grow your own entrepreneurship based economic …...dec 04, 2013 · development systems network...

Grow Your Own Entrepreneurship Based Economic Development Webinar

Dell Gines, MBA, CEcD

Federal Reserve Bank of Kansas City

Sr. Community Development Advisor

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.

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.

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.

The Grow Your Own Guide provides a high level overview of what it takes to conduct entrepreneurship based economic development.


The Tenth District consist of Nebraska, Oklahoma, Kansas, Colorado, Wyoming and portions of Missouri and New Mexico

ECONOMIC GARDENING

Where to From Here?

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

Results in Littleton

1987-2012

Jobs

15,000 to 30,000

Sales Tax Revenue

$6 million to $21 million

No recruiting

Not one penny in incentives

National Center Activity

34 programs in 25

states

7 statewide programs

298 companies in 2012

314 companies in 2013

298 Florida Companies

Edward Lowe Foundation copyright 2013

Florida Results

Edward Lowe Foundation copyright 2013

•$5.5M investment

from state

•Jobs created: Direct –

2,067.4

•Investment per direct

job created $2,660

Kansas Results

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

Plans for the Future

Even more sophisticated tools

OneSource

Newspatterns and Recorded Future

National Organizations

Contacting Entrepreneurial Support Organizations

(ESOs) about future collaboration

Incubators, angel funding, etc.

Discussions with Kauffman Foundation

Discussions with federal government agencies

Working with SBDCs

Individual state and regional directors

National convention presentations

National SBDC office conversation

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

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?

Research on EG Patterns

Internal research on:

Company archetypes

Issue archetypes

Wicked problems

Failure patterns / no can do

Questions?

December 4, 2013

Grow Your Own

My Presentation

Federal Reserve

12.04.13

Let’s Start with Prosperity

Inspiration from the Field

Big Picture View

Keys to Success

Center Resources

Questions & Discussion

A Decade of Field Work

The areas with

“STARS” are locations

where the Center has

completed projects.

Prosperity?

Prosperity Defined

Economic Opportunity Broadly-Held Community Wealth

Entrepreneurial

1. Economic & Social Diversity

2. Resilience from Shocks

3. Higher & Sustained Prosperity

Chase County

Chase County, Nebraska

70

4,807

2,559

3,613

4,939

5,484 5,310

5,176

4,317 4,129

4,758

4,381

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

-

1,000

2,000

3,000

4,000

5,000

6,000

1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Historical Population of Chase County, Nebraska

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.

Economic Rebound

0

100

200

300

400

500

600

700

800

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,0001

96

9

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

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93

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95

19

97

19

99

20

01

20

03

20

05

20

07

20

09

20

11

Em

plo

ym

ent

Inco

me

(th

ou

san

d d

oll

ars

)

Nonfarm Proprietors, Chase County, Nebraska

Nonfarm proprietors' income: real 2010 dollars Number of nonfarm proprietors

Community Renewal

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

2,500

3,000

3,500

4,000

4,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Contemporary Population of Chase County, Nebraska

There are relatively few rural

counties in the entire Great Plains

Region posting sustained positive

population growth.

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.

Big Picture

Economic Development

Opportunities in the

Post-Great Recession

Economy and Society.

Great Recession

The most significant economic event in our lifetime!

A new economic and social world will emerge from this recession.

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!

The Reset Process

Crisis Unraveling

Opportunity Space

New Innovation

New Ventures

Prosperity

Illustration – 1995-2001

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.

Challenged 2000s

In just 1 year,

2.5 Million new

entrepreneurial

startups!

Self – Employment Dropped ↓ 146,241 or ↓ 2%

Stage 1 Ventures

(2-9) employees

↑ 2.6 million more businesses +21%

↑ 6 million more jobs +28%

↑ $371 billion more in Sales

Entrepreneur

Opportunities

Defense Contractors

Government Contractors

Supply Chain Companies

Immigrant Talent

Graduate Students

Safe Harbor Immigrants

Under-Employed Talent

Un-hired Graduates

Displaced Talent

Business Failures

Retirees

Women

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

Keys to Success

Across America Communities

and Regions are Struggling to

Find Robust Funding for

Economic Development.

#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 21st Century is creating and supporting an environment for entrepreneurial behavior.

#2 – Smart Game Plan

Right Strategy

Experience & Learning

Smart Game Plan

Research

Genuine Opportunity

#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

#4 Key… Entrepreneurial Development Systems

NetWork Kansas Kansas is building one of the most robust and sustainable entrepreneur-focused 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).

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

Other Keys…

#5 – Sustained Effort

#8 – Immigrants & New Residents

#9 – Real Regional Collaboration

#7 – Attributes of an Entrepreneurial Community

1. All 3 Kinds of Es

2. Culture

3. Infrastructure

4. Human Talent

5. Youth

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!

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

Entrepreneurs

#10 – Civic & Social Entrepreneurs.

#6 – Business Entrepreneurs

• Lifestyle

• Growth-Oriented

• Transition Beth Stube -- Dickinson, North Dakota

Youth… Energizing Force

Center Resources

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

New Book

January 2014 Release

Contents… Case for Entrepreneurs

Entrepreneurial Community

Action Framework

Working with Entrepreneurs

Guiding & Tracking Progress

Paper & E Book

E2 University Online

Rollout in 2014…

Resources:

• Guides

• Tools

• Protocols

• Training Webinars

• Exercises & Illustrations

• Videos, Stories & More

University

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.

www.energizingentrepreneurs.org

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.

We Must Dream Again

Questions…

Questions & Discussion

Don Macke [email protected]

www.energizingentrepreneurs.org

“Senior Entrepreneurs”

Driving Social, Economic, and Environmental

Growth in Communities, the Nation, and the World.

New Engines for a New Economy

Webinar, December 2013


Elizabeth Isele

Co-Creator and Founder, eProvStudio.com, Babson College, Wellesley, MA

Co-Founder and CEO, SeniorEntrepreneurshipWorks.org, Baruch College,

New York City, NY

Email: [email protected]

http://www.eprovstudio.com

http://www.SeniorEntrepreneurshipWorks.org

mailto:[email protected]

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.


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

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.

66

Seniors, aged 50+, Creating and Driving Economic Markets

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.

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.


Defining the 50+ Entrepreneur

http://www.kauffman.org/

67


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.

In the UK, ‘third age’ entrepreneurs are responsible for over one quarter of new start-ups.


Defining the 50+ Entrepreneur (cont.)

http://www.nytimes.com/2013/09/10/business/retirementspecial/retiree-start-ups-with-age-and-youth-as-partners.html?pagewanted=1&ref=retirementspecial



68


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 http://www.oneinthree.biz).


http://www.aeoworks.org/

http://www.oneinthree.biz

69 Webinar, December 2013


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.



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!

Creating and Sustaining Senior

Entrepreneurs



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.

Creating and Sustaining Senior Entrepreneurs

through Collaboration


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


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.


A free, online, open-source entrepreneurship curriculum,

hosted at Baruch College, designed to meet the 50+

entrepreneurs’ needs.


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 share

resources

IVE partners become part of a global collaborative and are expected to share their

innovations.

IVE (Institute for Virtual Enterprise)


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.

GCEE (Global Consortium for Entrepreneurship Education)


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 14th 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.

GEM (Global Entrepreneurship Monitor)


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.

eProv Challenge Accelerator

Entrepreneuring is not an individual sport – doing it in “community” amplifies the results.


Guiding Principles

Reality based - no rose colored glasses allowed.

Replace the noun entrepreneurship with the verb

entrepreneuring.

Take the intimidation out of entrepreneuring.

Anyone can become an entrepreneur – you don’t have to be born one.

Unleash the potential for everyone to create a more just,

equitable, and mutually beneficial civil society.

Entrepreneuring is not an individual sport – doing it in “community”

amplifies the results.

And, as our friends at The Institute for the Ages have so aptly noted,

potential never gets old!

Recognize there are many different kinds of entrepreneurs.

http://www.institutefortheages.org/


Courtesy, Mischa Richter

Shaping entrepreneurs of all kinds…


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.


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

Email: [email protected]

http://www.eprovstudio.com

http://www.SeniorEntrepreneurshipWorks.org

mailto:[email protected]

Contact

Dell Gines Sr. Community Development Advisor


[email protected]

(402) 221-5606

For more information & resources http://kansascityfed.org/community/

To sign up for our Community Connections email newsletter please email me at

the address above.

grow your own entrepreneurship based economic …...dec 04, 2013 · development systems network...

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