Public Policy and Rural Entrepreneurship

1. Public Policy and Rural Entrepreneurship National Public Policy Education Conference St. Louis, Missouri September 21, 2004

2. Entrepreneurial Genome: A Double Helix Individual Community

3. Entrepreneurial Genome • A successful entrepreneur can be viewed as a healthy, functioning organism. • The “switches” in the entrepreneurial genome represent individual and environmental factors. • An entrepreneur’s probability of success depends on whether these switches are in the “on” or “off” position.

4. Putting It Together: The Healthy Entrepreneur Propensity Education Capital Innovation Labor Team Support Services Mentors Policy Giveback Networks Feedback

5. Environment Education and Development K - 8 S u p p o r t H i g h S c h o o l S e r v i c e s R e c o g n i t i o n C o l l e g e & U n i v e r s i t y I n f r a s t r u c t u r e A s p i r i n g Give Back G r o w t h P o l i c y High Growth Source: Ewing Marion Kauffman Foundation, 2001

6. Policy versus Programs

7. Four Government Roles Producer Facilitator Enabler Prohibitor

8. “The System”

9. Framework for Entrepreneurship Development

10. Do residents have a propensity to become entrepreneurs?

11. Do residents have the knowledge and skill associated with entrepreneurship?

12. Are resident entrepreneurs succeeding?

13. What’s Wrong with This Picture? Other 99.3% E-Activity 70% Other 30% E-Activity 0.7% Percentage State Economic Development Resources for Entrepreneurship Development Percentage Difference in Economic Growth Explained by Entrepreneurial Activity Source: Global Entrepreneurship Monitor 2000 Source: NASDA Survey of State Expenditures 1999

14. The Political Challenge • Entrepreneurship represents: • “patient” economic development. • “incremental” economic development. • “venture” economic development. • For many politicians: • “wealth” is still a four-letter word.

15. Examples of Policy Innovations • Entrepreneurship Education • Not in addition to state standards; as a technique to teach to standards • Unemployment Insurance • Give entrepreneurship the same weight as “pounding the pavement” looking for a new job • Use of Public Schools and Community Colleges • Entrepreneurship Laboratories • Adult Entrepreneurship Education • Networking events • Tax Deferrals (versus abatements)

16. Readings • “The Public Policy Arena,” Jay Kayne, Ewing Marion Kauffman Foundation, 1999 • “State Entrepreneurship Policies & Programs,” Jay Kayne, Kauffman Center for Entrepreneurial Leadership, 2000 • “A Governor’s Guide to Strengthening State Entrepreneurship Policy,” National Governors Association, 2004 • “American Formula for Growth,” National Commission on Entrepreneurship, 2002 • “Entrepreneurship: A Candidate’s Guide,” National Commission on Entrepreneurship, 2002

17. Readings • The Emergence of Entrepreneurial Policy, David Hart (editor), Cambridge University Press, 2003 • Global Entrepreneurship Monitor, Executive Report (available for 1999-2003) • “Entrepreneurship as an Economic Development Strategy,” Jay Kayne, Center for Rural Entrepreneurship, (forthcoming)

18. For More Information Jay Kayne Cintas Chair & Professor of Entrepreneurship Richard T. Farmer School of Business Miami University 513-529-9298 kayneja@muohio.edu