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 start-ups 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 ProcessFocus Groups and County Council Meetings:

Met with approximately 400 people in all 19 counties; 38 county visitsFocus groups included: farmers, business people, members of chamber of commerce, extension, school system, local govt.

Secondary Economic Data:Sole Proprietor DataES 202 Data (unemployment insurance)

The State of Entrepreneurship – Summary:

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 FarmsCrops 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 view-embraces the whole person (community)

– is action-oriented– is proactive rather than

reactive

What are the characteristics of entrepreneurial communities? a critical mass of entrepreneurs a distinct & recognizable network of entrepreneurs a focus on entrepreneurship is reflected in the actions of the

community: 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– 1st class: Sept 2004-January 2006– 2nd 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:and this will lead to:

more entrepreneurial support activity in more entrepreneurial support activity in counties and region;counties and region;

more outreach-focused entrepreneurs;more outreach-focused entrepreneurs; self-sustaining entrepreneurial networkself-sustaining entrepreneurial network stronger entrepreneurial communitiesstronger entrepreneurial communities and, over the long term - more sustainable and, over the long term - more sustainable

rural communitiesrural communities