Lesson 10: CREATING AN ENTREPRENEURIAL ENVIRONMENT
Lesson Objectives:
At the end of this lesson, you will be able to:
• Explore the idea of forming an entrepreneurial environment
• Explain the impact of entrepreneurship to the local communities
Discussion:
CREATING AN ENTREPRENEURIAL ENVIRONMENT
When economic developers talk about a positive environment for
economic development, they are often talking about the business climate in the
traditional sense – are there sites in the industrial park, is the community “business
friendly,” are there roads and sewers for new factories? When we talk about an
entrepreneurial environment, we’re talking about much more.
There are three components of this environment that community leaders
need to address:
• Culture – Awareness of the importance of entrepreneurs to the local
economy, celebration of the value that entrepreneurs bring, openness to
entrepreneurs who often march to the beat of a different drummer,
acceptance that failure is part of the entrepreneurial process and a
willingness to encourage and support entrepreneurs when their first (or even
second) venture doesn’t pan out.
• Infrastructure – Moving beyond the typical notion of infrastructure to
include traditional and non – traditional leadership, educational institutions
like community colleges and regional universities, cultural and recreational
resources, quality schools, social organizations that are diverse and
emphasize creativity.
• Entrepreneurial support elements – Specific programs and initiatives
designed to provide a range of support to entrepreneurs of all types when
and how they need it, including service providers like the Chamber and
Small Business Development Centers, networking organizations and
opportunities, financing programs, business incubation services, mentoring
and coaching, and youth entrepreneurship education in and outside the
schools.
Readiness Assessment tool that provides a useful way for you to think about
whether your community is ready to embrace entrepreneurship as a
development strategy. This tool identifies six readiness factors to consider:
• Openness to entrepreneurship as a development strategy
• Commitment to balancing business attraction and support for
entrepreneurs
• Availability of entrepreneurship programs and support services
• Willingness to invest in entrepreneurship development strategies
• A leadership team committed to entrepreneurship
• Willingness to work beyond town borders to tap resources and achieve
success
Entrepreneurs Can Enhance Local Communities
1. Sponsor non – profit organizations in the community.
Many local organizations are looking for company sponsors to
cover the costs of major events and some administrative expenses.
2. Incorporate volunteering in the company missions.
Make a passion for social good part of your company’s mission
so you and your employees can give back to the community
together.
3. Design a business model that gives back.
If you are in retail or any other type of product sales business,
consider donating a portion of the profits of each sale automatically.
4. Contribute to the local economy.
Make a commitment to buy supplies and raw materials from
local vendors and partner with local businesses for any services
and other business – related purchases.
5. Promote local businesses.
In addition to being an active participant of the local
economy’s ecosystem, you can take the lead on promoting other
local businesses through co – marketing efforts or simply through
referrals.
What is Entrepreneurial Facilitation?
Entrepreneurial facilitation recognizes that the person, rather than the
business idea, is of first and foremost importance. Thus, a facilitator focuses on the
goals and dreams of the interested person, and not simply on the details of
developing the business plan.
Accessing Enterprise Facilitation
Entrepreneurial Coaching
Which Type of Entrepreneurial Facilitation is Right for Your Community?
Community economic developers musk ask not only whether a community
should have a facilitator, but if so, which type of facilitator is best for their situation.
Some important considerations to keep in mind when deciding which
entrepreneurial approach is right for your community are:
• Size and Location of Your Community
• Available Monetary Budget for Project
• Existing Entrepreneurship Support System
• Local Culture
MICRO – ENTREPRENEURS: CREATING ENTERPRISING COMMUNITIES
We suggest that the local authorities and Small Business Service work with
the Local Strategic Partnerships (LSPs) to find ways of catalyzing local partnerships
and initiatives that can specifically address the agendas set out in this module
and that these should fit with sub regional and regional strategies aimed at
economic and social development.
ENTREPRENEURSHIP AS A COMMUNITY DEVELOPMENT STRATEGY
A profound change in community economic development strategy over
the past decade has been the emergence of entrepreneurship.
Furthermore, to develop sustainable entrepreneurship in a community, it is
rarely sufficient to change just one element in the ecosystem. Instead, community
developers and local leaders must change several elements simultaneously.
Application:
Answer the following:
1. Explain, in your own words, what micro-enterprises are and how they affect
the local economy.
2. Give a specific example of a micro-enterprise in your local community and
describe its operations.
Summary of the Lesson:
Communities across the nation are struggling to find viable economic
development opportunities and have long relied on industrial recruitment to
create businesses and jobs.
Entrepreneurial facilitation recognizes that the person, rather than the business
idea, is of first and foremost importance. Thus, a facilitator focuses on the goals
and dreams of the interested person, and not simply on the details of developing
the business plan.
Entrepreneurial coaching is an emerging approach to entrepreneurial facilitation.
Coaching or “mentoring” has been around for ages, whereby a client is
“coached” on the necessary skills by an expert.
Suggested Links (Optional):
1. Entrepreneurship in the Philippines: Opportunities and Challenges for
Inclusive Growth
https://www.cipe.org/resources/entrepreneurship-philippines-opportunities-
challenges-inclusive-growth/
2. How to Create a Culture of Entrepreneurship in Business
https://www.lcibs.co.uk/entrepreneurship-business/
3. 5 Ways Entrepreneurs Can Enhance Local Communities
https://www.entrepreneur.com/article/280501
References/Attributions:
3G E-Learning. (2018). The Entrepreneurial Mind. New York, New York.
