National Dialogue on
Entrepreneurship


Week of January 19 - 23, 2004


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/


Global Entrepreneurship Monitor Released

Funded by the Kauffman Foundation of Kansas City, Babson College and the London Business School have again produced the Global Entrepreneurship Monitor (GEM), a report that tracks entrepreneurial activity around the world. This year’s report offers a snapshot of the entrepreneurial economy in 41 countries and includes some good news for the US, as entrepreneurial activity is rising.  In 2003, 11.3 percent of American adults were engaged in entrepreneurial activity, a slight rise from 2002’s level of 10.5%.  Overall, Chile, Korea, New Zealand, Venezuela, and Uganda ranked as the most entrepreneurial countries. The least entrepreneurial economies included Sweden, Netherlands, Taiwan, Croatia, Japan, Russia, and Poland.

To access the report, visit http://www.kauffman.org/pages/407.cfm


High Tech Leaders and Competitiveness Fears

While entrepreneurship in the US appears to be rising slightly, many of America’s high technology leaders remain worried about economic competitiveness. Choose to Compete:  How Innovation, Investment and Productivity can Grow American Jobs and Ensure Competitiveness in the 21st Century, a new report from the Computer Systems Policy Project (CSPP) paints a mixed picture of the state of America’s technology economy.  The report points to entrepreneurship and innovation as key strengths of the American system, but it also points to some glaring problem areas. Improving workforce training, especially in math and science education, poses a big challenge.  Similarly, challenges from overseas competitors and trade protection hurt American companies, but the authors argue that US firms must expand support for global operations and open markets.  The report recommends increased support for science and technology R&D, and a commitment to maintaining a business climate open to innovation and entrepreneurship.

Choose to Compete:  How Innovation, Investment and Productivity can Grow American Jobs and Ensure Competitiveness in the 21st Century is available at: http://www.cspp.org/reports/ChooseToCompete.pdf


Tips for Small Town Leaders

We regularly write about what’s happening in America’s rural communities where many leaders are embracing home grown entrepreneurial businesses.  The National Center for Small Communities (www.smallcommunities.org/ncsc/) has just published a new guide that offers a useful road map for these leaders.  Grassroots Rural Entrepreneurship:  Best Practices for Small Communities highlights the experiences of three communities:  Fairfield, Iowa, Broadway, Virginia, and Turner County, South Dakota.  It also offers a host of suggestions for how regions can get started in putting together an entrepreneurial development strategy.

Grassroots Rural Entrepreneurship:  Best Practices for Small Communities was funded by the Kauffman Foundation of Kansas City as part of its Grassroots Entrepreneurship Award. To access the report, please visit http://www.smallcommunities.org/ncsc/Kauffman/entrepdefault.htm


Top Social Entrepreneurs

We often report on rankings of top entrepreneurial businesses, such as the INC 500.   Fast Company magazine (www.fastcompany.com) has now begun listing the most important social entrepreneurs—organizations and leaders who often have an even bigger impact on our societies than fast-growing businesses. The inaugural Social Capitalist Awards rank organizations according to five categories:  innovation, entrepreneurship, social impact, aspiration, and sustainability.  In addition to doing good, these organizations are booming. Employment is rising at an average annual rate of 172%, and revenues are expected to grow by 29.2% in 2003. Moreover, more than 42 different US-based foundations are now primarily focused on funding social entrepreneurs. The article profiles groups working in a variety of issue-areas.  Among the groups focused on entrepreneurship and related topics are:  ACCION USA (www.accionusa.org), the Center for Community Self-Help (www.selfhelp.org), Microbusiness Development Corporation (www.microbusiness.org), and Working Today (www.workingtoday.org).

The article, “Social Capitalists:  The Top Twenty Groups That are Changing the World,” appears in the January 2004 edition of Fast Company.  The article is available at http://www.fastcompany.com/magazine/78/social_intro.html


What’s Ahead in Government Contracting?

While the economy appears to be picking up, many entrepreneurial businesses are focusing on government customers.   And, with budgets for homeland security and other areas booming, this focus makes sense.  Washington Technology, a journal that covers the world of government contracting, takes a look at what to expect in 2004 in its latest issue.  E-News readers might be especially interested in what’s ahead for small businesses.   Washington Technology reporters pick three big “issues to watch” in 2004:

·         Public-Private Competition:  The Bush Administration’s efforts to contract out more business should open up new business opportunities.  But, opposition to “contracting out” is gaining intensity among federal employees and their unions.

·         Small Business Status:  Under current rules, small businesses certify their status as a small firm every 20 years.  But, firms can grow and change a great deal in 20 years. As a result, many big businesses are still viewed as small firms by government agencies.  Proposed new rules may require re-certification every five (or every one) years. 

·         Small Business Set Asides:  Congress is trying to expand the amount of government contracts reserved for small business.  Look for intense debate over these plans.

“Forecast 2004:  The Board Game for Government Contractors,” appears in the January 12, 2004 edition of Washington Technology.  The series is available on-line at:

http://www.washingtontechnology.com/news/18_19/cover-stories/22454-1.html

 

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