National Dialogue on
Entrepreneurship

Monday, October 6, 2003

Welcome to the National Dialogue on Entrepreneurship and E-News, an electronic newsletter sponsored by the Kauffman Foundation of Kansas City for followers of the entrepreneurial economy. Through E-News, we bring you short summaries and analyses of various trends driving the innovation economy. Please feel free to share this with friends and colleagues. To subscribe, visit www.publicforuminstitute.org/nde/join/

The Kids are Alright

Anyone who spends time with teenagers knows that they are an entrepreneurial bunch-for better or worse. A new poll from Junior Achievement (JA) confirms* that America's teenagers remain very interested in starting new businesses and, in a shift from past patterns, they also believe that owning their own business provides more job security than working for a company. The JA poll surveyed 1,001 teens between the ages of 13 and 18.  It found that 41% of those surveyed claimed that business ownership provides the greatest job security; 32% claimed that working for a company was more secure.  Overall, 75% wanted to own their own business someday.  African American (86%) and Asian (89%) youth had higher levels of interest in entrepreneurship than did other surveyed ethnic groups.  Surveyed teens also had good appreciation of market realities. Nearly half (49%) expected that starting a business would be "somewhat challenging."  

Junior Achievement regularly polls program participants to get their views on entrepreneurship and business trends.  To access this survey and others in the series, visit www.ja.org and search under Research Center.  

*The JA poll confirms findings from a Gallup poll conducted by the Kauffman Foundation in the late 1990s where nearly 7 in 10 young respondents said that they wanted to start their own business. The poll is available online at: http://www.entreworld.org/bookstore/SeedsOfSuccess.cfm

The Girls are Alright

Kids aren't the only ones succeeding with new ventures. A new study sponsored by MassMutual Financial Group and Babson College finds that women-owned family businesses are more productive and community-friendly than comparable businesses owned by men.  The report, Women in Family-Owned Businesses, is part of an ongoing series of studies examining family-owned businesses. Lots of interesting results can be found in this research. For example, researchers found further confirmation of differences in the leadership styles of men and women. Women-owned businesses tend to be more focused on social responsibility, place more emphasis on smooth leadership transitions, and are more likely to employ other family members. These traits seem to help the bottom line, as women-owned family businesses are 1.7 times more productive than their male-owned counterparts.  These firms also had lower debt loads, providing them with some extra cushion in tough economic times.

The study, Women in Family Owned Businesses, was written by Babson College's I. Elaine Allen and Nan Langowitz.  It is available at:  http://www3.babson.edu/Newsroom/Releases/womanfambiz2004.cfm

The Gen-Xer's are Alright

While we're in the mood for applauding various innovators, let's not forget Generation X.  A fascinating group of Gen X (and Gen Y?) innovators is profiled in the October 2003 edition of Technology Review.  The third annual TR100 lists 100 scientists, technologists and innovators under the age of 35. Needless to say, it's a distinguished group of folks working in leading sectors like biotechnology, nanotechnology, and, yes, the Internet.  The only thing really uniting this group (besides brainpower) is its sheer diversity, not just in terms of ideas but also in terms of background.  This year's list includes innovators from nearly every region of the world and a host of diverse skills sets, educational credentials, and heritage.  If the experience of past honorees is any indication, expect this year's list to include many who start gazelle businesses, tap into major venture capital investments, and create stunning new technologies.

To access the article and this year's list, visit www.technologyreview.com.  Registration is required.

Where the (Internet) Surfers Are

Back in the days of the dot-com craze, it was widely believed that the Internet alone would transform American life. While that view has been rightly tempered, it is still true that regions with high Internet usage and connectivity have advantages over other comparable regions in terms of both educational and business resources.  In other words, while the Internet alone can't guarantee business success, it does help to be connected!  A recently released study by the Pew Internet and American Life Project contains some interesting and sobering news on this front. The study, Internet Use by Region in the United States, offers a detailed look at America's Internet usage between 2000 and 2002.  Overall, Internet usage has grown: 59% of adults now regularly access the Internet (compared to 50% in 2000).   Usage rates differ widely by region-both the Northeast (New England and the Capital Region) and the West Coast enjoy high usage rates. The Pacific Northwest has the highest usage rate with 68% of adults online. Meanwhile, the South and the Industrial Midwest (Illinois, Indiana, Michigan and Ohio) have the lowest usage rates of, respectively, 48% and 56%.  In the South's case, low usage rates are attributed to lower average education levels and to low levels of connectivity across the region. The Industrial Midwest is well connected, but still lags behind national averages in terms of Internet usage. 

To access the report, Internet Use by Region in the United States, visit http://www.pewinternet.org/reports/toc.asp?Report=98

More on Women and Entrepreneurship

As regular readers of this newsletter know, the rise of the woman entrepreneur is one of the more exciting business trends today. More than 1,200 people recently met in Tampa to applaud these trends and to further expand the ranks of women business owners in the future. The conference, cosponsored by the Public Forum Institute, was hosted by the U.S. Department of Labor and the Small Business Administration (SBA) and included remarks by heavy hitters like Labor Secretary Elaine Chao and SBA head Hector Barreto. 

Marianne Hudson of the Kauffman Foundation (www.kauffman.org) and Kellyanne Conway of The Polling Company (www.pollingcompany.com) each led participants through a series of questions utilizing eFORUM, our wireless audience response technology allowing participants to share their stories and identify challenges facing their businesses. The use of the eFORUM system was sponsored by the Kauffman Foundation and the National Dialogue on Entrepreneurship to take a closer look at what is on the minds of Florida's women entrepreneurs. And the survey says...capital and networks.  Finding capital is the number one challenge facing women entrepreneurs. At the same time, participants noted that their companies could best be helped by eliminating structural barriers to capital access and social networks that often hinder new women business owners.

Meanwhile, the Center for Women's Business Research has released a new study examining which states do best in terms of nurturing women entrepreneurs. The bottom line message is that it pays to live in the West.  The top five states--Idaho, Wyoming, Utah, Nevada, and Arizona--all enjoyed growth rates in women owned businesses that were double the national average.  Women-owned businesses in these states grew by 28.8% between 1997 and 2002, while national growth rates averaged 14%.  What makes these places so attractive? There is no single answer. Instead, a mix of a booming local economy, a relatively low-cost workforce, and a favorable tax/regulatory environment combine to make these states "women-business friendly." 

To learn more about the Women and Entrepreneurship in the 21^st Century conference, visit www.women-21.gov. The eFORUM results are available at http://www.publicforuminstitute.org/publications/eforum/03-09-23-fl.htm

To access the Center for Women's Business Reseach report, Location, Location, Location, visit http://www.womensbusinessresearch.org/location.html  A research summary is available; the full report is available for purchase. 

Bozeman, Montana is probably not the first place you think of when asked to picture entrepreneurial hotspots.  But, Bozeman is indeed a place where lots of interesting ideas and projects for advancing entrepreneurship are being generated. Behind these new ideas is Dave Bayless and the Pioneer Entrepreneurs.

Dave is a native Montanan and an entrepreneur who left the state to make his fortune. After years in business, he returned to Bozeman after deciding that he wanted to not only be successful, but also to enjoy great quality of life. And, he wanted to help others do the same.

Pioneer Entrepreneurs is his vehicle for doing so--it is a national network of entrepreneurs that builds connections, shares ideas, and provides support to business owners in more than 18 states and three countries. The network is open to all types of entrepreneurs, but it has been especially powerful for those who reside in more remote rural regions and may not be able to access local networks on a local basis.

In addition to networking, the Pioneer Entrepreneurs gain access to the great insights of Dave Bayless and the network's team of experts. Dave produces an excellent weblog on business development issues, and his work has been featured in numerous national media outlets. If you want to access some cool ideas about networking or building a business, this is a good place to start.  

To sign up to receive e-news, visit
www.publicforuminstitute.org/nde/join/.

To unsubscribe please send an e-mail to remove@pfidc.org with the word UNSUBSCRIBE in the subject line and your email address in the body.

Contact the National Dialogue on Entrepreneurship:
2300 M Street, NW; Suite 900
Washington, DC 20037

E-mail: nde@pfidc.org