An important component of any local economic development strategy today is to look within the community. We have learned that we can't rely on just outside investments and recruitment to build our communities and provide jobs for residents. More and more attention is being paid to efforts that:

• focus on the skills and talents already in place, and
• build support systems for these entrepreneurial efforts.

How can community leaders – particularly local officials – support this approach? Macke and Kayne described a framework for encouraging rural entrepreneurship that applies to neighborhoods in metropolitan areas as well as to small communities:

"First, do residents have a propensity to become entrepreneurs? If not, policymakers (local officials) have a role in creating policies that support development of entrepreneurial attitudes, and an entrepreneurial culture. Many of us were raised to work for other people – successful entrepreneurs have the vision and the drive to bring their vision to fruition. How can we impact our total educational system to encourage development of visionaries?

Second, do residents have knowledge and skills associated with entrepreneurship? What programs are in place to teach residents about skills such as capital investments, legal issues, financial management, hiring and supervising staff? Are there people in the community who can mentor fledgling entrepreneurs?

Third, are local residents succeeding as entrepreneurs? The failure rate of startup businesses in this country is high. What are the programs communities can put in place to support entrepreneurs? Is financial assistance available locally? What about opportunities for cooperative marketing? Mentors may also be helpful with this initiative." (Excerpt from "Rural Entrepreneurship: Environmental Scan" prepared for Community Entrepreneurship Task Force, January 17, 2001, Macke and Kayne.)

What are some other contributions local officials can make to encourage this local approach to development? The National Center for Small Communities, in their publication Grassroots Rural Entrepreneurship: Best Practices for Small Communities, captured the learning from a number of successful efforts:

1. recognize the role of entrepreneurs in your local economy.
2. encourage a climate supporting entrepreneurship education through educational systems, youth organizations, and adult education.
3. support creation of networks of and for entrepreneurs; these are a critical building block of entrepreneurial economies.
4. assure the availability of seed capital.
5. work on assuring a labor pool of workers who are prepared for jobs in the new economy.
6. develop a supportive infrastructure – this includes both physical infrastructure, such as water supply, and streets and roads as well as an infrastructure of support services needed by startup businesses.
7. governments may need to change themselves so they can act faster, be more transparent and more flexible to meet the needs of entrepreneurs.

(This publication is available on the National Center for Small Communities website: http://www.natat.org/ncsc/)

- Jeri Marxman, Extension Specialist, Public Policy

Energizing Entrepreneurs
http://www.energizingentrepreneurs.org/
index.php

RUPRI Rural Center for Entrepreneurship
http://www.ruraleship.org/

Ewing Marion Kauffman Foundation
http://www.kauffman.org/

Department of Commerce and Economic Opportunity
http://www.commerce.state.il.us/dceo/

United States Small Business Administration
http://www.sba.gov/

Council for Entrepreneurial Development
http://www.cednc.org/