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Entrepreneurship in
Dane County
Edward Clarke
Strategic 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.
2.
3.
4.
5.
Diversity of Capital
Enabling Culture
Strong Local Networks
Supportive Infrastructure
“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
History
Leadership
Vision
Role Models
Values
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 capital
Attracts management talent
Helps create infrastructure
Brokers contacts
Gives entrepreneurs a voice
3. Strong Local Networks
Build on existing initiatives
– Biomedical Collaborative
Build on existing clusters
4. Supportive Infrastructure
Workforce
Economic Environment
Support Systems
Quality of Life
Entrepreneurial Environment
5. Entrepreneur Friendly
Government
Regulatory policy
Tax Policy
Advising and supporting agencies
Direct financial assistance
Recognition
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 2004
1. 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
Job growth
(Index = 2001; 2002)2
Best Performing
Wages & salaries growth
(Index = 1996; 2001)3
Top 200 Cities
Wages & salaries growth
(Index = 2000; 2001)4
Madison, WI
Short-term job growth5
Overall Rank: 21
Population:
432,654
Relative HT GDP
(Index = 1997; 2002)6
Relative HT GDP
(Index = 2001; 2002)7
High-Tech GDP LQ - 20018
Milken Institute
# of HT GDP LQs Over 1 20019
Score:
103.75
Score:
101.27
Score:
103.06
Score:
102.77
Growth:
1.75 %
Score:
87.62
Score:
100.12
Score:
0.73
Score:
4
Rank:
56
Rank:
47
Rank:
55
Rank:
33
Rank:
25
Rank:
119
Rank:
112
Rank:
80
Rank:
32
Regional Challenges
Wisconsin entrepreneurial report card =D
Raleigh Durham Action Plan
•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
Specific Steps
Encourage more incubation
Engage local banks
Support state venture funding efforts
Link efforts to state clusters
Promote networks and consortia of businesses
Integrate economic development initiatives with
City and region