Page 244 - 1-Entrepreneurship and Local Economic Development by Norman Walzer (z-lib.org)

12

Transforming Rural Economies

through Entrepreneurial Networks:

A Case Study

June Holley

While support for individual entrepreneurs—such as state venture funds
and incentives for technology firms—may be effective in urban centers,
such approaches are unlikely to be sufficient to transform many of our trou-
bled rural economies into places of prosperity. What strategies and policy
suggestions can we offer that address the depth of the economic restructur-
ing that is needed in rural regions?
One approach that increasing number of scholars are exploring draws from
complexity theory, network analysis and recent studies of innovation (Kauff-
man 1995; Rogers 2003; Watts 2003; Axelrod and Cohen 2000; McDaniel and
Driebe 2005). These theories describe a set of dynamic processes that, with
small initial investment, can generate powerful forces capable of shifting rural
regions with little business activity into prosperous entrepreneurial regions.
Rather than focus on the individual entrepreneur in isolation, this approach
emphasizes the importance of the relationships between entrepreneurs and
supportive organizations in the region and the capacity of these entities to self-
organize in ways that result in economic advantage both for the entrepreneur
and the region (Cooke, Bockholt, and Todtling 2000; Haragon 2003; Kelly
1998; Saxenian 2000; Rosen 2000; Holley 2005; Krebs and Holley 2004).
In an earlier chapter, Dabson noted that regions are now the critical
unit of economic activity and entrepreneurship and innovation are key in
the process of mobilizing local assets into regional advantage. He also dis-
cussed the various types of entrepreneurs and how their efforts must be
supported. Hustedde discussed the importance of an entrepreneurial en-
vironment within a region to foster local business start-ups and expan-
sions. Lyons and others have stressed the idea that a systematic approach
is needed to meet the needs of various entrepreneurs. Markley described

233