Transcript New Product Development and Commercialization

What Every
Kentucky Journalist
Needs to Know About
Entrepreneurship
Ron Hustedde, Director
Kentucky Entrepreneurial Coaches Institute
University of Kentucky
The Economic
Landscape in Rural
Kentucky:


Decline in “old”
economy industries
Phasing out of #1
crop: burley
tobacco quota
reduced approx.
60% between 1997
and 2000
Traditional
Development
Approaches:

Industrial Recruitment
“Build it and they will come”
Focuses on providing the
infrastructure (buildings,
water & sewer) as well as
loan and tax incentives

Business Retention
and Expansion
Incentives to existing
businesses to stay (tax
and loan programs)
Small entrepreneurial
firms are the engines
of innovation
 Account for 50% of the
nation’s non-farm GDP*
 Employ more than half
of all employees in the
private sector*
 Create 75% of net new
jobs in our economy*
Kentucky small
businesses income
increased from $7.4
billion in 2002 to $8
billion in 2003.

*Small Business Development Center, Office of Advocacy (February 2004)
Entrepreneurship in
the 21st Century:


By 2025, an estimated ½ of
North American workforce
will be self employed**
A “paradigm shift” is on the
horizon:


State of Kansas: utilizing
community development block
grant funds to establish rural
entrepreneurship
demonstration projects
State of Maine: both statewide and rural-specific
entrepreneurship initiatives
**Wall Street Journal, 09/12/2000
Riding the Entrepreneurial Wave:
Can compliment more
traditional approaches
(putting your eggs in more
than one basket)
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
BUT:
Current Economic
Development Policies
focus on Industrial
Recruitment. The
support structure
includes:




Industrial Development
Authorities
Small Business Development
Centers
State Tax and Loan Incentive
Programs
But – relatively little support for
entrepreneurs
What’s Wrong with this Picture?
Other
99%
E-Activity
70%
Other
30%
Percentage Difference in
Economic Growth Explained
By Entrepreneurial Activity
Source: Global Entrepreneurship Monitor 2000
E-Activity
1%
Percentage State Economic
Development Resources for
Entrepreneurship Development
Source: NASDA Survey of State Expenditures 1999
Three Kinds of Entrepreneurs
1) Aspiring
2) Lifestyle
3) New Fast-Growth Companies
What Entrepreneurs Want:
1)
2)
3)
4)
Access to Talent
Access to Capital
Networks
Infrastructure
Ten Things Elected Leaders
Can Do for Entrepreneurship:
1) Find out what they need
2) Make it clear you’re entrepreneurial-friendly
3) Create more entrepreneurs
4) Diversify economic development investments
5) Increase networking
6) Strengthen support system
7) Make it easier for investors to find opportunities
8) Pay attention to women & minority entrepreneurs
9) Form regional clusters
10) Build a citizen-based entrepreneurial vision
Will Your County or Region
Be A Maverick
or Just One More Cow in the Herd?
“The scenery changes
only for the steer
that’s in the lead.”
Red Steagall
“The Maverick Way”
Maybe it’s time for you to become an . . .
Advocate
For
Entrepreneurship