Page 54 - 1-Entrepreneurship and Local Economic Development by Norman Walzer (z-lib.org)

What’s Culture Got to Do with It? 43

gue that this approach merely “skims the cream from the top” and ignores
other viable forms of entrepreneurship.

WHY ENTREPRENEURSHIP?

Community leaders must make a case for entrepreneurship before investing
time and energy in building an entrepreneurial environment. For the most
part, rural communities should pursue a broad-based approach to social
and business entrepreneurship—those with high growth potential as well
as those who can meet local needs.
Microenterprises, those that employ four people or less, should be con-
sidered part of a rural development strategy for three major reasons: (1)
they allow the disadvantaged to build assets and accumulate wealth; (2)
they create the bulk of new jobs; and (3) microenterprise entrepreneurs
tend to become more involved as leaders in their community (Dabson
2003).
Both social and business entrepreneurs are essential for the quality of
life in rural areas. They often offer essential services and products such as
grocery stores, automobile repair, and health care. They also make life
more vibrant and interesting for rural residents in fields such as recre-
ation, retail, and financial services. They often provide leadership to stim-
ulate social and business ventures and can create more philanthropic op-
portunities to strengthen local life. Rural entrepreneurs can also provide a
laboratory for business and social innovation; produce high-quality, lo-
cally controlled food and fiber resources; protect and restore the environ-
ment; and provide new opportunities for immigrants and the disadvan-
taged (Shuman 2006).
Social and business entrepreneurs provide other economic benefits as
well. They increase wealth in a community through external grants and in-
vestments and through links with external markets. Small enterprises ac-
count for half of the new jobs created (Headd, Ou, and Clark 2004). One
can argue that entrepreneurial organizations are more efficient and dy-
namic because they can respond more quickly to change than highly struc-
tured large organizations.
Entrepreneurship should be a centerpiece for rural economic develop-
ment. Large businesses often ignore local needs and create a sense of de-
pendency while local entrepreneurs are more closely tied to place, less re-
sistant to relocation, and have a tendency to be good neighbors (Shuman
2006).
While entrepreneurship is a logical economic development strategy for
rural communities, one should note that entrepreneurship tends to be a
long-term solution to economic issues rather than a panacea that easily