Community Development through Entrepreneurship Building Entrepreneurial Communities Presentation

Community Development through Entrepreneurship: Building Entrepreneurial Communities Presentation by: Tammy Werner, Program Coordinator Kentucky Entrepreneurial Coaches Institute (KECI)

19 Counties in NE Kentucky

• The Economic Landscape in Rural Northeastern Kentucky: – Decline in “old” economy industries – Phasing out of #1 crop: burley tobacco quota reduced approx. 60% between 1997 and 2000

• The Kentucky Entrepreneurial Coaches Institute (KECI) • Objectives: – Encourage the diversification of the economies in the 19 county region – Stimulate small business startups and expansions – Provide local citizens the tools they need to become community coaches. – Strengthen community groups & institutions and their receptiveness to entrepreneurs (Funded by the Kentucky Agricultural Development Board)

– What is “the state of entrepreneurship” in the region? • Qualitative Data • Quantitative Data

• Research Process Focus Groups and County Council Meetings: Met with approximately 400 people in all 19 counties; 38 county visits Focus groups included: farmers, business people, members of chamber of commerce, extension, school system, local govt. Secondary Economic Data: Sole Proprietor Data ES 202 Data (unemployment insurance)

The State of Entrepreneurship – Summary: n n n Entrepreneurship in the region lags behind the national benchmark A critical mass of entrepreneurs is lacking in the region The availability of and quality of youth entrepreneurship programs varies across the region Access to entrepreneurial education and training is quite limited Access to capital is a concern New markets and new crops are needed to diversify away from tobacco

Focus Group Findings Out-migration of youth “we’ve always exported our finest minds” An uncertain economic future “its hard to get away from the security we had with tobacco. It may not have been much, but it was something. ” De-industrialization: Feeling the effects (Reference to manufactured products) How the hell are we going to continue to send our jobs south… and expect people here without jobs to buy them? ” The Psychology of economic uncertainty “It set us back quite a bit. ” Exurbanization: Back to the land? (rural youth spend) “the first half of your life trying to get out, the second half trying to return”

Agricultural Entrepreneurship: Possibilities and Current Limitations “Until you change the marketing situation you’re going to shoot yourself in the foot” Current Diversification Activities: Livestock Improving quality of herds; Small herds of goats; Pleasure horse industry Game Farms Crops Vegetable production Orchards, grapes, berries Concerns: Lack of marketing skills; Fear of risk; Part-time farming= less time to explore new markets/crops

The Promise of Entrepreneurship: • Regional examples of creative entrepreneurs: Potential for creating an industry? The Via Ferrata (Wolfe County) Using what you’ve got Nutrition Farm (Wolfe County) Manufacturing in the Mountains

The Via Ferrata

Nutrition Farm

• Traditional Development Approaches: – Industrial Recruitment – Business Retention and Expansion • Riding the Entrepreneurial Wave: – Entrepreneurship focuses on nurturing entrepreneurial activity at the local level – Tends to involve local civic organizations; more diverse leadership; loyalty to local community; often more highly skilled (though fewer) jobs

• Current Economic Development Policies: Focus on Industrial Recruitment: – Industrial Development Authorities – Small Business Development Centers – State Tax and Loan Incentive Programs – But – relatively little support for entrepreneurs

An Entrepreneurial Coach: – – – – – values local knowledge respects the individual is supportive asks the tough questions brings out the best in people helps entrepreneurs find creative solutions clarifies individual and community visions/directions has a holistic viewembraces the whole person (community) is action-oriented is proactive rather than reactive

n What are the characteristics of entrepreneurial communities? q q q a critical mass of entrepreneurs a distinct & recognizable network of entrepreneurs a focus on entrepreneurship is reflected in the actions of the community: n n youth entrepreneurship programs entrepreneurship education & training access to capital entrepreneurial coaches or facilitators in the community

Leadership Program: Seminars • Two leadership classes of entrepreneurial coaches – 30 leadership coaches in each class – 1 st class: Sept 2004 -January 2006 – 2 nd class: Sept 2005 – January 2007 – Those selected receive a Kentucky Entrepreneurial Coaches Institute Fellowship valued at $18, 000, which covers seminar & international travel expenses – Seminars (2 -3 days each) will be held across the Region (with the exception of one international seminar)

Leadership Program Curriculum – Coaching skills: individual and community coaching; listening skills; asking good questions; goal setting – Entrepreneurship: What does it take? What is an entrepreneur? How do you identify E-potential? How do you nurture entrepreneurs? – Understanding your community: Where are we? Where do we want to go? Community assessment tools such as interviewing, asset mapping, gap analysis – Marketing/communication/engagement – Resource Providers: Who are they? Where are they? How does it all work? – Building networks/engaging the community

The Community’s Role: • Work with the Coaches in your region – for example, during the community assessment, or answering questions the Coach may ask • Let us know about entrepreneurs and potential entrepreneurs in your county – both agricultural entrepreneurs and those from non-agricultural sector. – Why? – We want to showcase local entrepreneurs at the seminars to show people in the communities as well as the Coaches the kinds of creative ideas and activities that are already evident in the region. - We want to encourage community residents with business ideas to work with our coaches as they go through the training.

Anticipated Outcomes: • Creation of an entrepreneurial network • Expanded imagination about the potential of entrepreneurship • Ability to use coaching skills (i. e. , asking challenging questions; helping others to set goals) • Create new self-identity as "entrepreneurial coaches" - not just a teacher, banker or farmer • Deepen their understanding about nurturing entrepreneurs • Expanded outreach capacity

and this will lead to: n n n more entrepreneurial support activity in counties and region; more outreach-focused entrepreneurs; self-sustaining entrepreneurial network stronger entrepreneurial communities and, over the long term - more sustainable rural communities