Dell Gines, MBA, CeCDSr. Community Development AdvisorFederal Reserve Bank of Kansas City

Strengthening the Entrepreneur Centered Economic

Development Ecosystem

The views in this presentation do not represent the views of the Federal Reserve Bank of Kansas City nor the Federal Reserve System.

4.2.13 Sourcelink Conference

Food For Thought

Food For Thought

Food For Thought

Grow Your OwnAt the Kansas City Federal Reserve Bank we are taking a particular interest in entrepreneurship economic development strategy. We feel that entrepreneurship development benefits low to moderate and disadvantage communities in rural an urban environments.

We encourage thoughts and feedback by practicing economic developers as we continue to support our local communities.

The Grow Your Own Guide provides a high level overview of what it takes to conduct entrepreneurship based economic development.

The Five C’s of the Entrepreneurship Ecosystem

The Entrepren

eur

Capital Financial Resources

CapabilityEntrepreneurshi

p Skillset

ConnectionResource & Relationship

Network

CultureThe local

communities’ perception and

support of entrepreneurshi

p

ClimateRegulatory, Economic

Development & Policy

Environment

The Entrepreneur Focus

http://celebjug.com/wp-content/uploads/2013/02/1michaeljordan-jpg_171100.jpg

What makes a Michael Jordan Entrepreneur?

1. Ability – They have natural talent that they develop formally and informally

2. Actualization – They have a high internal drive to continue to grow, build and create

3. Awareness – They know where there are opportunities, resources and education

4. Access – They have access to markets, networks, capital

5. Acceptability – Their community holds up entrepreneurship as a career possibility, a noble goal, and a recognized positive course of action

6. Affirmation – Their community publicly affirms, celebrates and supports entrepreneurs

Psychologist Anders Ericsson wrote that to become an expert it requires intentional practice in the range of 10,000 depending upon the field and the competition.

http://www.psy.fsu.edu/faculty/ericsson/ericsson.exp.perf.html

The Entrepreneur Focus

http://2.bp.blogspot.com/_u1ysKRt1C9M/TTa5uqgsdjI/AAAAAAAAAJE/8ET8_2dICOc/s1600/basketball+nerd.jpg

Not All Entrepreneurs Will Be Michael Jordan Entrepreneurs! But all entrepreneurs add value.

Hobby Self-Employment

High Growth Gazelle

The Entrepreneur Continuum

To have a sustainable and balanced ecosystem it must be organized in such a way the needs of all types of entrepreneurs are addressed, even if certain types of entrepreneurs are a priority focus.

The Transparent Ecosystem

Foggy and Fragmented

One of the largest complaints we hear from individuals seeking to start or grow a business is that the service system is complex and hard to navigate

Transparent and

Connected

The Dense Ecosystem

Microloan

Business Plan

Mentoring

Networking

Microloan

Business Plan

Venture Capital

University

Support

K-12 Education

Policy Group Mentoring

Market Research

Community Business

Celebration

Ecosystem #1 - Sparse Ecosystem #2 - Dense

Are the programs, policies and activities sufficient in number and type to meet development goals?

Entrepreneurial Opportunity Cost

25%

75%

Foggy & Sparce Ecosystem

Time and energy spent figuring out how to get support from the entrepreneurship ecosystemTime and energy spent working on building the business

10%

90%

Transparent & Dense Ecosystem

Time and energy spent figuring out how to get sup-port from the en-trepreneurship ecosystem

Time and energy spent working on building the business

The strongest entrepreneurship development ecosystems do the best job of allowing existing and potential entrepreneurs to spend more time and energy 1) focusing on building the business and 2) becoming more effective business owners rather than wasting time figuring out how to get support, information, and resources to build the business.

How more productive could our businesses be if they had more time and energy to focus on growing?

Simply stated, an opportunity cost is the cost of a missed opportunity. – inc.com

Effective Ecosystem Model

• Quality policy• Supportive culture• Appropriate information

& resources • Struggle to access• Difficult to navigate• Slow responsiveness

• Quality policy• Supportive culture• Appropriate information &

resources • Easy to access• Easy to navigate• Rapid responsiveness

• Poor policy• Resistant culture• Lack of information &

Resources • Struggle to access• Difficult to navigate• Slow responsiveness

• Poor policy• Resistant culture• Lack of information &

Resources • Easy to access• Easy to navigate• Rapid responsiveness

Dense Ecosystem

Sparse Ecosystem

Foggy Ecosyste

m

Transparent

Ecosystem

Why Sourcelink Matters

Traditional economic development is centralized and organization based.

Entrepreneurship based economic development is decentralized and organic.

SourceLink can connect the dots and foster collaboration across the entrepreneurship ecosystem

Why Sourcelink Matters

As previously discussed, entrepreneurs need a reduced opportunity cost to acquire knowledge, resources and connectivity to increase productivity and business growth.

SourceLink can improve productivity across the ecosystem because they eliminate or reduce the time and energy required by entrepreneurs to acquire what they need.

Why Sourcelink Matters

As previously discussed, entrepreneurs need a reduced opportunity cost to acquire knowledge, resources and connectivity to increase productivity and business growth.

SourceLink can improve productivity across the ecosystem because it helps eliminate or reduce the time and energy required by entrepreneurs to acquire what they need.

Events

http://conference.nationalcentereg.org/

ContactDell Gines

Sr. Community Development AdvisorFederal Reserve Bank of Kansas City

dell.gines@kc.frb.org(402) 221-5606

For more information & resourceshttp://kansascityfed.org/community/

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