The Power of Entrepreneurship CSG Entrepreneurship Days Kauffman Foundation May 13, 2014 www.kauffman.org
Our founder I think the greatest satisfaction I have had, personally, is helping others, doing something that either inspires them or aids them to develop themselves in their future lives so they ll not only be a better person but be a better productive citizen of the United States. Ewing Kauffman
Our mission Helping people attain economic independence through education and entrepreneurship, which Ewing Kauffman saw as two ends of a continuum.
Kauffman at a glance $2 Billion in assets Grantmaking + Operating Local roots, national impact, global reach Significant local employer providing 200+ jobs State-of-the-art conference center available for use by qualifying nonprofits; a record 71,000+ guests utilized the space last year
Overview 1. Data on why entrepreneurship matters 2. Data on entrepreneurship in Tennessee 3. Policy Ideas
Job Creation & Dynamism
Startups Drive Job Growth Source: Haltiwanger (2012)
New Business Creation, 1978-2011 900 600000 800 700 500000 Startups/100,000 People 600 500 400 300 400000 300000 200000 Number of Startups 200 100 100000 0 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 0 Number of Startups (right axis) Per 100,000, Prime Age (left axis) Per 100,000, Working Age (left axis) Source: US Census Bureau
Where Tennessee Stands
Falling Entrepreneurship: Startups as % of Total Firms 25.00% 20.00% 15.00% 10.00% 5.00% Georgia Missouri National North Carolina Virginia Tennessee Arkansas Kentucky Alabama Mississippi 0.00% Source: US Census Bureau
Tennessee, like the Nation: Lots of Small Businesses, Small Share of Employment 60.00% 50.00% 40.00% 30.00% Share of firms Share of emp 20.00% 10.00% 0.00% a) 1 to 4 b) 5 to 9 c) 10 to 19 d) 20 to 49 e) 50 to 99 f) 100 to 249 g) 250 to 499 h) 500 to 999 i) 1000 to j) 2500 to 2499 4999 k) 5000 to 9999 l) 10000+ Source: US Census Bureau
Startup Funding Deals in Tennessee 80 70 60 50 40 30 Total # of deals, TN # deals 1+ firms, TN # deals startups, TN 20 10 0 2008 2009 2010 2011 2012 2013 Source: Crunchbase
High-Growth Firms in Tennessee 90 80 70 Tennessee Total Nashville-Davidson--Murfreesboro-- Franklin, TN Knoxville, TN 60 50 40 30 Memphis, TN-MS-AR Chattanooga, TN-GA Morristown, TN Clarksville, TN-KY Cleveland, TN 20 Jackson, TN 10 0 2007 2008 2009 2010 2011 2012 Johnson City, TN Kingsport-Bristol-Bristol, TN-VA Source: Inc magazine, Inc.com.
Thumbtack Survey of Small Business Friendliness in Tennessee Category Grade Overall friendliness B+ Ease of Starting a Business A- Regulations B+ Health and Safety B+ Employment, Labor, Hiring A Tax code A Licensing B Environmental B+ Zoning B Training and Networking Programs B Source: Thumbtack and Kauffman: http://www.thumbtack.com/tn/#2013/state
Policy Implications
Old Top-Down Strategy
New Entrepreneur-Centered Approach
Reinvent Incubators and Investments Provide a shared space for entrepreneurs to interact and collaborate Foster mentorship and peer-learning Avoid awarding one large prize. Instead, award many smaller prizes so a cohort of entrepreneurs can face the entrepreneurial journey together
Remove Barriers to Entrepreneurship Licensing Immigration Non-Compete Agreements
A Role for Public Officials
Entrepreneurship Policy Digest Created to educate policymakers and entrepreneurship supporters about relevant and actionable policy resources and recommendations that are born out of the Foundation s extensive research. Sign up at www.kauffman.org/policydigest
Thank you Jason Wiens Lead Policy Engagement Manager jwiens@kauffman.org