED’s Work in Microenterprise Development
ISED Provides Comprehensive Small Business Education Courses & Technical Assistance
Business Plan Creation
Financial Plan Analysis
Market Research
Viability Assessment
Start-up Support
Access to microenterprise resources
Access to other asset building & supportive services
Through our classes and supportive services:
2,172 individuals have been assisted to start, expand, or strengthen their businesses
5,995 clients have completed our microenterprise training
Over 10,000 of our clients have been involved in microenterprise program classes
Over $11.3 million in business capital has been accessed

4. A Road Map to Rural Entrepreneurism
Microenterprise & how can it benefit your community
Characteristics of a Successful Entrepreneurial Community
Components of a Successful Microenterprise Development Program
The Microenterprise Growth Continuum
Feasibility Studies & Business Plan Building
Challenges & Gaps
Overcoming Challenges & Gaps
Success in Practice: 9 Successful Community Intervention Strategies
Now What: Building Your Own Successful Community Strategy

5. What is Microenterprise?
A small business that:
Has 5 or fewer employees
Requires seed capital less than $35,000
Often utilized as an economic development strategy and has gained momentum as a poverty alleviation strategy as well

6. What could microenterprise development do for my community?
A 2004 Aspen Institute study of 17 micro-enterprise development organizations found that their 560 microenterprises:
Generated $43.8 million in revenues
Provided $6.8 million in income for owners and also
Employed 648 full-time workers

7. Characteristics of a Successful Entrepreneurial Community
Demonstrates leadership and promotes successful role models.
Provides training and technical assistance at both the youth and adult education levels… focus on financial literacy and asset development.
Develops community networks of support, mentoring, and financial assistance… focus on improving access to a broader marketplace.
Fosters a culture that recognizes and values entrepreneurship.
Provides access to start-up capital.
Supports & engages all dimensions of diversity

8. Components of a Successful Microenterprise Development Program
Training and Technical Assistance
Credit and Access to Credit
Access to Markets
Economic Literacy and Asset Development

9. Microenterprise Growth Continuum: Women Economic Ventures (WEV) Program, CA

10. Feasibility: the Fundamental Five How ready is your community?
1. Market Feasibility
Who is the potential customer?
What is the customer’s profile (age, income, buying habits)?
What is the customer’s industry status?
What market volume will you need?
What will the market reaction be to your service or product?
How will you package and distribute your product(s) or service(s)?
2. Organizational Feasibility
What skills will the owner need?
How much time will the business demand?
What types of personnel will you need (quantity & skills needed)?
Are the personnel types that you are seeking readily available in your community?
How will the business responsibilities be distributed across personnel?

11. Feasibility: the Fundamental Five How ready is your community?
3. Technical Feasibility
Are there business locations that are available, cost effective and have the right zoning/codes?
How will production of the product work?
Who will be the suppliers?
What is your business volume capability?
Do you have the availability of leasing commercial space?
What are the regulations that are associated with your product?
What insurance will you need & what are the costs of that insurance?
4. Competitive Feasibility
What or who is your existing competition?
What is your competitive position?
What are the potential reactions of your competitors?
How great is the potential for new competition?
How can you differentiate yourself from your competition?

12. Feasibility continued…
5. Financial Feasibility
How much capital is needed (fixed costs, start-up costs & working capital for 1-3 months)?
How much capital does the owner have available?
How much capital is available from private investors?
How much capital remains that needs to be borrowed?
What is the income and profit potential of the business?
Basic Cash Flow
Owner’s living Costs
Loan Repayment
Operating Costs
Break-Even Analysis

13. Components of a Successful Business Plan
Can your community support entrepreneurs in understanding and developing these business components?
Introduction
Give a detailed description of the business and its goals
Discuss ownership of the business and its legal structure
List the skills and experience you bring to the business
Discuss the advantages you and your business have over your competitors
Marketing
Discuss the products and services that your company will offer
Identify customer demand for your products and services
Identify your market, it’s size and locations
Explain how your products and services will be advertised and marketed
Explain your pricing strategy

14. Components of a Successful Business Plan…continued
Financial Management
Explain your source and the amount of initial capital
Develop a monthly operating budget for the first year
Develop an expected return on investment and monthly cash flow for the first year
Provide projected income statements, balance sheets for a two your period
Discuss your break-even point
Explain your personal balance sheet and method of compensation
Discuss who will maintain your accounting records and how they will be kept
Provide “what if” statements addressing alternative approaches to problems that may develop
Operations
Explain how the business will be managed day-to-day
Discuss hiring, personnel procedures
Discuss insurance, lease, or rent agreements, and issues pertinent to your business
Account for the equipment necessary to produce goods or services
Account for production and delivery of products and services

15. Challenges Faced by Many Rural Communities
Geographically Isolated
Changing Demographics
Aging…people and places
High Unemployment
Low Wage Jobs
Changing Economic Base
Seasonal Employment

16. Key Entrepreneurial System Gaps to Overcome
Capital Gap
Information and Knowledge Gaps
Institutional Gaps for Training and Technical Assistance
Delivery and Coordination Gaps
Cultural Gaps

17. Strategies to Overcome Challenges & Gaps
Engage youth and retirees
Foster competitive creativity
Utilize technology to expand capacity and broaden the market
Continue to build capacity in the community through workshops, events and networking
Seek out creative financing options (cooperative funding models or charitable asset pools)
Foster strategies that will engage minority populations in the community and ensure an equal share of potential prosperity to all community members

18. The Nebraska Center for Leadership Development: A holistic approach
Hometown Competitiveness is a project of the Heartland Center for Leadership Development, the Nebraska Community Foundation, and the Center for Rural Entrepreneurship. Their comprehensive approach encourages communities to take action in four strategic areas.
Leadership development: to strengthen the capacity of residents to improve and sustain their community.
Youth development: to support and enhance the idea of adults and youth working together to create opportunities for youth to stay in or return to the community.
Developing charitable assets: to strengthen and sustain charitable giving at the local level in order to build an endowment that will sustain local civic institutions and create a new source of opportunity capital for community economic development efforts.
Entrepreneurial development: to identify and assess entrepreneurial talent in the community and to devise an economic development strategy to increase entrepreneurial business development

19. MyEntreNet: Capacity building through online strategies
In 2001, the University of Northern Iowa made a pilot investment in rural economic vitality with the development of an entrepreneurial development system.
Goal: develop a sustainable model that connects geographically isolated entrepreneurs to services and people to become competitive in a global economy
Provides a technological bridge & community capacity building for entrepreneurs both in person and online.
Based upon four key principles: Community Empowerment, Business Assistance, Capitalization and Networking.

20. AUSA: Fostering Hispanic entrepreneurship in rural communities
ACCION USA (AUSA) Hispanic Microloan Project
With the support of the Northwest Area Foundation, AUSA is helping diversify and strengthen the economies of rural communities by providing credit and other financial services to rapidly-growing rural Latino communities. AUSA’s service strategy has three components:
1. Loans: AUSA will disburse microloans directly to self-employed residents of these communities, using its Internet and telephone loan application systems. Small business loans of $500 to $25,000 will be provided in addition to $500 Credit Builder loans for low-to-moderate income individuals who do not have a credit history.
2. Outreach and Marketing: AUSA will conduct grassroots outreach and marketing activities to inform community residents of its services.
3. Capacity Building: AUSA will conduct a series of training activities with local groups and organizations to enable them to help individuals access their services and to continue with outreach activities to ensure continuity beyond the timeline of the project.

21. Shop the Frontier Non-profit rural marketplace on the Internet
Shop the Frontier is a project of Stone Soup, a nonprofit organization based in Washington and serving the Pacific Northwest.
Mission: to create sustainable rural economies by teaching the skills necessary to thrive in the 21st century.
Shop the Frontier is a project of Stone Soup, a nonprofit organization based in Washington and serving the Pacific Northwest.
Their mission is to create sustainable rural economies by teaching the skills necessary to thrive in the 21st century.

22. 5 More Examples of Successful Rural Community Intervention Strategies
Access e-Commerce Workshops
Conducts workshops in seven communities to enhance business skills and knowledge on the use of internet marketing and e-commerce to augment business profitability.
Crawford County Entrepreneur Development Network
Identifies local entrepreneurs, identify local entrepreneurial needs and organizes local training and networking meetings to assist entrepreneurs.
Mount Pleasant Area Business Plan Competition
Created an annual, locally sponsored business plan competition. Winners have included an injection molding company, a bed and breakfast venture involving a historical venue, and an upscale kennel and pet care business.
Carroll County Entrepreneur Coaching and Mentoring Network
Organizes local coaching and mentoring network to provide for training, sharing ideas for solving problems related to entrepreneurship.
Micro Enterprise Entrepreneur Workshops
Conducts a series of training workshop for micro-enterprise entrepreneurs in Red Oak, Villisca, and Mount Ayr, and one additional community at $2,500 per community.

23. Now What? 1. Build Community Leadership
Build Leadership
Create a planning group made up of:
A group from entrepreneurial support system
Key Stakeholders
People able to directly provide supportive services
A group of potential entrepreneurs
Remember to include individuals that represent all of the diverse populations in the community

24. 2. Define Your Vision
What is your goal or entrepreneurial vision of the community?
How do you envision the community to look in five years?
Make it realistic
Make it community-based
Make it holistic

25. 3. Map Your Assets Asset Mapping
Does your community have the continuum components?
Do a “community feasibility study”
What systems or services need to be in place to create an entrepreneurial community?
Build a business plan
Think of your community as a business
Can you make a community business plan containing all of the necessary elements?
Resource Availability
Local
State
National

26. 4. Do a SWOT
Based on asset mapping, assess the following for your community:
Strengths
Weaknesses
Opportunities
Threats

27. Strategize to Close Gaps & Overcome Challenges
Use your Community Leadership Group
Create a list of strategies to:
Capitalize on Strengths
Overcome Weaknesses
Identify Opportunities and Plan to Utilize Them
Examine & Make a Plan to Minimize Threats
Bundle and Integrate Asset Development Strategies
Not individual programs, but a system approach
Earn It, Keep It, Grow It

28. “Just Start”
Many rural communities have been successful in this endeavor
There are many resources available that can support your efforts
Be creative and build on your assets
YOU can make it happen!

29. Chuck Palmer
President
ISED Ventures