Public Policy and Rural Entrepreneurship National Public Policy

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

Entrepreneurial Genome: A Double Helix Individual Community

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.

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

Environment Education and Development K-8 Support Services High School Recognition College & University Infrastru cture Aspiring Policy Growth Give Back High Growth Source: Ewing Marion Kauffman Foundation, 2001

Policy versus Programs

Four Government Roles Producer Facilitator Enabler Prohibitor

“The System” Federal Executive Legislative Judicial Interests Media State Local

Framework for Entrepreneurship Development

Do residents have a propensity to become entrepreneurs?

Do residents have the knowledge and skill associated with entrepreneurship?

Are resident entrepreneurs succeeding?

What’s Wrong with This Picture? Other 99. 3% E-Activity 70% Other 30% Percentage Difference in Economic Growth Explained by Entrepreneurial Activity Source: Global Entrepreneurship Monitor 2000 E-Activity 0. 7% Percentage State Economic Development Resources for Entrepreneurship Development Source: NASDA Survey of State Expenditures 1999

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

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)

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

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)

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