Page 18 - 1-Entrepreneurship and Local Economic Development by Norman Walzer (z-lib.org)

Introduction and Overview 7

within an agency or unit to promote entrepreneurship and innovation suc-
ceeds more often than when it is included in a unit with many other as-
signed responsibilities. The result has been that many states now have en-
trepreneurial networks, centers, and other initiatives to stimulate job
creation using an entrepreneurship strategy (NGA 2004; Williams 2004).
The diversity of programs and approaches used by development agencies
in the name of entrepreneurship has made these strategies difficult to de-
fine precisely. Paramount to success is creating an environment in which in-
vestors take risks; function in a flexible environment allowing them to react
quickly to market changes; and adopt innovative problem-solving ap-
proaches. Fortunately, this type of environment can exist in both rural and
metro areas.
On the other hand, local development practitioners may see entrepre-
neurship as a specific or narrow development strategy focusing directly on
identifying potential business investors, helping them find ways to take ex-
isting business ventures to higher levels or identify new business opportu-
nities. These programs may be distinct from more traditional business at-
traction strategies or even Small Business Development Centers that help
potential investors with business plans and internal management issues.
The two approaches to entrepreneurship just described are somewhat
complementary, but successful communities or regions will adopt both. As
later discussions in this book show, the greatest success in stimulating en-
trepreneurship is likely in communities with a climate and a system of ed-
ucation and technical assistance that address the needs of entrepreneurs at
all levels. This environment promotes innovation and new ventures, inter-
actions among business investors, and includes population groups prone to
business investment.

PURPOSES OF THIS BOOK

Entrepreneurship is hard to define and two distinct groups have been en-
gaged in discussions of ways to promote the process. As noted previously,
researchers have spent considerable energy trying to identify common char-
acteristics of successful entrepreneurs and outlining the conditions that will
advance entrepreneurial efforts and maximize success.
Practitioners, on the other hand, have focused more on designing pro-
grams aimed at starting businesses such as business plan competitions, net-
working seminars among interested groups, and small grants to help launch
business ventures. In some instances these efforts are independent of other
technical assistance or education efforts.
Scholars and researchers may tend to dismiss some of these programs as
less effective because they are not grounded in theory or are not sufficiently