Entrepreneurship vs Economic Development

I’m frequently asked my opinion on Entrepreneurship as a catalyst for growth, a way that regions or communities can lure their best and brightest young people back home. Some locales even attempt to institutionalize entrepreneurship as an integral part what is called economic development, a fancy name for going out and trying to find jobs for a community.  But many attempts miss the essence of entrepreneurship and wind up being under-valued by entrepreneurs or destroyed by attention to unnecessary detail.

What separates entrepreneurs from economic developers? And can we nurture both in a symbiotic relationship (at least until the entrepreneurial culture has grabbed hold of the reins and economic developers move into the role of holding on for dear life as the opportunities flow in fast and furious)?

The answer is a resounding Yes! The path forward is daunting to old-school economic developers and industrial boards, frustratingly obvious to the serial entrepreneur, the free agent and the entrepreneurial creatives, the cream of the creative class new generation.  With a bit of help, even the new-school economic developer can learn to court entrepreneurs, some of which may become your largest customers and most vocal champions.

We’ll explore these insights over the next few blog posts, as an excerpt from a larger presentation I created as a result of my crash-course in economic development over the past three years. I use this presentation when I speak to localities and communities interested in attracting – or home-growing – entrepreneurs. As a first hint, the picture accompanying this blog should give those with a keen eye and a keen imagination an insight into the role of economic development, entrepreneurial style.

Otherwise, just have someone standing by to take out the trash and shut the lights down.

Entrepreneurs and Mentors

I’m on my way to dinner with one of my mentors; I’ve dropped what I’m doing to drive several hundred miles to meet with him, since this is the closest he’ll physically be for the next few months.

This person, like all good mentors, has had a significant impact on my life; and, like all great mentors, continues to have that impact in a variety of ways. One way is that he’s a great litmus test for entrepreneurs, bosses and others that I may be preparing to engage with. Bring someone to spend a few minutes with him, and I’ll gain as much insight into the other person – and the mentor’s take on this person – than I would over several weeks or months of general conversation.

The time also provides a blueprint for how best to approach a relationship; and, every so often, it provides an ongoing friendship between this long-standing mentor and a future mentor. Even when I’m disappointed by the reaction of a potential business partner or boss, as I was during a recent engagement that ended badly, I can’t say I wasn’t forewarned by his attitude toward the mentor – and the mentor’s initial and ongoing reaction to him.

What does this have to do with entrepreneurship? Quite a lot, actually. Entrepreneurship is quite like mentoring: sometimes you act as the mentor, sometimes you are mentored, other times you are culled out and discouraged from starting something because you aren’t ready to accept the teaching and advice. No one ever regretted being an entrepreneur, but even the best entrepreneur will tell you how thankful they are for someone who stepped in to tell them they weren’t ready to handle a key situation.
Honesty, not spin, is what entrepreneurs crave. They’re too busy for spin, which smacks of insincerity.

TechStar 2008 - The Champion Award

Didn’t get to attend this year’s TechStar Awards, held by the Northeast Tennessee Technology Council, where I’m the youngest board member, but I heard they honored a great entrepreneur at the event. 

I’ve been involved with the planning of the TechStar Awards for the last three years, which celebrates innovation in nine categories in our region of northeast Tennessee (the Tri-Cities, or TRI for those of you who travel a lot): Development of New Technology; Use of Technology in BioScience, in Non-Profit, in Government Agencies, in Community Service, in Enterprise, in Education and in Small Business. Two years ago we added a category of TechStar Champion to single out a person who has helped push technical innovation forward and foster innovation.

TechStar is the brainchild of Shelburne Ferguson, a lawyer who acts more like a great small business person and champions small business innovation and entrepreneuring. 

This year’s TechStar Champion was Jerry Petzoldt, someone who is an entrepreneur and visionary – a term I don’t use lightly – who conceived the idea of putting a World Trade Center in the Tri-Cities (the first non-metropolitan WTC) and someone I highly respect. Congratulations Jerry!

Of course, as is typical, Jerry wasn’t there to accept the award, either. He was too busy doing what he does best ;)  David Temple (shown below) and his father, Sir John Temple, spoke at the event.