Rural Matters: CRRF Rural University Miramichi City,

download Rural Matters: CRRF Rural University Miramichi City,

of 37

Transcript of Rural Matters: CRRF Rural University Miramichi City,

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    1/37

    EntrepreneurshipDevelopment Strategies

    Rural Matters: CRRF Rural University

    Miramichi City, New Brunswick

    October 27-29, 2002

    Monica Diochon

    St. Francis Xavier University

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    2/37

    Were told that

    entrepreneurship is needed in

    dealing with economic change

    How do we encourage it?

    What are the outcomes expected?

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    3/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    4/37

    How do we define:

    Community?

    Economic Development?

    Entrepreneurship?IMPLICATIONS OF MEANING ADOPTED

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    5/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    6/37

    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)

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    7/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    8/37

    Entrepreneurship: The Classic

    Definition

    Identifying an opportunity in the

    marketplace and accessing resources

    to exploit it for personal gain

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    9/37

    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)

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    10/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    11/37

    Dealing with Economic Change

    Requires Attributes Associatedwith Entrepreneurs:

    the ability to identify opportunities

    operate with uncertainty

    take risks

    innovate...

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    12/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    13/37

    Understanding How a

    Communitys Context AffectsEntrepreneurship

    What socio-economic factors affectentrepreneurship?

    How?

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    14/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    15/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    16/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    17/37

    Social Factors

    Culture

    Nature of behaviour the social context encourages

    in dealing with problems or opportunitiesentrepreneurship dependency

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    18/37

    The Challenge

    How to encourage entrepreneurship

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    19/37

    ENVIRONMENT

    RESOURCES

    HISTORYSTRATEGY

    - goals (ends)- how theyll be

    achieved (means)

    Achieving a Fit Between

    Context and Strategy

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    20/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    21/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    22/37

    The Development Process

    InvolvesActivities/Initiatives

    People

    Formal organizing

    Informal organizing

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    23/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    24/37

    Evaluating Attractiveness of

    Activities/Initiativesfit with communitys capabilities

    low capital requirements

    high margin for error

    significant payoffs

    low exit costs

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    25/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    26/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    27/37

    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)

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    28/37

    Formal Organizing

    Structures, systems, procedures

    defining how people work together/

    indicating the kind of behaviourconsidered appropriate

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    29/37

    Formal Organizing

    Organic structure

    Local decision-making author i tyand

    responsibility**

    Local democratic accountability**

    Formal linking mechanisms

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    30/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    31/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    32/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    33/37

    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)

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    34/37

    Outcome Effectiveness

    Goal achievement (improved economic

    well-being)

    Resource utilization (greater self-sufficiency, sustainability)

    Adaptabilty (more enterprising culture)

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    35/37

    ENVIRONMENT

    RESOURCES

    HISTORYACTIVITIES

    INDIVIDUALS

    FORMAL

    ORGANIZING

    INFORMALORGANIZING

    GOAL ACHIEVEMENT

    RESOURCEUTILIZATION

    ADAPTABILITYSTRATEGY

    CONTEXT (Inputs) OUTCOMESDEVELOPMENT PROCESS

    Feedback

    COMMUNITY ENTERPRISE DEVELOPMENT MODEL

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    36/37

    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

  • 8/14/2019 Rural Matters: CRRF Rural University Miramichi City,

    37/37

    Conclusion

    creating an enterprising culturediversify tasks

    small successes build momentum

    aim for broadbased involvementcapitalize on identity (social capital)