RURAL
ENTREPRENEURSHIP
or
THE STUFF IN THE
BAG?
Mickey C. Johnson, District Director
Murray State University
Small Business Development Center
7/26/2016
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Famous Entrepreneurs
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Sam Walton
Bill Gates
Fred Smith
Bob Bryant
Glen Haire
Harvey Tilker
George Radford
Mike Creasey
Jerry Haase
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A Successful Small Business
must be able to
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Sell a good or service
In sufficient quantity
At a high enough price
In order to generate a profit
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Entrepreneurial Myths
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The Risk Taking Myth
The High-Tech Invention Myth
The Expert Myth
The Strategic Vision Myth
The Venture Capital Myth
The Grant Myth
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Entrepreneurial Types
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Limited Potential
Potential
Business Owners
Entrepreneurs
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Limited Potential
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Not in the workforce, choose to be
employees
Large numbers of these people
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Potential
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Youth – interested in learning a
new career
Aspiring – Motivated, but need to
reduce rise through support
services
Start-ups – in process of starting
but may not have the skills.
Moderate to large numbers of
these
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Business Owners
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Survival – struggling to achieve
success
Lifestyle – successful and not
seeking to grow
Re-starts – started and failed, but
are trying again
Large numbers of survival and
lifestyle, modest number of restarts
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Entrepreneurs
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Growth-Oriented – have a drive to grow
and are reaching out to new markets
Serial – Create and grow a new
enterprise then move on
EGC’s – Experience high growth, these
are referred to as “gazelles”
Modest numbers of growth, very small
numbers of serial and EGC’s are rare
indeed
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Rural Problems
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Limited Networks
Low Local Demand
Capital Constraints
Lack of Role Models
Cultural Barriers
Education
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Solutions
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Think Regionally
Create Homegrown Entrepreneurs
Redefine Education
Create New Markets and Linkages
Develop and Use New
Technologies
Encourage Immigration
Utilize Assistance Programs Such
as the KSBDC
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KSBDC – Who We Are
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University Based
15 Centers Located State-Wide
Clients – Free Consulting Services
to Start-ups and existing
businesses
Training Courses
Library Resources
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KSBDC Operating Results
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$2.82 Return on Investment
590 Jobs Created
299 Jobs Saved
194 Loans - $24,558,791
$3,008,602 State Tax Revenue
$2,977,777 Federal Tax Revenue
2,658 Clients
7,791 Training Attendees
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What Can You Do?
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Report on Economic Impact
- Jobs Created
- Jobs Saved
- Sales Impact
- Tax Revenues
Why is it Important?
- Business Owners and Employees are
Encouraged
- May Help Secure Government
Incentives, Financing, Investors
- May Attract Other Entrepreneurs
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Credits:
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Center for Rural Entrepreneurship
W.K. Kellogg Foundation
Kauffman Foundation
“Supporting Rural Entrepreneurship” –
Brian Dabson
National Commission On
Entrepreneurship
“Entrepreneurship and Small Business
Survival in the Northeast: The Case of
West Virginia” – Doolarie Singh-Knights
and Dennis K. Smith
Kentucky Small Business Development
15
Center