NCOE's Building Companies, Building Communities

The key for converting a community or region into the next high-tech hot-spot is an economic development strategy promoting the growth of fast-growing, high-risk companies and a strong networking culture, according to Building Companies, Building Communities, the latest report from the National Commission on Entrepreneurship. The brief report presents the findings of 18 focus groups held with more than 250 entrepreneurs across the country to discuss two topics: "what factors, other than their own business acumen, help them to succeed, and what factors make a community entrepreneurial?" 

The four issues identified through the process were: 

• Finding and keeping talented people is the greatest obstacle for entrepreneurs these days -- ahead of the need for capital 
• The local business culture must nurture an entrepreneurial community through broad and informal networks. 
• Public policy can positively and negatively affect the ability of entrepreneurs to succeed. Dialogue between government and entrepreneurs is critical for entrepreneurial growth. 
• Most local economic development policies focus too much on chasing large projects or companies, ignoring the needs of entrepreneurial businesses, which provide the backbone of job growth and local employment. 

NCOE then discusses the policy implications of the findings, making broad recommendations for governments to consider as they develop strategies for cultivating a technology-based economy. The report can be downloaded from the NCOE web site: http://www.ncoe.org/research/index.html