Entrepreneurship in Dane County Edward Clarke Strategic Innovation Office MATC

Entrepreneurship in Dane County

Edward ClarkeStrategic Innovation Office

MATC

Presentation Outline

What is an “entrepreneur”?Why care about entrepreneurship?What supports entrepreneurs?What is the situation in Dane County?What can we do?

Entrepreneurship

One of the four basic categories of resources, or factors of production (the other three are labor, capital, and land).

An entrepreneur is a person who organizes, operates, and assumes the risk for a business venture.

HED Work Group: GLOSSARY of ECONOMIC DEVELOPMENT TERMS

Why Care? Ans.= 2/3

Jobs: 2/3 of all new jobs

Innovation: 2/3 of all technology innovation

Prosperity: 0.7 correlation between GDP and entrepreneurship in the G7 nations– Accounts for 50% difference in growth

Positive Regional Characteristics

1. Diversity of Capital2. Enabling Culture3. Strong Local Networks4. Supportive Infrastructure5. “Entrepreneur Friendly” Government

National Commission on Entrepreneurship 2000

1. Diversity of Capital

Start up funding is scarce but growing

Recent state legislation is positive

Wisconsin is more conservative with public funding than other states

2. An Enabling Culture

HistoryLeadershipVisionRole ModelsValues

3. Strong Local Networks

“Networks are the single most critical factor for a strong entrepreneurial region.”

National Commission on Entrepreneurship 2002

3. Strong Local Networks

Attracts capitalAttracts management talentHelps create infrastructureBrokers contactsGives entrepreneurs a voice

3. Strong Local Networks

Build on existing initiatives– Biomedical Collaborative

Build on existing clusters

4. Supportive Infrastructure

WorkforceEconomic EnvironmentSupport SystemsQuality of LifeEntrepreneurial Environment

5. Entrepreneur Friendly Government

Regulatory policyTax PolicyAdvising and supporting agenciesDirect financial assistanceRecognition

How are we doing?

Forbes Magazine May 2004– Madison: “The Miracle in the Midwest”

#1 metro area to launch a business or a career

Forbes 20041. Madison, Wis.

Population: 443,000. Job Growth: 1.5%.Income Growth: 4.3%.

In Madison 41% of the adult population has a college degree--almost twice the national average.

Per capita income is growing quickly. All that helps create a tight labor market: At 2.7%, unemployment is the lowest of any of the 150 largest metro areas.

Job growth (Index = 1997; 2002)1

Score: 103.75

Rank: 56

Job growth (Index = 2001; 2002)2

Score: 101.27

Rank: 47

Wages & salaries growth (Index = 1996; 2001)3

Score: 103.06

Rank: 55

Wages & salaries growth (Index = 2000; 2001)4

Score: 102.77

Rank: 33

Short-term job growth5 Growth: 1.75 %

Rank: 25

Relative HT GDP (Index = 1997; 2002)6

Score: 87.62

Rank: 119

Relative HT GDP (Index = 2001; 2002)7

Score: 100.12

Rank: 112

High-Tech GDP LQ - 20018 Score: 0.73 

Rank: 80

# of HT GDP LQs Over 1 - 20019

Score: 4

Rank: 32

Best Performing

Top 200 Cities

Madison, WI

Overall Rank: 21

Population: 432,654

Milken Institute

Regional Challenges

Wisconsin entrepreneurial report card =D

•Promote industry clusters where a competitive advantage exists

•Use a balanced approach of targeted recruitment, global branding, business creation and existing business retention.

•Integrate higher education into economic development efforts.

•Develop creative, inclusive approaches to rural prosperity.

•Create agile leadership networks

Raleigh Durham Action Plan

Specific Steps

Encourage more incubationEngage local banksSupport state venture funding effortsLink efforts to state clusters Promote networks and consortia of businessesIntegrate economic development initiatives with City and region