Page 21 - 1-Entrepreneurship and Local Economic Development by Norman Walzer (z-lib.org)

10 Norman Walzer and Adee Athiyaman

This view is now open to serious debate with solid research support on both
sides.
Lyons, Lichtenstein, and Kutzhanova (chapter 6) make a strong case that
local institutions can, in fact, provide entrepreneurs with the skills needed
to help them succeed, but this process requires an integrated approach by
service providers. A system must work with entrepreneurs at their levels of
development to provide training, finance, or other assistance in a timely
fashion based on the needs of entrepreneurs. Communities often already
have many, if not most, of the relevant service providers, but lack a system
that makes service providers function as a team responding to the needs of
entrepreneurs rather than focusing on programs required by funding agen-
cies.

Culture of Entrepreneurship
Creating a scenario to foster entrepreneurial activities in the private or
public sector is difficult because many factors, personalities, and circum-
stances are involved. Entrepreneurial activity requires motivation and op-
portunities and, in this respect, it involves both talent and skills. A climate
conducive to innovation and sharing among entrepreneurs may also lure
people with similar talents to an area and further enhance entrepreneurial
efforts. The concept of Open-Source Entrepreneurship where everyone
gains from more interaction and networking among entrepreneurs is the
basis of several successful programs.
Fairfield, Iowa (pop. 9,509), is a prime example of the evolution and de-
velopment of an entrepreneurial climate (Chojnowski 2006). The location
of Maharisi University in a relatively small midwestern community changed
the culture and ways of approaching issues. The result was the attraction of
people willing to start businesses or engage in other innovations not often
found in small rural communities. The immigrants and Fairfield residents
created a synergy that fosters innovation and creativity. The outcome is a
small community with an impressive list of innovations, inventions, diverse
new businesses, and philanthropy that would be the envy of most commu-
nities of similar size. Whether a similar experience and outcomes can be
easily replicated in other communities is unknown. What is clear is that an
entrepreneurial environment, however created, underlies these successes.
Hustedde (chapter 3) describes the importance of culture(s) within a
community and its role in fostering entrepreneurship. Designing and shap-
ing an environment in which people take risks, share resources, and other-
wise assist each other in fostering innovation is important, and public agen-
cies can have a major impact on building and shaping this environment.
Hustedde describes seven strategies used successfully to create an environ-
ment in which entrepreneurship can prosper. These strategies are based on