Entrepreneurship: Keys to Rural Community Sustainability

1. Entrepreneurship:Keys to Rural Community Sustainability Prepared for the Rural Community College Initiative 2004 Training Institute – Nashville, Tennessee Mary Emery North Central Regional Center for Rural Development memery@heartlandcenter.info (404) 474-7667 the nelson institute

2. the nelson institute - and - McCook Community College, a division of Mid-Plains Community College • Institute formed in 1998 by U.S. Senator Ben Nelson for purpose of supporting rural economic development • Strategic alliance formed with McCook Community College in 1999 • Underlying objective to identify and integrate projects which meet immediate, specific needs with long-term strategies for sustainability • Five main principles: • Awareness & education • Mentoring & apprenticeship • Training • Business development (entrepreneurship) • Leadership development

3. Breaking the Cycle… • Greatest challenge to rural communities is breaking cycles of downward economic trends and outmigration • Strong agreement among community leaders, educators, and development agencies that a perceived lack of economic/career opportunities is a core factor in the current population trend in rural communities • Perception is directly related to several factors: the discouraging environment of agriculture, the overall declining economy, and the lack of capacity in rural communities to support services and infrastructure • Formula: Fewer producers = fewer people = fewer businesses = fewer opportunities for young people

4. Entrepreneurship:Keys to Rural Community Sustainability Three Keys: • Youth • Supportive community environment • Business development capacity

5. Key #1 - Engaging Youth: the Southwest Nebraska YEP Model Designed with three basic objectives: • Reduce outmigration from rural communities; • Diversify ag base of rural economies; • Facilitate small business transfer.

6. Business planning class– teach students to “make a job and not just take a job”; provide important life skills; introduce the idea of owning their own business; and demonstrate variety of opportunities available. Mentoring – increase the interaction of students with community leaders and business owners. Micro-loan funds – yes, we really believe you can do it! Community improvement – both projects and training to connect young people in a meaningful way to the community. “This is my home and it’s important to contribute.” Internships – not just job exploration but with ultimate goal of small business transfer. YEP Program Goals:

7. YEP Program Format Introductory Level: Entrepreneur Exploration& Business Plan Development Business Plan Development • Community Engagement Level: • Students receive preparatory training for their community projects in areas such as: • Community Asset Mapping (What’s Here & What Can I Contribute?) • Project Organization & Planning • Making & Giving Presentations • Working with the Media • Holding Community Meetings • Team Building & Conflict Resolution • Decision Making • Time Management Internships Business experience potentially leading to business ownership Business Start-Up or Transition Planning • Revolving loan funds for business development and growth • Technical assistance • Private financing • Scholarships for students planning to return • Planning for post-college business opportunities

8. Key #2: Supportive Community Environment According to research from the Center for Rural Entrepreneurship, communities will be most successful when they create a positive, supportive environment for growing entrepreneurial businesses. Steps in the process to creating such an environment include: • Define and identify different types of entrepreneurs and attributes of each; • Conduct entrepreneurial assessment to identify appropriate target for development efforts; • Employ an asset mapping tool to identify and assess development capacity within a community; • Understand and utilize successful models from other communities; • Draft & implement strategy for implementation of entrepreneur development. Programs such as the Center’s E2 (Energizing Entrepreneurship in Rural America) provide both professionals, and volunteers, working in rural economic development with the skills needed to help their communities develop and sustain entrepreneurial businesses. A session is planned at McCook Community College in August.

9. Key #3 - Business Development Capacity According to the 2000 census: • 93% of the communities in the state of Nebraska currently have populations of 2,000 or less and 79% have populations of 1,000 or less; and • Over 50% of the population now resides in six counties along the eastern edge of the state. These trends continue to present a challenge for rural communities in accessing business development services. Most rural communities work with minimal or no professional staff supported by volunteer boards. McCook Community College and the Nelson Institute are currently developing an innovative program of study to provide both professionals and volunteers working in economic development with the necessary skills to recognize, develop and sustain entrepreneurial businesses.