entrepreneurship as an economic driver
DESCRIPTION
Presentation on how to merge the work of economic development and entrepreneurship to build a strong entrepreneurial ecosystem.TRANSCRIPT
Michael Burcham
President & CEO The Nashville Entrepreneur Center 615.400.7662 [email protected]
ENTREPRENEURSHIP AS AN ECONOMIC DRIVER Fusing Training, Relationships & Resources within a Community
EC GO: www.ec.co/ec-go Twitter: @entrecenter
THE DYSFUNCTION I’VE OBSERVED
Mentoring
Government Support
EVALUATING THE ECOSYTEM
The Individuals, Organizations and Institutions – outside the individual entrepreneur - that are conducive to the choice of a person to become an entrepreneur, or the probabilities of his or her success.
BUILDING AN ENTREPRENEURIAL ECOSYSTEM
Think of the Entrepreneurial Ecosystem as providing fertile soil and a climate in which to seed, nurture and grow new businesses.
The enablers…
• Venture Creators • Mentors & Advisors • University Partnerships • Support Organizations (Legal, Accounting, Technology) • Labor Markets • Investors • Government • Large Businesses
Are more effective when they are networked to encourage intellectual, financial and human capital to flow to enterprises at every phase of the startup journey.
Ecosystem Assessment | Key Ingredients for Success
ECOSYSTEM ASSESSMENT
1. Economic & Community Development | Planning via Entrepreneurship
ECD STRATEGY
2. Partner, Business, Investor & Government Engagement in the Plan
STAKEHOLDER ENGAGEMENT
3. Set Phased Priorities Based Upon Findings of 1, 2 and 3
PRIORITY PLANNING
4. Do The Right Things | Do Things Right | Execute
LAUNCH AND EXECUTION
5. Mentoring, Training, Capital Continuum, Founder to CEO
BEST-IN-CLASS PROGRAMMING
6. Celebrate Successes, Communication Planning
BUILD ON SUCCESS
7.
ECONOMIC DEVELOPMENT | ENTREPRENEURSHIP
FOMO Fear of Missing Out
Align Your Vision for Success
Ensure the definitions of success match. Choose core measures.
Secure Business & Stakeholder Support
Identify who is committed to help create success.
Connect to Capital - Build Funding Pipeline
Connect to Sources of Capital in the Public and Private Sector.
Leverage Resources to Drive Opportunities
Leverage resources to help create wins with investable stories.
Organize Your Community “Front Door”
Build partnerships: Entrepreneurs, Mentors, Investors, Biz Partners
STEPS IN BUILDING A SUSTAINABLE ENTREPRENEURIAL ECOSYSTEM
1. Align Your Vision for Success You must engage in Intentional Conversation about what you wish to accomplish.
What Worked for Us?
- Partners see new businesses as a form of new product development
- We Screen, Score, Mentor, and Launch startups – these are our measures of success
STEPS IN BUILDING A SUSTAINBLE ENTREPRENEURIAL ECOSYSTEM
2. Secure Business & Stakeholder Support What are the various Motives of the Partners who need to participate in the success of the plan?
What Worked for Us?
- Businesses become the 1st Customers of our startups
- Find ways for partners to contribute in their area of expertise.
STEPS IN BUILDING A SUSTAINBLE ENTREPRENEURIAL ECOSYSTEM
3. Connect to Capital | Build a Funding Pipeline Spend some energy to link the various components of the capital continuum
What worked for Us?
- Build seed funds: We have created funds to invest in our own new businesses.
- We have established 2 angel networks
- We linked venture & private equity firms into the process
STEPS IN BUILDING A SUSTAINBLE ENTREPRENEURIAL ECOSYSTEM
4. Leverage Resources to Secure Your Opportunities
In my community, we have focused our startup | entrepreneurial efforts around the categories that represent both our large businesses and our investment community
STEPS IN BUILDING A SUSTAINBLE ENTREPRENEURIAL ECOSYSTEM
5. Organize | Create your “Front Door” We established the Nashville Entrepreneur Center as the city’s “Front Door” for entrepreneurship
What worked? - We screen over 100 new startup
concepts each month from all over the US
- We have launched 114 new businesses in 48 months
- They employ over 1,000 people and provide over $100M USD in economic impact already
STEPS IN BUILDING A SUSTAINBLE ENTREPRENEURIAL ECOSYSTEM
SCREENING STARTUPS
ü Management ü Model ü Market ü Money ü Momentum
THE “5M” FRAMEWORK FOR SUCCESSFUL FUNDING OF STARTUPS
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Idea – Biz Model Structure - Team Operations - Market Financing - Funding
Money Model Management Market
Momentum
Market Interest - Adoption
Weeks:
Entre
pren
eurs
“Id
eas”
A’s High Value
Entrepreneurs
B’s Budding
Entrepreneurs
C’s Concept or Early Entrepreneurs
• Strong business plans • Needs immediate access to
capital to start • Good business model
• Potentially high growth • Some developmental
issues or limited model • Needs coaching and
development to finalize
• Early concept ideas • Desire to build a business • Needs basic information
such as registering company, biz model design
55 - 60%
25 - 30%
10 - 15%
Categorized Entrepreneurs EC Involvement Filter by EC
Our Business Model
D’s 50%
C’s 30%
B’s 15%
A’s 5%
COUNSEL OUT “Consider Helping Someone Else”
REFER TO CLASSES “Learn About Business Models”
MENTORING VISITS “Candidates for A-level”
ACCELERATING STARTUPS “Investable Start-up within 180 Days”
100-Day Plan
Investment
LAUNCH Activities
1 2 3 4 5 6 7 8 9 10
Intake Screening The “B” to “A” journey Accelerator
Activities Activities Activities Activities Activities Activities Activities Activities Activities Activities Activities Activities
Week Week Week Week Week Week Week Week Week Week
OUR PROCESS
SUMMARY
1. Process for Screening Ideas 2. Method to Identify High Growth Opportunities 3. Led by Successful Entrepreneurs 4. Business Modeling and Startup Tools 5. Seed Capital 6. Training and Mentoring 7. Community Engagement
7 CORE FUNCTIONS FOR ENTREPRENEURSHIP TO THRIVE Tools That Build Success
OUR LESSONS LEARNED WHAT HAS HELPED CREATE OUR SUCCESS?
Businesses Must Be Engaged
It’s not about the building – it’s business helping startups build their team, test business models, capture market & raise capital
Seed & Angel Capital is Required
Early stage capital is essential to create prototypes and build out technologies. The best startups go to the sources of capital.
Execution, Not Ideas Create Value
Ideas are nice, but there’s no market for them. Transforming an idea into a business requires execution skill.
1. 2. 3. The Ecosystem Matters – a LOT
The combination of the creative talent, seasoned entrepreneurs, business support, programmers & investors – they’re all essential.
4.
CONTACT INFORMATION
Dr. Michael R. Burcham
c. 615.400.7662 e. [email protected] w. www.ec.co t. www.twitter.com/michaelrburcham l. www.linkedin.com/in/michaelburcham