1. The Case for Economic Gardening masont@rose-hulman.edu

2. High Entrepreneurship Rates Mean Better growth for existing firms! 73% better employment growth 14% higher wage growth 45% higher productivity Source: Center for Rural Entrepreneurship www.ruraleship.org - Based on a study of the 90’s by Edwin Lowe Foundation &SBA www.ruraleship.org

3. Do small businesses matter? Fortune 500 jobs declining, but large Small and medium create jobs, but larger businesses employ a lot – including high tech. See http://smallbiztrends.com/2010/08/do-small- businesses-matter-in-high-tech.htmlhttp://smallbiztrends.com/2010/08/do-small- businesses-matter-in-high-tech.html This scholar criticizes helping small business? Kauffman Foundation on jobs creation http://www.kauffman.org/uploadedFiles/firm_formation_importance_ of_startups.pdf http://www.kauffman.org/uploadedFiles/firm_formation_importance_ of_startups.pdf

4. Kauffman on Job Creation

5. Small Business vs Entrepreneurship See Scott Shane. The Illusions of Entrepreneurship, YYP, 2008 Most small businesses fail Most are started in unpromising industries with which the founders are familiar Most have little (i.e. insufficent) financial capital from family and friend sources Most founders want “to be their own boss”, but reality is they get more “bosses ” BUT- most small businesses are not entrepreneurial!

6. What is an entrepreneurial venture? K. Allen (in Launching New Ventures) says they are Innovative Value-creating Growth -oriented AND they can occur as new organizations or within existing ones.

7. Sustainable Ventures The Timmons Model Opportunity driven By a lead entrepreneur and entrepreneurial team. Resource parsimonious and creative Depends upon fit and balance Are integrated and holistic See http://blacksgonegeek.org/Documents/Timmons%20Modelv3.pdf http://blacksgonegeek.org/Documents/Timmons%20Modelv3.pdf

8. Requirements for Entrepreneurial Action Evidence of current customer value A sound business model An effective team with the right skills Resources – at least one of which can produce sustainable competitive advantage (SCA) i.e. rare, valuable, hard to copy or find substitutes

9. Lessons of Littleton, CO Christian Gibbons-Director, Business/Industry Affairs www.littletongov.org/bia/economicgardening/ To stimulate development of high growth business (gazelles), communities should provide: Information- Knowledge is the basis of 21 st century wealth. Infrastructure - Physical, Quality of Life & Intellectual Connections - Academic institutions, trade groups, etc. Littleton doubled jobs & spent no money on incentives or tax breaks. They grew their own new business.

10. So what should we do? START on the things you need! Information like access to school, agricultural extension and library sources!!! Infrastructure – EDUCATION, broad band & wireless, bike paths, nature areas, youth centers Connections - universities, government, investors, SBDC, former residents and most importantly – other entrepreneurs!!!

11. Some other thoughts Technology is important, but it is about GROWTH, not technology Manufacturing is different, not dying. Assess resources and opportunities – i.e., ENGAGE IN ENTREPRENEURIAL ACTION!!! Cultivate diversity! FEAR the fear of failure! CHANGE can be good!