National Dialogue on
Entrepreneurship

Week of December 8 - 12

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/

Capitol Hill Update

Although many of the final budget numbers are still in limbo as of our publication deadline, Congress is wrapping up its work for the year and the outlines of a few policy actions are known. Here are some highlights from the end of this year’s legislative session:

  • SBA Reauthorization: Congress has punted on reauthorization of the SBA. Instead of reaching agreement on legislative changes for the agency, Hill leaders have opted to extend SBA programs until March 15, 2004. Look for resumed debate early next year. 

  • Nanotechnology: Congress has got nanotech fever and is backing it up with real money. The 21st Century Nanotechnology Research and Development Act authorizes $3.7 billion for R&D by leading agencies such as the National Science Foundation, NASA, and the Departments of Energy and Commerce.

  • Manufacturing Extension: Congress has opted to support a major slash in funding for the popular Manufacturing Extension Program (MEP). MEP funds will be cut to $39.6 million, a 63% cut from last year’s funding levels.

  • Health Savings Accounts (HSAs): The controversial Medicare reform bill contains good news for some small firms. It creates a new form of HSAs for micro-business owners and the self-employed. Using the new accounts, individuals can create tax-deductible savings pools that can be used for qualified medical expenses. 

European Innovation Scorecard

If you are interested in what is happening in European innovation policies, you might want to check out the European Commission Enterprise Directorate’s new Trend Chart and 2003 Annual Report. The report details how European nations are doing in terms of nurturing innovation and entrepreneurial activity. The report notes that European nations place a great deal of policy emphasis on linking research to innovation, but very little on fostering an innovation culture. “Hot” policy areas include improving university-business linkages, innovation finance, and support for start-up firms. As in the US, crafting effective policies around intellectual property rights continues to be a problem area. 

To access the report, “www.trendchart.org: Annual Report 2003,” by the European Commission Enterprise Directorate-General, visit http://trendchart.cordis.lu/annual_report_2003/Annual_Report_EN_2003.pdf

African-American Gazelles

Entrepreneurship is booming among African-Americans and African-American entrepreneurs are becoming major players in many leading industries. A new data series from ING and the Boston Research Group is tracking the status of these African American “gazelle” businesses, i.e. firms that the surveys define as growing at a rate of 5% over the past five years. The ING Gazelle Index includes four measures that assess the business activity and confidence of the CEO’s of the fastest growing African-American-owned firms. The new index for the 3rd quarter of 2003 contains good news. While the current business picture was somewhat mixed, the gazelle CEO’s are confident about future economic trends and many of their businesses plan to increase hiring and capital spending. On the negative side, a majority is not confident with President Bush’s handling of the economy. The survey also includes some interesting questions on the motivations for starting a new business. More than 80% indicated that their new business start was driven by a desire to have more control over their own destiny. Other important motivations included serving the community, building wealth, and a desire to better utilize one’s education and management experience. A very small portion of interviewees (15.4%) started their business in response to job loss. 

To learn more about the ING Gazelle Index and to view the most recent findings, visit http://www.inggazelleindex.com/

 

Consortium for Entrepreneurship Education
1601 West Fifth Avenue, #199
Columbus, OH 43212
P: (614) 486-6538 || F: (419) 791-8922
www.entre-ed.org

Lots of individuals and organizations are out in the field providing entrepreneurship education to both youth and adults. But, they all come together in the Consortium for Entrepreneurship Education, the leading trade association for educators and other with an interest in this field. 

If you want to learn the state of the art in entrepreneurship education, the Consortium’s web page is a good place to start. 

The Consortium is involved in lots of interesting activities. Its latest program involves the creation of national standards for entrepreneurship education. A high-powered team of experts and entrepreneurs are developing the standards and they should be completed and formally released in the near future. The Consortium also produces a directory of programs used throughout the US and worldwide. 

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