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Transcript of Rural Matters: CRRF Rural University Miramichi City,
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EntrepreneurshipDevelopment Strategies
Rural Matters: CRRF Rural University
Miramichi City, New Brunswick
October 27-29, 2002
Monica Diochon
St. Francis Xavier University
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Were told that
entrepreneurship is needed in
dealing with economic change
How do we encourage it?
What are the outcomes expected?
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Workshop Objectives
to build capacity in assessing a
communitys entrepreneurship vitality
to explore how a communitys capacity forentrepreneurship can be developed
to understand the link between context,
process and outcomes in responding toeconomic change
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How do we define:
Community?
Economic Development?
Entrepreneurship?IMPLICATIONS OF MEANING ADOPTED
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Community
a geographic area in which residents
perceive themselves to be stakeholders
and share behavioural expectations as a
result of social relationships developedwhile participating in formal, informal, and
interdependent economic, social, and
political institutions and activities, andwhile sharing a variety of public and
private services
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Why Define Community in This Way?
peoples life-world defines the geographic
boundaries for strategies based on local solidarity
shared economic, social and cultural experiences
build a sense of identitya sense of identity provides a vehicle for
mobilizing collective action in response to
opportunities or problems
collective action provides means of achieving whatcant be accomplished alone (common purpose)
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Economic Development
how does community define it?
goals based on perceived need(s) and
aspirations
likely focus if defined in economic terms:formation of new firms
expansion of existing onesconventional economic indicators of structural change,
growth in income and employment can be usefulmeasures of effectiveness
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Entrepreneurship: The Classic
Definition
Identifying an opportunity in the
marketplace and accessing resources
to exploit it for personal gain
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In a Community Context...
identifying an opportunity to improve
the communitys economy and
accessing the resources required tocapitalize on it
In relation to innovation:
entrepreneurship is the means by whichinnovation (the end) is achieved
its action-oriented (involving a set of
behaviours)
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Enterprising BehavioursCoping with
and
enjoyinguncertainty
Taking actions
in uncertain
environments
Flexibly
responding
tochallenges
Actively seeking to
achieve goals
Acting
independently
on own initiative
Persuading others
Solving problems/conflicts creatively
Making thingshappen
Seeking opportunity
INNOVATION
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Dealing with Economic Change
Requires Attributes Associatedwith Entrepreneurs:
the ability to identify opportunities
operate with uncertainty
take risks
innovate...
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The Facts about Entrepreneurship
entrepreneurship is widely distributed in
the population
every community has entrepreneurial
potential
situational factors often have more
influence on behaviour than personality
traits or other personal attributesentrepreneurship can be developed
through learning, practice
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Understanding How a
Communitys Context AffectsEntrepreneurship
What socio-economic factors affectentrepreneurship?
How?
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Economic Factors
Industrial structure
most new firm founders set up their
business in the industry in which they
previously worked
industries differ in their ease of entry
Plant-size structure*
most new firm founders previously worked
in small firms or small divisions of large
companies
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Economic Factors
Occupational structure
most new firm founders have either
managerial or skilled trades backgroundsareas with a perceived high residential
amenity and environmental quality attract
qualified and skilled people for job-related
reasons, some of whom subsequently set
up new businesses
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Economic Factors
Availability of information locally
re: new developments in technologies,
techniques, equipment, materials andmarkets
Availability of factors of production
access to sources of personal andinstitutional finance, premises, labour
Local/regional market demand
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Social Factors
Culture
Nature of behaviour the social context encourages
in dealing with problems or opportunitiesentrepreneurship dependency
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The Challenge
How to encourage entrepreneurship
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ENVIRONMENT
RESOURCES
HISTORYSTRATEGY
- goals (ends)- how theyll be
achieved (means)
Achieving a Fit Between
Context and Strategy
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Strategy involves decisions
about...Vision for futurewhere does the community want to be
Goalsbased on communitys understanding of
problems/opportunities and how they can
be positively addressed
specific, measurable, time-boundedcriteria for monitoring and evaluation
Ways to achieve them
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Strategic Considerations
Coordination and control are achieved
informally
Communication is through networks
Participation is voluntary
Cooperation is achieved through trust,
expectation of mutual exchange, and the
belief that by acting together thecommunity can accomplish what is not
individually possible
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The Development Process
InvolvesActivities/Initiatives
People
Formal organizing
Informal organizing
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Activities...
The nature of initiatives a community
engages in to stimulate economic
developmentThe ends of individual development
initiatives become the means by which
the communitys overall goal isaccomplished
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Evaluating Attractiveness of
Activities/Initiativesfit with communitys capabilities
low capital requirements
high margin for error
significant payoffs
low exit costs
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Fostering Entrepreneurship:
Task/Activity RequirementsTask uncertainty
Short-term focus on getting outcomes from action
responding to need**
Broad task definition**
Flexibility*Freedom to experiment*
Tolerance for failure
Diverse skill, knowledge and ability requirements*
Interdependent control/ ownershipHolistic set of tasks
Intrinsic rewards
Opportunities for learning by doing
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Broad Task Definition
activities represent the range of supply
and demand initiatives
the more diversified the activities, thegreater the likelihood of stimulating
broad-based entrepreneurial action
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Supply Side Activities
aimed at improving
development capacityby enhancing or
expanding local
resources, particularly
human resourcesemploying idle human
and physical resources
expanding the
community resourcebase
increasing the
productivity of local
resources
Demand Side
Activities
aimed at responding to
market opportunities
three categories:
in format ional(providing
information to mobilize thecommunity to act/giving
existing businesses or
potential investors
information about market
opportunities)promot ional(encouraging
investment in the
community)
inf luent ia l(generating
economic activity)
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Formal Organizing
Structures, systems, procedures
defining how people work together/
indicating the kind of behaviourconsidered appropriate
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Formal Organizing
Organic structure
Local decision-making author i tyand
responsibility**
Local democratic accountability**
Formal linking mechanisms
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Individuals
Differences among individuals relevant
to entrepreneurial behaviour in terms of:
skill levels, interests, need strength,learning styles, values and assumptions,
preferences for variety, for definition and
structure, and for individual challenge
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Individuals
Positive attitudes toward learning by doing
High levels of collective community identity*
Synergistic strategic vision for economies of
actionHigh level of transferable skills and abilities**
High level of formal/ informal connections
High level of trust and respected competence
Preference for informal/free-ranging work styleAbility to manage interdependencies and deal
with multiple tasks
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Informal Organizing
non-prescribed social structures and
process that define how things get done
shared assumptions and behavioural
expectations that emerge from the
interaction of the other three process
components
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Informal Organizing
Supportiveness, trust, cooperation and
community are highly valued principles
Strong collective identity
High levels of involvement and participationHigh degree of agreement on goals, objectives,
time scales and outcomes**
Shared behavioural expectations (ie - operate
informally, flexibility in decision-making andproblem solving, tolerance of risk, failure and
mistakes without fear of punishment, challenging
the status quo)
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Outcome Effectiveness
Goal achievement (improved economic
well-being)
Resource utilization (greater self-sufficiency, sustainability)
Adaptabilty (more enterprising culture)
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ENVIRONMENT
RESOURCES
HISTORYACTIVITIES
INDIVIDUALS
FORMAL
ORGANIZING
INFORMALORGANIZING
GOAL ACHIEVEMENT
RESOURCEUTILIZATION
ADAPTABILITYSTRATEGY
CONTEXT (Inputs) OUTCOMESDEVELOPMENT PROCESS
Feedback
COMMUNITY ENTERPRISE DEVELOPMENT MODEL
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Conclusion
opportunities to learn/practice
entrepreneurship are needed when
addressing economic change
important for strategy to:be opportunity not resource driven
fit environmental conditions as it shapes
tasks undertaken, and ultimately,
effectiveness
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Conclusion
creating an enterprising culturediversify tasks
small successes build momentum
aim for broadbased involvementcapitalize on identity (social capital)