Western Regional Competitiveness Forum Denver - April 4 & 5, 2002 National Governor’s National Governor’s Association Association
Jan 15, 2016
WesternRegional Competitiveness
Forum
Denver - April 4 & 5, 2002
National Governor’sNational Governor’sAssociationAssociation
Clusters in Rural America
Don Macke
U.S.Forest Service
ILLINOIS
IDAHO
NORTH CAROLINA
OHIO
ARKANSAS
NEW HAMPSHIRE
WEST VIRGINIA
MISSOURI
MONTANA
MINNESOTAMAINE
NEBRASKA
NEVADA
TEXAS
NEW MEXICO
ARIZONA
COLORADO
WYOMING
UTAH
IOWA
OKLAHOMA
KANSAS KENTUCKY
WASHINGTON
NORTH DAKOTA
LOUISIANA
MISSISSIPPI
OREGON
MICHIGAN
MARYLAND
National Learning Sites$
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AcademiesRUPRI Capital Case Study SitesTNC SitesUSFS SitesNGA Academy SitesOther Learning Sites
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Entrepreneurship & Rural America
Importance of Entrepreneurs
Pursues Opportunity Lives Proactively Leverages Resources Builds Networks Creates Value
Global Entrepreneurship Monitor
KCEL & Others 3rd Year Comparative International Study 1999 - 10 Counties 2000 - 21 Counties 2001 - 29 Counties
GEM 2000: Entrepreneurship is strongly associated
with economic growth!
The level of entrepreneurial activity explains 70 percent of the difference in economic growth among nations.
All nations with high levels of entrepreneurial activity have above average rates of economic growth.
Only a few nations that have above average rates of economic growth have low levels of entrepreneurship.
National Commission on Entrepreneurship
High-Growth Companies: Mapping America’s Entrepreneurial Landscape.
July 2001
Major Findings:
High-growth companies are truly extraordinary in the economy; fewer than one in twenty U.S. businesses achieve high-growth rates.
High-growth companies are found in all regions of the country, often concentrated in the most surprising areas.
Most fast-growing, entrepreneurial companies are not in “high-tech” industries.
Each one of the 394 regions in the country contains some high-growth companies.
Most regions’ high-growth companies concentrate in certain specific industry sectors.
28North Platte, NE
69Pueblo, CO
128Fort Collins, CO127
Laramie, WY
80Rock Springs,
WY
125Grand
Junction, CO
161Flagstaff,
AZ
198Farmington,
NM
112Sante Fe, NM
173Denver, CO
126Colorado Springs, CO
Entrepreneurial Growth Company Index
MICHIGAN
NORTH CAROLINA
OREGON
MISSISSIPPI
KENTUCKY
NEBRASKA
MAINE
WEST VIRGINIA
High Performing ESOs
Mini-Wrapup:
Entrepreneurs are Important EGCs are Critical ESOs make the Difference
Our Position. . ..
Weaker Rural Economic Performance is Due in Part to Lower Levels of
Entrepreneurial Activity?
Rural Challenges:
People are Entrepreneurial Fewer Entrepreneurs Far Fewer EGCs Inconsistent ESOs Dominance of Extractive Industries
NCOE -
Sector
Number of High-Growth
Companies in Sector
Number of All Start-Ups Growing
to 20 or More Employees in
Sector
Manufacturing 25,273 4,566
Business Services 28,254 5,663
Distributive 38,452 4,488
Extractive 5,798 513
Local Market 113,001 15,656
Retail 48,619 11,055
GEM-Trends Entrepreneurs are Powerful Economic Drivers
Entrepreneurship Rates by Industry Grouping. . .
Extractive 4%
Transforming 30%
Business 21%
Consumer 45%
Opportunity:
Energizing
Rural Entrepreneurs
How?
Clusters & Energizing Rural Entrepreneurs
Why Clusters?
Many reasons It is a remarkably convenient way to organize
the rural landscape. Matches state’s sectoral approaches.
Rural Reality:
SectorPlace
Rural America’s Economy
Support
Activities
Natural
Resource
Industries
Processing
Industries
Elderly
& Retirees
America’s Playground
Corridor Industries
Government
Prisons Military Bases Federal Lands Indian Reservations Waste Sites
Health Care Housing Services Retail
Telecom
Highways Railroads
Second Homes Tourism Recreation
Forestry Mining Energy Agriculture Fisheries Waste
Resource Processing
Manufacturing
Retirement Homes
Rural Reality:
Increase in Primary Industry Output Decrease in Massive Restructuring Decrease in Secondary Industry Output
Central Nevada Story
U.S. Forest Service Center for Economic Development,
University of Nevada at Reno KCEL RUPRI Area Develop Interests
Central Nevada
EurekaLander
Layered Analysis:
1. Area’s Economic Clusters
2. Entrepreneurs within Clusters
3. GAP Analysis
4. Opportunity Identification
OpportunityKnowledge
Energizes Area
Entrepreneurs
Increased DealFlow
Cycle of Development
Central Nevada Clusters
M in in g
A lfa lfa H a y T ra n sp .
S erv ices
A rtisa n C ra fts L o ca l
S erv ices
G o v ern m en t O th er R etirem en t
Entrepreneurs:
Identify Them Focus on Them Customized Support Connect Them
Entrepreneurs within Rural America
Active
Aspiring
Potential
Survival Lifestyle
Grow
th
Hobby
EGCs
Supporting Entrepreneurs & an Entrepreneurial Climate
Market Awareness
Perceived Real
Opportunities
Motivation to Growth
Enterprises
Business Capacity
Future Work:
U.S. Forest Service– Four Corners Area
Nature Conservancy– Sustainable Practices
Northern Great Plains– Agriculture
State Academies Targeted Research
For More Information. . . .
Center for Rural Entrepreneurship – http://www.ruraleship.org
Kauffman Center – http://www.entreworld.org
RUPRI - http://www.rupri.org