RURAL ENTREPRENEURSHIP or THE STUFF IN THE BAG?

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RURAL ENTREPRENEURSHIPorTHE STUFF IN THE BAG?

• Mickey C. Johnson, District Director
• Murray State University
• Small Business Development Center

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Famous Entrepreneurs

• Sam Walton
• Bill Gates
• Fred Smith
• Bob Bryant
• Glen Haire
• Harvey Tilker
• George Radford
• Mike Creasey
• Jerry Haase

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A Successful Small Businessmust be able to

• Sell a good or service
• In sufficient quantity
• At a high enough price
• In order to generate a profit

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Entrepreneurial Myths

• The Risk Taking Myth
• The High-Tech Invention Myth
• The Expert Myth
• The Strategic Vision Myth
• The Venture Capital Myth
• The Grant Myth

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Entrepreneurial Types

• Limited Potential
• Potential
• Business Owners
• Entrepreneurs

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Limited Potential

• Not in the workforce, choose to be employees
• Large numbers of these people

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Potential

• Youth interested in learning a new career
• Aspiring Motivated, but need to reduce rise
  through support services
• Start-ups in process of starting but may not
  have the skills.
• Moderate to large numbers of these

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Business Owners

• Survival struggling to achieve success
• Lifestyle successful and not seeking to grow
• Re-starts started and failed, but are trying
  again
• Large numbers of survival and lifestyle, modest
  number of restarts

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Entrepreneurs

• Growth-Oriented have a drive to grow and are
  reaching out to new markets
• Serial Create and grow a new enterprise then
  move on
• EGCs Experience high growth, these are
  referred to as gazelles
• Modest numbers of growth, very small numbers of
  serial and EGCs are rare indeed

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Rural Problems

• Limited Networks
• Low Local Demand
• Capital Constraints
• Lack of Role Models
• Cultural Barriers
• Education

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Solutions

• Think Regionally
• Create Homegrown Entrepreneurs
• Redefine Education
• Create New Markets and Linkages
• Develop and Use New Technologies
• Encourage Immigration
• Utilize Assistance Programs Such as the KSBDC

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KSBDC Who We Are

• University Based
• 15 Centers Located State-Wide
• Clients Free Consulting Services to Start-ups
  and existing businesses
• Training Courses
• Library Resources

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KSBDC Operating Results

• 2.82 Return on Investment
• 590 Jobs Created
• 299 Jobs Saved
• 194 Loans - 24,558,791
• 3,008,602 State Tax Revenue
• 2,977,777 Federal Tax Revenue
• 2,658 Clients
• 7,791 Training Attendees

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What Can You Do?

• Report on Economic Impact
• - Jobs Created
• - Jobs Saved
• - Sales Impact
• - Tax Revenues
• Why is it Important?
• - Business Owners and Employees are Encouraged
• - May Help Secure Government Incentives,
  Financing, Investors
• - May Attract Other Entrepreneurs

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Credits

• Center for Rural Entrepreneurship
• W.K. Kellogg Foundation
• Kauffman Foundation
• Supporting Rural Entrepreneurship Brian
  Dabson
• National Commission On Entrepreneurship
• Entrepreneurship and Small Business Survival in
  the Northeast The Case of West Virginia
  Doolarie Singh-Knights and Dennis K. Smith
• Kentucky Small Business Development Center