A Deeper Look at One Model:The Entrepreneurial League System

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A Deeper Look at One ModelThe Entrepreneurial
League System

• Thomas S. Lyons, Ph.D.
• Director, Center for Research on Entrepreneurship
  and Enterprise Development (CREED)
• University of Louisville

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The Mission of an Enterprise Development
Transformation Business, like the ELS

• To develop a supply of highly skilled
  entrepreneurs that are capable of building
  successful companies in sufficient numbers to
  transform the economy of the community.

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The ELS Consists of Two Subsystems

• An Entrepreneur Development Subsystem the
  creation of a community of entrepreneurs and a
  farm system for continuously developing
  entrepreneurial talent
• A Service Provision Subsystem the development of
  a service provider system to meet the technical
  and financial assistance needs of those
  entrepreneurs.

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Entrepreneur Development Subsystem
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A system for developing entrepreneurs is
essential because

• Developing a continuous pipeline of entrepreneurs
  is an enormously complex process
• Developing entrepreneurs is not the
  responsibility of service providers
• The ability to use technical and financial
  assistance is a function of the entrepreneurs
  skill and level of development
• There is a process for getting entrepreneurs
  ready to use technical assistance (coaching vs.
  expert advice)

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The four dimensions of entrepreneurial skill

• Technical Skills ability to perform key
  operations of the business
• Managerial Skills ability to organize and
  manage the operations
• Entrepreneurial Skills ability to identify
  market opportunities and create solutions
• Personal Maturity Skills self-awareness,
  accountability, emotional and creative
• development

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The Entrepreneurial Leagues
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The ELS Coaching System

• Classifies entrepreneurs into different league
  levels according to their skill in starting and
  operating a new business
• Clusters entrepreneurs into Success Teams
• Establishes individualized game plans
• Provides entrepreneurs with performance coaches
  who work with them on a one-on-one basis and as a
  group
• Helps them focus on execution
• Facilitates their transformation by helping them
  develop their skills

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Talent Scouts and Pre-venture Activities

• Recruiting aspiring and talented individuals to
  become entrepreneurs and participate in the ELS
  just like in sports
• Orienting them to entrepreneurship and the ELS
• Helping them with the pre-venture activities of
  identifying a market opportunity, developing an
  offering and preparing to launch a venture

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Opportunity Scouting and the Market Development
Function Activities

• Opportunity scouts are responsible for
  identifying market opportunities (from multiple
  sources) that can be capitalized on by local
  entrepreneurs
• Developing and maintaining an opportunity
  register
• Matching opportunities to potential entrepreneurs
  with the appropriate skill set
• Structuring the deal
• Pursuing opportunities for strategic alliance
  among startups to capture new business as a group

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Service Provision Subsystem
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The ideal service provider system is one that

• Provides the entrepreneurs in our communities or
  regions with the right kind of help (i.e.,
  technical and financial assistance) at the right
  time and at the right price.

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How do we do that?

• By describing and comparing who does what
• By identifying and filling the service gaps
• By improving the performance of individual
  service providers and the system as a whole
• By effectively evaluating performance

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League Level Targeted by Service Providers
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Transforming Service Providers into a System
Managing the change process

• Requires a neutral, 3rd party facilitator
• Forming relationships of trust
• Frequent interaction
• Opportunities to learn and improve performance
• Motivation to participate external as well as
  internal
• Development of a common language and diagnostic
  process

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There must be a dynamic balance between two
subsystems
One for providing services
One for developing entrepreneurs