Entrepreneurial Culture: A 21st Century Community Imperative

Kauffman foundation: Jobs come from startups that grow. Attitude Adjustment #1: The market doesn’t care about the individual’s, community’s, or state’s story. Your attitude affects your response to facts. A recent report, from the NYS Federal Reserve Bank, reveals that economic globalization and technological advancements are having the effect of phasing out middle-skill & wage workers that perform repetitive tasks. Workers at both the high and low end of the skill & wage scale are benefiting from this structural economic shift. Environmental Factor 4 Change is inevitable: Pull the band aid off and start working at funding alternatives Environmental Factor 3 Key Questions - Let’s Try It Entrepreneurial Culture: A 21st Century Community Imperative A Service of the Kansas Center for Entrepreneurship Networkkansas.com Twitter: @steveradley3 Blog: steveradley3.com The…process of industrial mutation…incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. This process of creative destruction is the essential fact of capitalism. Creative Destruction Defined Environment: SWOT Steve Radley, CEO, NetWork Kansas Attitude is more important than facts. " " -Charles Swindoll Know the market for you, your business, your community, your region, and your state. What’s the market/environment telling you? Environmental Factor 2 " " " " -Joseph Schumpeter on Creative Destruction (The Science of Success, Charles Koch) Example: Paypal vs. Mastercard, Amazon.com vs. Barnes and Noble, Google vs. Everybody, The Porch Swing vs. ….. Set a direction with the environment in mind Conclusions Environmental Analysis for Communities Individuals, businesses, communities, regions, and states must embrace technology in all of its uses to be competitive. Businesses must consider how they can compete locally, regionally, nationally, and internationally. Communities must build support systems for startups and expansions as a key strategy. Communities must define who they are, who their partners are, and focus on building an infrastructure of resources. Somebody’s gotta be different. Our Philosophy of an Entrepreneurial Culture in a Community Every business should be the focus: E-Talent mapping and strategy preferences. The Look of an Entrepreneurial Culture in a Community – Every Business Matters The Makeup of an Entrepreneurial Culture in a Community How NetWork Kansas is designed The Fundamental Differences in an Entrepreneurial Culture Distributed system with key core values that guide but don’t decide Entrepreneurship Community Partnership: local leadership teams commissioned to build an entrepreneurial community and empowered with funds to make loans. (38 communities) Entrepreneurs need resources: education, expertise, and economic. Partners and Communities as a dropbox for resources. NetWork Kansas Core Values Guided by 3E’s, connect assets to businesses. NetWork Kansas Core Values NetWork Kansas Core Values NetWork Kansas Core Values Example 1: Entrepreneurship Community Partnership – What Communities Are Doing Example 1: Entrepreneurship Community Partnership – What Communities Are Doing Next Steps for Your Community Dare to be different: talk about embracing change (learned behavior) Out of clutter find simplicity From discord, find harmony In the middle of difficulty, lies opportunity. Doing Work Together: Partners in Asset Building: Education, Expertise, & Economic Resources Defined: Partnered in a specific program in a specific way to build 1, 2, or all 3 of the 3Es 30 (38) Entrepreneurship Communities representing 27 (34) counties -Albert Einstein " " Kansas Department of Revenue Kansas Department of Commerce USDA Rural Development Kansas Small Business Development Centers Kansas Farm Bureau Center for Rural Entrepreneurship (Nebraska) Center for Rural Entrepreneurship Advancing Rural Prosperity Wichita Technology Corporation Advanced Manufacturing Institute at Kansas State Kansas Department of Agriculture Information Network of Kansas Wichita State Center for ED & Bus. Res MAMTC (Mid America Manufacturing) KS Global Trade Services U.S. Treasury Department Edward Lowe Foundation Doing Work Together: Partners in Implementation, administration, and strategy execution Defined: Partners who, on an ongoing basis, execute strategies and plans that infuse assets into communities and businesses 30 (38) Entrepreneurship Communities representing 27 (34) counties Kansas Department of Commerce Fort Hays State University Butler Community College Wichita State University USDA Rural Development Kansas Small Business Development Centers Pioneer Country Development South Central Economic Development District Frontier Financial Partners North Central KS Community Network Heartland Business Capital Southeast Prosperity Foundation Mid-America Inc. Information Network of Kansas Kansas Business Center 10 Kansas Mainstreets* 147 More Partners (2012) •Empower: All assets run through communities and partners •Local decision making in all areas; even when we’re paying for it •Capital: if private capital can do the “whole” deal, stay out of it. End of the foodchain “risk” capital More than 50% are exploring or heavily involved in cultivating entrepreneurship by engaging youth. Principle #2 Core Value Implementation: Entrepreneurial Culture: Adapt and Change “Learn” to Embrace Change Attitude Adjustment #2: the individual, community and state must know the story the market is telling. Methods, Resources, Approach What’s the role you play? Methods, resources, and approach should be focused on startups and expansions. Edward Lowe Foundation: Jobs come from 2nd stage growth businesses that usually have between 10 and 100 employees. It’s time to open the gates and flood the room---no gatekeepers needed! Mark Drabenstott: "Globalization has profoundly changed what works in rural development; a shift from cost to innovation." Since 1960, world trade has grown at more than twice the rate of the U.S. economy We are entering an era of creative destruction on steroids. -Tom Friedman, The World is Flat: A Brief History of the 21st Century " " Implication: It’s not competition that counts, but competition from the new commodity, the new technology, the new source of supply, the new type of organization. Principle 1: Refuse to let people say the same things over and over again. Try something different – create some chaos. Find others who are committed. Some businesses matter most and will require more resources that may not be readily available in your community----partner! Some businesses matter more: Identify serial entrepreneurs and potential growth businesses in your community, and invest your limited resources in them. Activity that includes local, regional, state, and federal resources. Build them through partnerships! No excuses, they already exist. Community fortitude: Grinders that celebrate success and treat failure as part of the learning experience; they “just say no” to the new normal. Connectivity to knowledge, talent, and capital of all kinds Loans on average: every $1 loaned is met with $12 dollars of additional investment. More than 80% of all funds are dedicated to communities and businesses. Use our statewide programs as a test bed to design new programs that can drop down to the community or business level. Point to Point distribution through E-Communities (rather than a central hub). Hub and spoke system for administration through partners and specialized technical assistance (Economic Gardening, Innovation Engineering, Export Assistance). The better you get at what you do, the more likely new opportunities will emerge Map your entrepreneurial talent, define strategies, and visit your businesses Set goals for asset building: Education/Expertise/Economic: Assets attract entrepreneurs and entrepreneurs attract assets Begin building a team and start networking at the local, regional, state and federal level (I can’t work with them won’t work) $50,000 USDA RBOG for export assistance. $200,000 USDA funds for succession planning, building angel capital networks, and E-Talent mapping, community coaching, and strategy development. 40% of Kansas Economic Gardening Network clients. Do something even if it’s wrong Principle #3 Example 2: KS Capital Multiplier Funds - $13.1 million – What Partners Are Doing $10.2 million loan fund and $2.6 million Venture fund $3.559,639 funded in twelve months ($84.9 million in total capital) 96% of funds drop from federal level to the business through our partner network with no additional staff SWOT: Jobs come from small businesses, especially ones that grow. Environmental Factor 1 SWOT: Technology is Critical. Susan Crawford, Kennedy School of Government: Even though America is in a “global bandwidth race” and our “nation’s future economic security is tied to frictionless and speedy access to information,” according to the FCC Chairman – we don’t have a plan for winning that race. Can you really afford to be a late adopter of new technology on any level? If you do, it will limit you and your options. SWOT: The world is Changing Really Really Fast SWOT: Public Sector Budgets are tight and are going to get tighter