Educational Materials for
Rural Entrepreneurship
Jason Henderson
Center for the Study of Rural America
Federal Reserve Bank of Kansas City
www.kansascityfed.org/ruralcenter
Presented to the
National Public Policy Education Conference
September 20, 2004
St. Louis, Missouri
What is the Center for the
Study of Rural America?
•
Part of the Federal Reserve System
–
–
–
•
Monetary policy
Bank regulator
Check and cash clearinghouse
The Center provides economic analysis
and insight into the rural economy.
What makes rural economies grow?
What Do We Tell Entrepreneurs?
• Entrepreneurship matters.
What Do We Tell Entrepreneurs?
• Entrepreneurship matters.
• Lots of information is available.
Do not reinvent the wheel !!!!!
What Do We Tell Entrepreneurs?
• Entrepreneurship matters.
• Lots of information is available.
Do not reinvent the wheel !!!!!
• We do not finance businesses.
Entrepreneurship Matters at the
State Level
State Proprietor and Employment Growth,
(1970 to 2000)
Wage and Salary Worker Growth
Annualized percent change
7.0
Correlation = 0.74
6.0
5.0
4.0
3.0
2.0
1.0
0.0
0
1
2
3
4
Proprietors Growth
Source: Dept. of Commerce, REIS
5
6
7
Entrepreneurship Matters at the
Local Level
U.S. Personal Income
(by Class of Worker, 2000)
60
Thousand Dollars
50
Rural
38.7
40
30
50.6
Metro
34.9
33.7
29.6
25.2
20
10
0
Private
Government
Source: March 2000 Current Population Survey, Dept.of Commerce
Self-Employed
Information is Available
The Center’s 2003 Conference
Main Streets of Tomorrow: Growing and
Financing Rural Entrepreneurs
1.
Entrepreneurs are Made not Born
2.
Entrepreneurial Skills Can be Developed
–
Technical Skills – ability to perform key operations of business
–
Managerial Skills – ability to organize and manage the operations
–
Entrepreneurial Skills –ability to identify market opportunities
–
Personal Maturity Skills – self-awareness, accountability,
emotional and creative development
A Major League System for
Entrepreneurial Development
Technical
Managerial
Entrepre.
Personal
Maturity
Major
League:
Outstand./
Exceptional
Outstanding Outstanding Outstanding
AAA:
High
High
High
High
AA:
High
Medium
Medium
Medium
A:
High/
Medium
Low
Low
Low
Rookie
League
Low/No
Low/No
Low/No
Low/No
Source: Thomas S. Lyons, “Policies for Creating an Entrepreneurial Region”, Main Streets of Tomorrow:
Growing and Financing Rural Entrepreneurs, 2003.
A Major League Farm System
The A Level
•
Skill Levels
– Technical Skills: High/Medium
– Other Skills: Low/No
•
Enterprise Development Assistance Providers
– Microenterprise programs
– Small business development centers
– Business incubation programs
•
Weblinks
– Association for Enterprise Opportunity:
http://www.microenterpriseworks.org/
– Small Business Development Centers
http://www.sba.gov/sbdc/
– National Business Incubator Association
http://www.nbia.org/
A Major League Farm System
The AA Level
•
Skill Levels
– Technical Skills: High
– Other Skills: Medium
•
Enterprise Development Assistance Providers
– Manufacturing extension programs
– Small business development centers
– High-technology incubation programs
– Small specialized venture funds
•
Weblinks
– Manufacturing Extension Partnerships
http://www.mep.nist.gov/
– National Institute of Science and Technology
http://www.nist.gov/
– National Association of Seed and Venture Funds
http://www.nasvf.org/
– Community Development Venture Capital Alliance
http://www.cdvca.org/
A Major League Farm System
The AAA Level
•
Skill Levels
– Technical Skills: High
– Other Skills: High
•
Enterprise Development Assistance Providers
– Angel investors
– Emerging Business Consulting practices
– University tech transfer offices
•
Weblinks
– Association of University Technology Managers
http://www.autm.net/index_ie.html
– Lists of Angel investors
http://www.entrepreneur.com/
http://www.inc.com/guides/finance/24011.html
http://www.minnesotaruralpartners.org/
A Major League Farm System
The Major League
•
Skill Levels
– Technical Skills: Outstanding
– Other Skills: Outstanding
•
Enterprise Development Assistance Providers
– Venture capitalists
– Professional consulting practices
– Investment bankers
•
Beyond my resource level
If they come to you for assistance,
are they really in the majors?
Do Not Forget …
• The Scout who looks for prospective entrepreneurs.
• The Diagnostician who assesses the needs of
entrepreneurs entering the system.
• The Performance Coach who helps entrepreneurs
with mental and emotional needs.
• A Team Manager who brokers networks of firms at
the league level.
• Alliance Brokers that facilitate partnerships across
league levels.
• A General Manager who oversees the whole farm
system.
Conclusions
• Entrepreneurship matters.
• Lots of information is available –
Do Not Reinvent The Wheel.
• Create a farm system that matches information
with the skill levels of entrepreneurs.
• Good Luck in Spurring Entrepreneurs –
The Pioneers of the 21st Century