Strategic Recommendations
GOAL TWO: AUGMENT SUPPORT SERVICES
1. Develop a three-tiered support system for entrepreneurs in the region. Different types of entrepreneurs have different needs. As a result, a one-size-fits-all approach to providing services to entrepreneurs will inevitably leave one or more groups with
C A S E S T U D Y : K e n t u c k y
E n t r e p r e n e u r i a l C o a c h e s I n s t i t u t e
In 2003, the College of Agriculture at the University of Kentucky founded the Kentucky Entrepreneurial Coaches Institute to promote economic diversification in Northeastern Kentucky. Since then, the program has expanded into South Central Kentucky as well.
The program trains coaches through an intensive series of seminars and a national education tour.
Thirty participants are selected from the pool of applicants to receive a fellowship to attend the institute. These fellowships are funded through the Kentucky Agricultural Development Board.
The Entrepreneurial Coaches are volunteers who work with entrepreneurs. Rather than providing technical assistance, they serve as a resource for entrepreneurs, help them assess their businesses, and assist them in finding the technical support that they need.
The program was named one of the top programs in the nation by the Small Business Administration.
For more information:
http://www.uky.edu/Ag/CLD/KECI/
WORKFORCE SOLUTIONS: RURAL ENTREPRENEURSHIP ASSESSMENT (Lack motivation and capacity) Frustrated
Aspiring
Start-ups
Dreamers
Youth (Motivations include dislocations, glass ceiling / dead end,
desire for more, need to create it.) Lifestyle
Re-starts
Survival
(Limited motivation to grow) (Unable to see how to grow) Serial
TYPE OF TALENT INTERVENTION TIME FRAME
SOURCE: RUPRI Center for Rural Entrepreneurship.
needs unmet. Developing a tiered-system will help to create a system that specifically targets the needs of each type of entrepreneurs.
The tiers should correspond to the type of entrepreneurial talent:
High-growth. Entrepreneurs who are motivated to rapidly expand and grow their businesses into something more than a family-owned company. Their businesses are often highly innovative and are export-oriented with customers beyond their local markets.
Potential. Entrepreneurs who are attracted to the idea of starting their own businesses or have just started their own businesses.
Business Owners. Entrepreneurs who have started businesses to supplement their incomes or maintain a certain lifestyle.
Develop a self-assessment tool that entrepreneurs can use to place themselves on the appropriate track. This tool may be accessed through the Web portal.
Using this assessment tool, entrepreneurs and aspiring entrepreneurs can identify their goals, motivations, and plans.
Based on the outcome of the assessment, entrepreneurs can be directed to the tier of services that will best suit their needs. In addition, it will provide the region with a record of entrepreneurs using the portal.
WORKFORCE SOLUTIONS: RURAL ENTREPRENEURSHIP ASSESSMENT
2. Strengthen and target support services for each tier. This will ensure the needs of each group of entrepreneurs are better met. While the services will be specifically targeted, many of the services can support more than one type of entrepreneur at a time.
Tailor a tier of services specifically for high-growth entrepreneurs. At present, few services exist for this category of entrepreneurs. While this is the least common type of entrepreneurs, it is the type that has the highest economic impact, in terms of job and wealth creation. As a result, it is not necessary for each community in the region to provide all of these services;
rather, the services should be provided at a regional level and accessible to all communities. In some cases, the demand for the service may be strong enough to support providing the service at the local level as well. The future entrepreneur center at Texas A&M University – Texarkana could be a good lead partner for developing this tier of services. The local economic development corporations would be good leads at the community level. The services that should be included are:
Peer networking opportunities. The objective of these opportunities should be to provide entrepreneurs with a forum to exchange ideas with one another in an effort to help each resolve salient business issues. A facilitator should be present to lay the ground rules and to help ensure that the opportunities do not become leads generation events. These could be held in-person or virtually through a teleconference or video conference. Groups should be kept relatively small (fewer than 15 participants). These could be offered at the community level, depending on demand.
Assistance raising capital. High-growth entrepreneurs will likely need to access equity capital to finance their companies through the CONCEPT and INCEPTION phases of development. The assistance provided should include education on the process;
preparing a professional, compelling pitch; connecting with potential investors (both angels and venture capital); and structuring a deal. This should be offered at the regional level.
C A S E S T U D Y : I n d i a n a V e n t u r e C e n t e r
Founded in 2003, the Indiana Venture Center is a non-profit organization that seeks to increase the number and quality of entrepreneurial, high-growth companies in Indiana.
Through its staff and collaboration with local universities, the center provides promising companies with assistance from exploring concept feasibility to raising capital. In addition, it has created AngelNet, an angel network that connects entrepreneurs with investors.
The center works closely with entrepreneurship programs and business schools at seven universities across the states to promote educational opportunities for entrepreneurs. Also through this collaboration, the center matches entrepreneurial companies with groups of student consultants to work on special projects as part of the Venture Creation Accelerator.
For more information:
http://www.indianaventurecenter.org/
WORKFORCE SOLUTIONS: RURAL ENTREPRENEURSHIP ASSESSMENT
Angel investor network. Formalize the regional angel investor network to increase participation of angels and further support high-growth entrepreneurs. A helpful guide for creating a network can be found at http://www.kauffman.org/pdf/angel_guidebook.pdf. In addition, AngelSoft is a valuable resource for creating angel networks (http://www.angelsoft.net/). This network should operate at the regional level.
Advisory board resources. Advisory boards can serve as a valuable mentor for entrepreneurs and help to build stronger companies.
This service should assist entrepreneurs in assembling an effective advisory board and should offer training to entrepreneurs and board members on their roles and responsibilities. This could be offered at the community level, depending on demand.
Enhance support services for potential entrepreneurs, including aspiring entrepreneurs and start-ups. Much of the existing services are geared towards this group of entrepreneurs. Community colleges and the SBDCs would be good community partners for hosting and/or facilitating these programs. The services that should be included in this tier are:
Entrepreneur boot camp. Contact one of the area’s certified trainers for FastTrac or NxLevel to explore offering these courses in the region. If those existing certified trainers cannot conduct classes in the region, arrange for one or more of the regional service providers to become a certified trainer. Set a goal of offering a course at least twice a year at first. Then, as demand grows, expand the course offerings.
Regional revolving loan fund. Create a regional revolving loan fund, establishing an effective structure and sound policies and procedures. This fund should be designed specifically to provide access to credit to those entrepreneurs who currently do not have access. If possible, seek the participation of existing loan funds to better leverage those resources in the region and share marketing expenses.
C A S E S T U D Y : B l u e R i d g e A n g e l I n v e s t o r N e t w o r k ( B R A I N )
Founded in 2002 by the AdvantageWest Economic Development Group, BRAIN has invested over $2 million and helped companies raise an additional $10 million in capital.
BRAIN members meet quarterly to review pre-screened business plans. While the group collaborates on due diligence, each member makes individual investment decisions.
For those entrepreneurs in whose companies BRAIN members invest, the members serve as mentors and coaches and assist them in team building, strategic planning, and fundraising.
BRAIN investments are focused on 10 industry clusters, thus reinforcing the greater economic development efforts of AdvantageWest.
For more information:
http://www.brainnc.com/index.cfm
WORKFORCE SOLUTIONS: RURAL ENTREPRENEURSHIP ASSESSMENT
Numerous programs across the country exist and can be researched to identify best practices. In addition, the following resources are available to provide guidance and technical assistance:
― The Council of Development Finance Agencies:
http://www.cdfa.net/cdfa/cdfaweb.nsf/pages/rlffactsheet.ht ml
― The National Association of Development Organizations:
http://www.nado.org/edfs/index.php
― Development Finance Training and Consulting, Inc.:
http://devftc.com/economic.php
Coordinate a regional youth entrepreneurship initiative. Encourage the regional school districts to become involved in the regional initiative by incorporating entrepreneurship into their existing curricula and supporting the expansion of Junior Achievement in schools in the region.
Continue to support existing business owners, including lifestyle and survival businesses. The SBDCs already do an excellent job supporting these businesses with training courses and one-on-one counseling.
However, a few services could be added to the offerings. These services include:
Formal mentor network. Develop a network of experienced entrepreneurs or businessmen and women who are willing to volunteer their time to work with entrepreneurs. Match the skills of these volunteer mentors with the needs of the participating entrepreneurs. Facilitate an initial meeting between volunteer and entrepreneur. Further meetings should be set up at the discretion of the volunteer and mentor.
WORKFORCE SOLUTIONS: RURAL ENTREPRENEURSHIP ASSESSMENT
Competitive information. Accessing data and information necessary for high-quality market research can be expensive to an entrepreneur. At the regional level, provide access to data sources such as Nexus Lexus, ESRI or Claritas market profiles, Dun &
Bradstreet, and direct marketing databases. With this information, entrepreneurs can compile mailing lists, research competitors, and identify new markets. In many communities, the data providers also staff market research analysts to assist entrepreneurs. This information could be accessible to registered users of the entrepreneurs’ portal.
― A list of helpful databases and resources is available from Growing Local Economies:
(http://growinglocaleconomies.com/files/pdf/EGurls.pdf ) GOAL THREE: PROMOTE A MORE ENTREPRENEURIAL CLIMATE AND CULTURE
1. Design a public relations campaign to build awareness of regional entrepreneurs’ success stories.
Interview successful local entrepreneurs and develop a database of local success stories.
Compile a list of local media contacts and pitch them the idea of profiling these local success stories in a regular column or program.
2. Organize an annual business expo or summit.
Include a keynote speaker, break-out sessions covering topics of interest, networking opportunities, and a regional business showcase. Hold the conference at a different location in the region each year.
To create buzz about the expo, hold local business plan competitions. The finalists from these local competitions would then compete in the regional competition for a cash award. As part of the expo, the finalists from each
E l e m e n t s o f s u c c e s s f u l m e d i a
& P R c a m p a i g n s
Have clear and measurable goals.
Have extensive knowledge of your audience.
Develop compelling messages that connect with your target audience.
Specify what actions you want people to take, how to do it, and why.
Make the case for why action is needed now.
Match strategies to your target audience.
Research, plan, and pre-test.
Budget.
Evaluate, revise, and refocus on an ongoing basis.
WORKFORCE SOLUTIONS: RURAL ENTREPRENEURSHIP ASSESSMENT
local competition would have to make their pitch to be judged by a panel of successful entrepreneurs (perhaps nationally known). The pitch presentations should be open to the public and media.
Organize these business plan competitions for youth entrepreneurs as well as adults.
3. Lower barriers to entry for new entrepreneurs.
Create a Health Group Cooperative to provide small employers in the region with access to more affordable healthcare. Information on creating a cooperative can be found at the Texas Department of Insurance Web site:
http://www.tdi.state.tx.us/health/indexlhcoop.html
On the entrepreneurs Web site, post information on registering businesses and obtaining necessary permits for each county. Include pertinent addresses and contact numbers to help new businesses navigate the process. Include a section where entrepreneurs can post advice on how to better navigate the system.
Establish a working group that will examine regulatory policies that affect small businesses in the region to ensure that these policies do not inadvertently negatively affect small businesses.
C A S E S T U D Y : L u b b o c k
C h a m b e r E m p l o y e r H e a l t h P l a n
In 2006, the Lubbock Chamber of Commerce launched an employer health plan to help its members find affordable health insurance. Members with two or more employees may enroll in the plan and choose from seven different plan designs offered by FirstCare.
In order to offer this employer plan, the Chamber formed two Health Group Cooperatives, one for large employers and one for small employers. Health Group Cooperatives must have at least 10 employers and may grow to any size, but it will be considered a single large employer for the purposes of issuance of coverage and rating. This structure provides the opportunity for the cooperative to realize savings and obtain more flexibility in plan design.
As of June 2008, the Chamber has 10,242 lives enrolled in the plan, 20 percent of which were previously uninsured. The average business enrolled in the plan has 10 employees. Small business owners enrolled in the plan have been able to realize thousands of dollars of savings while covering more of the premium cost for their employees.
For more information:
http://www.lubbockchamber.com/healthcare.htm http://www.tdi.state.tx.us/health/indexlhcoop.html
WORKFORCE SOLUTIONS: RURAL ENTREPRENEURSHIP ASSESSMENT