Volume 14, Number 2 - July 2017 |
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Welcome to the latest edition of EntreWorks Insights, a quarterly newsletter that reports on business trends, policy developments, and other issues affecting the business of economic and workforce development. You’re receiving this note because you’ve asked to subscribe or because you have some previous interest in the work of EntreWorks Consulting. If you wish to subscribe or be removed from this list, please send an email to info (at) entreworks.net. If you’re interested in the newsletter, please read on. Please feel free to share with friends, family, colleagues, and other loved ones. Comments and constructive criticism (and praise) are also welcome. You are also encouraged to visit and comment on the EntreWorks blog at http://entreworks.net/blog. Thanks for your interest. |
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HIGHLIGHTS |
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Connecting Workforce & Business Development for Rural EntrepreneursIf I had a trademark on the phrase “workforce development is economic development,” I’d likely be a wealthy person. But, like many such phrases, this one is more style than substance. Economic and workforce developers talk a good game about collaboration, but these partnerships are rarely strong, lasting, or effective. When it comes to supporting rural entrepreneurship, many regions suffer from a lack of capacity and a lack of resources. They don’t have the money to invest in training and technical assistance for new business owners, and they even lack trained people to manage this kind of programming. This is a gap that can and should be filled by the workforce development system, which has capacity and staff on the ground across rural America. They also see a steady stream of people who likely have an interest in pursuing business ownership. And, for most rural regions, economic prosperity or recovery is going to rely heavily on their ability to nurture new business growth. At present, few rural entrepreneurship programs contain workforce development elements—despite the fact that most entrepreneurship advocates recognize talent development as a critical part of successful ecosystems. Several factors are at work. Small business owners typically lack the time or resources to access workforce development programs, and may under-invest in workforce training. Meanwhile, few Workforce Investment Boards (WIBs) provide entrepreneur-friendly programs or support services. A 2010 survey of WIBs found that only 5% targeted small business as a top priority, and few provided lower cost services targeted to small or new companies. WIBs and other workforce organizations face resource constraints of their own, and may often opt for working with larger employers where larger scale outcomes are likely and where the return on investment is larger. Recent changes in federal law are designed to encourage greater WIB focus on supporting local entrepreneurs, but these changes are too recent to allow for strong conclusions on their impact. Where Should Workforce Efforts Fit In? While the connection between regional entrepreneurship and workforce development efforts are currently limited, the potential for closer linkages is significant. Closer linkages can improve outcomes on traditional business and talent measures, such as business starts, new job creation, and improvements in the local talent base. They can also generate broader community outcomes by enhancing economic inclusion and by supporting a more diverse and sustainable local economy. These efforts could include the following:
This is a very brief introduction to a complex set of issues---I welcome your reactions and feedback. Yet, for me, this seems like something of a no-brainer. For today’s rural economic developers, success depends on their ability to nurture local entrepreneurs and to build a strong local talent base. At present, workforce development and entrepreneurship/small business programs operate on separate pathways, with few efforts to align program objectives and activities. Both sides suffer from the status quo. Rural ecosystems struggle to develop a strong pipeline of new entrepreneurs, and workforce development professionals miss out on opportunities to work with emerging local employers and to provide new learning opportunities for rural youth. Closer alignment is possible without major new investments or massive shifts in policy directions. Current rules and regulations permit most of the activities discussed in this essay. What is needed is the will and the commitment to move forward. By building closer collaborations between workforce and entrepreneurial development initiatives, rural regions can improve the quality of services provided to emerging rural ventures while also building a stronger entrepreneurial ecosystem for businesses of all types.
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