Page 23 - 1-Entrepreneurship and Local Economic Development by Norman Walzer (z-lib.org)

12 Norman Walzer and Adee Athiyaman

Students who find satisfaction in their individualism and creativity dur-
ing the early years are more likely to pursue entrepreneurial ventures, in-
cluding businesses, when they reach adolescence and young adulthood.
Equally important is that entrepreneurship principles are best taught not as
an add-on to the school curriculum; rather, they should be incorporated
into other subjects. Kayne also describes resources available for schools to
use in incorporating entrepreneurship into the classroom.

Financial Support
Increasing residents’ interest in entrepreneurship, creating a positive
environment or culture to promote business start-ups, and working with
population segments such as youth is only part of the equation. New
business entrepreneurs must have access to financial capital, of which,
much or most, comes from their own savings and those of their families
and friends.
It is important for communities considering entrepreneurship as a devel-
opment strategy to empower and encourage local financial institutions to
actively support local efforts. This is true of all business starts, not only
those involving entrepreneurs in the sense used here. Financial institutions
in rural areas do not always have a staff with the resources or expertise to
evaluate business opportunities, especially in emerging markets. These in-
stitutions also follow more conservative lending strategies, requiring collat-
eral that is difficult for entrepreneurs to provide. Likewise, small financial
institutions with minimal staff may be less willing to participate in guaran-
teed loan programs available from the Small Business Administration or
other agencies.
Alternative funding arrangements such as angel investors or venture cap-
ital funds used by urban entrepreneurs typically are not as readily available
in rural areas. Markley (chapter 7) describes several options for rural areas
to consider in increasing the availability of start-up funds for prospective
entrepreneurs. The fact that local economic development agencies in most
communities have limited resources places a special burden on policymak-
ers to make a strong case for entrepreneurship initiatives.
Financing entrepreneurship programs often means reallocating resources
from other more established efforts such as industrial attraction. Adequate
funding may also require involvement by philanthropic organizations and
civic groups. As is true in starting any new endeavor, policymakers must
demonstrate the potential for positive impacts of entrepreneurship efforts
on a community. This justification can build on best practices in other com-
munities and on a serious assessment of the potential for local entrepre-
neurship efforts. Discussions in this volume can help community leaders
make a strong case for a variety of local entrepreneurship efforts.