BUILDING ENTREPRENEURIAL COMMUNITIES IN OKLAHOMA

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BUILDING ENTREPRENEURIAL COMMUNITIES IN OKLAHOMA

Lara Brooks, Oklahoma State University Glenn
Muske, Oklahoma State University Steve
Shepelwich, Federal Reserve Bank of Kansas
City Mike Woods, Oklahoma State University

• 2nd Annual Taking Care of Business Conference
• Oklahoma Department of Commerce
• February 28, 2007
• Oklahoma City, Oklahoma

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Building Entrepreneurial Communities in Oklahoma
Setting the Stage

• What is entrepreneurship
• What about community entrepreneurship
• Typology
• Critical success factors
• Sample models
• Recent Oklahoma survey data

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What is entrepreneurship?

• An entrepreneur acts as a marriage broker
  between what is desirable from an economic point
  of view and what is possible from a technological
  (operational) point of view

• Opportunity
• Innovation
• SOURCE B.H. Klein, Dynamic Economics

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Entrepreneurs goal is
to create or capitalize on new economic
opportunities through innovation

• By finding new solutions to existing problems
• Or by connecting existing solutions to unmet
  needs or new opportunities
• SOURCE Lichtenstein Lyons, Incubating New
  Enterprises A Guide to Successful Practice, 1996

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Entrepreneurs

• - People who create and grow enterprises
• Aspiring entrepreneurs
• Survival entrepreneurs
• Lifestyle entrepreneurs
• Growth entrepreneurs
• Serial entrepreneurs
• Social entrepreneurs
• SOURCE WK Kellogg Foundation

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• Entrepreneurship
• process through which entrepreneurs create and
  grow enterprises
• Entrepreneurship development
• the infrastructure of public and private supports
  that facilitate entrepreneurship
• Entrepreneurial communities
• those where significant economic and social
  entrepreneurial activity exists and where there
  is an effective system of entrepreneurship
  development
• SOURCE WK Kellogg Foundation

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Entrepreneurial Communities

• Has critical mass of entrepreneurs actively
  engaged in capturing new market opportunities
• Group of entrepreneurs recognizable within the
  community
• Community as a whole is entrepreneurial

• Social capital (Floras)
• Human capital-diversity (Florida)
• Clusters (Porter)
• Public-Private Partnerships (Tupelo-Grishom)
• Innovative Infrastructure (Feldman)

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Enterprise Development

• Assistance to entrepreneurs in support of the
  creation, growth, and survival of their
  businesses Koven Lyons (2003)

• nonprofit, private, public service providers
• youth entrepreneurship programs
• micro enterprise programs
• business incubators
• manufacturing network
• small business development centers
• angel capital networks
• revolving loan funds
• technology transfer programs

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BUILDING ENTREPRENEURIAL COMMUNITIES

• Systems Approach
• Customize the Enterprise Development System
• Focus on Developing Entrepreneurs
• Develop new roles, skills, tools
• Operate as a transformation business

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Successful CommunitiesEntrepreneurial(?)

• Acceptance of Controversy
• Ability to Depersonalize Politics
• Surplus Income to Invest
• Willingness to Take Risks
• Ability to Define Community More Broadly
• Networking Ability
• Emphasis on Academics
• Flexible, Dispersed Leadership
• SOURCE Flora and Flora

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Entrepreneurial Communities

• System of entrepreneurial development and support
• Community that behaves like an entrepreneur

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Sample Models

• Minnesota Rural Partners Model
• - An organized strategy in game form to help
  develop entrepreneurship in ones community.
  Available at
• http//www.minnesotaruralpartners.org/newsletters
  /newsletter 1204.htm
• Sirolli Approach
• - Builds a community board to assist
  entrepreneurs. Available at http//www.sirolli.co.
  uki/
• Entrepreneurial Coaches
• - Community members who volunteer or work part
  time to assist aspiring entrepreneurs. Available
  through many different resources. Available at
  http//www.uky.edu/Ag/KECI/

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Sample Models (continued)

• Community Based Approach, USDA
• - This publication provides a complete guidebook
  for developing ones community. Available at
• http//www/cpac.missouri.edu/REI/REIGuidebook_Cov
  er1.pdf
• Community Environment for Entrepreneurship
• - This model describes in detail of the
  foundation needed for entrepreneurship within a
  community. Available at http//www.ruraleship.o
  rg/content/pdf/Community.pdf

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Comparison of Sample ModelsThe models that
indicate a part-time (volunteer) facilitator
utilize a group effort from within the community.
It is possible for the community to hire a
person full-time on salary to help make certain
everything is running smoothly. That is up to
the community, and depends greatly on community
funds available.
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2006 Oklahoma Social Indicator Survey

• The survey was conducted by the Bureau of Social
  Research.
• The individuals were randomly selected from the
  Oklahoma population.
• A total of 1,233telephone interviews were
  completed for this survey.
• 196 (15.9) of these interviews indicated they
  were business owners

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Number of Survey Respondents per County
CIMARRON
HARPER
BEAVER
TEXAS
GRANT
KAY
NOWATA
OTTAWA
ALFALFA
WOODS
WASHINGTON
CRAIG
OSAGE
WOODWARD
NOBLE
DELAWARE
ROGERS
ELLIS
MAJOR
GARFIELD
MAYES
PAWNEE
TULSA
PAYNE
DEWEY
1-3 Respondents
CREEK
WAGONER
BLAINE
CHEROKEE
LOGAN
KINGFISHER
ROGER MILLS
ADAIR
MUSKOGEE
OKLAHOMA
LINCOLN
CUSTER
OKMULGEE
4-6 Respondents
SEQUOYAH
CANADIAN
OKFUSKEE
McINTOSH
CLEVELAND
BECKHAM
WASHITA
HASKELL
7-11 Respondents
POTTA-
CADDO
HUGHES
WATOMIE
SEMINOLE
GRADY
PITTSBURG
GREER
KIOW
A
LATIMER
MCCLAIN
17-24 Respondents
LE FLORE
PONTOTOC
HARMON
GARVIN
COMANCHE
JACKSON
COAL
STEPHENS
PUSHMATAHA
TILLMAN
MURRAY
COTTON
ATOKA
JOHNSTON
CARTER
JEFFERSON
CHOCTAW
MCCURTAIN
MAR-
LOVE
SHALL
BRYAN
17
Oklahoma Metropolitan and Micropolitan Counties
CIMARRON
HARPER
BEAVER
TEXAS
GRANT
KAY
NOWATA
OTTAWA
ALFALFA
WOODS
WASHINGTON
CRAIG
OSAGE
WOODWARD
NOBLE
DELAWARE
ROGERS
ELLIS
MAJOR
GARFIELD
MAYES
PAWNEE
TULSA
PAYNE
DEWEY
CREEK
WAGONER
BLAINE
CHEROKEE
LOGAN
KINGFISHER
Metropolitan Counties
ROGER MILLS
ADAIR
MUSKOGEE
OKLAHOMA
LINCOLN
CUSTER
OKMULGEE
SEQUOYAH
CANADIAN
OKFUSKEE
Micropolitan Counties
McINTOSH
CLEVELAND
BECKHAM
WASHITA
HASKELL
POTTA-
CADDO
HUGHES
WATOMIE
SEMINOLE
GRADY
PITTSBURG
GREER
KIOW
A
LATIMER
MCCLAIN
LE FLORE
PONTOTOC
HARMON
GARVIN
COMANCHE
JACKSON
COAL
STEPHENS
PUSHMATAHA
TILLMAN
MURRAY
COTTON
ATOKA
JOHNSTON
CARTER
JEFFERSON
CHOCTAW
MCCURTAIN
MAR-
LOVE
SHALL
BRYAN
18
Employment Level of Firms
19
Business Incubator Located in Community
20
Business Owners Who Used Business Incubator
These numbers are based on the number of
respondents that replied they do have a business
incubator in their local community
21
Mentors, Local Expertise or Entrepreneurship
Network in Community
22
Business Owners Who Used Mentors, Local Expertise
or Entrepreneurship Network
These numbers are based on the number of
respondents that replied they do have local
mentors, local expertise, or entrepreneurship
network in their local community.
23
Courses on Funding Sources or Starting a Small
Business in Community
24
Business Owners Who Used Courses on Funding
Sources or Starting a Small Business in Community
These numbers are based on the number of
respondents that replied they do have courses on
funding sources or starting a small business in
their local community.
25
Local loan or investor services in Community
26
Business Owners Who Used Local Loan or Investor
Services
These numbers are based on the number of
respondents that replied they do have local loan
or investor services in their local community.
27
State or Federal Loan Programs in Community
28
Business Owners Who Used State or Federal Loan
Programs
These numbers are based on the number of
respondents that replied they do have state or
federal loan programs.
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At any time over the past 5 years, have you had
difficulty finding workers for your business?
30
Majority of Business Financing
31
Chamber of Commerce or Similar Local Development
Organization in Local Community
32
Business Owners Who Are Active Members of Their
Local Organization
33
How satisfied are you with the local development
organization in terms of helping your business to
succeed?
34
Business Owners Who Have Internet At their Place
of Business
35
Types of Internet Access of Business Owners
36
Does your community provide adequate overall
infrastructure (water, sewer, and electricity)
for your business?
37
Do you do at least 50 percent of your personal
shopping in the community where your business is
located?
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Do at least 50 percent of your business input
expenditures come from within the community where
your business is located?
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BUSINESS OWNERS

• 26 indicated employment growth
• Only 11 indicated a decline in employment
• 9 cited business incubator use when available
• 25 used mentors when available
• 20 cited finding workers as difficult
• 17 were active in the local chamber of commerce
• 70 had internet service

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SOURCES FOR THIS PRESENTATION

• Lichtenstein, Lyons, Kutzhanova
• Building Entrepreneurial Communities The
  Appropriate Role of Enterprise Development
  Activities Journal of the Community Development
  Society, 2004
• Emery, Wall, Macke
• From Theory to Action Energizing
  Entrepreneurship (E2), Strategies to Aid
  Distressed Communities Grow Their Own Journal of
  the Community Society, 2004

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THANK YOU!

• Questions?