Kentucky Entrepreneurial Coaches Blog

Recreational Property Available Near Morehead, KY

2011-07-24T19:24:00.000-07:00

A 327 acre property with 22 acre lake is available near Morehead, KY . This is a versatile property that could be a paylake, vineyard and winery , B&B, spiritual or wellness retreat center and other uses . Priced to sell at $985,000 . Contact Mark Sievers for details .

Article on new resource for food innovators in Kentuckyi

2010-09-02T16:36:00.001-07:00

See link below :

http://www.bizlex.com/Articles-c-2010-08-24-94587.113117_Kentucky_Food_Innovators_Have_New_Resource_at_UK.html

Checkllist for starting a business

2010-07-22T05:56:00.000-07:00

How to Start a Business: Checklist for Starting a Business Start a Small Business

Owning their own business is a dream many Americans share, and learning how to start a business is not that difficult. There are certain steps that must be taken for legal and financial purposes, and other aspects that need to be addressed to ensure that you will be successful. The following start business checklist should serve as a rough guideline; your specific needs may vary depending upon the type of business you plan to operate.

How to Start a Small Business

Recognize why you want to start up a business - Perhaps you're tired of working for someone else and want to be free of the nine-to-five rat race. Maybe you have an idea for a product or a service for which you perceive there is great demand. While some reasons may be better than others, knowing why you want to start a small business is the first step in the process.

Decide on the type of business you want to operate - You could buy a franchise, purchase an existing business, or start something from scratch. Each method has its positives and negatives, and your task is to choose which will serve you best - from the perspective of temperament as well as financially.

Do plenty of research - Once you have an idea of the kind of small business you want to start, look more closely at the field to see if it offers you the kind of profitability you hope to achieve. Is the product or service in demand? How intense is the competition? What is the average profit margin, and will that give me the money I 'm hoping to gain? How long will it take before I'm successful?

Review your financial circumstances - The research you do above will help you better comprehend what sort of money you will need to start a business. Next you need to examine your own finances and figure out where the money will come from. Do you have a nest egg set aside? Is it possible to tap into your home's equity? Can you qualify for a small business loan? Do you expect to bring in outside investors?

Create a business plan - Because most people do not have the cash it takes to pay for a complete business startup, potential lenders or investors will want to see your business plan. This is a roadmap of your expectations and abilities, along with an analysis of the business you expect to build.

Create a marketing plan - This will likely be part of your business plan, but it should also be capable of standing alone in order to provide a pathway to sales success. A good marketing plan contains information on the marketing strategies you expect to employ, and what sort of advertising you will use to promote your small business.

Find your funding - With the aforementioned documents in hand, it's time to dredge up some capital for your enterprise. If you expect to secure a bank loan as part or all of your startup costs, look closely at the possibility of a loan guaranteed by the SBA (Small Business Administration). If you belong to a credit union or have been a military veteran, these avenues to money are worth exploring as well.

Choose a corporate name and a domain name - If you are buying a franchise or an existing business, this step is probably unnecessary. But for a new business, this is perhaps one of the most important things you will do. Your Secretary of State's office can tell you if the name you propose is available, and any number of domain registries on the Web can help you select the best possible Internet address. Some excellent advice: Even if you're not quite ready to use your online presence, still register the domain name immediately.

File the proper paperwork with the Secretary of State's office - Call upon the services of a business attorney and a CPA to help you decide whether you wish to form a sole proprietorship, a partnership, a corporation, or an LLC. Contact your state and federal tax services to obtain a list of the paperwork you will need to file - Make sure to note all filing deadlines in order to avoid paying penalties.

Get ready to open for business - Last minute preparations include finding a location from which to operate, filing all the proper legal occupancy documents, hiring and training employees (if that’s part of your plan), opening a bank account, having business cards printed, preparing your sales materials and signage, and look into joining a local merchants association to promote cross marketing opportunities

Interesting SBA program access news

2010-07-09T18:46:00.000-07:00

Sam’s Club offering SBA loans
Sam’s Club is testing an online program to offer business loans of $5,000 to $25,000 to qualifying club members.
The warehouse retailer is working with Superior Financial Group, a Small Business Administration lender, on the project.
The Sam’s Club pilot program will focus on minority-, women- and veteran-owned small businesses as well as micro-entrepreneurs under the SBA’s Premier Outreach Express products such as Community Express, Patriot Express and Export Express loans.
Walnut Creek, Calif.-based Superior Financial Group is one of only 13 federally approved small-business lending corporations (non-bank lenders), and specializes in providing access to credit for “main street” and underserved borrowers, the company said.
Sam’s Club said that in a November 2009 study it conducted, nearly 15 percent of its business members reported being denied a loan to run their operation, up from 12 percent in April 2009.
“We believe this pilot program is a step in the right direction to help fuel small business growth and create jobs to stimulate our economy,” said Catherine Corley, vice president of membership at Sam’s Club, in a statement. “It’s also simple to apply and costs less…”
Sam’s Club members who apply for a small-business loan online during the pilot will get $100 off the application fee, a 20 percent discount and a 7.5 APR, which is 25 basis point discount, the company said. Loans will remain at 10-year terms, common to help keep monthly payments low, the company said. There is no penalty for early repayment.
A business membership at Sam’s Club costs $35 a year.
Sam’s Club said that while the majority of the small-business loan pilot program will be conducted online, it will test some in-club and other marketing efforts to reach business members and small-business owners.
Sam’s Club is a division of Bentonville, Ark.-based Wal-Mart Stores Inc. (NYSE: WMT). The retailer has two stores in Louisville, one in Clarksville, Ind., and one in Elizabethtown, Ky.

www.thesieverscompany.com

Link to article on leveraging WEG for business oppotunities

2010-05-18T10:12:00.000-07:00

http://www.bizlex.com/Articles-c-2010-05-12-92605.113117_Leveraging_the_WEG_requires_flexible_thinking.html

Useful website for start-up

2010-03-13T20:57:00.000-08:00

I recently discovered the Startup Nation http://www.startupnation.com/ website and it has some useful information. I also created a Kentucky Network group on there .

2009-12-15T16:07:00.001-08:00

On Thursday December 10th, Sens. Landrieu and Snowe introduced S. 2869, the Small Business Job Creation and Access to Capital Act. This new bill contains a series of measures that were separately introduced by Sens. Landrieu and Snowe earlier this year. The Senate Small Business Committee will mark up S. 2869 next Thursday, December 17th. The bill and a section-by-section are attached for your review. Highlights of the legislation include:
Increase the loan limit on 7(a) loans from $2 million to $5 million.
Increase the loan limit on 504 loans from $1.5 million to $5.5 million.
Increase the loan limit on microloans from $35,000 to $50,000.
Allow the 504 loan program to refinance short-term commercial real estate debt into, long-term, fixed rate loans.
Extend the authorization to provide 90 percent guarantees on 7(a) loans and fee elimination for borrowers on 7(a) and 504 loans through December 31, 2010.
Direct the SBA to create a website where small businesses can identify lenders in their communities.
Increases the maximum guarantee on 7-A loans to $4.5 million
Changes the eligibility criteria to (a) a tangible net worth not to exceed $15 million and (b) the average net income after Federal Taxes over the past two full fiscal years is not more than $5,000,000.

This Bill is deserves support !

Restaurant Real Estate Opportunities

2009-05-11T07:24:00.001-07:00

The current economy is creating a lof of opportunities for restaurant growth for operators that can take advantage of the market . Rather than grow by spending the capital to build a new facility or convert a non foodservice facility into a restaurant, there are many " second generation space " opportunities which are spaces that have already been built out for a restaurant and can be acquired at a much lower investment than a new build out . Restaurant infrastructure is expensive with costs for HVAC , fire protections systems , cooler/freezer systems, etc.. Opportunities exist out there throughout Kentucky and beyond to grow your business at reduced capital investment costs .

Limestone M & A Alliance formation - self starting business stimulus

2009-03-27T18:53:00.000-07:00

Two Kentucky business intermediaries , Mr. Jay Knoblett (owner of Arlington Scott, Inc.) and Mr. Mark Sievers (owner of The Sievers Company LLC) , have formed the Limestone M&A Alliance . This alliance, which will operate as a consortium of independent companies , has been created to respond to the challenges of our economy by facilitating more and faster paced information sharing among the business community. This will accelerate main street and mid M&A market deal flow which in turn should play an economic stimulus and development role in the Bluegrass region and beyond.

The Limestone M&A Alliance http://www.limestonealliance.com/ welcomes affiliations with business/professional individuals and organizations . Their database of buyers, sellers, lenders and professional resource providers will initially focus on Kentucky but will be global in scope.

Workout plan often a better alternative to bankruptcy

2009-03-15T09:26:00.000-07:00

In the current economy there are many good solid businesses that are troubled or may become troubled later this year . This is a link to an article about how developing a workout plan can be a better alternative to filing bankruptcy :

http://www.franchisetimes.com/content/story.php?article=01246

Buzgate - Business Resorce

2009-03-06T11:37:00.000-08:00

Today I ran across this business resource some readers might find useful .

Buzgate www.buzgate.org

Cap and Trade Makes Industrial Recruitment Even Less Logical

2009-02-28T05:15:00.000-08:00

I've long been convinced that industrial recruitment, that is a strategy that tried to grow our economy by convincing a factory to locate in an industrial park, is a losing strategy, generally speaking. There just aren't too many Toyota's lining up to locate here, and the companies within the United States, well, they're already American based and why should we use our tax dollars to steal them from another community? It just makes more sense to try to grow the economy overall than to fight the tide pulling these ventures south and east, to China and Mexico.

Soon, there may be yet another reason why industrial recruitment is a losing strategy: Carbon Cap and Trade. This will be a federally imposed tax on the production of CO2 emissions. Factories utilize large amounts of electricity generated by coal and other fossil fuels. Frequently, they burn their own fuels to make energy. In a day not too far into the future, the costs of doing this will increase. When it does, the costs of manufacturing will go up. Here's how CNBC's Larry Kudlow describes it: "[The coming] cap-and-trade program will be a huge across-the-board tax increase on blue-collar workers, including unionized workers. Industrial production is plunging, but new carbon taxes will prevent production from ever recovering. While the country wants more fuel and power, cap-and-trade will deliver less."

At this point I think it will be impossible to stop the cap and trade steamroller. From my standpoint, as a practitioner of economic development, I have to take the laws as they are, not necessarily as I would want them- and I do have reservations about cap and trade. So too do communities.

This means local communities have one more reason to think beyond their industrial recruitment dogmas and realize that entrepreneurship and improving small business efficiency makes more sense than adding onto your inventory of assets for a future factory that just ain't coming.

Laid Off in 2008? Start a Business in 2009 - Entrepreneur.com

2009-02-27T05:50:00.001-08:00

Laid Off in 2008? Start a Business in 2009 - Entrepreneur.com

Posted using ShareThis

Is Entrepreneurship on the Decline in America?

2009-02-24T07:25:00.000-08:00

That's what one economist is saying at US News and World Report. Snips:

[T]he population of U.S. firms is not a measure of new business creation. It is a measure of the stock of businesses in existence at any point in time. The population of businesses goes up if the number of new businesses started each year exceeds the number of existing businesses that fail each year. So we need to look at a different set of SBA numbers to figure out what happened to entrepreneurial activity over the 1997-to-2006 period.

The SBA's primary number for estimating business formation is the count of new employer firms founded in a year. The SBA reports that in 1997, 590,644 new employer businesses were started. In 2006, the agency estimates, 640,800 new employer businesses were created. That's a 7.9 percent increase over the decade.

The Census Bureau reports that in 1997, there were 272,912,000 Americans. In 2006, it estimated that the population had increased to 298,363,000 people. That's a 9.3 percent increase. Over the 10 years, the U.S. population increased faster than the rate of new employer firm formation.

Below is a graph I created of the per capita rate of employer firm formation in the United States since 1990. The trend is not good for entrepreneurship in America. Although the rate bounces around from 1990 to 2007, the per capita rate of new employer firm formation was 10 percent lower in 2007 than it was in 1990.

This bleeds over into the Gazelles vs. Mom 'n Pops argument that consumes many in the economic development arena, but it's worth considering.

Full story: http://www.usnews.com/blogs/outside-voices-small-business/2009/02/23/sba-data-show-a-declining-rate-of-entrepreneurship-in-the-us.html

The Pillars of Entrepreneurship

2009-02-24T07:19:00.000-08:00

Nice graphic from the United Nations Development Program Toolkit for Private Sector Development. (I'm having trouble viewing the entire graphic here, but if you click on it you can see the whole thing.)

Lack of VC Inhibits Caveman Inventor

2009-02-24T07:17:00.000-08:00

Now we know why it took so long to commercialize the wheel.

Tweaking Friedman

2009-02-24T07:05:00.000-08:00

This article dittos the underlying premise behind one of Tom Friedman's recent provocative ideas about technology, entrpreneurship and innovation. A snip:

Government funds for the VC industry is simply unnecessary. At $30 billion per year, there is no lack of VC capital being deployed in America. The bottleneck in the VC-entrepreneurship equation isn't in the inputs of capital, it's in the outputs. The lack of exits and the dearth of the IPO market is what needs to be fixed to open the floodgates of innovation.

But then I thought - let's not go overboard with our criticism by taking Friedman literally. The guy's a huge fan of global entrepreneurship (I loved it when he referred to the worthy work of the global non-profit, Endeavor, as the "best anti-poverty program of all"). His heart and priorities are in the right place.

So before folks get up in arms about "bailing out VCs," let's take Friedman's comments figuratively. He's dead on when he points out that entrepreneurship is what is going to get us out of this mess. The government shouldn't focus on silly notions of VC subsidies that nobody wants. Instead, the policy agenda to foster entrepreneurship and the flow of capital to entrepreneurs is very clear.

The article goes on to talk about specific policy needs for America's tech based economy. I'd tweak Friedman a little differently by saying he's right on the underlying anti-poverty idea of entrepreneurship. But we need a stronger pro-entrepreneurship in general in America, not just one focused on tech companies. And the problem is about more than the current recession, we need more entrepreneurs for entirety of the forseeable future.

It'll take entrepreneurs to replace the factories lost to globalization, to find ways to reduce our carbon footprint within the coming regulatory framework, to make coal cleaner, to find new ways to use the next wave of the web, etc. Entrepreneurship is just a new app to be used to solve a particular problem. It should be part of our DNA in America.

What's Missing from the Stimulus Talks

2009-02-06T09:46:00.000-08:00

Growth! Our economy has to grow again. How do we do it? By starting with entrepreneurial friendly policies that allow entrepreneurs freedom to hire people, tap markets, finance their companies, staff their teams, etc.

Don't take it from me. Here's Carl Schramm from the Kauffman Foundation:

We should be asking President Obama, his economic team, and Congressional leaders a basic question: How do you propose to help ensure that the United States maintains a long-term annual growth rate of 4 percent (or higher)?

We at the Kauffman Foundation have our own proposals, all of them centered on the core fact - borne out by our research - that entrepreneurship and innovation are the key growth drivers in our economy. Highly entrepreneurial companies like Google, eBay, Amazon create more than half the nation's new jobs.

Action in several areas can make America's economic ecosystem more conducive to entrepreneurial growth and should therefore be central to the country's growth agenda.

• Building a skilled workforce. Finding and attracting highly skilled, entrepreneurial workers is one of the more important challenges facing the U.S. economy. Major, entrepreneurially driven improvements are necessary throughout our educational system to help prepare skilled workers, especially in math, science, technology, and engineering - the fields that will be most relevant to generating future innovative breakthroughs.

• Welcoming high-skilled legal immigrants. One quarter of the science and technology start-ups launched in the United States between 1995 and 2005 had a foreign-born founder. These companies employed 450,000 workers and generated $52 billion in revenue in 2006. Our economy needs more, not less, of such highly motivated entrepreneurs. One way to keep them is to grant a permanent work visa to any immigrant earns a degree in science, engineering or math.

• A lower-cost health care system that encourages entrepreneurship. Continued escalation of health care costs and uncertainties about future trends rank high on virtually every American's list of concerns. In addition, the fear of losing health care deters some employees from leaving their current jobs to launch new enterprises. Health care needs to be made both less expensive and more portable.

• Keeping U.S. capital markets competitive through appropriate regulation. Sarbanes-Oxley has turned out to be substantially more costly than was expected at the time. In addition, the SOX requirements may be discouraging successful entrepreneurial firms from going public and instead to sell to larger companies, an "exit" path that may reduce the entrepreneurial energy that drove the success of these firms in the first place. In its current form, SOX is a job killer in desperate need of reform. And, this current crisis, we should heed the lesson of SOX. Let's not ram a complex new regulatory scheme through Congress in a matter of days - only find out later that it has worsened the very problem it was intended to fix.

• Strengthening trade and global markets. Companies like Intel, Microsoft, eBay, and Google would not be the giants they are today without access to global markets in which to sell their products. In addition, firms of all sizes benefit from being able to purchase supplies and services from anywhere they can be competitively sourced. Free trade has a taken a political beating in recent years. It's time for our candidates to show some courage and stand up for this vital principle.

www.realclearpolitics.com/articles/2009/02/whats_missing_from_the_economi.html

New Growth Theory and Entrepreneurship

2009-02-06T09:42:00.000-08:00

Interesting theory... how would entrepreneurship play into this:

New Growth Theory emphasizes that economic growth results from the increasing returns associated with new knowledge. Knowledge has different properties than other economic goods (being non-rival, and partly excludable). The ability to grow the economy by increasing knowledge rather than labor or capital creates opportunities for nearly boundless growth.

Markets fail to produce enough knowledge because innovators cannot capture all of the gains associated with creating new knowledge. And because knowledge can be infinitely reused at zero marginal cost, firms who use knowledge in production can earn quasi-monopoly profits. All forms of knowledge, from big science to better ways to sew a shirt exhibit these properties and contribute to growth. Economies with widespread increasing returns are unlikely to develop along a unique equilibrium path. Development may be a process of creative destruction, with a succession of monopolistically competitive technologies and firms. Markets alone may not converge on a single most efficient solution, and technological and regional development will tend to exhibit path dependence.

History, institutions and geography all shape the development of knowledge-based economies. History matters because increasing returns generate positive feedbacks that tend to cause economies to “lock in” to particular technologies and locations. Development is in part chaotic because small events at critical times can have persistent, long term impacts on patterns of economic activity. Institutions matter because they shape the environment for the production and employment of new knowledge. Societies that generate and tolerate new ideas, and that continuously adapt to changing economic and technological circumstances are a precondition to sustained economic growth. Geography matters because knowledge doesn’t move frictionlessly among economic actors. Important parts of knowledge are tacit, and embedded in the routines of individuals and organizations in different places.

New Growth Theory, and the increasing returns associated with knowledge have many implications for economic development policy. New Growth Theory underscores the importance of investing in new knowledge creation to sustain growth. Policy makers will need to pay careful attention to all of the factors that provide incentives for knowledge creation (research and development, the education system, entrepreneurship and the tolerance for diversity, macroeconomic expectations, openness to trade). Because it undermines the notion of a single, optimal general equilibrium, New Growth Theory implies that economics will be less capable of predicting future outcomes. (emphasis added)

Excerpted from New Growth Theory, Technology and Learning: A Practitioner’s Guide. By Joseph CortrightImpresa, Inc

Our Fearless Leader

2009-02-05T10:36:00.001-08:00

More Dragon's Den

2009-02-05T10:28:00.000-08:00

Entrepreneurship in West Virginia

2009-02-05T10:18:00.000-08:00

Interesting article about a WV guitar maker's support for entrepreneurship in the mountain state:

http://wowktv.com/story.cfm?func=viewstory&storyid=51410

Michigan, Hard Hit by Economic Recession, Turns to Entrepreneurship

2009-01-29T11:20:00.000-08:00

Michigan’s economy has taken some severe blows in recent years as deindustrialization takes its toll across the mid-west. As a result, many Michiganders are turning to entrepreneurship:

The perceived risk in joining a small company or starting your own business is rapidly shrinking in Michigan as many large corporations - where job security was long-assumed- are laying off workers in the thousands.

The shift appears to be closing the gap between the uncertainty of starting a company and loss of stability in corporate positions.

[…]

Michigan has long been defined by a culture that is wary of entrepreneurialism and cautious about starting a company, several experts have said.

But contraction at the domestic automakers and the supplier community, job cuts in the pharmaceutical industry and the sluggish housing market are prompting some Michigan workers to reconsider entrepreneurialism as a livelihood.

"One of the positive effects of this horrible downturn that we're in is you do get that sense of, 'Well I have nothing to lose now. I can do what I've always wanted to do,'" Durance said. "I see people pursuing their dreams."

As Michigan's culture becomes more receptive of entrepreneurialism, local economic development officials believe the economy will become stronger.

[…]

As historically successful companies like Microsoft cut thousands of jobs, it's becoming increasingly clear that keeping a job at a large company isn't a sure thing, he said.

Job security has "long been abandoned in most companies," Adox said. "You really have to understand where the risk is."

But jumping from a large corporation such as General Motors or Chrysler to a small company isn't always a smooth transition.

In fact, small tech companies in the Ann Arbor region have occasionally been reluctant to hire employees and executives from large corporations.

[Michigan economic group] SPARK is hoping to help large company executives retool their skills and prep for an entrepreneurial environment by offering a new program called Shifting Gears… [because] large-company employees with very specific job descriptions sometimes are surprised by the broader list of tasks they have to tackle at a small firm.

And what of the future generation?

Risk aside, [one expert] said entrepreneurialism is among the most interesting topics for young people.

"When I was in business school 30 years ago, we didn't have any courses on entrepreneurship. The word didn't even come up. Nobody even thought about it," ... "Now it's not just the business schools, it's across campus. Entrepreneurship is what everybody is talking about."

Avoid the Humpty Dumpty Entrepreneurs

2009-01-26T09:44:00.001-08:00

What makes an entrepreneur a Humpty Dumpty entrepreneur? Here's Forbes' Dr. Steven Bergias:

Humpty Dumpty entrepreneurs have the kind of personality, or a particular psychological bent, that simply doesn't lend itself to entrepreneurial success. Mind you, these people aren't losers, mentally ill or doomed to fail in other pursuits. It just means that, in the same way that someone who can't jump probably shouldn't play in the NBA, Humpty Dumpties shouldn't start businesses.

There are three traits to a Humpty Dumpty Entrepreneur, he says:

Workaholics- For all their laboring, workaholics are neither addicted to, nor invested in, careers. Their toil is a socially sanctioned avoidance of social contact. By contrast, natural entrepreneurs tend to be affable charmers. How else would they lure talented employees with meager salaries and slices of potentially worthless equity?

Workaholics tend to be control freaks. Putting in all those hours regulates their (perceived) level of intimacy. Entrepreneurs are quality control freaks, driven to build their mousetraps according to Six Sigma ideals.

Narcicistic- You may ask, "What's the difference between a doomed narcissist and a confident entrepreneur with tons of chutzpah, brashness and screw-the-rules toughness?" Answer: Narcissists are committed to building a facade, while entrepreneurs are devoted to an ideal. That level of commitment neutralizes the rebuffs, insults and failures that inevitably come with running any company.

You can't buy your way into e'ship- Being a business builder is like being the parent of a child who suffers from colic: If you don't love the kid with all your heart, you'll never endure all those sleepless nights. And it's very difficult to develop a truly deep connection to a business unless you played a role in its birth.

Link: www.forbes.com/2009/01/22/entrepreneur-psychology-franchise-ent-manage-cx_sb_0122berglashumptydumpty.html

Student Entrepreneurship Should be Encouraged

2009-01-25T15:54:00.000-08:00

Interesting piece from BYU in Hawaii on why we should be encouraging student e'ship:

The time in life lived as a university student is awkward and unstable; people who will go on to lead very normal and responsible lives temporarily lose their minds. Ever-changing majors, couples, and Seasider menus are proving that apparently experimentation is the thing to do and “being young” is the perfect fallback when things go wrong. Most amazingly it is OK to fail and try something else, a lesson that is quickly lost upon graduation. So, sounds to me like the perfect opportunity to start a business!

Why Students Make Great Entrepreneurs:

1. Abstract Thinking: In many academic programs students spend a fair amount of time thinking about abstract concepts. The innovative gears are greased and ready to create fresh business ideas!

2. Higher Risk Tolerance: It’s helpful to recognize that when you’re a student your opportunity cost is likely lower than most other points in your career. When you’re sitting there in class and an idea comes to you, it doesn’t really cost all that much to give things a try.

3. Starry-Eyed Optimism: Let’s face it; starting a company takes a fair amount of optimism. As a student you have minimal resources, and the odds are severely stacked against you. You also, conveniently, have nothing to lose.

4. Trusted Peer Network: You have the opportunity to meet and work with a lot of different people in and out of the classroom. If you do it right, these friends and acquaintances will be mentors, clients, and even potential business partners. Yes, you read correctly. You can surf and socialize your way to success.

5. Applied Learning: As a student, you’re quite often “drinking from a fire hose” and bringing all sorts of new information into your brain. Some of which sticks and some of which, in reality, does not. Starting a business while you’re a student provides a practical outlet for your learning. You can internalize and externalize the classroom ideas in tandem.

Business Schools Turn to Entrepreneurship

2009-01-25T15:46:00.000-08:00

Business Schools, facing the dilemna of seeing their grads not get the kind of good jobs they were used to, are turning to entrepreneurship for help:

The National Entrepreneurship Network (NEN), a not-for-profit initiative that promotes the entrepreneurial culture among institutes, has been approached recently by many top B-schools. NEN is networked with at least 500 high-growth and high-potential start-ups throughout the country and is facilitating the interface between them and the institutes. It has so far enabled 73 students to get placed in start-ups over the last seven months.

Hopefully, the orientation of our B-schools will change from creating job seekers to creating job creators. Starting one’s own enterprise has been one of the least preferred options for students. The other day, B.S. Sahay, director of Institute of Management Technology, Ghaziabad, told me how last year three of his students, who won the best business plan award in a national contest, were still reluctant to convert the plan into an enterprise because they had good job offers. However, Sahay convinced them to start the business instead of running after jobs. This year, such students won’t have the luxury of options.

B-schools, on their part, should also reinvent their academic processes. Curricula need to be revamped, with redundant courses being scrapped; instead, more time should be devoted in identifying growth areas, filling demand-supply gaps and generating good business plans. They should also introduce courses such as how to start a business, write a business plan and raise capital.

Some institutes such as the Birla Institute of Management Technology are trying to reinvent themselves by focusing on areas such as rural business, social entrepreneurship, microfinance, micro-entrepreneurship, green business and clean technology, etc. It’s time B-schools started incubators on campus and helped students get finance for their projects. As of now, not even 10 B-schools have functional incubators.

Only those B-schools that are proactive in reinventing themselves can meet the crisis head-on. Those who just wait for the economy to recover are likely to lose out.

Link: www.livemint.com/2009/01/25215307/Bschools-must-meet-crisis-hea.html?h=B

Dragon's Den: Watch Entrepreneurs Pitch for $$$ (Make that £££)

2009-01-21T05:48:00.000-08:00

Watch this entrepreneur ask for £150,000 sterling pounds (nearly $208,000 as of today… i.e. a ton of money!). His product: a device that prevents overflow in bathtubs.

Am I the only one concerned about sales channels?

Hat tip to Paula, aka Big Sis, for turning us onto this show!

Dragons Den

2009-01-12T18:43:00.000-08:00

Are any of coaches a fan of BBC's program "Dragons Den"?
I've been watching it for quite some time now and I've found it extremely valuable in how present an effective pitch and (equally valuable) how NOT to pitch.
Early on, I found it painful to watch. I thought the Dragons were mean and nasty, but I finally got a thicker skin and realized that the hard Dragon questions are completely appropriate.
Watching the program is giving me a great insight into what investors want to hear and know about an entrepreneur's business.

Paula

Jakarta Post: Entrepreneurship More Than Self Employment

2009-01-08T03:46:00.000-08:00

Bingo! I would even argue that entrepreneurship is about more than owning a small business. A small business can be entrepreneurial, but it's not always a necessity. Here's the article, all the way from the Jakarta Post:

First...we don’t become entrepreneurs simply by leaving our current jobs or, for that matter, our present bosses. We can still behave entrepreneurially as a professional, even if we work for the government. In that setting entrepreneurship means contributing innovatively and creatively to the organizations we work for. Vision does not depend on the work place, it depends on care, hard work and positive thinking. I learned most of what I know now from the companies, both the small and the big, that hired me when I was first out in the work force.

Second, many young people get inspired by legendary (and exceptional!) entrepreneurs who made it with little academic background. But instead of learning why these entrepreneurs are successful, we too often mistakenly focus on what they did not have, a good education.
The exception doesn’t make the rule, so education, when we can get a good one, is still the most important factor. Legendary entrepreneurs, such as Richard Branson or our own Pak Bob Sadino, say the same. Even though they didn’t hop through the schooling hoops, they were no less prepared than those with degrees, because they – this is crucial – never stopped learning.

[...]

Next, entrepreneurship is not about earning to meet our needs; we do not live solely for ourselves. We live and work for the people we love and those who love us. I often see friends quit their jobs because they get tired of working for somebody else, and they lose the vision and purpose to give more and better for their family. That is selfish, unwise, and not what entrepreneurship is all about.

Entrepreneurship requires wisdom, not just blind intuition....

Lastly, entrepreneurship is the polar opposite of luck. You know luck, it’s the excuse that let’s us wait for our ship to come in, and the waiting makes us all the poorer. I like the old saying: “Luck happens to those who are most prepared when opportunity strikes”.

In the end, entrepreneurship is more about doing than about talking about doing. I want to share one take-away from my own experience as en entrepreneur: “If we aren’t having fun, we aren’t doing it right”.

Pink Slips Can Lead to Entrepreneurship

2009-01-05T13:18:00.000-08:00

Could we ultimately be seeing a round of economic Darwinism in the world of business today?

Check this story out:

When Mr Steven Low was retrenched two years ago from his sous chef job at Meritus Mandarin hotel, he received calls from hotels in Australia, Indonesia and the Philippines with job offers the very next day.

But the man credited for helping to create the famous Chatterbox chicken rice had already made up his mind to be his own boss.

He took the pink slip, the $20,000 payout for his 31 years of service and his winning recipe to start a stall selling - what else - chicken rice.

'It was a blessing in disguise. It came at the right time,' said Mr Low, 53, who was already harbouring thoughts of venturing out on his own when the axe fell.

With only the hard-earned experience of running a kitchen but not a business, the early days were, he admitted, 'a struggle'.

'There were so many things to worry about: whether customers would come, doing the sums, inventory issues,' he said.

On that first count, at least, he didn't have to worry. Loyal patrons followed him to his humble stall in a foodcourt at Downtown East in Pasir Ris.

Last April, he expanded his business, Mr Chicken Rice, into a 1,260 sq ft restaurant, also at Downtown East.

Retrenchment may be the biggest fear among employees in this gloomy climate, but it could also be a driver for entrepreneurship, said industry pundits.

While there are no statistics, Association of Small and Medium Enterprises (Asme) president Lawrence Leow said that anecdotally, those made redundant in the current downturn are more open to starting their own business.

'There does seem to be this trend. Maybe it is because of the pro-business environment the Government has been putting in place. In earlier downturns, the amount of incentives and pro-enterprise policies were not there yet,' he said.

Even Commies Support Entrepreneurship

2009-01-05T13:09:00.003-08:00

Whatever happened to that "workers of the world unite" stuff?

Tran Quoc Thang is the Deputy Minister of Science and Technology for the (still Communist) Socialist Republic of Vietnam. Here’s what he had to say in a recent interview about Vietnamese scientists’ efforts to commercialize new tech:

In developed countries, about 15 to 20 per cent of products invented are invested in and brought to market. But in Viet Nam, only about 5 to 10 per cent of inventions make it out to society. However, the products that have been applied have brought back lots of benefit. For example, a high-tech group at Hoa Lac Hi-tech Park has applied its product to clean a lake in Ha Noi; another group successfully discovered medicine to treat a disease of lobsters, which greatly benefited fish farmers.

[…]

We don’t lack money. We just lack feasible projects. We have lots of people who got high rankings in international competitions in math, physics and chemistry but have problems in applying their research… Scientists must find out what the society needs and have the will of a businessman. If not, their research projects will be worthless or of less value. Money will be wasted without making a breakthrough.

We have defined four key fields in science and technology to focus on which are information technology, construction materials, biology and automation. As an agriculture-based country with a high volume of agricultural products, we can invest more in preserving technology and post-harvest processing. In the high-tech field such as new energy, clean energy and nanotechnology, the Government is very willing to support all feasible projects. Breakthroughs in these areas are very important for scientists and businessmen. This is because scientific and technological products eventually become goods in the marketplace. Once they become goods, they will be accepted in the society and bought. Thus, the scientists will have orders for research.

Source: http://vietnamnews.vnagency.com.vn/showarticle.php?num=01COM050109

2009-01-05T13:09:00.001-08:00

MN Unemployment Agency: Employment Via Entrepreneurship

2009-01-05T12:24:00.000-08:00

Interesting... isn't this Senior-preneurship?

The Minnesota Department of Employment and Economic Development (DEED) is launching a program that aims to help unemployed workers start their own company, the agency said Monday.

The program, dubbed Growing America Through Entrepreneurship (GATE), is available to people who are at least 50 years old and qualify for the Dislocated Worker Program (DAP). DAP supports workers who’ve recently lost their job.

GATE, which is backed by the U.S. Department of Labor, doesn’t provide financial assistance or seed capital to participants. However, it offers personal evaluations, education on how to start a business and other guidance.

Self Publishing Authors Need to Be Artists and Entrepreneurs

2009-01-05T08:28:00.000-08:00

There'a nice article on entrepreneurship and self-publishing in Nigeria's Business Day. (What, doesn't everybody read Nigeria's Business Day in Eastern KY?) Here are a few snips:

As more people turn to self-publishing to launch their creative works into the market, there is now the realisation that sound business principles are needed to achieve success. Joy Isi Bewaji, self-publishing author of ‘Eko Dialogue’ discusses the principles needed for success in self publishing business recently in a chat with Business Day.

[…]

Self-publishing is becoming a very difficult terrain, where the artiste also becomes the entrepreneur pursuing goals that are not art-related all in a bid to make known the product. Artistry and business management are two divergent tasks but it could be a good learning experience for all writers who intend to become or are already ‘self-publishers’.

[…]

Apart from raising funds for publishing a book, as a self-published writer, one needs to set aside funds for publicity, advertisement and be able to create regular forums where the book can be discussed. All of these cost a lot of money. However, self-publishing gives the owner a level of control over the intellectual property.

The most essential thing for a self-publishing author is funds and ability to take advantage of every available opportunity. Money is needed to run the ideas and sponsorship is usually difficult in this line of business. So, the writer may need to take up a job on full-time or part-time basis or engage in a business at the initial stages to jump-start the self-publishing business. But care must be taken to ensure the job or business does not stifle time for creativity.

[…]

To know if there is a market for the book, research has to be done. Since funds are limiting, simply explore ways to find out if people normally buy books in that category. If there are already similar books to the one you want published, find out if they are being patronised.

As a self-publisher, the author must make a firm resolve not to publish any work that would not be interesting to the target market. This can be done by asking some knowledge people to assess the manuscript before publication.Always remember that it is not what you write but how you write and sell it that matters. So do not simply write and publish what you want but what buyers want to buy.

Even though self-publishing is challenging, if one is ready to apply the entrepreneurial principles needed for its success and be persistent, it could become very lucrative.

A footnote: Aren't there paralells here for those of us who work in rural areas where heritage products/services (tourist sites, crafts, artistic works, stories, music, etc.) offer a way to build the local economy?

KY Living Magazine Plugs Entrepreneurship and KECI

2009-01-05T08:09:00.000-08:00

Here's what the piece is about, in a quick snip:

Encouraging more Kentuckians to start up small businesses is a key feature of our state's post-tobacco economic development efforts. Successful small businesses pay taxes on their earnings, increase property values, and contribute a sense of vitality wherever they spring up. Helping these businesses start up, then grow and develop strong roots within their communities, takes a special focus.

[Some already have] experience as business owners. But what about the men and women who've always worked for someone else? How can someone make the move from employee to entrepreneur?

Being self-employed or becoming the boss of your own company with employees is a big change. Having a good idea for a new product or service isn't enough--you'll need a lot more to get your idea to the people who want it and will pay for it. Even if you're smart about your industry or know how to do something unique, you might not know how to think like a business manager, or how to make the right connections to money, or where to go to get other information vital to your success.

Fortunately, there are numerous entrepreneurial programs across Kentucky offering assistance... [including the Kentucky Entrepreneurial Coaches Institute].

And here's the part about KECI and some of the work I did w/ Rednour Properties:

The Kentucky Entrepreneurial Coaches Institute trains volunteer community leaders to help aspiring independent businessmen and women develop realistic plans and achieve their goals. This innovative program operated in 19 counties in northeastern Kentucky when it began in 2004. It has since been expanded to include more than 20 additional counties in south-central Kentucky in cooperation with The Center for Rural Development in Somerset.

Each year, a new group of coaches receives training that equips them to help beginning entrepreneurs fine-tune their business plans and get them ready to turn their ideas into reality. Each coach meets with three to six entrepreneurs eight to 10 times each year for face-to-face discussions; coaches are also available for phone conferences and e-mail conversations.

Johnathan Gay, director of Morehead State University's Innovation Center, learned the finer points of business coaching as a member of the first Kentucky Entrepreneurial Coaches Institute class in 2004-2005. Gay says, "Here at the MSU Innovation Center, many of our clients are developing businesses that are based on technology to try to grow a new economy in eastern Kentucky." Gay's clients are typically attempting to commercially develop some new form of technology, such as a new software program or invention, so he helps them find ways to protect such intellectual property.

In addition to his duties at Morehead, Gay continues to serve as an entrepreneurial coach. Although he frequently advises entrepreneurs with high-tech products and services, he also has time for more traditional business ventures.

In 2004, Ritchie Rednour of Clay City connected with Gay. "I was just a small-time real estate investor back then," Rednour recalls. "For several years, I'd owned some mobile homes and single-family homes that I rented to people, then I bought a multi-family unit. I decided I wanted to take things to the next level and grow my business."

Starting with 55 rental units and five employees in three counties, just five years later Rednour's business now includes 2,200 rental units and 72 employees in 21 counties.

Such rapid growth was not always easy or smooth, and Rednour credits the Coaches Institute with helping him stick to his plans. "A lot of folks have a false impression of what business is like," Rednour says. "They think you just rake in the money all the time, but it isn't that easy. It's important to have someone in your community who can give advice and provide moral support, that extra encouragement you need that will keep you going along. Some people give up just at the moment when they're poised for success, and the Coaches Institute helped me see that more than anybody." Instead of being discouraged, Rednour and Gay figured out ways to keep developing the business.

Kentucky Direct Marketing Conference

2008-11-10T16:55:00.001-08:00

There is a great conference late this week by the Office of Agricultural Marketing & Product Promotion ..........................The 2008 Kentucky Direct Marketing Conference . See link for details

http://www.kyagr.com/marketing/dmc/

Mark Sievers
www.thesieverscompany.com

Entrepreneurship Arises Through Necessity in Rural Iowa Community

2008-10-11T14:39:00.000-07:00

“We must give more in order to get more. It is the generous giving of ourselves that produces the generous harvest.” Orison Swett Marden

Newton, Iowa made national headlines in 2005 when the community’s largest employer, the Maytag Corporation, announced its intent to sell the company. This is a story that rural communities in Kentucky have known all too well in recent years. During the months following the announcement the community found itself at a crossroads. They could accept this reality and begin to work proactively to create new opportunities for a highly-skilled workforce or they could toss their hands in the air and embrace a why me attitude and wait for the silver lining. Out of necessity, several individuals in the community rose to the challenge.

One such individual was Jordan Bruntz, of Springboard Engineering. Bruntz is a former Maytag laundry R&D team leader who worked with a team of highly-skilled individuals who remained dedicated to the Newton community in the wake of this transitional period. “The conditions to start a business were perfect. It was the perfect storm and we had nothing to lose,” recalled Bruntz who approached several of his team members about branching out and opening their own business during the transitional period after Maytag’s announcement. Through this decision to create Springboard Engineering, the quest for funding, establishment of the company, and its continued growth, Bruntz has remained true to the values instilled in him at an early age, growing up on his family’s dairy farm. From his experience on the farm Bruntz learned the value of hard work and the joy that comes with such efforts, that nothing goes to wasted and that he has a responsibility to take care of his family and friends. These three themes continue to guide Bruntz and his work with Springboard. For him, entrepreneurship is about much more than financial gain. Entrepreneurship is about taking care of the people around him.

Chris Barton, a young entrepreneur in Newton, has also come to embody this way of life. “An entrepreneur is anybody that is willing to do what it takes. I come up with ideas and I’m going to do what it takes and not let up,” emphasized young entrepreneur Chris Barton of Newton, Iowa. “I’m not doing this to make money. I’m doing this because I love it,” said Barton who has embraced and begun to the live the philosophies of competitive advantage, creativity, risk, and care for the people around him well before the age of 35. He has a keen understanding of the assets that exist within his community and ways that he can tap into and serve global markets.

Another example of care for the people in the community and entrepreneurship roots is seen in that of Maytag Dairy Farms. The farm was started in 1919 in the community had has evolved to be a worldwide competitor in the cheese industry. They are best-known for their blue cheese which has been recognized by US Presidents. Maytag Dairy has remained true to his roots and has chosen not to automate the process. Instead, each wedge of cheese is handled with care by members of the community. This is Maytag Dairy Farms competitive advantage.

These are merely a few shining examples of the innovation that exists within the Newton community that the South Central Kentucky KECI Fellows saw during thier E-Communities Tour of Iowa. Throughout the past five years this community has seen and embraced more change than many do in a decade. This change has not come easily or; rather, it has evolved out of necessity. However, many powerful lessons are to be learned from this experience. As community leaders we must question what it will take for our communities to become more entrepreneurial-friendly and continue to strive to create environments in which entrepreneurs thrive. After all, isn’t it the people that matter in the end? The Newton community would argue so.

2008-08-22T16:05:00.001-07:00

Agritourism trip to give guests Appalachian experience

By Katie Pratt

SANDY HOOK, Ky., (August 20, 2008) – With its natural beauty, vibrant history and colorful locals, the Appalachian culture has intrigued people for many years, but unless individuals have ties to the area, they likely have never experienced it. That is about to change. During the week of Sept. 29-Oct. 4, visitors will get a slice of life tucked in the hills of eastern Kentucky through a multi-county bus tour focused on agritourism.

The bus tour is the first such venture by the Eastern Kentucky Foothills Eco-Agritourism Corporation, a group comprised of community and business leaders from Carter, Elliott, Morgan, Menifee and Wolfe counties.

“Kentucky Entrepreneurial Coaches Institute offered a mini project about new opportunities on the farm through agritourism and alternative crops, and these were some of the counties that were interested in it,” said Gwenda Adkins, University of Kentucky Cooperative Extension family and consumer science agent in Elliott County. Possessing a background in environmental education and tourism, Adkins has served as an advisor to the group since its formation.

These counties’ economies largely were dependent on tobacco revenues. In the post-buyout period, community leaders see agritourism as an opportunity to generate money for the local economy and educate others about the area’s heritage while helping local farmers diversify their operations.

“We had to do something to help the local farmers,” said Raymond Hurst, Wolfe County judge executive and the board’s chairman. “If this is successful, it could be a big boost to them and the local economy.”

The six-day tour will feature many stops unique to eastern Kentucky including bluegrass music, talented folk artists and craftsmen, historical reenactments and dramatic views of the mountains, gorges and waterfalls. They will also visit farms that produce a variety of agricultural commodities. Unique agricultural stops include a sorghum farm, miniature horse farm and Mountain View Farm in Ezel, one of the largest mule farms in the United States.

The tour also will highlight local businesses. Guests will stay at local hotels or bed-and-breakfasts and shop at local stores that offer a wide variety of crafts and antiques. They will also eat local cuisine, much of which was grown in the area. One of the dining highlights is the Smokey Valley Truck Stop in Olive Hill, featured on the Food Network’s program, “Diners, Drive-ins and Dives.”

On Sept. 29, guests will board a bus in Louisville and Lexington and travel to Carter Caves State Resort Park in Carter County where the tour begins.

Space is limited, and slots are available on first come, first served basis. For more information or to register for the tour, contact Hurst at 606-668-3040.

- 30 –

Writer: Katie Pratt, 859-257-8774

UK College of Agriculture, through its land-grant mission, reaches across the commonwealth with teaching, research and extension to enhance the lives of Kentuckians.

Artists Are Entrepreneurs Too!

2008-08-15T15:31:00.000-07:00

Artists are entrepreneurs too!!!

Adrian Swain Curator of the Kentucky Folk Art Center says "Jo Ann Butts is an original and creative folk artist. Her work is colorful and often carries an undercurrent of self-effacing humor. Jo Ann’s work has been selected for use in several temporary exhibitions at Kentucky Folk Art Center. As a member of the broader community of folk artists in Elliott County, Jo Ann Butts executes original work that seems to have remained largely uninfluenced by the many other artists who surround her".

“When I was a child we didn’t have a lot of money so we made our toys. Sometimes it was a piece of wood and we would whittle it into something to play with. That’s where I first started my art”.

This is the story told by Jo Ann Butts of Sandy Hook, Kentucky. Her art depicts native critters she has watched in her yard and in the woods growing up as a child and as an adult. Her inspiration comes from nature. “I like to sit on the porch and watch the birds in the spring” she said. “The little robins get a worm in their beak and they pull and pull until they get it out of the ground. Its so fun to watch them because they bob their heads back and forth just fighting with that worm until they win the battle, or the work gets lose and escapes back into the ground. Then they walk around until they find another one”.

Jo Ann’s signature pieces are roosters and hens. “They were always walking around on the farm and early in the morning that old rooster would crow and wake everyone up then we would have fresh eggs for breakfast” she said.

Her brilliant choice of colors and the whimsical characterizations make her work one of a kind. “I didn’t know my work was art until one day Minnie Adkins said ‘Jo Ann you should sell your work. What you are doing is folk art and a lot of people collect folk art’”. Minnie bought the first piece I ever sold. The next thing I knew I had a booth during A Day in The Country at the Morehead Folk Art Center”.

Jo Ann’s latest piece is a squirrel. “Not many people realize the squirrel uses its big bushy tail as shade from the sun and shelter from the rain” she said. Her smiling squirrel sits with a nut ready to eat and the bushy tail over its head.

Joann, an Elliott county folk artist who sells her work across the country, paints as well as carves. Her latest painting is a 12’X30’ mural on a barn. “It’s what the back porch and back yard of my home looked like when I was growing up” she explained.

Saturday Josh and I drove to Newfoundland to take a picture of the latest mural being painted on a barn. We were pleasantly greeted by the artist, Joann Buts. As we looked at the mural we noticed the boards of the barn overlap to create a perfect row of shingles for the roof of the back porch. “And look” said Joann Butts “the door of the out house is locked from the inside. You can tell because the outside button is pointing up. Yep, someone’s in there”, she said.

The back porch of the yellow house displays a wringer washer; a #2 washtub hangs on the wall, there’s a churn for making butter, and a washboard with a cake of lie soap at the top for treating those tough stains. Among other items used in everyday life on the farm is a lantern. “Everyone used a lantern”, she said. “It was dark going to the out-house at night so a lantern hangs right there on the porch post to use on nights when the moon doesn’t light the way.”

A path of stone leads the way to the out-house. “See the rooster on top of the toilet, yep he crowed every morning. He woke us up early every day”. She said.

Joann sits atop scaffolding with giant umbrellas shading her from the sun. “A humming bird came to the lilac bush” she said as she pointed to the flowering shrub growing beside the back porch. “And the other day, I was just sittin’ here painting and a butterfly lit right on that holly hock” she said with a grin. And as real as the sun in the sky, hens, roosters and baby chicks call the yard home.

A bucket attached to a chain sits on the well box reminding everyone of the days when frost would make the chain stick to little hands who had to draw water for household uses.

The brightly colored rendition of “The Back Yard” has drawn attention by passers by. “People are always stopping to tell me I’m doing a good job” she said. And sure enough, while we were talking, a truck with two young boys in the back stopped to compliment Joan on her work. “It looks just like where I grew up” said the driver of the truck. But it was the blond hair and blue eyes peeping over the bed of the truck that won Joann’s heart “I like that house” he said and waved as the truck pulled away. “Keep Up the good work” the driver of the truck said.

Joann was painting quilts on a clothesline as we walked away. Just before we left she pointed to a quilt on the line and said, “This is my quilt”. With a smile she looked at Josh and said “I have one just like it at home. Its grandmother’s fan”, she explained. Joann painted quilts hanging on the line to compliment The Clothesline of Quilts project.

As you find each little butterfly and baby chick be sure to notice Grandma with her hair pulled in a bun, hanging Grandpa’s long-johns on the clothesline.

Joann is painting the mural on Steve Gray’s barn just a bit after turning on 32 from Route Seven at Newfoundland. It’s a great cultural rendition of life in earlier years. Even if you don’t have a trip planned around route 32 its worth a short drive to see the mural. Thanks to Johnny Porter for the use of his scaffolding. It made painting the mural possible.

Funding for the mural was gained through a grant from the W. Paul and Lucille Caudill Little Foundation.

Institute Gathers at Horseshoe Bend

2008-08-07T08:11:00.000-07:00

Just past where the blacktop ends you'll find a hidden treasure in Kentucky's up and coming wine scene. Go off the beaten path in Willisburg, KY and spend an afternoon at Horseshoe Bend Vineyard and Winery with the Karsner family, just as the Fellows and Alumni of the Kentucky Entrepreneurial Coaches Institute did last weekend.

Our outing at Horseshoe Bend brought together members of the current class of Fellows and alumni group for an afternoon of great food, wine and networking. There's so much to be shared among the Fellows from Northeastern and South Central Kentucky! Throughout the past four years we've seen many exciting developments and outgrowths of the Institute. Our alumni continue to give back to the region and push entrepreneurship while our current class is well on its way. We're glad to provide opportunites for the groups to connect, share ideas and develop partnerships as we work to make Kentucky the destination of choice for entrepreneurs. This is one of many collaborative efforts that will surface in the years to come.

So, if you were unable to join us at Horseshoe Bend last weekend I'd like to encourage you to take a "staycation" and visit the Karsner family one Saturday. The view alone is worth the drive! Horseshoe Bend was founded in Washington County in 1986 and has been opperating as a vineyard since 1997. The family began bottling wine a year and a half ago and have opened for tastings on Saturdays.

In the mean time, visit our social networking site (yes alumni, you'll be asked to join) and view some photos from the big day. You can view the album online at: http://kycoaches.ning.com/index.php/photo/photo/slideshow?albumId=2022249%3AAlbum%3A1941. We look forward to seeing you all again soon as we come together for an Alumni Event on September 10-11, 2008 in Maysville!

Don McNay Preaches the Virtues of Entrepreneurship

2008-08-06T04:26:00.000-07:00

I spend quite a bit of time on these pages railing about the importance of entrepreneurship. Skills in small business (and enterprises in general) will be crucial for millions of American as our economy changes from one that favored big industry to one that smiles more brightly on small business. The reasons are simple: globalization and technology. Our economy is moving away from one that favored capital investment to one that favors human capital.

Don McNay gets that. Here are snips from his most recent op-ed, the entirety of which I strongly suggest folks read:

Every person in the financial world has skills that can be transferred to a business they own. Media people have a “brand name” with the public. Both groups can take the skills honed at large institutions and use them to make their own fortune.

Entrepreneurs in the next generations won’t have the opportunity of training at a large company. They will have to start business for themselves from day one, instead of learning their craft from experienced hands with vast resources.

[…]

In 1900, only 10 percent of Americans worked for large companies. The other 90 percent were self-employed farmers and shop owners. By 1970, the number of people working for large companies reached 90 percent.

It’s been dropping every year since 1970. We are on a steady march back to that 10 percent number. The recent economy is quickening that march.

So what do we do about it? McNay notes that it’s a challenge to prepare folks used to working for a big business to run their own business. But as he says: “it’s a challenge that must be met.”

But how? For starters, we need to get it. I really think that Governor Beshear gets it. (I'm not saying others didn't, but I think he gets it even more.) He preaches the gospel of growing Kentucky companies here in the state rather than recruiting them from elsewhere. If you read press releases from the Cabinet for Economic Development you’ll see that the Guv is relentlessly on message about the need to grow companies organically.

We should build on this kind of attitude. Pols should actively preach the virtues of that funny French word entre-pruh-neur-ship. That’s important. Because an entrepreneur is more than a small business owner. An entrepreneur is someone who creates new enterprises, taps new markets, does things innovatively.

In the legislature there are periodic attempts to promote math and science education in schools. What about entrepreneurship? The Kentucky Entrepreneurial Coaches Institute has long advocated for and actually implemented on a smaller scale youth e’ship programs. It’s time we get serious about these here in KY. Pols could play a vital role in the promotion of e’ship here in the bluegrass. Their bully pulpit and the fact that Kentuckians still look to them to do things to foster economic growth means that they can spread this message with ease.

Further, we should evaluate the myriad economic development programs and agencies in KY to see which ones are and which ones aren’t promoting entrepreneurship. We have to let our children know that they should align their college education with the realities of this new economy. And kids should know that lifelong learning is a must. No matter what entrepreneurial endeavor you launch, odds are it will change, possibly even die, in this rapid new economy. This means that they must be nimble and flexible.

The dinosaurs are becoming extinct folks, but the mammals are rising in their place. Don McNay gets that: “When people decide they’re not going to depend on a big boss to hand them opportunity, it is a liberating experience. Like our forefathers, we have the chance to thrive in an environment where we control our own destiny.”

Cross Posted at the New Economy Census blog.

FEAT UPDATE

2008-07-22T18:14:00.000-07:00

The FEAT board and county committees have worked together to plan a pilot tourism bus tour into the five counties. This bus tour will be a demonstration to landowners and local businesses as to what can be done in our communities to enhance the economy. The bus carrying approximately 40 tourists will come from Louisville Kentucky on I-64 with the first stop in the FEAT area being Carter County. Tourists will visit each county over the next five days. They will participate in traditional agriculture activities such as making sorghum at a mule drawn mill, making cornmeal on a grist mill, making jams, and jellies and churning butter to eat on fresh baked bread. They will watch, learn, and then participate in traditional dance. Evening activities will include Native American/traditional music around a campfire while roasting marshmallows and hotdogs, and dancing in the street to live traditional music. With directions from internationally known folk artists, they will create a work of art from a hand hued tobacco stick that can be used as a walking stick or a souvenir to hang on the wall. They will enjoy traditional foods such as "soup" beans, chicken and dumplings, mustard greens, corn bread and homemade jams and jellies. Care will be taken to provide for those needing or desiring diverse food choices. They will fish in a farm pond using cane poles and see such sights as water falls, caves, and learn about the cultures that have lived in this area through live exhibits along a pristine stream. A moonshine still hid deep in the cliffs of Laurel Gorge where revenuers can never find it will spark conversation as story tellers bring to life the industry that started NASCAR. The visitors will leave Wolfe County toward home on the Mountain Parkway with an "OH WOW" attitude. The greatest part about the whole bit is that local farmers and residents will get the bulk of the money paid by the tourists. The rest will go to the bus company.

A pending proposal to the Mary Reynolds Babcock Foundation, if approved, will fund a position for two years to manage the bus tours and recruit members for FEAT. We hope to grow the tours by five each year until we reach our max whatever that might be.

FEAT Inc. is a continuation of a mini-project from the 2005 graduating class. It’s had ups and downs but now seems to be on an upward swing.

Recently the Kentucky Arts Council awarded the Elliott County Extension District Board a $5,000.00 Arts Builds Communities (ABC) grant. With this money we plan to teach local people to write about interesting parts of our cultures and story tellers will teach them how to tell it to the tourists in an educational and entertaining format. The financial match is from the Mary Reynolds Babcock Foundation. The people who attend the workshops can, if they desire, enhance their skills, and maybe someday be listed as Kentucky Arts Council Roster Artists. These trainings will be open to people from Morgan, Menifee, Wolfe, Elliott, and Carter Counties.

Elliott County Extension District Board has also been awarded $113,000.00 from the Steele-Reese Foundation to fund an Environmental Educator at the Laurel Gorge Cultural Heritage Center for three years. That position will be announced in the next few weeks. So the winter’s long evenings filled with grant writing is paying off. I’m very thankful to the Steele-Reese Foundation and the Mary Reynolds Babcock Foundation for all the support they have shown to programs and projects in Eastern Kentucky. The ones mentioned above are only a “Drop in the Bucket” to the funds they put into community development and Education of Eastern Kentucky.

Recreational Entrepreneurs Create Tourist Opportunites for WW2 Enthusiasts

2008-07-22T13:01:00.000-07:00

A couple of entrepreneurial activities around Appalachia that seem to have tourist potential:

McCreary County reenacts the battle in which their favorite son, Wilburn K. Ross, received the Congressional Medal of Armor. Battlefield reenactments aren’t new, but I’ve seldom heard of holding one a continent away. Could be the start of a trend…

Meanwhile, Middlesboro, which made national news for locals’ efforts to reconstruct a P-38 abandoned during WW2 in Greenland only to be brought back to KY a half century later, will receive a familiar if unusual visitor at its local airport when the Glacier Girl returns.

One thing that Eastern Kentucky has been blessed in abundance with is unused land. This, combined with the absence of local zoning rules, offers entrepreneurs- both recreational and for-profit- an easy opportunity to organize events such as these and bring tourists into their community.

Does anyone know of any rural communities that are looking for tourist opportunities? Coaches?

Small Businesses Need Innovative Access to Capital and Training in Business Competence

2008-07-21T13:52:00.000-07:00

A few people around the world get it when it comes to economic development. They disdain bald protectionism and subsidies and emphasize what's really important to small bizs: access to capital and training in entrepreneurship. From the Jakarta Post, here's one of the leading business experts and economists talking about what Medium to Small (Business) Enterprises, aka MSMEs, really need:

I think the approach used so far in nurturing MSMEs has been inappropriate because most of the programs emphasized subsidies and protection from market competition. This is the wrong way to nurture MSMEs.

In our experience at Bank Mayapada, MSMEs don't need charity, subsidies and excessive protection. What they mostly need is easy access to financing and technical extension services (consultancy) on various aspects of their business operations.

They don't have assets as securities for loans and they are not comfortable with, and sometimes even hate, arduous bureaucratic borrowing procedures.

[...]

We design our lending programs specifically to meet the special characteristics of MSMEs. Hence, we don't focus on collaterals but cash-flow or revenue-stream prospects based on their business feasibility.

We have developed a body of experienced experts to assess the MSMEs' commercial viability. We have opened what we call the Mayapada Business Partnership in various areas.

These business units are assigned to look out for viable MSMEs, nurture them with financial and technical assistance and constantly monitor their development and their needs as they continue to grow and expand. Each business unit also operates as a complete business advisory center. We decentralize credit assessment and decision making to these units.

We expect to operate almost 60 Mayapada Business Partnerships before the end of this year and expect to lend cumulatively Rp 600 billion to MSMEs by the end of this year.

Our rate of non-performing loans in this segment is only 0.58 percent. This means that with the right approach, MSMEs can be viable, creditworthy borrowers able to give banks fairly high net interest margins.

To put it briefly, our approach is market oriented and designed to transfer not only financing capability but, and most importantly, business competence and entrepreneurship to MSMEs.

Here in KY, I think there are two great examples of programs that blend the need for entrepreneurship training and access to capital: the SBDC, which has a longstanding relationship with the Small Business Administration and the KY Innovation Network (I'll admit I'm biased on this one), a program that provides additional access to capital for New Economy companies and the hands on business training that entrepreneurs need.

EKU Offers Grad Level Course on Entrepreneurship in the New Economy

2008-07-21T13:15:00.001-07:00

Great course offering from EKU: "If you are an entrepreneur, business owner, aspiring to create your own business, or working in an industry that requires entrepreneurial or innovative thinking and you currently hold a bachelor degree, EKU may have the perfect course for you. EKU is offering a graduate level course which focuses on entrepreneurship and innovation. If you would like to understand the ins-and-outs of entrepreneurship on a more intense level to help you gain a better understanding of business development concepts, then read further and contact: Jean Arthur at EKUMBA (jean.arthur@eku.edu)."

Here are some of the topics the class will cover:

The emphasis in the course will be on the role of innovation and creativity in the creation of new business enterprises, and in the management and marketing of new ideas, concepts, ventures and knowledge. The course will also include case discussions of business start-ups and exercises inside and outside of class to generate innovative business ideas.

The major project in this course will be the creation of a “business concept”. The business concept is a framework for a more extensive business plan that can be used to generate the interest of potential investors in your proposed business. It is somewhat less extensive than a full-scale business plan, but contains the same elements. This concept will be developed by each student, individually, or in a small group (2-3 students, max).

The course will cover the following topics. Some will be covered more in depth than others. Related topics can also be included, depending on the direction the class takes based on specific interests of students.

·The entrepreneurial mind –principles for creating a personal entrepreneurial strategy
·The entrepreneurial process - types of entrepreneurial ventures
·Idea generation, improving ideas, market opportunity analysis, new product promotion
·Methods for screening new venture opportunities
·Social entrepreneurship
·The business planning process - developing a business concept/plan
·Financing entrepreneurial ventures - obtaining debt capital
·Start-up & beyond – managing rapid growth, family e'ship, valuing a business, harvesting
·Intellectual rights - the patent and copyright process

This should be a class the KECI brings in house.

The Cavalry is on the Way...

2008-07-21T10:21:00.000-07:00

I've invited a few folks to start blogging at this site on issues like rural life, farming, entrepreneurship, and entrepreneurial public policy. So far three have tenatively accepted:

1. Joel Combs, the subject of a previous post about his work with Mahindra Tractors at the Life of a Farm Blog.
2. Mark Sievers, a Lexington area business broker.
3. M. Sheldon, an experienced blogger and member of the 3rd class of the KY Entrepreneurial Coaches Institute.

Looking forward to reading their work when they have time to post. Thanks guys.

Mom n' Pop Coffee Shops Knocking Starbucks off it's Perch

2008-07-21T07:51:00.000-07:00

On Friday news broke that Starbucks are closing around the state, including the one in Somerset. But have no fear, latte loving hillbillies can still get their Yuppie caffeine fix on, and the answer how may tell you a little something about why Starbucks is facing such pressure.

You see, Starbucks created a wonderful experience tied to a terrific beverage: the coffee shop atmosphere with lots of pastries, terrific new ways of drinking your coffee to the last drop, and the office-away-from-the-office thanks to wireless internet. A wonderful business model, there’s just one problem: it’s not very defendable.

Starbucks found their model being knocked off by thousands of mom and pop shops around the U.S. Unlike national chains like Wal-Mart, which relied on massive economies of scale, or McDonald’s, which managed to build brand ID superior to everyone in on earth, Starbucks became just another fancy coffee option. Some folks love Starbucks Coffee, but some loved another brand better… and a place with a more down home feel to boot.

Like this place, (hat tip Mark Sievers) Baxters' Coffee in Somerset:

“[W]ith three locations to serve you in Somerset, Kentucky. We proudly offer the finest gourmet coffees, full espresso bar, muffins, scones, and cinnamon rolls baked fresh daily in our kitchen, as well as gourmet soups, salads, and sandwiches at lunch. Come visit us at any of our locations – experience the coffee shops that were voted BEST COFFEE SHOP IN THE STATE OF KENTUCKY IN 2005! In the morning, catch the morning rush and see your favorite friends on your way to work. Come in during lunch to have lunch with your coworkers and enjoy a fresh lunch. Use our free wireless internet and grab an afternoon pick me up to pull you through the day.”

Three full service espresso bars in Pulaski County, Kentucky! Starbucks may have opened the gates, but many are following. The Starbucks example should be an important lesson to entrepreneurs and those who coach them.

Former Fleming County Dude Ranch DH Resorts For Sale, Potential Tourism Development Opportunity

2008-07-21T06:46:00.000-07:00

Here's a press release about a potential tourist opportunity down in Fleming County:

The DH Resorts dude ranch property, which since the early 90’s operated as a dude ranch and recreational property, elected to not reopen last year and this attractive and expansive property is for sale.

The property is represented by The Sievers Company (an affiliate of Apex Realty and the International Business Brokers Association).

This 733 acre Fleming County property includes a 22 acre lake, a 5,000 sq ft B&B , horse trails, rental cabins, restaurant , barns, equestrian center with bunkhouse , meeting pavilion , pool with bathhouse and an extensive equipment list.

The property has convenient access to Interstate 64 and the greater Morehead area. There is a possible opportunity to sell it in two separate sections.

The property has potential for various recreational and tourism purposes.

For more information please contact Mark Sievers: (859) 576 2257

Do You Know of a New Economy Company in Eastern Kentucky?

2008-07-18T10:38:00.001-07:00

Of course you do! Please go to our web site and register it... better yet, ask the owners to. Site location:

http://www.ekyneweconomy.org/

And check out the site's blog too, located at:

http://www.ekyneweconomy.blogspot.com/.

As Fuel Prices Rise, Opportunities for a Localized Economy Increase

2008-07-08T13:17:00.000-07:00

BBC blogger Justin Web has an interesting take on the fuel crisis that has implications for local entrepreneurship

A thoughtful piece in the Observer newspaper asks whether the real impact of the fuel crisis is that "in effect, America is becoming larger again".

This is the key point [quoting the Observer]:

"That will lead to a more localised economy. To many environmentalists that is a blessing, not a curse. They point out that cheap fuel for industrial transport has meant the average packaged salad has travelled 1,500 miles before it gets to a supermarket shelf.

"'Distance is now an enemy,' said Professor Bill McKibben, author of the 1989 climate-change classic The End of Nature. 'There's no question that the days of thoughtless driving are done.'

"The worst hit parts of the US are not yet the suburbs or the freeways of southern California, but the small towns that dot the Great Plains, Appalachia and the rural Deep South. Even more than the Inland Empire, people in these isolated and poor areas are reliant on cheap petrol and much less able to afford the new prices at the pump. Stories abound of agricultural workers unable to afford to get to the fields and of rural businesses going bust. "

So what does this mean for our local entrepreneurs? Will Americans start shopping locally, buying local produce, eating locally, vacationing locally? Isn’t this an opportunity for entrepreneurship?

Our Esteemed Leader Gets Positive PR @ UK

2008-07-08T13:01:00.001-07:00

Some nice PR for our man in the Ivory Towers of UK, Dr. Ron Hustedde... gotta love their intro:

In a Dry Season, a Career Was Born

If the rain had not ended in Costa Rica, Ron Hustedde might have never begun the career path that led him to the UK Cooperative Extension Service and two national awards.

Years ago, Hustedde, who is an extension professor in Community and Leadership Development, was a rice researcher in Costa Rica as a Peace Corps volunteer. Rice grows in the rainy season, so when dry weather came, Hustedde used his time to work with Costa Rican youth, helping them learn to be leaders. That’s when he knew he had begun to find his niche.

Once back in the states, Hustedde began to acquire more education (three master’s degrees and a doctorate) and more experience, including five years as an extension agent in community development.

He has been at UK since 1990. His extension work here initially focused on training extension agents and other community leaders to lead discussion of public issues. It was a natural move from that work into public conflict resolution. Hustedde began to develop a state and national reputation in helping groups resolve controversial issues and training others to do the same.

In recent years, Hustedde’s focus has been on fostering an entrepreneurial culture in Kentucky through his brainchild, the Kentucky Entrepreneurial Coaches Institute. It is a training ground for people who provide the psychological and social support for entrepreneurs.

The institute has been funded by the Kentucky Agricultural Development Fund under the Governor’s Office of Agricultural Policy. It has graduated two classes of coaches so far in northeastern Kentucky and earlier this year expanded into 22 counties in the south-central part of the state. Larry Jones in Agricultural Economics is co-principal investigator for the project.

Hustedde received the 2007 National Excellence in Extension Award, the highest award presented by U.S. Cooperative Extension Service and the National Association of Public Universities and Land Grant Colleges. The award presentation noted his “visionary leadership on emerging issues, high program impact, commitment to diversity, and partnerships with university colleagues and outside clientele.”

Hustedde also received the Rural Sociological Society’s 2007 Excellence in Extension and Public Service Award.

Life of a Farm Blog: Appalachian Man Hawks Indian Tractors from McCreary County

2008-07-08T12:16:00.000-07:00

Nestled in the foothills of the Appalachian Mountains, Pine Knot, Kentucky has become a most unusual nexus for American farming, corporate blogging, and an Indian tractor company best known for assembling Wilys Jeeps in India during WW2 and for its co-founder, Ghulam Muhammad, a former Governor-General of Pakistan who cashed out of the company when India and Pakistan split.

Here’s how the connection works:

First, you take the company, Mahindra, an Indian corporation and one of the top three tractor sellers in the world; a company intent on expanding its market share here in the U.S. market.

Next, you have the medium: the internet and blogging. With corporate blogging being touted as absolutely essential for businesses of all stripes, Mahindra saw an opportunity to blog about their product. But who would run it and how?

That’s where Pine Knot comes in. You see, the company decided to find an above average, Average Joe who loves to use your prod, has good writing skills, and is willing to put them to use hawking your wares. And it just so happens that Mahindra found that average Joe (actually Joel) in Pine Knot, the home of one Joel Combs, a jack-of-all-trades chicken farmer whose preferred tool is his trusty Mahindra Tractor. Pine Knot, located in southern McCreary County, is known more for mining and logging than commercial farming, but an evangelist is an evangelist, wherever he lives. What’s more, the region may not offer large tracts of farmland, but its land is relatively unspoiled, free of sprawl and enjoys a respite from some of the hot button issue affecting other American farms, like migrant workers and corporate farming.

Mix all the above ingredients together and… presto; you get the blog Life of a Farm. Life of a Farm has received some incredible reviews on the web, mostly from corporate blog critics who rave about what Mahindra and Combs have accomplished.

Here’s Salon.com:

The title: “170 Acres and an Indian Tractor” (An obvious play off the old post-Civil war phrase: 40 acres and a Mule... I love it!)

On Combs’ writing: “[A]fter scanning a year's worth of postings looking for nuggets … I am forced to admit that, unexpectedly, I kind of like [Combs]. Either this is a masterpiece of creative writing, or Joel Combs is a real guy with a pretty real life.”

On mixing marketing with real life observations: “the most perfect mixture of flat-out commercial on-message marketing and real-life co-parenting woes I think I've ever seen.”

And here’s The Viral Garden , a blog by a marketing guru about corporate blogs:

On Combs’ blogging style: "For the most part, Combs' posts detail his daily work on his farm, including the projects that he is undertaking, many of which are aided by his use of Mahindra products. But he also keeps his readers up to date on other topics such as the Kentucky weather, and the progress that his children are making in school. But above all else, the content is focused on his life on his farm, and its content that appears to be resonating with the blog's readers. The blog also pulls pictures from a Flickr account, and Combs does a nice job showing not only Mahindra products in action, but also what his life is like on his farm. The post formatting and structure isn't always perfect, but I think that is almost a plus, because it comes across as being authentic. Combs isn't a blogger writing about life on a farm, he is a farmer blogging about his life."

On Combs’ readers: "Life of a Farm Blog has one of the more active comment sections I've seen on a company blog. In fact, it has a perfect example of a community on a blog. Combs' does a great job of replying to almost every comment left, and is very warm and friendly in doing so. You can also tell that the blog's readers have great empathy for Combs, as most make a point to either relate their own experiences on their own farms or attempt to help Combs' better complete his current projects. It might be a stretch to say that Life of a Farm Blog's readers are devoted to Combs, but it's obvious that they are quite fond of him, and his responses make it obvious that he greatly appreciates their comments."

The blog’s even lodged on the radar screens of some bloggers who pride themselves on being Desis (Des-sees), part of the Indian diaspora in America.

Here’s Sepia Mutiny on what the blog accomplishes: "I have to say that this blog makes for some very interesting, enjoyable reading. It’s clear from the writing and the photographs that Mahindra USA has sponsored a real-life, young family farmer from a deeply rural part of the country — southern Kentucky, about 60 miles from Knoxville, Tenn., as he develops his land and builds a home on it with the aid of his trusty Mahindra 6000 tractor.

Read a few entries … and you will get a rather compelling glimpse into family farming, and one that is quite forthright about the struggles that family farmers face in a country where agriculture is so heavily controlled by large corporate interests. Joel… is a sympathetic character and a frank writer, and seems quite sincere in his affection for his Mahindra tractor."

And what it means to Indians: "It’s worth getting your tractor geek on and poking around this site to hear perspectives — not just on tractors, but on the farming life — that y’all city macacas don’t usually get to hear. It’s also noteworthy how easily an Indian brand has spread in this salt-of-the-earth, so-called “redneck” community, while resentment against desis grows in the suburban office parks of the nation."

For me, the most intriguing thing about what Combs has accomplished is how duplicable it is. (BTW, in saying this I'm not belittling what he's accomplished. He's obviously gotten the enough pros' kudos for you to see that he's taken this thing to a level not often seen for this type of blog. But even if others can't do this as well as Combs, they can still do it.) The essential ingredients are:

1. Average, every day Joes (or Janes) who can write well and love Appalachian living.

2. Appalachian farm space.

3. A blog.

4. A nice family backdrop.

5. The passion and interest in putting them all together to market a product or service.

Entrepreneurial coaches helping clients with family based products should take note: Aside from the skill in writing and the passion and interest for blogging, all of the above are present in spades in Appalachia. As for the writing and blogging, these are skills that can be taught to creative people, another area where we’re blessed in the mountains.

Combs deserves credit for what he’s accomplished here. Not just because he’s helping sell Indian tractors from Appalachian Kentucky, but because he’s selling Appalachian Life in the process.

African American Women Hit Glass Ceiling, Turn to Entrepreneurship

2008-06-18T03:27:00.000-07:00

African American women often hit a glass ceiling in the corporate world. Now, many are turning to entrepreneurship as a way to move up. CBS News had the story yesterday (Tuesday, June 17th) and they use the word “entrepreneur” more times than I’ve ever heard any mainstream news org use it in the past.

Here’s the video:

When you think about it, the same reason that entrepreneurship appeals to these women- i.e. a basic lack of opportunity in the traditional workforce- is present in spades in rural communities as well.

The Call of the Entrepreneur

2008-05-13T04:02:00.000-07:00

A great new film about the lives of three American entrepreneurs- The Call of the Entrepreneur- is now available for direct purchase on DVD for $20. It’s a great film.

Here’s the trailer:

Ralph Brown: Time for Entreprneurship, Economics and Investing 101

2008-05-12T13:27:00.000-07:00

Commentary by Ralph:

How about having the Junior High, High and Vocational schools all add to their curriculum the following: Entreprenuership 101, Economics 101 and Investing 101? Won't happen because the socialists who run the education system in this country would have to admit that capitalism actually works and works great.

A distroted version of History, we teach, but not the part about the great march of capitalism and the role that companies have played in improving the way we live. We teach Math, but not the part about how simple arithmetic can be used to tell the story of a company and help us figure out whether it will succeed or fail. Home economics we teach: how to sew, how to cook, even how to prepare a budget and balance a checkbook - but not how saving money from an early age is the key to prosperity. Patriotism we teach, but we talk more about armies and wars, politics and government, then we do about the millions of businesses, large and small, that are the key to our prosperity and our strength as a nation.

It is my goal to get those three subjects introduced into the education system in Kentucky.

Just a little thought for the day:

"Watch Out!, He is a serial entrepreneurer. Stop him before he makes another killing."

Farm Bill Supports Rural Entrepreneurship, But Faces Likely Veto

2008-05-09T19:35:00.000-07:00

The good news coming out of the nearly $300 billion farm bill passed by the U.S. House of Representatives earlier this week is that it made available “$15 million in mandatory funding for the establishment of a rural entrepreneurship and microenterprise grant and loan program.”

The bad news is that President Bush has vowed to veto the bill that he calls overly expensive.

Aside from the blurb above, I have little idea about the details of this program. If we were blogging for the whole world to see this would be a good time to call on Rep. Ben Chandler and Rep. Geoff Davis to get their take on this particular line item. It’s possible that it will come back in, in a subsequent revision if the President vetoes and the House and Senate can’t override him.

As for who’d be eligible for the grant: Grants may be made to qualified organizations to provide training, operations support or rural capacity-building services to qualified organizations to assist them in developing microenterprise training, technical assistance, market development assistance, and other related services.

Qualified orgs… like KECI? Is it time for KECI to set up a 501C3 and avoid the red tape inherent in a University system. Maybe this could be our opportunity to move into Eastern Kentucky?

Rural Ausies Want Greater Focus on Outback, Entrepreneurship for the "Hearbeat of the Nation"

2008-05-09T06:19:00.000-07:00

Rural delegates in Australia say they want entrepreneurial policy focus. Here’s some of what the Aussie’s said at a recent rural development conference:

Author and Northern Territory farmer Terry Underwood says 40 years ago she became a city convert and now, with four children and three grandchildren on the ground, she knows there are plenty more potential converts out there.

"That is my dream and vision, that we reverse the drift, revitalise the bush, the outback is the heartbeat of the nation," she said.

"We have to have infrastructure, incentives, everything we can do to get the bush up and running and to awake in each of us the profound mystery of simply being Australian."

Dean Belle says the aim should be to better equip rural Australia to cope with and find opportunities in change.

"Rather than just seeing it as a negative along the way," he said. "To do that we need the IT, we need the alternative energy and a range of other subsets to that."

Mr Belle also called for investment in human capital, entrepreneurship and leadership skills.

Catherine McGowen says she is self-employed, running her own business from her small farm.

"I would like to see us think about building on our strengths, and I know in rural Australia our strength is our independence," she said.

"If we could build on our strengths and create millions of self-employed people, then working in that portfolio arrangement to do it, but to give us the infrastructure to do that.

"I want lots more women to be working from home, running small businesses and making lots of money."

Biz Week: Degrees Designed for Rural Business Allow Grads to Apply Skills to Farms and Businesses in Rural America

2008-05-09T05:54:00.000-07:00

Colleges across the nation are increasingly creating Rural Entrepreneurship programs. That’s the story from Business Week Magazine. Here are highlights:

The problem of getting business grads to apply their skills to the farms and businesses of rural America is a pressing one in states such as Nebraska, Wisconsin, and Illinois. Dwindling populations, empty storefronts, and the shutdown of manufacturing plants have made the economic problems facing rural towns even more acute in recent years. Business school administrators are starting to realize they can play a role in helping to reverse—or at least slow down—the economic slide of some of these areas by creating innovative courses and extension programs that will encourage people to move back to these areas and start or work for local businesses.

Some schools, such as Edgewood College in Madison, Wis., are creating master's degree programs in urban and rural economic development. Other large land-grant state universities, such as the University of Nebraska-Lincoln, are encouraging the growth of rural businesses through entrepreneurship centers, research grants to study rural entrepreneurship, and rural business mentorship programs. One school, Southern New Hampshire University in Manchester, is launching an MBA in community economic development for the first time this fall.

Indeed, business schools can play a key role in helping to rejuvenate the nation's rural areas, said John Fernandes, president of the Association to Advance Collegiate Schools of Business, the accrediting agency for business schools. The problem is that most haven't begun to think about developing programs or curricula in this area, he said. Of the AACSB's 671 member schools, only about 40 have programs that mention a focus on rural or local economic development and collaboration in their mission statements. "I think it is one of those things that has kind of flown below the radar of most business schools," he said. "It might be sort of a natural extension of schools in rural areas, but maybe the rest of the world hasn't been paying attention."

From Quilt Squares to Apple Baskets: Arts in Appalachia

2008-05-06T16:21:00.000-07:00

this post is a newspaper article I wrote for our local paper. It tells of a very interesting road trip I had yesterday.

If you’re looking for a good day trip to visit some interesting places without spending a lot of money, you can do it in our own area of the Eastern Kentucky Hills.

Because I have not completely fulfilled my obligations as a community scholar, the Kentucky Arts Council asked that I take pictures and write stories about quilt squares in eight Eastern Kentucky Counties for a book they will produce. Monday, I took a vacation day and started driving. I left Sandy Hook looking for Stanley Franklin’s farm in West Liberty. You can see the quilt square on Stanley’s barn form route 7 soon after you turn left to go into West Liberty. What a beautiful setting. The large barn wits atop a knob with a background of rolling hills. Cattle have carved paths around the sloping pasture land surrounding the barn. It's a perfect view of farm life. It’s worth while to leave a few minutes early, pull off at the top of the hill and marvel at the magnificent view and beautiful setting of the barn with “Three Pansies” quilt square on it.

Then it was on through Magoffin County…my childhood home. I took a picture of “The Crazy Quilt” On the side of a black barn and proceeded to a store to ask who owned the Barn. R.C. May owned the store when I was a child. It was a general store where Mom purchased our shoes and the family groceries. To my surprise, the store that seemed so huge to a little girl is a very small building. It now sells tack and other supplies needed for horses and pleasure riding. Randy Adams, who now owns the store, told me Sam McNew owns the barn with the "crazy quilt" hanging on the side.

From Magoffin County, Flo and I drove into Johnson County where we visited and photographed “Apple Basket” that hangs on the Country Music Highway Museum. The square was hung in tribute of Loretta Lynn. The original quilt was made for Loretta Lynn by a fan in Johnson County. The design is to honor the Apple Festival held each year on the first week-end in October. The Museum boasts the likes of Hylo Brown, Loretta Lynn, Crystal Gayle, Patty Loveless, The Judds, Billy Ray Cyrus, and other musicians along Highway 23 including our Own Keith Whitley. One of the best things is the gift shop, which is stashed with souvenirs of artists, carries Blue Monday candy bars that are made in Mount Sterling, Kentucky. If you’ve never had a Blue Monday, be sure to purchase one when you visit the Country Music Highway.

A visit to Butcher Holler was a treat. Van Lear was once a coal camp. We stopped by what was once the Company Store, which still has the same furnishings and atmosphere. It is owned by Herman Webb. Madonna, the niece of the great country music stars, Loretta Lynn and Crystal Gayle showed us a video Crystal Gayle recently made on the Front Porch of the Old Home Place. What a wonderful treat to hear her sing one of my favorite Gospel Songs “Wayfaring Stranger”. Just up the road, Herman has a quilt square hanging on his barn that is different than any others I have seen. His square, a simple "nine patch" has threads painted on it as if the quilt was tacked rather than quilted.

Nothing prepared me for “The Black Barn Produce” on Route 23 between Paintsville and Louisa. I was told it was a produce stand. In my mind it would be a shed closed in on three sides and open on one long side. My mental picture had rough lumber supported by saw horses with baskets of produce displayed on them.

Well I was shocked to find a log barn with a hip roof and a sign that said “Black Barn Produce, a step back in time. Penny candy for kids”. I could have spent the day in the Black Barn Produce.

Before I went inside I took pictures of the quilt square that was made to honor Hylo Brown, a bluegrass star who paved the way for many other artists from the hills o f Eastern Kentucky. Two men walked by as I was snapping pictures “It’s a family operated business” I heard one say “Me, My wife and daughter run the place” he said. This really interested me.

Inside you can cut your personal amount of cheese off the chunk sitting atop an old barrel. Barrels of “penny” candy angled just right for a child to put in a hand and pull out a bunch, supported other items for sale….all the candies that were in RC May’s store when I was a child was there. I’m sure my eyes lit with delight just the way they did when R.C May gave me a piece of Taffy and pack of Kits. Yesterday, I reached in the barrel, got a handful, and paid for them! Wash tubs, wood baskets, handmade dolls, and relics that bring back memories of “the good ole days” are there waiting to be purchased.

“The Barn belonged to my Grandfather” Shanna said. “He was a logger and he parked his trucks here in the barn”.

They took a part of their history and recreated it into a treasure for today emphasizing the past. The Black Barn is a family heirloom made into a business with its own niche. “Our major concern is the amount of customers we have. We didn’t expect the business to be as successful as it has been”.

On into Louisa to snap one more shot then onto route 32 and home. What a day! There’s so much to see and enjoy here at home. I feel extremely lucky to live in an area with so many assets, such a rich heritage, and history and opportunities.
The vacation continued today as I drove around Boyd and Greenup Counties. Have you visited the McConnell House in Greenup County. It was built in 1833-34. Pre-Civil War!! Renovations have kept it as original as possible and it is an educational treat to visit.

Entrepreneurship in Africa a "Poverty Alleviation" Strategy

2008-05-06T04:59:00.000-07:00

Why not Kentucky?

Snippet: African countries have been challenged to promote employment creation through entrepreneurship development. The appeal was made yesterday in Dar es Salaam at the start of a three-day African Continent Regional Workshop on the Promotion of Decent Work through Women Enterprenuership Development. The workshop, the first of its kind that has brought together 36 participants from the African continent, is being held under the auspices of the International Labour Organization (ILO)-Irish Aid Partnership Programme. ``The promotion of decent employment through enterpreneurship development is banked upon to play a significant role in poverty alleviation.

Link: http://www.ippmedia.com/ipp/guardian/2008/05/06/113802.html

These aren't your Grandpa's Lemonade Stands: Youth Entrepreneurship in Texas and Florida

2008-05-06T04:56:00.000-07:00

As coaches know, KECI is discussing launching one big, coordinated project at some point in the near future. The thinking is that this would be a Youth Entrepreneurship project, since there’s nearly universal support for that.

Here are a couple of articles on some Youth Entrepreneurship efforts around the country:

From Texas, this story:

Six-year-old Maggie York, donning a purple plaid apron, wasted no time trying to drum up customers Sunday afternoon in front of Travis Elementary in Houston.

After setting up a wooden puppet theater stand with the word "lemonade" scrawled backwards on a chalkboard, Maggie ran to the curb yelling, ''Lemonade! Get your homemade lemonade! Small cup only 50 cents. Big cup $1."

Yes, times have certainly changed. Lemonade stand prices — once a nickel or a quarter — have increased along with gas prices. And, now you can super-size your order just like you do at the local hamburger stand.

That seemed to be the going trend during the second annual Prepared 4 Life Lemonade Day as thousands of youngsters across Houston tried their hand at entrepreneurship.

More than 10,000 lemonade stands were set up throughout the city, up from 2,600 last year, said Michael Holthouse, co-founder of Prepared 4 Life.

''America is about free enterprise," Holthouse said while visiting a stand run by a group of Jackson Middle School students. ''In the future, many of these kids will be in business. Prepared 4 Life is designed to teach them how to start and operate their own lemonade stand business and see what running a business is all about."

Throughout the school year, the nonprofit organization prepares middle school students for life by instilling life skills, character education and entrepreneurship through activities in afterschool programs.

Editor's note: This foundation even has a celebrity spokesman… hmmm… maybe we could bend Coach Gillespie’s ear. Better yet, Ashley Judd. I’ll volunteer to go talk to her about it... the sacrifices me make for the team.

At Gulf Breeze Elementary in Florida there’s an entrepreneurial wind blowing:

The Jazzy Jellyfish Café doesn't just serve food. It teaches Gulf Breeze Elementary School third-graders about entrepreneurship and community service.

Started by Leslie Jolly, teacher and CEO, the café is in its third year. This year teacher Cindy Shaw is participating with her third-graders.

About 38 students have been preparing all year for the cafe, which opened Thursday. They organized committees: auction, marketing, accounting, management, advertising, decorating and production.

"We had job interviews and applications. We selected on where the best fit was," Jolly said.

Shelby Taylor, 8, landed on the advertising committee. She enjoyed the first field trip where students learned how to write a business plan at the Gulf Breeze Chamber of Commerce. Other field trips have taken students to Global Grill and Gulf Breeze City Hall.

[…]

Last year, the café raised $6,300. Jolly hopes to hit $10,000 this year—in profits, not revenue; her kids are learning the difference. To that end, 152 meals will be served each Thursday night, up from 100 last year. Also, there will about 50 take-out orders, a silent auction and door prizes each night.

Al Cross Plugs KECI Among E.KY Political Heavyweights

2008-05-05T15:03:00.001-07:00

I attended the recent East Kentucky Leadership conference (see here and here) at which there was quite a bit of discussion about economic development. On one panel a group of Eastern KY political and business heavyweights including the Gov's Chief of Staff- Jim Cauley, Bill Weinburg, Jerry Johnson, Ron Eller (as much a heavyweight as a policy wonk and academic can be) and others waxed about the ways E. KY could grow it's economy.

At one point Al Cross, another panelist and the Dean Emeritus of the state's political journos, stepped in to really plug KECI. He suggested that E. KY Leadership Foundation look into expanding the club into far Eastern Kentucky.

At another point Jim Cauley stepped in to smack down a conversation that seemed to be tipping its hat to industrial recruitment. I can't remember the exact quote, but he essentially said the Governor rejected the strenght of that strategy and wanted to invest in KY companies instead. Several folks clapped loudly and awkwardly... me included.

I think there's an opening to expand KECI into the mountains with the right strategy. Wonder if an EDA grant would support that? Ron, Katie, Mel... you out there? Thoughts?

Engaging Entrepreneurs via the Web

2008-05-05T14:57:00.000-07:00

I'm really looking forward to this session:

Reaching Out to Young Entrepreneurs in the Internet Age: Engaging the next generation of entrepreneurs can be your key to a steady pipeline of high-potential start-ups. Discover inexpensive and effective ways to engage tomorrow’s business leaders in this age of Facebook, MySpace, YouTube, blogs, viral marketing and other online social networking phenomenon.

Melony, Gwenda, Kyle Robinson (Ashland Ext. Agent and coach by adoption), Katie and I have all been kicking around ideas related to this for a couple of months now and I hope I can learn something.

VC Money Moves towards Green Tech Creating Opportunities for Environmentally Friend Tech

2008-05-05T14:55:00.000-07:00

I’m in Texas this week for the annual National Business Incubator Association conference. The theme of the conference is Innovation for a Strong Economy and Healthy Planet. Several of the conference’s breakout sessions are devoted to green energy. These facts reiterate a point I heard an expert on VC financing make recently: the smart money among Venture Capitalists in Silicon Valley is headed towards Green Tech… and I don’t just mean green as in the color of money, I mean green in terms of the environment.

Of course it’s possible that there is as much irrational exuberance in this phenomenon as the IT market of the 90’s or the housing market of the 2000’s, but hey, we’ll let Ben Bernanke worry about that.

Bottom line: if you know of a company working in areas such as the environment, now’s the time for them to get funding.

Reflecting...

2008-04-30T05:56:00.000-07:00

Visiting with KECI Alumni has been a very rewarding experience. Many days have been spent in the 19 tobacco-dependent counties of Northeastern Kentucky and each day has been filled with a new experience. I found myself getting excited and wondering what the day would hold as I drove closer the community I would visit on a particular day.

From a farm setting, a school, a family-run business to an extension office, I felt welcomed by the Fellows and they were eager to share what KECI has meant to them, the lifelong friendships they have made and the work they have done with entrepreneurs and in their communities. They were also open to talk about areas of the program that can be strengthened and ways we can improve. Each graduate of the program is unique and shares their talents and experiences as they work one-on-one with entrepreneurs or in their communities. Changing the culture to create a friendlier environment for entrepreneurs takes time, but they seem genuinely committed.

The Fellows are proud of the mini-grant projects they have developed and several in the group want to expand some of the initiatives that were started. Working on a group project seems to be appealing to them if they are given the opportunity to work on their own area of interest rather than be given a committee assignment.

Many of the graduates would like to have more contact with other Fellows that they have made connections with over the last few years or during an alumni event, but due to their geographic location this is sometimes hard to do. They like the idea of alumni events and would like to have more time to get to know the other Fellows. Many of the 2005 and 2006 alumni have never met and would like a chance to network and learn from each other.

When asked about what they need to assist them in coaching, many answered “more time” because their schedules are already overloaded with work and family obligations.
Many Fellows that own businesses have had to take on more of the day-to-day responsibilities since the decline in the economy. Other Fellows have had to change jobs to support their families. All these situations leave the Fellows with less time to volunteer for KECI.

Life happens and we all must adjust to the changes that occur. One thing is certain, all the Fellows have a commitment to KECI, some stronger than others, but they continue to be an important part of their communities and in the lives of others.

I feel humbled to be considered “one” of this awesome group of people that care so much about making a difference in Northeastern Kentucky.

Melony Furby

Kentucky's 100 year old businesses

2008-04-27T11:47:00.000-07:00

I've spent most of the day writing a newspaper article. While doing some research I found the Kentucky Humanities Council has a publication about the 100 year old businesses in Kentucky. Thomas D. Clark wrote the forward in which he says:

"The Kentucky businesses, commercial or institutional, which have survived for a century have reflected the realization of dreams, of expectations, and the challenges of changing times and human tastes. Running through this collection of histories is the theme of fending off the ravages of archaic practices on the one hand, and an ever-growing corporate competition on the other. During the passing decades these survivors have established rock-solid assets of integrity, personal service, patron loyalties, and a dedication to the sense of community. Collectively, the centennial businesses have reached far beyond the doorways of their stores and shops to knit a rich Kentucky heritage of time and place." (From the Kentucky Humanities Council WEB site)

Perhaps most of you already knew about this book and perhaps I should have but I didn't and was extremely happy to find it. The book can be ordered at http://khci.intent.net/go200102.cfm

Redbuds in Springtime

2008-04-25T06:50:00.001-07:00

Redbuds in spring time, courtesy of Gwenda.

Hidden Innovators Could Swell Great Britain's Economy

2008-04-21T05:15:00.000-07:00

Very interesting piece from PublicTechnology.net on how hidden innovators could yield as much as 15 billion sterling pounds to the British economy through their innovations if only they can be plugged into the stream of commerce:

The report, which combined in depth statistical research with qualitative case study analysis, was conducted over a six month period. It examined how we might unlock the barriers and pathways to entrepreneurial innovation in three important groups, recognised for their entrepreneurial potential: - “Olderpreneurs” (those aged over 50) - Black Minority and Ethnic (BME) - People with a disability (including dyslexia).

One of the report’s key findings is that entrepreneurial self-confidence is a critical issue for all the hidden innovator groups and a major barrier in pursuing an entrepreneurial path. However, it also reveals that this self-confidence can be nurtured if there is a culture of entrepreneurship to support it.

Some of the critical steps to creating that culture are:

- Policy makers should be urged to provide equivalent support to the over 50s as they do to younger people

- younger entrepreneurs need investment and support but that should be balanced against support for other parts of the entrepreneurial ecosystem

- Business support services must take diversity seriously - understanding barriers and helping to break them down

- Government should strive to change the image of entrepreneurship

- make business ownership a mainstream ambition

- Encourage improvement as well as innovation

- a successful and sustainable business doesn’t have to be completely unique

- Provide tailored encouragement and support

- the right mentoring can have a dramatic effect on business success

Gordon Frazer, Managing Director, Microsoft UK, commented: “Technology, and software in particular, is an extremely powerful tool which enables innovation and entrepreneurialism. It provides a platform on which new ideas can be built, it breaks down barriers to entry for new businesses and allows access to markets far beyond traditional boundaries. It appears that as a nation, we’re currently only focussed on supporting a relatively small part of the UK when it comes to entrepreneurial and innovative potential. By tapping into the knowledge and passion of all our communities we can both drive economic growth and help to create a culture of successful start ups and growing businesses. We are passionate about helping the UK to become a nation of successful business owners.”

This is just a portion of this must read. There's quite a bit here that merits discussion in the future so you haven't heard the last word on this.

Napoleon Bonaparte once scornfully remarked that England was a nation of shopkeepers. The joke was on him as these shopkeepers were the backbound of a British economy that ultimately allowed the English to defeat the Corsican general and his French legions. This study signals that the UK should double down on that great tradition.

WaPo: Entrepreneurs Face Increasing Energy, Health Care Price Woes, But Overall Optimistic

2008-04-16T09:30:00.000-07:00

Here's some of what the Washington Post says in an article published today:

Most small businesses say the nation's state of economic uncertainty and lack of health insurance and available capital are the most significant challenges they face in growing and maintaining their businesses.

The National Small Business Association released a study today that covers a broad range of business owners' opinions on topics ranging from employee benefits to energy costs.
Nearly half of all respondents said they expect a recession to occur within the next year while nine percent anticipated economic expansion.

"Small businesses are buckling down, with nearly a quarter reporting no growth strategies planned for the coming year"... [said one expert].

More than half of the business owners surveyed said they have faced difficulty securing credit during the last year. Credit cards continue to be the largest primary source of financing for small firms even though 57 percent report that their credit card terms are worsening.

Fifty-four percent of small businesses have some type of business loan, according to the survey; and to leverage those loans business owners are using credit cards, personal savings and their homes as primary sources of financing.

Small business owners also said spikes in energy costs have forced them to increase prices, reduce business travel, cut production schedules and reduce their workforces. On the up side, 18 percent of those surveyed said they're investing in more energy efficient equipment or upgrades.

Despite the gloom and doom, the majority of those surveyed still expressed confidence for their own businesses. Glen Bolger of Public Opinion Strategies, which conducted the survey of 500 firms for the NSBA, said the optimism tracks closely with what his group would expect to see from self-starting entrepreneurs.

Supercoaching, a handy tool for college student.

2008-04-15T17:24:00.000-07:00

My niece who is a student at KSU had to create a GREEN business and write a thirty page paper on it. She didn't know exactly what to do with the assignment so she called me. When she read the questions in the assignment, supercoaching jumped from my memory. It wasn't hard for anyone to see that supercoaching was not easy for me to learn, not sure if I did learn it but I've studied the notebook on several occasions. Thanks to Don Davis who coached me through supercoaching. However it made sense when I sent my niece a list of questions to answer about her business, questions to guide her through a five or ten year plan. I also sent her a business plan I did with the help of the Small Business Development Center. She said it made everything clear to her and she understood the terminology used in the assignment and thought she could write the paper after reviewing the questions from supercoaching and the business plan. I'm waiting to get a copy to proof read. If she gets an A on the paper, I will feel much better about my coaching abilities. I think it is exceptionally interesting that it happened on the eve of a supercoaching update.

Entrepreneurship, Prosperity and Islam and Christianity

2008-04-15T09:13:00.001-07:00

The magazine Atlantic Monthly has a fascinating piece in its March issue about competition in Nigeria between Christians and Muslims. These two great faiths aren't just competing with one another, they're also competing to be relevant in the lives of their parishioners. A couple of the ways they're doing this is by promoting prosperity and the tools to gain prosperity, including entrepreneurship.

Here's a portion of the article dealing with Christians, particularly Pentecostals:

Bishop Oyedepo built Canaanland to preach the Gospel of Prosperity. As he said, “If God is truly a father, there is no father that wants his children to be beggars. He wants them to prosper.” In the parking lot at Canaanland, beyond the massive complex of unusually clean toilets, flapping banners promise: Whatsoever you ask in my name, he shall give you, and By his stripes he gives us blessings.

[…]

[While some have criticized this emphasis on material prosperity,] ….Bishop Oyedepo’s followers say that those who criticize don’t understand what’s happening in Africa. “There’s a kind of revolution going on in Africa,” one of the bishop’s employees, Professor Prince Famous Izedonmi, said. “America tolerates God. Africa celebrates God. We’re called ‘the continent of darkness,’ but that’s when you appreciate the light. Jesus is the light.” The professor, a Muslim prince who converted to Christianity as a child to cure himself of migraine headaches, was the head of Covenant University’s accounting department and director of its Centre for Entrepreneurial Development Studies. [Emphasis added]

“God isn’t against wealth,” Professor Famous said. “Revelations talks about streets paved with gold.” He added, “Look at how Jesus dressed.” When I appeared baffled, he patiently explained that since the soldiers cast lots for Christ’s clothes, they were clearly expensive. In Canaanland, clothes matter: the pastors wear flashy ones and they drive fast cars as a sign of God’s favor. They draw their salaries from sizable weekly contributions. On Sundays at some Nigerian Pentecostal churches, armored bank trucks reportedly idle in church parking lots, while during the service, believers hand over cash, cell phones, cars—all with the belief that if they give to God, God will make them rich. It’s said that if the Christian Prosperity churches disappeared, the banks of Nigeria would collapse.

Meanwhile, here's the Islamic side of the coin:

The Christian Gospel of Prosperity is so powerful that it has spawned a unique Nigerian phenomenon: an Islamic organization called Nasrul-Lahi-il-Fathi (NASFAT). The name is drawn from a verse in the eighth chapter of the Koran: “There is no help except from Allah.” This is the same chapter, “The Spoils of War,” or Al-Anfal, that Saddam Hussein cited to justify his genocide against the Kurds. But NASFAT has no interest in violence. Instead, the organization is based on economic empowerment and prosperity with an Islamic spin. Started with about a dozen members in the 1990s, NASFAT now has 1.2 million members in Nigeria and branches in 25 other countries. The organization has an entrepreneurship program, [emphasis added] a clinic, a prison-outreach program, a task force to address HIV/AIDS, a travel agency, and a soft-drink company called Nasmalt, whose profits go to the poor. It even offers matchmaking. Although many conservatives believe that this engagement with the secular world is haram, forbidden, and distinctly un-Islamic, NASFAT argues that it is the only way to survive in the marketplace.

[…]

NASFAT’s primary mission is to reclaim those values the world sees as Western, but which its members perceive as integral to the success of the global Islamic community, or ummah. Foremost is education. “We know that the West is ahead today because of education,” Hassan said. NASFAT has its own nursery, primary, and secondary schools, as well as the brand-new Fountain University. While many orthodox believers say that this new movement is bi’dah, innovation, and therefore dangerously un-Islamic, NASFAT’s adherents disagree, arguing that they are part of a charismatic Muslim movement that addresses social welfare—and that is on its way to sweeping the world.

Since churches globally are turning to entrepreneurship, education and prosperity as a way to help the faithful, might this be a coming trend in America? I'd love get Tony's take on this.

Global (Youth) Entrepeneurship Week

2008-04-15T08:18:00.000-07:00

56 nations have joined Global Entrepreneurship Week, a program designed to “engage young people around the world to encourage them to pursue entrepreneurial ideas and opportunities through activities with the support of entrepreneurs, government officials, non-profit leaders and educators.”

Should we do anything? Perhaps send a press release to the local papers about our youth entrepreneurship activities and how they relate to this global effort.

Why Should KECI Be Blogging?

2008-03-23T19:40:00.000-07:00

The idea is that capitalism-- that is the free market system of economics that governed most western societies from the time of the industrial revolution to now-- has traditionally been marked by the need for massive amounts of capital to operate a business. (Hence the name “capital-ism”.) Consider starting a factory 50 years ago, or attempting to commercialize a new product, or even opening a small store. You were often looking at heavy investments of capital to even start your business unless you tapped into a franchise or similar entity. Today, you need only an internet connection, a business plan, and a much smaller investment to get started.

Here’s how an abbreviated version of how economist Arnold Kling, the originator of this thesis, describes his theory:

The reduced significance of capital means that the cost of entry is lowered in many industries. Today, we see this in the shops that people have set up on eBay or in the blogs that compete with traditional pundits.

...When a new project can be hatched in a basement on a small budget, fast failure is more efficient than organized planning.

...Under capitalism without capital, we should encourage people to be self-educating and self-starting, not state-parented [or, I hasten to add, dependent on big industry.]

…Another characteristic of capitalism without capital is less bureaucracy. As observers from John Kenneth Galbraith to Amar Bhide have pointed out, corporate bureaucracy emerges to regulate risk-taking in an environment in which new projects are very expensive. Think of a new airplane or a new fabrication plant for computer chips.

When a new project can be hatched in a basement on a small budget, fast failure is more efficient than organized planning. Galbraith, writing in an era when the economy was dominated by heavy industry and oligopolies, saw entrepreneurship as little more than a quaint myth. Bhide, writing more recently, sees the entrepreneur as thriving in circumstances of high ambiguity and low capital intensity -- situations that have become increasingly prevalent in the computer age, particularly with the advent of the Internet.

The industrial economy required planning and bureaucracy. The Internet economy instead is better described by Friedrich Hayek's terms spontaneous order and competition as a discovery procedure.

So what does all this have to do with KECI or this network? It’s simple: we’re an organization dedicated to helping business owners take advantage of capitalism without the capital. “Fast failure” may be more efficient than “organized planning” on the scale that Kling was discussing, but there still has to be some planning. KECI, a network of coaches for small businesses in KY, help businesses plan. We also open up our networks and rolodexes, we provide moral support, we’re that “free” shoulder entrepreneurs can lean on as they try to navigate this bold new economy. 20 years ago, 50 years ago, we’d have been virtually irrelevant. But today, successful companies can be spawned out of garages and basements and we are there to help these businesses along.

But in order to maximize our ability to help, we have to consider taking advantages of the same tools that businesses can now use in lieu of massive capital outlays on advertising and communications. We can set up a virtual network that allows us to communicate 24/7 for free. We can create our own web sites in the form of blogs that allow us to get our messages out to a larger audience, again for free. The network, the blogs, they serve the following purposes:

* They allow us to communicate in a far easier manner than traditional, cumbersome list-serves.

* They allow us to share ideas and seek help in a much easier format.

* Because communication is so easy, Ning and blogger.com allows us to correspond with one another more frequently than we might have previously.

* This blog will allow us to communicate our ideas, success stories, etc. with the rest of the world. As we put our stories online, the search engines will take notice, thereby driving more traffic our way. It’s probably not too difficult to imagine this group becoming a hub for discussion of best practices throughout the world of entrepreneurship.

All the above should sound like fun to most and having fun is important to what we do. Most importantly, however, success in these simple to use IT areas will better allow us to do our job and serve small businesses in our region and promote the concept of entrepreneurship as economic development.

All we need now is content and involvement. Who’s interested?