Introduction to entrepreneurship-led economic development

Fundamentals in gaining the trust of entrepreneurs

- Meeting with them and listening to their needs. - Giving them a seat at the table and a voice., - Get in front of them and tell them how you have served them - Be authentic in your dealings with entrepreneurs - Going to coworking spaces and entrepreneurial meetups - contract with consulting firm to develop a master list of entrepreneurs for outreach - Go door-to-door, canvasing on foot

Four different responses to change

1. Eager beavers 2. Tentatives 3. Psychologically challenged 4. Recalcitrants

Methods for locating and engaging entrepreneurs

1. Host business plan competitions that offer funding to early stage entrepreneurs 2. Visit entrepreneurs at their place of business or events they attend, visiting them at coworking dspaces and entrepreneurial meetups. 3. Use social media, a monthly newsletter, a weekly eblast, facebook or instagram posts or create a dedicated website. 4. Go door to door to talk with owners. 5. Contract with a consulting firm to create a master list. 6. Use YourEconomy.org to reach out to second stage entrepreneurs.

Ideal Problems for Systems Thinking Interventions

1. Important Issue 2. Chronic Problem 3. Familiar Problem 4. Attempts in the past to solve have been unsuccessful

Methods for becoming a trusted resource to entrepreneurs

1. Introduce them to a customer, investor or mentor. 2. Create a space where entrepreneurs can meet once a week. 3. Know the resources that are helping entrepreneurs and small businesses be prepared to make a referral. 4. Celebrate an entrepreneur in your communications. 5. Support existing networks for entrepreneurs. 6. Prove that you can maintain confidentiality. 7. Deliver on your promises. 8. Be inclusive and accessible.

How to BUild YOur Entrepreneurial Infrastructure by Meyers and Hodel

1. Lead from Behind: lead with humility and share credit for success. Dont seek recognition. 2. Be entrepreneurial: Develop an aptitude for experimenting with new programs and ideas. 3. Collaborate: 4. Relationships Matter: business is all about trusted relationships. 5. Diversity Matters: diverse team are able to solve problems faster. 6. Execution is Everything: you must do something!

What are the four phases of the communities life cycles matrix?

1. Pre-community or chaos phase 2. Emergence phase 3. Vision phase 4. Actualization phase

Steps for early wins by implementing practical launching points for new programming to support entrepreneurs

1. convene several organizations with a strong type of program 2. provide coordinated messages to entrepreneurs on how to access those programs. 3. find someone to lead the group 4. then move onto your next launching point.

Four lessons from systems thinking

1. you will most likely make things worse if you don't understand the system. 2. The interrelated nature of systems have unintended consequences. 3. The leverage points of systems means that a small cause can have a large effect. 4. relationship changes are more important than element changes.

Second stage entrepreneurs

A second stage company has made it past the challenges of start up, and has the capacity, market opportunity, and intention to grow.

Three types of foundations

Community foundations, operating foundations, and grant making foundations.

What is the pre- community or chaos phase like?

Community is undeveloped, limited sharing of resources. Community can form through the identification of an action of influential and respected leaders. The disintegration stage in conflict stage are to sub stages in this phase.

Authority inclusivity

It involves the decision making, leader ship and development of programs and process within an entrepreneurship ecosystem.

Implicit stereotype

It is a belief that is relatively inaccessible to conscious awareness and or control.

The steps to assess your community through asset mapping

Identify neutral leaders Secure long-term commitments identify gaps in services one by one and develop solutions for each create a services roadmap

Systems Thinking

It helps to understand how closely it is related to entrepreneurial ecosystem development because it involves moving from observing events or data to identifying patterns of behavior over time, to surfacing underlying structures that drive those events and patterns.

Three concepts to make your eled strategy more inclusive

Intentionality Empathy Relationship development

Diversity

It is all the ways that people differ, such as race, background, class, etc.

Entrepreneurship led economic development

It is an evolution in the economic development field, focusing on growing economies by supporting the creation of new businesses and the acceleration of existing businesses across all spectrums of industry.

Relationship Development

It is an important component in making your ELED strategy more inclusive, requiring two objectives of practitioners: developing strong relationships with groups that have been historically and completely or partially left out of the entrepreneurship ecosystem, and Connecting with groups into the broad network of other organizations and individuals that are in the entrepreneurship ecosystem.

Inclusion

It is building an environment where all feel welcomed and valued.

Equity

It is fair treatment and access to opportunity for all people, while breaking down existing barriers.

Empathy

It is learning how to look at the world from the eyes of another individual or group. It requires us to put aside our learning, culture, knowledge, opinions and worldview purposefully in order to understand other people's experiences of things deeply and meaningfully.

Inclusivity

It is the active identification of, listening to, support of an elimination of barriers for entrepreneurs socially and economically disadvantage to undervalued demographic groups and geographic locations.

Agglomeration

It is the economic advantages that accrue for firms when they cluster together in one place.

Explicit stereotype

It is the kind of belief that you deliberately think about and report.

Intentionality

It refers to a continual process of keeping front and center in conversations within your organization.

In-Group

It refers to a group placing a high degree of positive distinction on their group's attributes and less favorable attributes of other groups. An example in economic development is between suburban and urban communities, rural and urban communities or poor and wealthy communities.

The benefits of an ELED Strategy

Job Creation Innovation Company Loyalty

The four types of entrepreneurs

Microenterprise innovation led, main street, second stage

five ways a community to avoid missing the unexpected successes, according to Penny Lewandoeski

Pay attention to existing businesses. Look beyond industry clusters. Appreciate what you have. Love the ugly duckling. Give the most attention to positive people.

The players in an entrepreneurship ecosystem

Service providers, entrepreneurial support organizations, lenders and investors, educational institutions, large corporations, foundations, policy makers, and civic leadership.

Implicit bias

The attitudes or stereotypes that affect our understanding, actions, and decisions in an unconscious manner.

What is the emergence phase like?

The community exists but has significant problems, making anything but survival and fulfilling short-term needs possible. The community can advance to focus on small non-political trust building projects to build success respect and confidence. Non-cooperation, paralysis/unfocused and coping are the three main sub stages of this phase.

What is the actualization phase like?

The community is highly developed and encourages learning and innovation, while respecting history and culture. The community shares resources with others and regularly monitors itself, continuing to enhance capacity. The community can undertake regular reviews and reflection activities to maintain or enhance this phase. The learning, innovation, and the integration stages are the three stages of this phase.

What is the vision phase like?

The community recognizes the importance of vision and long-term planning. He can engage in planning, meaningful consultation of its members and working towards the development of strategic thinking planning and ultimately identifying community wide values. Vision, strategic, and simple planning stages are the three sub stages of this phase.

Three reasons to focus on inclusivity

The demographics shifts occurring in America, the challenges caused by geographic bias, and the economic rationality of inclusivity.

Underbounded groups

They allow too much information to pass across the boundaries, which can cause the group to be threatened from the environment and lose its identity.

Optimally bounded groups

They are accomplishing, taking into account of diverse perspectives.

ecosystem builders

They are champions for entrepreneurs and can be grassroots community organizers, economic developers, entrepreneurial support organizations, and others who come together to grow entrepreneurial communities. Their roles include connecting organizations in the network and connecting entrepreneurs to the network and to each other. Individuals who are creating an invisible infrastructure in their communities to support entrepreneurs. They focus on building consistent, collaborative human engagement.

Second-stage entrepreneurs

They are companies with 10-99 employees, $1 million to $50 million in revenue, still needing vetting to confirm a viable business model and intent to grow.

Stereotypes

They are the belief that most members of a group have some characteristic.

Entrepreneurship support organizations

They are typically the primary providers of entrepreneurship products and training, consulting and technical assistance services. They have a passion to accelerate entrepreneur success, making them the entrepreneurs' entrepreneurs.

Overbounded groups

They have very rigid boundaries and can become closed off to the environment, losing their capacity to adjust to environmental changes.

Entrepreneur

anyone starting or growing a business.

Three covert forces that groups face when attempting to collaborate

change and its relationship to fear, in group and out group thinking, group boundary permeability.

CAVE people

citizens against virtually everything.

The four driving forces of entrepreneurial firms

economic recovery, job creation, greater resiliency, regional economic growth.

The main players in the ecosystem

entrepreneurs, economic development organizations Entrepreneur support organizations, and community builders.

The four steps in developing metrics

figure out the endgame, what's the outcome or objective. Find the right data. if the right data is available, develop a system to collect it. Report to the community.

Methods for applying cluster principles to the entire business community

find shared spaces, promote enter dependency, match workforce with opportunities, encourage and embrace innovation, develop tailored opportunities to companies with shared markets.

Characteristics of ecosystems

holistic, comprised of many parts, always evolving and messy, their strengths lie in the connections and interactions among those parts

four phases of change according to organizational psychologist Harry Levinson

impact, disorganization, recovery, re-organization

The importance of collaboration and achieving affective partnerships

it decreases a group's resistance to change, it increases creative thinking, it improves decision-making and problem-solving, and increases the probability of strategic execution.

The benefits of agglomeration

it helps firms to be more productive through three mechanisms: - sharing tailored facilities, infrastructure and suppliers, - matching workers productively through deep, labor markets, and - learning through dense knowledge, rich environments that facilitate knowledge exchange and innovation between independent firms

The benefits of action based asset mapping

it identifies your community strengths, gaps and duplications. It enables you to listen to the voices of the entrepreneurs, helps you understand how entrepreneurs are currently being served, helps you to better understand regional business tools, how to develop a roadmap. It avoids the mentality of build it and they will come versus emphasizing having the entrepreneurs in the room and at the table. Help you to establish camaraderie and trust, helps to create accountability to help you keep the group focused

Geographic bias

it is where policies programs and activities benefit one geographic location versus another location.

Breaking down silos

it means addressing the intense competition for resources and helping support organizations become more sustainable.

The three metrics that source link recommends using after conducting an inventory of entrepreneurship resources

network access: how many entrepreneurs are using the resources in your entrepreneurial infrastructure? network strength: how much participation do you see from entrepreneurial support organizations? network reach: how visible is the entrepreneurial infrastructure?

four variables of smart crowd judgment

people are diverse, no one is dictating to them, their opinions are independent of each other, and there is a way to summarize those opinions into a collective verdict.

The infrastructure components of ELED

programs resources Vehicles for interaction

tools or models to measure success in entrepreneurial ecosystems

scale up growth, barometer: poses two questions with a simple yes, or no to gauge the perception of the community's climate for growth: is our community a good place for growing a business? Is our community getting better or worse as a place for growing a business? Peoria Return To Better: focuses on diversity by posing questions about how diverse are the leaders of organizations in the community with the mission of fostering entrepreneurial activity? How diverse are their boards? AUMA measuring inclusion tool: this tool looks at 15 areas of focus, under which community raises its level of inclusion from invisible to a culture of inclusion and evaluating areas, such as leader, ship, and accountability, municipal social services, economic development, among others. Source Link: this is a national organization, working to build, connected, cohesive, entrepreneurial, ecosystems that attract startups, accelerate business growth, create jobs, and develop sustainable partnerships. They recommend conducting an inventory of the current entrepreneurship resources to determine the number of network partners, the number of network, partner meetings, and the number of entrepreneurial events listed on the central calendar.

Microenterprise entrepreneur

sometimes referred to as "Solopreneurs," these businesses can be started for a relatively small amount of investment. They are heavily dependent upon the founders unique skill set and often provide income replacement for the founder.

Innovation-led entrepreneur

these companies are formed around an innovative technology or practice. They typically aspire to scale quickly and make exchange ownership for investment to meet a swiftly moving market opportunity.

Main Street entrepreneur

these firms are your corner restaurant, the dry cleaners or even a dentist office. Serving a local market, they vary in size and intent to grow, but face the challenge of bringing customers to their location.

Community builders

they come from many different sectors. they can be entrepreneurs, EDO's, or ESO's. They are champions for entrepreneurial development, inclusion change agents leading with empathy, visionaries, and can be providers of services.

The key factors in selecting the framework you use for measurement of your entrepreneurial ecosystem strategy

they depend entirely on what you hope to accomplish, and sometimes you need to look beyond traditional metrics and explore other ways of assessing entrepreneurship led economic development. it may not be jobs, but a better measure may be how well different parts of the system are working together: who is connecting and how are they connecting and where are they connecting?

The three common or basic mistakes made by people trying to measure the effectiveness of entrepreneurial ecosystems.

they typically borrow some other communities metric system that does not align with their communities opportunities and preferences. They tend to overcomplicate their measurement systems and fail to execute undermining the value of measurement. Measurement is an afterthought, not tied to well-defined an actionable goals and objectives.

The four waves of the economic evolution of economic development

wave one: The industrial recruitment in the 1930s reduces the cost of doing business through incentives to encourage firm relocation. wave two: the entrepreneurial strategies of the 1980s support individual small business owners through space, funding and market opportunity wave three: the cluster-based development in the 1990s focuses on the economic development environment and context in which large firms operate to create competitive advantage. wave four: the 2010s prioritizes creating a nutrient rich environment of hyper connected actors that support entrepreneurs as they start and scale companies.