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- Entrepreneurship and Innovation
Last week, while instructing a class on strategic planning for economic development, I was asked where I saw the field innovating. My brain immediately jumped in a hundred directions. (This is why Q&A is not always my strong suit.)
First, I thought of how some regions are at the forefront of digital transformation, investing in smart cities and using big data and AI to inform strategic decision-making. This naturally led me to think about how, here at Camoin Associates, we’re innovating within business attraction and engagement as we build ProspectEngage™.
My brain also took a trip to other innovations around truly sustainable development and how some industries are exploring what it takes to create a circular economy.
Inclusive growth came to mind, too, as much of our work now includes piloting new projects and policies aimed at reducing income inequality and improving access to housing, jobs, and quality of life.
Finally, my brain coalesced around the obvious “me” answer and the thread that weaves through all these innovations: Entrepreneurship-led economic development. Of course!
The rapid ecosystem development emerging between economic development and entrepreneurship ecosystems tops my list as the most exciting thing to happen in economic development since downtown revitalization!
A little history is helpful here. Entrepreneurship-led economic development has been around for quite some time in well-known technology-driven economies like Austin, Atlanta, Boston, and Boulder, as well as in rural or disenfranchised communities where business attraction is a non-starter. These communities have been piloting policies and programs to foster vibrant entrepreneurial ecosystems for years.
What’s different about this moment is that an entrepreneurship-led economic development approach is no longer perceived as something unique and only fitting for certain economies with special assets or, in some cases, a last resort. Instead, it is emerging as a strategy that any economic development organization should consider when pursuing a holistic approach to reaching its economic development goals.
This paradigm shift was partly sparked by the Ewing Marion Kauffman Foundation’s four-year, $3 million grant to the International Economic Development Council (IEDC) in 2022 to expand its entrepreneurship-led economic development programming and partnerships.
So, what does entrepreneurship-led economic development look like? What is the role of economic developers in entrepreneurial ecosystem development?
Some of the innovative strategies and tactics include:
- Building Radically Inclusive Entrepreneurial Ecosystems: Creating environments that support entrepreneurs from all backgrounds and ensure equitable access to resources and opportunities.
- Seeking Out and Reducing Barriers to Capital Access: Identifying and addressing financial barriers at all stages along the entrepreneurial journey, from seed funding to scaling.
- Co-Designing Innovative Business-Friendly Policies: Collaborating with entrepreneurs and regulatory agencies to develop a regulatory environment that fosters a conducive business environment.
- Customizing Education and Training Programs: Developing tailored programs to meet communities where they are at, dramatically enhancing entrepreneurial skills and knowledge.
- Supporting Market Access: Assisting startups in reaching new markets through export assistance and corporate partnerships.
- Expanding Access to Underrepresented Communities: Providing tailored support and resources to underrepresented entrepreneurs, promoting diversity and inclusion.
- Strengthening University Partnerships: Re-thinking collaborations with academic institutions to accelerate research commercialization.
- Integrating Startups into Business Retention and Expansion (BRE) Programs: Incorporating engagement with startups in BRE initiatives to support their growth and stability.
- Developing Hybrid Human-Digital Solutions: Creating platforms that combine human expertise and digital tools to help entrepreneurs navigate the ecosystem.
- Re-Inventing Downtowns: Transforming downtowns and main streets into hubs for networking, collaboration, and idea collisions.
Economic developers across the US and beyond are using entrepreneurship-led economic development initiatives to create communities conducive to entrepreneurship, drive economic growth, and foster a culture of innovation and resiliency. These efforts are reshaping the economic development landscape, making entrepreneurship a central pillar of community and economic vitality.
If you want to learn more about what entrepreneurship-led economic development might look like for your community, schedule some time with our Vice President of Entrepreneurship, Christa O. Franzi, CEcD.
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