Accelerating Entrepreneurship for Community & Economic Growth

1. Accelerating Entrepreneurship and Its Impact on Community and Economic Development Mark Lange Edward Lowe Foundation

2. Accelerating Entrepreneurship and Its Impact on Community and Economic Development • Introduction to the Edward Lowe Foundation • Making the case • Youreconomy.org • Economic gardening • Accelerating entrepreneurship – Next steps • Live online case studies with Youreconomy.org

4. The Edward Lowe Foundation • Championing the • Entrepreneurial Spirit • National Operating Foundation • 45 Employees • 2,600-acre retreat facility Cassopolis, Michigan • Second-stage Entrepreneurs – Economic Gardening • Peer learning, Recognition and Research

5. Making the case……… Entrepreneurship as an Economic Development Strategy Local businesses have much more influence on job creation than companies headquartered out of the state. Second-stage businesses are critically important to job growth and need to be nurtured more effectively. Business expansion has a much larger impact on job creation compared to business relocation.

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7. Non-Commercial Establishments Non-Profit Organizations Government Organizations Education Institutions 7

8. Non-Resident Establishments Headquartered in a different State 8

9. Non-Resident Establishments Headquartered in a different State Resident Establishments Stand-alone businesses in the area and businesses with headquarters in the same state 9

10. Local businesses have much more influence on job creation than companies headquartered out of the state. New metrics to find and measure the impact of resident and non-resident establishments provided a new view and surprising results

12. Establishment and Job Composition Average Annual for three year period Jan 2005 – Jan 2007 US Average Arkansas Little Rock Source – YourEconomy.org Edward Lowe Foundation National Establishment Time Series – Walls & Associates

13. Job & Establishment Change State of Arkansas Over three year period Jan 2005 – Jan 2007 Source – YourEconomy.org Edward Lowe Foundation National Establishment Time Series – Walls & Associates

14. Job & Establishment Change Little Rock (MSA) Over three year period Jan 2005 – Jan 2007 Source – YourEconomy.org Edward Lowe Foundation National Establishment Time Series – Walls & Associates

15. Second-stage businesses are critically important to job growth and need to be nurtured more effectively. Growth Issues vs Survival Intent to Grow Capacity to Grow Privately Held Businesses 10-99 Employees Revenue $1 to $50 Million Growth oriented companies

16. Business Stage Distribution Stage 4 (500+ Employees) Stage 3 (100-499 Employees) Stage 2 (10-99 Employees) Stage 1 (1-9 Employees)

17. Business Stage Clustering Industry Clusters Life Sciences Clean Energy Homeland Security Second-stage growth cluster Early Stage Incubators

19. Little Rock, AR (MSA) Jan 2005-Jan 2007 Source – YourEconomy.org Edward Lowe Foundation National Establishment Time Series – Walls & Associates

20. Source – YourEconomy.org Edward Lowe Foundation National Establishment Time Series – Walls & Associates

21. Business expansion has a much larger impact on job creation compared to business relocation. Job creation factors: 1. Net Open Factor (Jobs created from opened less jobs lost from closed businesses) 2. Net Expansion Factor(Jobs created from expanded less jobs lost from contracted businesses) 3. Net Relocation Factor(Jobs created from businesses moving in less jobs lost from those moving out)

22. St Louis, MO (MSA) Net New Jobs Jan 1993 - Jan 2007 24,973 Net Jobs from Opened Establishments 178,458 Net Jobs from Expanded Establishments 213,337 Net New Jobs 9,906 Net Jobs Moved In Source – YourEconomy.org Edward Lowe Foundation National Establishment Time Series – Walls & Associates

23. Springfield, IL Establishment and Job Change Jan 2006 – Jan 2007 385 Net Jobs from Opened Establishments 3,036 Net Jobs from Expanded Establishments 39 Net Jobs Moved Out 3,382 Net New Jobs Source – YourEconomy.org Edward Lowe Foundation National Establishment Time Series – Walls & Associates

24. Economic Gardening

25. Economic Development Entrepreneurship

26. The Traditional Approach • Emphasize recruitment and retention. It’s more about Movement • Expansion is secondary and related to industry clusters. • Services focused on infrastructure and incentives • Culture serves big business & small business • Business assistance focused on business plans, operations succession Economic Development

27. The Gardening Approach • Balance recruitment and expansion. It’s all about Growth • Expansion is primary and related to business stage clusters. • Services focused on a full range of growth tools • Culture nurtures entrepreneurs • Technical assistance focused on business intelligence, market dynamics, strategy and leadership. Economic Development

28. Florida passed the firstEconomic Gardening legislation January 2009 • 8.5 million loan plan and 1.5 million technical assistance program targets growth companies. • Companies with 10-50 employees and $1-25 million revenue qualify • “This plan explores a highly complementary strategy to the state’s economic development platform,” said Dale Brill, Executive Director of the Office of Tourism, Trade and Economic Development (OTTED)

29. Helping Enrepreneurs is a Contact Sport • Think local - act local • The New Math 100 X 3 > 3 X 100 • ESO’s - Find them, build them and support them

30. What’s your point? (69+1=70) • Inventory and understand policies and programs that affect your entrepreneurs. • Recognize the contribution of your second stage businesses. • Make sure peer learning is plentiful. • Serve all stages with expansion services • Build and enhance your ESO’s • Balance hunting and gardening resources

31. Contact Information • Mark Lange - Executive Director • Edward Lowe Foundation • mark@lowe.org • edwardlowe.org • youreconomy.org • 269-445-4221

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