Dr. John C. Allen, Utah State University Marilyn Schlake, University of Nebraska-Lincoln

Dr. John C. Allen, Utah State UniversityMarilyn Schlake, University of Nebraska-Lincoln

Entrepreneurship - Tools & Techniques

Growing Opportunities & Rural Development

2008 National SARE Conference t Kansas City, MO t March 25-27, 2008


Presentation Overview1. Research Questions

What role does the community play in fostering entrepreneurial behavior?

Does community structure influence the number of new jobs and businesses?

2. Research Findings3. Communities & Businesses Working

Together4. Entrepreneurial Tools

Entrepreneurial Sustainable Agriculture CD

Tilling the Soil of Opportunity & More


Self-Development Projects Involvement in the effort by local

organizations

Substantial investment of local resources

Local control of the resulting enterprises


Five Recognized Development Strategies

1. Entrepreneurship2. Business Retention and

Expansion3. Industrial Recruitment4. Workforce Development5. Tourism


THEORETICAL FOUNDATION- Community Development

Entrepreneurship – an economic development strategy embraced within broader concept of community development

Community development – “….group of people in a locality initiating a social process (i.e., planned intervention) to change their economic, cultural, and/or environmental situation.”

Development in the community vs. development of the community


NebraskaEDGE: A case study

Nebraska rural entrepreneurial training program

Hosted by local communities, organizations and associations

Develops community capacity and supports launching of new businesses and supports expanding existing businesses.


Desired Outcome

Building community capacity through facilitating new structural arrangements

Increased entrepreneurial activity within the community and region

The definition of entrepreneurial activity is expanded to include :

• Civic entrepreneurship• Social entrepreneurshipBoth enhance a community’s capacity to

respond to change.


First Research Question

What role does community play?


Relevance to government and communities

• Entrepreneurial activity can be viewed as individual and community activity

• How and if a community organizes itself impacts number of jobs and businesses started and expanded

• Development of community impacts entrepreneurism


References

• Korsching, Peter F. and John C. Allen. “Locality Based Entrepreneurship: A strategy for community economic vitality.” Community Development Journal Vol 39 No. 4, 2004 pp. 385-400.

• Korsching, Peter F. & John C. Allen. “Local Entrepreneurship: A Development Model Based on Community Interaction Field Theory.” Journal of the Community Development Society. Vol. 35, No. 1, 2004. pp. 25-43.


NebraskaEDGE EDGE is a community-based entrepreneurial training

program designed to encourage the expansion of small businesses and enhance the economic climate of Nebraska communities.

Trained nearly 2,400 people interested in or operating a small business. Economic impacts and partners in 39 different regional centers affecting 280 different communities since 1993.

Selected as a Best Practice for Rural Economic Development by the National Governors Association, 2003 & 2004.


Community Benefits

• Build resources to successfully organize and conduct a training course.

• Increase business networking and cooperation.• Create a supportive business environment.• Experience an expanded economic.


Participant Benefits• A completed business plan• Practical business management skills, and

decision-making tools.• Potential start, expansion or divestiture of their

business.• Local business networks & enhanced

relationships. • Enhanced local economies.


Successful Communities North Platte Coalition Southeast Nebraska Coalition Valley County Coalition Tri-EDGE Region


Tools for Business Development

Entrepreneurial Sustainable Ag DVD Tilling the Soil of Opportunity Building a Sustainable Business Website Sites


Entrepreneurial Sustainable Ag - Free DVDAlternatives for Processing, Packaging, Labeling and Marketing in Retail/Internet EnvironmentsTraining Tool for Educators and

Farmers/Ranchers Working Together

Audio/Video PresentationsPPT SlidesResource Directories – Western

States


PresentationsThe Producer Perspective – Linda GillmoreMarketing into Local Food Systems and

Sustainable Marketing – Jim DyerA New Venture Creation Process – Aaron

JohnsoneCommerce Overview and Technology – Eric

HawleyA Primer on Processing Foods to Add Value –

Barbara RascoFarm Bill and Funding Opportunities for New

Agriculture Marketing and Enterprises – Kim Leval


Allows for realistic evaluation of ideasHelps producers prepare for changeShows opportunities and pitfallsBrings family members and/or partners

together to discuss the future Increase income potential

Your Business, Why Plan?


The owners assumes the lead in the process

The planning process involves everyone in the family and/or business

The plan reflects realityThere is a contingency plan for the worst

case scenarioThe goals and objectives are achievable

and clearThe plan is flexibleThe plan is reviewed often and revised

whenever “reality” dictates

Successful Planning


Tilling the Soil of Opportunity

A producer-driven training program offered on the community level.

A business management class organized around each participant’s business.

An opportunity for producers to develop a well- reasoned and supported agricultural business plan that’s ready to take to the bank.


Course Topics1. Take Stock of Your Business2. Basic Equipment Required: Planning

& Research3. The Legal Terrain4. Manage from the Ground Up5. Plant it, Grow It, Market It6. Reap the Benefits – Marketing

Strategies7. Get Your Budgets in Line8. Analyze These: Cash Flow and

Financial Statements9. Cultivate Your Money Resources10.Harvest Your Future


Building a Sustainable Business

Developed by Minnesota Institute for Sustainable Agriculture & Sustainable Ag Network

Self-paced materialsMinar Business Plan exampleAvailable on-line free

http://www.misa.umn.edu/vd/bizplan.html

A Guide to Developing a Business Plan for Farms and Rural Businesses.


Building a Sustainable Business

Task 1 – Identify ValuesTask 2 – Farm History and Current

SituationTask 3 – Vision, Mission and Goals – Task 4 – Strategic Planning and

EvaluationTask 5 – Present, Implement and

Monitor Your Business Plan

A Guide to Developing a Business Plan for Farms and Rural Businesses.


Online ResourcesStart writing your business plan with INVenture ... a business planning tool to successfully launch a

new venture (formerly known as the AICC Business Planner).https://www.agecon.purdue.edu/planner/

An easy-to-use guide to help you focus your business ideas and make your consultation more valuable http://agviability.cornell.edu/pdf/Pre-businessPlanWorkbook.pdf

Fact sheets, analysis tools, videos and other educational materials to help you create and operate a successful value-added agricultural business. http://www.agmrc.org/agmrc/business/

Contacts

John C. Allen, Ph.D.Professor of Sociology Department of Sociology,

Social Work & Anthropology

0730 Old Main HillUtah State UniversityLogan, Utah 84322-0730

Phone: 435-797-0310Email:

[email protected]

Marilyn SchlakeAssociate DirectorNebraskaEDGE

ProgramCenter for Applied

Rural Innovation103 Miller HallUniversity of NebraskaLincoln, NE 68583-

0711

Phone: 402.472.41318

Email: [email protected]

Documents

Dr. John C. Allen, Utah State University Marilyn Schlake, University of Nebraska-Lincoln