National Dialogue on
Entrepreneurship

Week of November 1 - November 5, 2004

Welcome to the National Dialogue on Entrepreneurship, an initiative of the Public Forum Institute made possible by a grant from the Kauffman Foundation of Kansas City. Through NDE-news, we bring you short summaries and analyses of various trends driving the innovation economy. Current and archived issues of are available online at www.publicforuminstitute.org/nde/news/nde-news.htm. To subscribe, visit www.publicforuminstitute.org/nde/join/

Links to the day's entrepreneurship stories from across the nation and around the world are posted each weekday at www.publicforuminstitute.org/nde - bookmark it and stay informed about the latest entrepreneurship news. 

Two New Kauffman Foundation Reports

Two new projects funded by the Kauffman Foundation have released reports in recent weeks. The Angel Capital Association (www.angelcapitalassociation.org) has released a new guide to starting angel investor networks. Angel Investment Groups, Networks and Funds answers almost any question you might have about setting up angel organizations. It includes templates for key items like due diligence, funding applications, and other aspects of operating an angel network. If you’re trying to start such a group, check out this report. 

A second report, Entrepreneurship Education: Learning by Doing, examines youth entrepreneurship programs in communities supported by the Appalachian Regional Commission (ARC). The report profiles successful programs such as Walhalla High School’s (Walhalla, SC) comprehensive program where students create and finance their own businesses, and Nashville, Tennessee’s CEO Academy, where kids combine entrepreneurship training with learning about character and other key social skills. The report concludes by noting that these diverse and successful programs all teach the four key entrepreneurial competencies: opportunity recognition, idea generation, venture creation, and critical thinking. 

Angel Investment Groups, Networks and Funds: A Guidebook to Developing the Right Angel Organization for your Community (August 2004), by Susan Preston, is available at http://web.kauffman.org/pdf/angel_guidebook.pdf. 

Entrepreneurship Education: Learning by Doing, a report by the Appalachian Regional Commission and the Ewing Marion Kauffman Foundation, is available at http://www.arc.gov/images/programs/entrep/Learning_By_Doing.pdf
 

A Snapshot of Entrepreneurs in North Carolina

What’s on the mind of technology entrepreneurs in North Carolina’s Research Triangle region? A new survey from the Council on Entrepreneurial Development (CED) offers some insights. CED regularly surveys its members to assess what’s working and what’s not working in the region. The survey asks two sets of questions: What’s important to growing your company, and how does the Research Triangle perform in those areas? In terms of most important company growth factors, the following items (in rank order) were most frequently cited: availability of a qualified workforce, availability of qualified management personnel, the region’s overall economic health, the region’s standard of living, and the quality of K-12 schools. Clearly, human capital issues rank high in the region. Unfortunately, the region doesn’t necessarily perform well in these areas, especially in terms of management talent and K-12 school quality. However, the region does have tremendous assets. Entrepreneurs cited access to research universities, entrepreneurial support organizations, and a qualified workforce as the Research Triangle’s top areas of performance.

To access CED’s 2004 Entrepreneurial Satisfaction Survey Report, visit http://www.cednc.org/publications/entrepreneurial_satisfaction_survey/
 

Great Valley Entrepreneurs

While we’re checking out regional entrepreneurial activity, let’s move out to West to look at a new report that examines the state of entrepreneurship in the region around Sacramento. The Entrepreneurial Sacramento Valley builds on an earlier region study that noted that the Sacramento Valley’s future prosperity would hinge upon its success in nurturing local entrepreneurs. This report provides more details on these questions, and finds that the region has a strong base of new, fast-growing firms and self-employed individuals. In fact, 18% of the local workforce is engaged in entrepreneurial activity. The report authors note that the region’s challenge is to build an identity as an “entrepreneurial valley.” Among its recommendations are:

• Local governments should review their programs to ensure that entrepreneurs are receiving sufficient attention and resources,

• Local colleges and universities must act more proactively to support entrepreneurship, 

• Local service providers should collaborate to create a seamless system of support services for new businesses.

To access the October 2004 report, The Entrepreneurial Sacramento Valley, visit 
http://www.greatvalley.org/pub_documents/2004_10_22_15_53_55_sac_valley_entrepreneurs.pdf. It was prepared by Collaborative Economics for the Great Valley Center of Modesto, CA. 
 

Exodus of the Creative Class?

Richard Florida’s book, The Rise of the Creative Class, has generated lots of interesting policy discussions over the past several years. For those new to this work, Florida argues that creative talent will be the key ingredient to economic competitiveness. He also argues that the US, with its excellent higher educational system, open immigration policies, and embrace of entrepreneurship, was well poised to prosper in this changed economy. Florida’s optimism is tempered in a new Harvard Business Review article, “America’s Looming Creativity Crisis.” He argues that tighter post-9/11 immigration rules and public restrictions on scientific inquiry (e.g. stem cell research restrictions) are making the US a less attractive place for scientific and creative talent. Because these talented individuals have such an impact on innovation, reductions in this influx can have serious repercussions. Florida concludes by arguing that the business community must make a major commitment to support open labor market policies, increased support for higher education, and other efforts to help develop, attract, and retain talent.

America’s Looming Creativity Crisis” appears in the October 2004 issue of Harvard Business Review. To learn more, visit www.harvardbusinessonline.hbsp.harvard.edu where article reprints can be purchased. Similar arguments can be found in Florida’s January/February 2004 Washington Monthly article, “Creative Class War,” available at http://www.washingtonmonthly.com/features/2004/0401.florida.html
 

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