Entrepreneurship and HTCSam Cordes*, Purdue University

Presented at HomeTown Competitiveness Workshop

Columbus, IndianaJan. 28, 2009

* Several slides were “stolen” from Craig Schroeder

• What is E-ship?

• Why is E-ship Important?

• Who is in the E-ship Talent Pool?

• What are the Key Elements of E-ship?

• Programs and Resources to Support E-ship

Why is E-Ship Important?

E-ship Activity is Growing for a Reason

Global Entrepreneurship Monitor:

“The level of entrepreneurial activity explains 70% of the difference in economic growth

among G7 countries.”GEM 2000

The Limits of the Business Attraction Strategy

David Birch & Cogenics (on source of job growth)

55% Existing Business

44% Startups

1% Relocations

“Keep your tax incentives and highway interchanges, we will go where the highly- skilled people are” - Hewlett-Packard CEO Carly Fiorina

“When you discover you’re riding a dead horse, the best strategy is to dismount.”

Dakota Indian Tribal Wisdom

Who is in the E-ship Talent Pool?

Why Assess the Talent Pool?

“By understanding the entrepreneurial talent present in your community, it is possible

to be more strategic in shaping an economic development program.”

Entrepreneurial Talent TalentEntrepreneurs

BusinessOwners

PotentialEntrepreneurs

LimitedPotential

Entrepreneurial Growth Companies

Serial Es Growth-Oriented

Lifestyle Survival

Aspiring Youth

Not Working Want to be AnEmployee

Transition

FrustratedStartup

Dreamers

Can’t Work

Aspiring EntrepreneursActively Considering Going into BusinessActively Researching a Business IdeaAttending Business WorkshopsNetworking and Testing Ideas with OthersMotivated Towards a Change in Their Life

Startup Entrepreneurs

Decision to GoThought Through Part of ItThey Have an IdeaThey Have a PlanThey Need Help

Aspiring & Startup EntrepreneursPros Cons

•Large pool•Primed to go•Modest early impact

•Long-term commitment•Subsidized assistance•Modest outcomes•Medium-term incubation•Failure rate

Growth Oriented EntrepreneursAlready in BusinessSuccessfulDriven to Create Substantial Business (Jobs)Emerging MarketNew Product or Service

Growth Oriented EntrepreneursPros Cons

•Successful in business

•Motivated to grow

•Often open to help

•Opportunity for high impact

•Opportunity for immediate impact

•Small pool

•Some are negative on help

•Limited ability to help

•Requires time to build a relationship

High Growth EntrepreneursEntrepreneurial Growth Companies or EGCs

2/3 of Job Creation2/3 of Business Growth50% of Business Innovation

4-5%of All Firms

PresentEverywhere

DifferenceMakers

What are the Key Elements of E-ship?....A Horse Racing

Metaphor

Entrepreneurship vis-à-vis Horse Racing

• The Horse – The Business Idea

Entrepreneurship vis-à-vis Horse Racing

• The Horse – The Business Idea

• The Jockey – The Entrepreneur

Entrepreneurship vis-à-vis Horse Racing

• The Horse – The Business Idea

• The Jockey – The Entrepreneur

• The Track – The Entrepreneurial Ecosystem

Why is the Race Track Important?...AND…

Who Has Responsibility for Taking Care of and Improving the Race Track?

Leadership and organizational capacityLeadership and organizational capacitySupport services and resourcesSupport services and resourcesRules, regulations and policies Rules, regulations and policies Data, information and analysis Data, information and analysis A history, culture and institutional memoryA history, culture and institutional memoryConversationsConversationsNetworksNetworksOther??Other??

Track Ingredients

Final Thought…(Private Sector) E-ship Requires (Social) E-shipand L-ship

Goal: Create an entrepreneurial culture and community…..one that includes public and private sectors, including the nonprofit sector

Programs and Resources to Support E-ship

See handouts

ContactSam Cordes

Purdue University1201 West State Street, #236

West Lafayette, Indiana 47907-2057(765) 494-7273

smcordes@purdue.edu

This presentation is available for download and discussion at the Purdue Center for Regional Development blog

http://pcrd.typepad.com