Minnesota’s Entrepreneurial Gateway

Community Informatics as a transformational tool for community

economic reinvention

Minnesota Entrepreneurial Gateway

an evolving community informatics tool

• An online and on-the-ground network in which local communities (urban & rural), counties, regions, and our entire state can better organize, manage, and connect resources to support entrepreneurship and start and grow a diversity of enterprises.

• MEG connects emerging businesses and community leaders with the knowledge, resources, and guidance they need to succeed.

Community Informatics

• Also known as community networking, electronic community networking, community-based technologies or community technology

• refers to an emerging set of principles and practices concerned with the use of Information and Communications Technologies (ICTs)– for personal, social, cultural or economic development within

communities; – for enabling the achievement of collaboratively determined

community goals; – and for invigorating and empowering communities in relation to

their larger social, economic, cultural and political environments. – It can be considered as an socially-oriented and emergent sub-

discipline of Informatics, itself a term with a wide variety of interpretations

What is Informatics?

Informatics is...• understanding the impact technology has on people.

  • the development of new uses for technology.

  • the application of information technology in the context of

another field. • Informatics is a new field of study that gives students the

skills to apply information technology to another field - from health care to journalism to biology to economics.

• Informaticists can then use technology to harness the power of information and make exciting new discoveries that make us more productive at home and at work.

Indiana University

Defining Entrepreneurship

An organization or person who manages a business undertaking, assuming the RISK for the sake of profit – financial & to strengthen the community.

A way of thinking & a pattern of working with others that permeates everything you do:

-Intentional about Connections-Creative & Committed-Disciplined and Perseverant

A PARTNERSHIP BETWEEN COMMUNITY & BUSINESSES – BIG AND SMALL!

Where did the MEG & BizPathways come from?

Based on earlier work and resulting recommendations from:– The Minnesota Rural Summits – Research at the Center for the Study of Rural America, Kansas City

Federal Reserve Bank, Kellogg & Corporation for Enterprise Development, Kaufmann and SBA

– The Minnesota Rural Entrepreneurship Academy findings, October 2000

– TOP grant 2001-2004

All point to entrepreneurship as a must for rural sustainability and growth –

in attitude and action.

Entrepreneurship Roadblocks

• Capital & Technical Assistance– Help financing business; Match business with communities;

Public/private partnerships; Economic/demographic/industry information; Education to meet high-tech demands; Access to business services

• Physical Infrastructure– Access to High Speed Internet; Technology to support

community infrastructure; Reduce cost of technology

• Culture & Education– “Culture change” - lack of support for entrepreneurial spirit;

Isolation from peer group; need access to professional infrastructure, advisors; Education to meet high-tech demands

(from the MN Rural Entrepreneurship Academy, October 2000)

Summary of MN Rural Partners/Kellogg “Economic Reinvention” Grant

FINANCE * CREATIVE CAPITAL * HEALTH CARE * COMMUNITY DESIGN

• Rural economic development today means economic reinvention.

• The challenge in today’s world is managing the interrelationships between so many factors in economic and community life.

• The opportunity lies in managing the complexity in such a way as to channel the creative chaos into productive actions.

• This project builds an interdisciplinary framework to help communities manage economic reinvention in 21st century rural America.

SBA and Kauffman Entrepreneurship in the 21st Century report

The importance of small business and innovation.

• 1950s and 60s large firms with economies of scale were more efficient and competitive in the global marketplace

• Today: growth comes from newer, smaller, more innovative firms

March 2004 report

Entrepreneurship Creates Jobs

Systemic change :

• Do they get 3 out of every 4 dollars of government subsidies?

• Do they get 3 out of every 4 moments of attention by policymakers and development professionals?

Very small- less than 20

employees85.5%

Large - 500 + employees

0.2%Small - 20-99 employees

12.0%

Medium - 100-499 employees

2.3%

Very small- less than 20

employees85.5%

Large - 500 + employees

0.2%Small - 20-99 employees

12.0%

Medium - 100-499 employees

2.3%

Minnesota86.8%

11.0%

2.0%

0.2%

86.8%

11.0%

2.0%

0.2%

U.S. figures

U.S. Census – State Economic Data 2003

This is the opportunity: support entrepreneurship.. help small business succeed… they will innovate &

strengthen the economy & our communities in return

124,680 (1-19 employees)

78,575 (1-4 employees)

368 establishments of 500 + employees

Distribution of MN Establishments by Business Size

Comparisons of MN, rural, metro by percentage of total establishments in that class size

85.5

12

2.30.2

88.9

9.2

1.6 0.2

84.1

13

2.50.2

0

10

20

30

40

50

60

70

80

90

100

Minnesota

Rural

Metro

Comparisons of MN, rural, metro by percentage of total establishments in that class size

85.5

12

2.30.2

88.9

9.2

1.6 0.2

84.1

13

2.50.2

0

10

20

30

40

50

60

70

80

90

100

Minnesota

Rural

Metro

Very small 1-19 Small 20-99 Medium 100-499 Large 500 +

Table: Number of Establishments by Employment-size class

Region 1-4 5-9 10-19 20-49 50-99 100-249 250-499 500-999 1000 or more Total Estabs

Urban 55479 18634 14043 9993 3653 2096 584 174 116 104772

Rural 23072 8254 5167 2948 868 527 134 46 29 41045

Total 78551 26888 19210 12941 4521 2623 718 220 145 145817

Change Policy & Technical Assistance Barriers

• We haven’t changed how we coordinate and administer on-the-ground economic & business development assistance despite the advent of powerful information gathering and matching tools– use the knowledge management power of on-line tools,

such as GIS mapping and enterprise portals such as BizPathways & Finance Avenue.

• Technology’s organizing and communicating powers can reduce the cost of helping small business succeed, especially rural, more distant from service centers.

Make better use of technology (informatics), combined with targeted

face-to-face help, to change the PROCESS of business and economic development.

Flip current model to favor small business support and development ---

where the economic growth is!

• Matches your profile to resources in your area

• Interactive business plan templates

• Business development task checklist

• Email notification of new information

www.bizpathways.org

What is BizPathways?BizPathways

What can BizPathways users do?

• View customized content in Pathways

• Create, save and store business plans

• Track Progress through Pathways checklist

• Subscribe to the electronic newsletter

Who is a service provider?

Anyone who provides a service, tool, or

event for entrepreneurs – whether they are

government, nonprofit, university, or

commercial provider.

What can a service provider do?

• Promote organization, tool, resource, or event

• Perform quick search to answer client questions

• Lead clients to online business plans & more

Entrepreneurial Community Model

Entrepreneurial Community Champion

Four Four CornerstonesCornerstones

Foundation Foundation of Infrastructureof Infrastructure

Community Design

Financial Resources

Creative Capital

Health Care

Academy findings

What is an Entrepreneurial Community Champion?

• Geographic community develops an entrepreneurial culture.

• Citizens map and promote local business development resources.

• Incubators develop for communities of interest for business-to-business networking and strategic alliances across sectors.

• Citizens and service providers use BizPathways & Finance Avenue to organize and disseminate resources.

 

Entrepreneurial Community Champion

Local web-based Minnesota Entrepreneurial Gateway

(MEG) tied into regional

and statewide systems for user- to-resource matching at the

most local level possible..

Entrepreneurial Community Champions

Individuals, teams, and communities proactively

organizing and coordinating resources, creating a more supportive environment for

entrepreneurship.

Evolution to MEGBlending online knowledge management with

on-the-ground knowledge sharing.

• Online Organizing System – BizPathways & Finance Avenue– Resource Management – Training – Implementation Tool

• On-the-Ground Networking– Entrepreneurial Community Champion process -- based on

restructuring community mindset and support towards entrepreneurship

• Policy Shifts to Support Entrepreneurship– Reprioritizing economic development emphasis– Health care insurance reform advocacy

MEG Background

• Three-year framework for rural economic development based on community entrepreneurship (2004-2006).

• Born in 2003 from the BizPathways tool, expanded to include community framework for development and support.

• Based on innovation, invention, re-imagining of community economic development for the 21st century.

MEG at the Community Level

Need INFORMATION, KNOWLEDGE, CONNECTIONS & RELATIONSHIPS to get to.

Communities in

Communities in

TRANSITION

TRANSF

ORMATI

ON

IDEASIDEAS

MN ENTREPRENEURIAL GATEWAY SYSTEM

• Community informatics tools for more informed decision-making at all levels.

• On-the ground local knowledge & connections – timely, organized and accessible.

• Mapping & Matching & follow-thru w/ELS.

More business success & community cohesion

Minnesota Entrepreneurial Gateway

Custom matching, tracking, continuum of care…..

SORT & ASSESS CHANNEL

SUCCEEDING

ENTERPRISES

COMMUNITY

VITALITY

GATEWAY

ENTRANCE

Thousands of service providers, many options, services, where to go, when, how?

Local Gateway

County Gateway

Regional Gateway

MNEntrepreneur

Gateway

MEG – a Network of Networks

MEG Outcomes

• Transform the community economic development approach to understand & support entrepreneurship – create a large & diverse pool of entrepreneurs

• Create a cohesive, coordinated system to access entrepreneurial resources & support at the most local level possible – on-line & on-the-ground

• Inform state & local policy to support small business development as the primary driver of innovation and job creation

On-the-Ground

Knowledge Sharing & Support

Online Organizing System(Knowledge Management)

Local, County, Regional Gatewayshttp://nd.bizpathways.org

http://www.dakotacountybizpathways.org

The time is right …the trends point the way…

• Convergence of Talent and Technology– Tech allows for cost efficiencies in doing the

business of business development – target assistance for small business development

• Desire for more Balanced Lifestyle• Desire for Amenities-Rich Places• Baby Boom Seeking Alternatives

– 40% of all people in business for themselves today are over 50 – leading entrepreneurial wave

MEG Strategy• Use Community and Economic Entrepreneurship as

the Superstory Organizing Framework – Be Enterprising in our Attitude and Actions

– Build on the convergence of business and education tools available through 21st century technology

– Re-invigorate and recognize Minnesota ingenuity to inspire widespread entrepreneurial leadership for the rural economy and community spirit

– Recognize and reinforce the unique role of very small businesses and their advantages using the tools of our age

– Create localized and statewide entrepreneurial business climate and entrepreneurial community culture

– Change policies to support small business & entrepreneurship, especially health care insurance barriers

3,000 Business Service Providers on BizPathways database

Number of providers

Resource Information for Todd County

• OTG-DSS Inc. --- Provides web hosting, web design, electronic software distribution, and network systems support.Browerville320-594-6498ajpeters@otg-dss.comhttp://www.otg-dss.com

• American Heritage National Bank ---- Provides loans to businesses including Lines of Credit, Commercial Real Estate Term Loans, Term equipment notes with repayment plans tailored to the asset being financed and the seasonal cash flow of the business, and Receivable and Inventory Financing.Browerville(320)594-2215http://www.logbank.com/index.phpFirst

Minnesota Entrepreneurial Gateway Communities

• Part of a larger project to study ways to encourage rural community economic reinvention using 21st century tools & strategies to make helpful connections and share risk.– Broadband tools to organize resources and

connect users– Health insurance cost-reduction strategies– Community design strategies to bolster

creativity & encourage connections

Minnesota Entrepreneurial Gateway Communities

• Funded by W.K.Kellogg Foundation and the Minnesota State Network Fund of The Minneapolis Foundation and Minnesota Rural Partners

• Demonstration sites:– Todd County– Mille Lacs Area – Mille Lacs, Aitkin, Pine (through Isle

Recreation & Education Center)– Five Small Towns Project (NW Minnesota)– Fargo-Moorhead Immigrant Development Center– Houston

Minnesota Entrepreneurial Gateway Pilot Communities

Number of providers

= Gateway pilot communities

What does a MEG Community look like?

1. You are open for business! Everyone knows where, how to start a business.

2. You’ve organized your community & business services online and on the ground to be more supportive of entrepreneurship as an 21st century economic development strategy. (Broadband, health care, financial, education and design resources)

3. You recognize and lift up the economic power of small and diverse businesses in your community.

4. You instill from an early age the importance of supporting small businesses in your community and encourage entrepreneurship as an career option for your children and yourselves

Minnesota Entrepreneurial Gateway Communities

• Reduce transaction costs of serving & supporting small business start-up and growth – use online tools to organize resources

• Demystify local process for starting and growing enterprise

• Share risk: Entrepreneurship becomes both an individual & community responsibility. A shared vision – a shared risk for wealth creation and sustainability.

Jane Leonard

President

Minnesota Rural Partners

jleonard@minnesotaruralpartners.org

651-645-9403