1. Building Entrepreneurial Communities in Maryland Erik R. Pages EntreWorks Consulting Maryland Rural Summit 2005 October 27, 2005

2. 10/27/2005Copyright EntreWorks Consulting 2005 2 What Do We Know about Entrepreneurship? Jobs! 5-15% of U.S. firms create 2/3 of net new jobs. Innovation. Entrepreneurs account for more than half of all technological innovation. Prosperity. 1/3 of difference in national growth rates is due to entrepreneurship. Presence. 11% of US adult population is trying to start a business.

3. 10/27/2005Copyright EntreWorks Consulting 2005 3 What Do We Know about Entrepreneurship in Rural America? Breadth not Depth Rural America has lots of entrepreneurs, but few high-growth businesses. We must grow all businesses, but especially world-class businesses!

4. 10/27/2005Copyright EntreWorks Consulting 2005 4 How to Do It?: A New Economy Demands A New Approach Its Not the Ingredients, its the recipe – There is no silver bullet We dont need new programs – We need a new mindset Culture of Collaboration – Collapse of old Community Anchors – Opportunities for New Leaders

5. 10/27/2005Copyright EntreWorks Consulting 2005 5 Entrepreneurship Policy: Whats Different? Focused on Individuals, Not Companies Operates Through Business Networks Training/Education as Key Policy Levers Ultimate Objective: Create an Entrepreneurial Eco-System

6. 10/27/2005Copyright EntreWorks Consulting 2005 6 The Entrepreneurial Eco-System Business Culture that Embraces Start-Ups – Higher Risk Tolerance – Entrepreneurs vs. Large Firms Networks of Entrepreneurs Networks of Service Providers – A Start-up Cluster? Creates a Virtuous Cycle – Civic/Philanthropic Leaders – Mentors/Angels

7. 10/27/2005Copyright EntreWorks Consulting 2005 7 Myths About Entrepreneurship We need technology! – Most entrepreneurs are low-tech. We need venture capital! – Funds only 2,000-3,000 firms per year. – 70% of funds to 5 states. We cant be Silicon Valley! – Entrepreneurs exist everywhere.

8. 10/27/2005Copyright EntreWorks Consulting 2005 8 Creating the Ecosystem: What Works? Increase the Supply of Entrepreneurs Build Entrepreneurial Networks Enhance Capital Access Reward Entrepreneurial Behavior

9. 10/27/2005Copyright EntreWorks Consulting 2005 9 1) Increase the Supply of Entrepreneurs Entrepreneurship Education from K-16 Adult Training--Focus on Technical Schools Openness to NewcomersImmigrant Entrepreneurs Universities as Talent Magnets – Hit Underserved Markets (e.g. Engineers, not MBAs)

10. 10/27/2005Copyright EntreWorks Consulting 2005 10 Building the Pipeline: Some Models UtahTraining for Guidance Counselors Louisiana Tech (and others): Entrepreneurship programs in Engineering Schools REAL Enterprises (www.realenterprises.org)www.realenterprises.org National Foundation for Teaching Entrepreneurship ( www.nfte.com ) www.nfte.com Nebraska EDGE: State Funds for Customized Training (www.nebraskaedge.unl.edu)www.nebraskaedge.unl.edu

11. 10/27/2005Copyright EntreWorks Consulting 2005 11 2) Build Entrepreneurial Networks Networks as the Hub of the Eco-System Peer Learning as Central Role Activities: Training, Mentoring, Investment Screening and Matching, Networking

12. 10/27/2005Copyright EntreWorks Consulting 2005 12 Building Networks: Some Models Blue Ridge Entrepreneurial Council (http://www.ncmtns.biz/)http://www.ncmtns.biz/ Kansas Enterprise Facilitation Eastern Maine Development Corporation (Incubator w/o Walls) Nevada/California: V3 Accelerator Program (www.goldencapital.net/V3/)www.goldencapital.net/V3/

13. 10/27/2005Copyright EntreWorks Consulting 2005 13 3) CAPITAL ACCESS If you build it, will they come? – Demand vs. Supply of Capital Myths about Venture Capital Filling the Gaps – Equity vs. Debt – Seed Capital

14. 10/27/2005Copyright EntreWorks Consulting 2005 14 Best Practices? Capital Literacy Build Better DealsBack to the Pipeline! Angel Networks (www.angelcapitalassociation.org)www.angelcapitalassociation.org – Minnesota, Kansas Equity Funds – www.cdvca.org www.cdvca.org

15. 10/27/2005Copyright EntreWorks Consulting 2005 15 4) Reward Entrepreneurial Behavior Entrepreneurs as New Civic Leaders – Issues around Old Economy Culture Tell Stories – Importance of Local Stars and Anchor Firms Create Awards Programs – Entrepreneur of the Year

16. 10/27/2005Copyright EntreWorks Consulting 2005 16 Honoring Entrepreneurs: Some Ideas Ernst & Young Entrepreneur of the Year Appalachian Regional Commission Springboard Awards (www.arc.gov)www.arc.gov Springboard: Women Entrepreneurs (www.springboardenterprises.org)www.springboardenterprises.org Kentucky Science and Technology Corporation: IdeaFestival; Newspaper Profiles (www.kstc.com)www.kstc.com

17. 10/27/2005Copyright EntreWorks Consulting 2005 17 The Big Picture: A New Model Few new program initiatives – No Silver Bullets Initiatives are Low-Cost, but Long-Term Soft cultural factors predominate BOTTOM LINE: An economic development challenge requiring non-economic development solutions.

18. 10/27/2005Copyright EntreWorks Consulting 2005 18 Your Challenge: What to Do When You Go Home Today Become a Champion! (Or Help Recruit One): Do It Yourself! Collaborate: Bring Everyone in the Tent! Experiment – Start Small – But Think Big! Start Fast!

19. For More Information: Erik R. Pages EntreWorks Consulting 3407 North Edison Street Arlington, VA 22207 703-237-2506 www.entreworks.net epages@entreworks.net