Executive Summary

This Blueprint for Entrepreneurship as a Strategy for Economic Development and Community Renewal is both a top-down and bottom-up approach to the development of a ‘culture of entrepreneurship' for West Virginia. As best stated on April 26, 2003, by Governor John Baldacci of the State of Maine, "Innovation is the key to Maine 's economic future, and I believe that entrepreneurs are at the heart of the innovation process. The role of the entrepreneur is to innovate and create economic opportunity for others, and the role of government and its partners is to create a culture that encourages entrepreneurship and builds a supportive environment for entrepreneurial activity.”

It is well past time that West Virginia adopts a similar position with regard to creating this culture and supportive environment for entrepreneurs.

This Blueprint covers the key elements influencing entrepreneurship: general perceptions of entrepreneurship, entrepreneurial infrastructure, tax and regulatory climate, access to capital, and entrepreneurial education.

The intent of this Blueprint is to challenge conventional thinking with respect to economic development and to begin the process whereby West Virginia and its policy makers will focus the necessary resources toward entrepreneurship and small business.

The focus of the West Virginia Development Office has primarily been in trying to recruit new large employers and companies to West Virginia . This committee believes that an alternative focus would be more fruitful for economic development efforts. West Virginia must begin to develop its people and its communities from within through an emphasis on entrepreneurship and small business. Real, substantive economic revitalization will not likely occur through the attraction of large manufacturing concerns to the state. Rather, transformational economic development will occur through the development of an ‘entrepreneurial culture' in West Virginia .

The recommendations included as part of this Blueprint are not unique. Rather, they are ideas and policies that have been successfully implemented by other states and nations as they struggle to grow economic opportunities in response to growing financial and community difficulties. They are recommendations with a proven track record.

We have not sought to recommend only easy and popular solutions to the problems that plague our communities. Rather we have sought to introduce a comprehensive entrepreneurial policy that, if implemented in whole, will lead to a more vibrant, growing West Virginia through the development of a ‘culture of entrepreneurship.'

Our recommendations may not be easy to accept or adopt for public policy makers and elected officials, but the alternative is much worse – a continuation of our current policies that have not worked. Generation after generation of West Virginian has been raised with the promise of a ‘better future' only to have been dismayed at the continuation of the status quo. Their cynicism is leading to a dangerous economic environment that threatens the very viability of West Virginia and its people. It is for these reasons that we are committed to the principals and the vision contained in this Blueprint .

A ‘culture of entrepreneurship' is critical to the future of West Virginia . The intersection of two precepts—the value of entrepreneurship to the overall economy and the impact of state actions on the business climate – has significant implications for state officials and policymakers. To better understand the current state policy environment in which West Virginia entrepreneurs operate, we must understand entrepreneurial initiatives adopted by other states and the current state of the entrepreneurial infrastructure in West Virginia.

At one end of the spectrum are states that have a clearly articulated development objective that focuses on the emergence and success of entrepreneurial ventures. In contrast, many states have draped their existing economic development programs in a ‘mantel' of entrepreneurship. West Virginia must do more than simply speak in wishful terms about its commitment to entrepreneurship for the development of our communities. West Virginia must act.

According to several recent studies, such as that of the Global Entrepreneurial Monitor , variations in rates of entrepreneurship may account for as much as one-third of the variation in economic growth across countries. This strong correlation between entrepreneurial activity and economic growth has been repeatedly demonstrated at the local, state, and national level.

West Virginia has a choice, either to continue to struggle economically or to boldly look to the future with a plan to develop and nurture an entrepreneurial culture that can unleash the potential of generations of West Virginians . This committee believes that incremental change is not an option. West Virginia must move as quickly as possible to promote a national perception of West Virginia as the “most entrepreneurial-friendly environment in the United States .”

This committee believes that West Virginia must act quickly to capitalize on the opportunities that are currently present in our ever-changing world. Increased global integration and rapid technological change have created a business climate with more opportunities than ever for new businesses and entrepreneurs. We must create a climate in which West Virginia entrepreneurs can move quickly to take advantage of these opportunities before we are left behind.

While the rapid rate of change in the global economy might be overwhelming, as Peter Drucker has noted, “entrepreneurs see change as the norm and as healthy. The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.” West Virginia entrepreneurs are no different. They are ready to tackle these challenges and opportunities. West Virginia must simply provide the climate and support necessary to allow these individuals to reach their full potential.

As MIT's Lester Thurow puts it:

“In the century ahead the economic game will be played on three levels [at the national, company, and individual levels]. Companies will play the game based on the skills they employ, the capital investments they make, their technical prowess, and their ability to globally source and sell new products. New start-ups that rapidly grow to become big multinationals will be an important part of success. These new, rapidly growing start-ups won't appear without entrepreneurs. Social regulations and attitudes will have to permit industrial flexibility if entrepreneurs and new companies are to emerge. As the nation sorts out its priorities for the new century, fostering entrepreneurship must be a cornerstone of our economic policy. If we fail in this regard, the costs could be enormous. ”

If West Virginia is to fundamentally alter its history with respect to economic development and it's economic heritage, West Virginia must have a clearly articulated development objective that focuses on the emergence and success of entrepreneurial ventures. This Blueprint sets forth that vision.

Co-chair Jack Carpenter
jcarpenter@wvhtf.org

Co-chair Jeff Lusk
jlusk@trailsheaven.com

Visit About Us to learn more about the work of the Vision Shared Entrepreneurship Team.