Grow Your Own Entrepreneurship Based Economic Development Webinar

Transcription

1 Grow Your Own Entrepreneurship Based Economic Development Webinar Dell Gines, MBA, CEcD Federal Reserve Bank of Kansas City Sr. Community Development Advisor

2 The Federal Reserve Bank The views in this presentation do not necessarily represent the views of the Federal Reserve Bank of Kansas City nor the Federal Reserve System.

3 The Federal Reserve Bank of Kansas City Perspective The mission of the Community Development department of the Kansas City Federal Reserve Bank is to support the economic growth objectives of the Federal Reserve Act by promoting community development and fair and equal access to credit. The Grow Your Own Guide provides a high level overview of what it takes to conduct entrepreneurship based economic development. Our job is to serve as a neutral convener of resources between those who have and those who don t, because we know all segments of the population, including the less advantaged, benefit from both economic growth and fair and equal access to credit.

4 Federal Reserve Bank of Kansas City The Tenth District consist of Nebraska, Oklahoma, Kansas, Colorado, Wyoming and portions of Missouri and New Mexico

5 ECONOMIC GARDENING Where to From Here?

6 What is Economic Gardening? An entrepreneurial approach to economic development A focus on stage 2 growth companies A focus on strategic issues Uses corporate level tools Based on New Sciences

7 Results in Littleton Jobs 15,000 to 30,000 Sales Tax Revenue $6 million to $21 million No recruiting Not one penny in incentives

8 National Center Activity 34 programs in 25 states 7 statewide programs 298 companies in companies in Florida Companies Edward Lowe Foundation copyright 2013

9 Florida Results $5.5M investment from state Jobs created: Direct 2,067.4 Investment per direct job created $2,660 Edward Lowe Foundation copyright 2013

10 Kansas Results

11 Recent Improvements Ensuring high fidelity projects Professional training / certification 100 hours Videos / 4 day retreat / mentoring period Program certification National network established Sharing of best practices and issues

12 Plans for the Future Even more sophisticated tools OneSource Newspatterns and Recorded Future

13 National Organizations Contacting Entrepreneurial Support Organizations (ESOs) about future collaboration Incubators, angel funding, etc. Discussions with Kauffman Foundation Discussions with federal government agencies

14 Working with SBDCs Individual state and regional directors National convention presentations National SBDC office conversation

15 Entrepreneurial Research Continue to dive deeper into well springs of job and wealth creation Severe 80/20 rule Gazelles are rare Steady growth more widespread Stalled growth re-set

16 Research on EG Outcomes Plans to open discussions with universities to conduct formal evaluations of projects and approaches Constant internal evaluation What do we keep? What do we drop? What do we change? What do we add?

17 Research on EG Patterns Internal research on: Company archetypes Issue archetypes Wicked problems Failure patterns / no can do

18 Questions?

19 Grow Your Own December 4, 2013

20 My Presentation Federal Reserve Let s Start with Prosperity Inspiration from the Field Big Picture View Keys to Success Center Resources Questions & Discussion

21 The areas with STARS are locations where the Center has completed projects. A Decade of Field Work

22 Prosperity?

23 Prosperity Defined Economic Opportunity Broadly-Held Community Wealth Entrepreneurial 1. Economic & Social Diversity 2. Resilience from Shocks 3. Higher & Sustained Prosperity

24 Chase County

25 6,000 Chase County, Nebraska 5,484 5,310 5,176 Historical Population of Chase County, Nebraska 5,000 4,807 4,939 4,758 4,000 3,613 4,317 4,129 4,381 4,068 3,965 3,975 3,984 3,966 4,006 4,064 3,883 3,816 3,768 3,687 3,616 3,625 3,000 2,000 2,559 Like so many rural counties, Chase County experienced chronic and severe depopulation beginning with the Great Depression. This period preceded by the classic boom, bust and boom cycles. 1,

26 Income (thousand dollars) Employment Economic Rebound $16,000 Nonfarm Proprietors, Chase County, Nebraska 800 $14, $12, $10, $8, $6, $4, $2, $0 0 Nonfarm proprietors' income: real 2010 dollars Number of nonfarm proprietors

27 Community Renewal 4,500 Contemporary Population of Chase County, Nebraska 4,000 4,068 3,965 3,975 3,984 3,883 3,816 3,768 3,687 3,616 3,625 3,966 4,006 4,064 3,500 3,000 There are relatively few rural counties in the entire Great Plains Region posting sustained positive population growth. 2,

28 Russ & Allo Communications Russ and his wife own the local twice weekly newspaper in Imperial. He a former high school class mate created Allo Communications. Today they are one of the breakout companies fueling Chase County s revitalization. Allo Communications is competing head up with the likes of SPRINT and Century Link. Russ and Allo are charitable and through gifts to the Chase County Community Foundation they are supporting workforce development and educational opportunities for youth.

29 Economic Development Opportunities in the Post-Great Recession Economy and Society. Big Picture

30 Great Recession The most significant economic event in our lifetime! A new economic and social world will emerge from this recession.

31 Great Reset Space exists in our economy and society for creativity and innovation that can lead to a new round of economic and social progress and prosperity. The Long Depression of the 1870s and the Great Depression of the 1930s is evidence that this can be the case with the Great Recession. This is called the Great Reset!

32 The Reset Process Prosperity Crisis Unraveling New Ventures Opportunity Space New Innovation

33 Illustration The Great Expansion The 1990s were a remarkable period in American economic development history. During the 1990s, household net worth grew by a remarkable $22 trillion. No other decade since World War II posted such wealth creation in United States including the 1950s, 1960s and the 1970s.

34 Challenged 2000s

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36 In just 1 year, 2.5 Million new entrepreneurial startups!

37 Stage 1 Ventures (2-9) employees Self Employment Dropped 146,241 or 2% 2.6 million more businesses +21% 6 million more jobs +28% $371 billion more in Sales

38 Defense Contractors Government Contractors Supply Chain Companies Under-Employed Talent Un-hired Graduates Displaced Talent Entrepreneur Opportunities Immigrant Talent Graduate Students Safe Harbor Immigrants Business Failures Retirees Women

39 Employment Shifts 3 Waves Pre-World War II Self-Employment Smaller Local Employers World War II into the 1990s Large Corporations, Government & Non-Profits 1990s through to Today Swelling Self-Employment & Smaller Ventures Navigating Change

40 Across America Communities and Regions are Struggling to Find Robust Funding for Economic Development. Keys to Success

41 #1 -Local Responsibility No community can take its future for granted. Remember Detroit? Every community must create its future. Development is a local responsibility. Central to community success in the 21 st Century is creating and supporting an environment for entrepreneurial behavior.

42 #2 Smart Game Plan Right Strategy Experience & Learning Smart Game Plan Research Genuine Opportunity

43 #3 Robust Investment Communities must be renewed socially and economically. There must be constant private and public investment if a community is to renew itself. 1. Public Funding 2. Leveraged Private Investment 3. Community Philanthropy

44 #4 Key Entrepreneurial Development Systems Chronology 2004 Legislation 2005 Center Created 2006 NetWork Kansas 2007 First E-Communities 5 ½ Years of Experience Impact 39 Communities 339 Business Deals $54 Million Deal Flow 1017 Full-Time Jobs 816 Part-Time Jobs NetWork Kansas Kansas is building one of the most robust and sustainable entrepreneurfocused economic development game plans in North America. There is a system of support that includes NetWork Kansas, the Kansas Small Business Development Centers, communities from urban to rural and hundreds of specialized resource providers. Kansas is growing an entrepreneurial eco-system one community at a time. We are in the process of capturing this story (Fall 2013).

45 Other Keys #5 Sustained Effort #8 Immigrants & New Residents #9 Real Regional Collaboration

46 #7 Attributes of an Entrepreneurial Community 1. All 3 Kinds of Es 2. Culture 3. Infrastructure 4. Human Talent 5. Youth

47 Entrepreneurial Culture It s Entrepreneurial A key attribute of successful entrepreneurs is that they focus on opportunities. It s Positive This is asset-based development and it creates hope based on opportunities. It Leads to Impact It works!

48 Entrepreneurial Infrastructure Robust Support Network Business Coaching Access to Capital Access to Market Research Access to Places & Spaces Access to Real Time Technology Access to Human Talent Other Entrepreneurs

49 Entrepreneurs #10 Civic & Social Entrepreneurs. #6 Business Entrepreneurs Lifestyle Growth-Oriented Transition Beth Stube -- Dickinson, North Dakota

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51 Youth Energizing Force

52 Center Resources

53 Keys to Economic Success Local Responsibility Smart Game Plan Robust Investment Entrepreneurial Development Systems Sustained Effort Growth Entrepreneurs Attributes of an Entrepreneurial Community Immigrants & New Residents Real Regional Collaboration Civic and Social Entrepreneurs

54 New Book January 2014 Release Contents Case for Entrepreneurs Entrepreneurial Community Action Framework Working with Entrepreneurs Guiding & Tracking Progress Paper & E Book

55 E2 University Online Rollout in 2014 Resources: Guides Tools Protocols Training Webinars Exercises & Illustrations Videos, Stories & More University

56 Web site We have produced a new and improved web site with more free resources and better guidance to compensated resources. Give it a spin. Also we have four electronic newsletters that are free. Sign up today and benefit from all the resources covered in our newsletters.

57 Working with Es Website Beginning next summer and fall we will be offering community and professional webinars on working with entrepreneurs and community-based entrepreneur-focused development.

58 We Must Dream Again

59 Questions

60 Questions & Discussion Don Macke

61 New Engines for a New Economy Senior Entrepreneurs Driving Social, Economic, and Environmental Growth in Communities, the Nation, and the World. Webinar, December 2013

62 Elizabeth Isele Co-Creator and Founder, eprovstudio.com, Babson College, Wellesley, MA Co-Founder and CEO, SeniorEntrepreneurshipWorks.org, Baruch College, New York City, NY Webinar, December 2013

63 Scope of Presentation Overview of the social, environmental, and economic impact of senior entrepreneurship in today's global longevity economy. How to identify, support, and sustain senior entrepreneurs through programs, policy, capitalization, and research. Webinar, December

64 Paradox of the New Longevity Economy - Passive vs. Proactive Passive: Seniors, aged 50+, as a $3 Trillion Market Opportunity in the US - $15 Trillion Globally Proactive: Seniors, aged 50+, Creating and Driving Economic Markets in the US and Globally Webinar, December

65 Seniors, aged 50+, as a Market Opportunity Many innovators, brand managers, marketers, and product designers, who ignored this market for decades, now want a piece of the trillion dollar pie. Innovation based on what can be sold to this huge and growing, at 10,000 a day, demographic. Products such as medical alert bracelets and adult diapers are palliative in nature, and they highlight and reinforce the debilitating effects of aging. Product innovation aimed primarily at the older olds, age 75 and up. Webinar, December

66 Seniors, aged 50+, Creating and Driving Economic Markets Defining the 50+ Entrepreneur This is a highly creative, powerful, and extraordinary demographic courageous, enlightened and willing to fight for what they believe in. We need to unleash their potential. Recent research in the United States from the MetLife foundation documents 34 million boomers want to start their own businesses. Contrary to a commonly held perception that only young people engage in business start-ups, research by the Kauffman Foundation for Entrepreneurship has established that the highest rate of business start-up activity over the past decade has consistently been among people in the 55-to-64 age bracket. According to the Kauffman Foundation's Index of Entrepreneurial Activity, 1 in 5 new entrepreneurs in 2011 were aged 55-64; almost half of all new entrepreneurs were between the ages of 45 and 64 and this cohort continues to grow. Webinar, December

67 Seniors, aged 50+, Creating and Driving Economic Markets Defining the 50+ Entrepreneur (cont.) In the UK, third age entrepreneurs are responsible for over one quarter of new start-ups. The 2013 GEM (Global Entrepreneurship Monitor) data documents that 50% of new businesses launched by individuals aged 50+ are still in business after five years. Contrast this to the US Bureau of Labor Statistics (BLS) and the Census which note: "The typical new business started in the United States is no longer in operation five years after being founded. Often, too, as this NY Times article, Retiree Start-ups with Age and Youth as Partners, indicates, seniors are working hand-in-hand with the younger generation to create new businesses. Webinar, December

68 Seniors, aged 50+, Creating and Driving Economic Markets Social Benefits and Economic ROI Derived from Senior Entrepreneurs Individual's health, well-being, and economic self-reliance. Communities' (including employers') health and well-being: Economic - workforce development, job creation, improved productivity and wealth creation as senior entrepreneurs pour investment dollars back into their communities. Environmental - 60% of boomers are building green businesses. And, according to research from the AEO (Association for Enterprise Opportunity), if one in three micro-businesses in the United States hired an additional employee, the US would be at full employment (see Webinar, December

69 Seniors, aged 50+, Creating and Driving Economic Markets Social Benefits and Economic ROI (cont.) Senior Entrepreneurs and employed adults, aged 65+, contribute $120+ billion in federal taxes* annually to support federal programs and reduce dependency on entitlement programs. Senior Entrepreneurs present new market lending opportunities for lenders. New digital business opportunities. Increased demand for Technology (products, services, e-commerce) to facilitate senior business startups. Intellectual capital: Engaging seniors in both business creation and in supporting new and existing entrepreneurs maximizes the wealth of experience they possess, cultivates intergenerational learning, and ensures knowledge transfer. Webinar, December

70 Seniors, aged 50+, Creating and Driving Economic Markets Social Benefits and Economic ROI (cont.) Collaborative entrepreneurship. Seniors, who may not wish to launch a business of their own, represent a valuable resource for other entrepreneurs. Retired business people have precious know-how and experience that can make it easier to start and run a company than it might otherwise be for an inexperienced founder. We should be encouraging motivated seniors to serve as voluntary mentors, potential buyers of or investors in businesses, or as temporary managers to assist vulnerable start-ups or businesses in transition. Senior Entrepreneurs are driving economic recovery in our communities and in our country, and their experience, extensive networks, and problem-solving expertise mitigate the risk of failure endemic among new business startups. Today's Senior Entrepreneurs are creating a whole new paradigm for aging. The world is beginning to recognize seniors as assets and not liabilities - and it's not a moment too soon! Webinar, December

71 Creating and Sustaining Senior Entrepreneurs Webinar, December 2013

72 Creating and Sustaining Senior Entrepreneurs through Collaboration SeniorEntrepreneurshipWorks.org, Babson College and its ET&A (Entrepreneurial Thought and Action), and the Lawrence N. Field Center for Entrepreneurship at Baruch College of the City University of New York are working collaboratively to serve senior entrepreneurs throughout the United States and abroad. The collaboration represents a unique approach to support and sustain senior entrepreneurship through programs, policy, capitalization, and research. Webinar, December

73 Entrepreneurship Education Programs A hybrid learning entrepreneurship curriculum tailored to address the needs of the adult learner. Content for senior entrepreneurs is segmented to take the user fully across the entrepreneurial developmental arc: awareness, simulation, incubation/acceleration, launch, and scale. eprovstudio.com SeniorEntrepreneurshipWorks.org IVE (Institute for Virtual Enterprise) GCEE (Global Consortium for Entrepreneurship Education) GEM (Global Entrepreneurship Monitor) eprov Challenge Accelerator Webinar, December

74 Created in the Social Innovation Lab at Babson College, these workshops delivered worldwide - are designed to ignite ideas through Babson s signature ET&A (Entrepreneurial Thought and Action) and Improvisation for seniors to re-imagine/renew their lives rather than retire from them. Webinar, December

75 A free, online, open-source entrepreneurship curriculum, hosted at Baruch College, designed to meet the 50+ entrepreneurs needs. Webinar, December

76 IVE (Institute for Virtual Enterprise) Hosted at Baruch College, IVE is a business & entrepreneurship simulation where students create and operate virtual firms and trade virtual or real products and services through a global e-commerce network of over 4,000 firms across more than 40 countries. IVE provides a package of products and services on an open- access model: The MarketMaker is an integrated bank, credit card, e-commerce/inventory management system and stock market with a realistic web interface resembling the online account management functions of a major financial institution. IVEweBlog - to think, write, and reflect about classroom experiences and resources share IVE partners become part of a global collaborative and are expected to share their innovations. Webinar, December

77 GCEE (Global Consortium for Entrepreneurship Education) Founded by Babson College, GCEE is an alliance of like-minded institutions from around the globe that are committed to entrepreneurship education. GCEE provides a unique opportunity to share best practices, collaborate with member institutions on a variety of initiates, gain in-depth access to Babson's expertise, and remain on the cutting edge of entrepreneurship education. Webinar, December

78 GEM (Global Entrepreneurship Monitor) GEM was initiated in 1999 as a joint venture of Babson College and the London Business School. GEM is the largest and most developed research program on entrepreneurship in the world. Starting with 10 participating countries, the project, now in its 14 th year of operations, has expanded to include 69+ countries. GEM is unique because, unlike most entrepreneurship data sets that measure newer and smaller firms, GEM studies the behavior of individuals with respect to starting and managing a business. GEM nations are members of an entrepreneurship research project which provides access to the collective knowledge of some of the world s most renowned researchers and institutions, and its data has influenced national economic policies. Webinar, December

79 eprov Challenge Accelerator Entrepreneuring is not an individual sport doing it in community amplifies the results. Created in the Social Innovation Lab at Babson College, The eprov Challenge Accelerator is a fast paced design that allows cross-sector members of a community to creatively assist an entrepreneur in addressing a specific dilemma in real-time. Entrepreneurs - new venture creators, intraprepreneurs, community economic development leaders - bring their individual expertise and experience to bare. Entrepreneurs get 2 minutes to rocket-pitch a bite-sized need s/he is facing within their business, organization or community. After 2-hours in this creative environment, the entrepreneur with a challenge walks away with new opportunities and an expanded resource base in multiple dimensions. Webinar, December

80 Guiding Principles Reality based - no rose colored glasses allowed. Replace the noun entrepreneurship with the verb entrepreneuring. Take the intimidation out of entrepreneuring. Recognize there are many different kinds of entrepreneurs. Anyone can become an entrepreneur you don t have to be born one. Entrepreneuring is not an individual sport doing it in community amplifies the results. Unleash the potential for everyone to create a more just, equitable, and mutually beneficial civil society. And, as our friends at The Institute for the Ages have so aptly noted, potential never gets old! Webinar, December

81 Shaping entrepreneurs of all kinds Courtesy, Mischa Richter Webinar, December

82 How Can You Harness the Individual and Collective Experience of Older Adults to Boost and Sustain Prosperity for All Ages? Use Your Curiosity to build new and innovative alliances among public/private stakeholders (including those in this room and others at this conference) invested in the health and well-being of seniors and individual as well as community economic self-reliance. Develop Programs more entrepreneurial education and training programs, including (intergenerational programs.) Advocate for New Public Policy that recognizes older adults as assets and not liabilities. Generate New Research Initiatives to document the social, environmental and economic impact of seniors contributing to our Longevity Economy. Create New Methods of Capitalization for boomer business startups. Webinar, December

83 Thank you! Elizabeth Isele Co-Creator and Founder, eprovstudio.com, Babson College, Wellesley, MA Co-Founder and CEO, SeniorEntrepreneurshipWorks.org, Baruch College, New York City, NY Webinar, December 2013

84 Contact Dell Gines Sr. Community Development Advisor Federal Reserve Bank of Kansas City (402) For more information & resources To sign up for our Community Connections newsletter please me at the address above.