About the Institute
The Institute for Rural Entrepreneurship was established in October 2003 to stimulate and support the development of micro, small and medium-size enterprises in North Carolina's 85 rural counties. It is housed within the N.C. Rural Economic Development Center and draws from a range of resources to serve the needs of rural entrepreneurs, community and economic leaders, and state policy makers.
Background
The institute grew out of the recognition that entrepreneurs -- people who create and grow businesses -- play a powerful role in the economic well-being of rural communities. Today 95 percent of all rural establishments have fewer than 50 employees, and more people than ever are working for small businesses in North Carolina. Furthermore, small firms account for most of the job increases in recent years.
The strong performance of smaller businesses contrasts with employment declines in both production agriculture and traditional manufacturing. While these industries will remain essential to rural economies, they are expected to provide fewer jobs in the years ahead. Meanwhile, innovations in technology and new opportunities in service industries, tourism, retail and value-added agriculture (from specialty food products to crops grown for pharmaceuticals) are giving rise to new micro and small businesses.
The Rural Center established the Institute for Rural Entrepreneurship out of the belief that "homegrown" entrepreneurial ventures represent an important way to build and sustain the rural economy. The center has long been involved in boosting rural business development through its Microenterprise Loan Program and Capital Access Program. Beginning in 1998, it also conducted a three-year demonstration project helping communities plan and nurture small business growth and development. The report Saying "Yes" to Small Business documents the results of that project. With the Institute for Rural Entrepreneurship, the center commits itself further to building and strengthening the entrepreneurial environment in rural North Carolina.
Institute Goals
The Rural Center developed the goals of the institute in collaboration with state business leaders and public officials. These goals are to support:
- Self-employment as an important source of jobs and income in rural North Carolina.
- Development of entrepreneurial companies -- new and existing -- that can grow and generate jobs and wealth in rural communities.
- Rural communities as they incorporate entrepreneurship into their economic development programs.
- Overall improvement in the health and vitality of the small business community in rural areas.
5 Pillars of Support
Many people picture entrepreneurs as rugged individuals, going it alone and striking it rich despite the odds. It seldom works that way. Most successful entrepreneurs have networks of fellow entrepreneurs with whom to share experiences and advice. They need mentors and an assortment of professionals with specialized knowledge -- in law, accounting and marketing, for example. And to keep the spark when the going gets tough, they need to feel recognized and valued.
In short, it takes a community to raise an entrepreneur. Creating a community of entrepreneurs requires a long-term commitment and a broad-based strategy. The institute has shaped its strategy around five areas critical to successful entrepreneurial development.
Technical Assistance and Information
Business services and information should be within a reasonable distance and cost of every entrepreneur in the state, and entrepreneurs should know where and how to find them. Toward this end, the Business Resource Alliance is developing an outline for a seamless network of business services that entrepreneurs may access through any cooperating agency. The Rural Center will continue to develop and publish data and other information about small businesses and related resources on this website.
Entrepreneurship Education and Training
High-quality educational programs, as well as technical assistance, should be available to help people make informed choices about creating and managing businesses. The institute and its partners will continue to improve, expand and publicize educational programs for current and prospective entrepreneurs, from grade schooler to dislocated factory worker to business owner.
Access to Capital
Access to capital consistently ranks as one of the primary concerns of entrepreneurs. The Rural Center, Self Help and other providers have developed an array of innovative programs in North Carolina. With a periodic capital needs analysis, the Rural Center will seek to fill remaining gaps. Efforts also will be made to better publicize and explain existing programs and the steps required to qualify for available funds.
Access to Networks
Networks allow entrepreneurs to share experiences, ideas and resources, to trade goods and services, and to collaborate on new ventures. In rural areas, where numbers are fewer and distances are farther, networks are scarce. The institute will work with community-based partners to build regional networks of rural entrepreneurs to reduce their sense of isolation and the inefficiencies of reinventing the wheel in business development.
Leadership and Policy Development
Economic development literature talks about the culture of entrepreneurship. In the coming years, the institute will seek to enrich this culture as it promotes the replication of successful community models of entrepreneurial development, advocates tax and regulatory policies that benefit entrepreneurs and leads the state and its communities in celebrating the contributions that entrepreneurs make to the economy and quality of life.
Selected accomplishments
In 2003 and 2004, the Rural Center's annual Rural Partners Forum focused the spotlight on the economic potential of entrepreneurship and the economic development systems and policies necessary to help entrepreneurs thrive. The 2003 forum, which attracted a crowd of 700, announced the creation of the Institute for Rural Entrepreneurship and a 10-point plan for stimulating the creation of homegrown jobs. The 2004 forum reported progress on the 10-point plan. It also highlighted strategies for community entrepreneurial development and ways homegrown companies can profit from the global marketplace. The state's first-ever small business "ribbon-cutting" honored business owners who are helping to revitalize local economies throughout the state.
The institute and its collaborators have made other significant steps toward improving the environment for rural entrepreneurship. Among them:
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The institute conducted an extensive assessment of the climate for entrepreneurship in North Carolina. The report Understanding the Environment for Entrepreneurship in Rural North Carolina details the results offocus groups and interviews held with entrepreneurs, business resource providers and policy makers throughout the state. The online Rural Data Bank provides a statistical summary of small business activity county by county.
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In conjunction with the N.C. Center for Small Business and Technology Development, the Rural Center conducted a survey that showed a surprisingly high percentage of fast-growing companies among North Carolina’s rural entrepreneurs. This and other findings are discussed in the report Creating Entrepreneurial Communities: Facts about high-growth entrepreneurs in rural North Carolina. A second report, Creating Entrepreneurial Communities: Profiles of high-growth entrepreneurs in rural North Carolina, explores their stories in more depth.
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The institute cohosted the North Carolina Entrepreneurship Summit in 2006 and 2007. The first summit launched a planning process for a statewide entrepreneurship development strategy. The second outlined a plan of action and announced the first steps toward its realization.
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To help entrepreneurs locate existing services, the Rural Center compiled the North Carolina Business Resource Directory (updated in 2007) and the Directory of Entrepreneurship Education and Training Resources. Both describe services available in all 100 counties.
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The Rural Center convened the state's first Business Resource Alliance, which committed itself to developing a comprehensive, integrated network of business services for entrepreneurs and small businesses and to identifying and filling unmet needs. The alliance, coordinated by the Rural Center, includes state and federal agencies, universities, state associations, nonprofit organizations and private capital providers.
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A group within the Business Resource Alliance collaborated to win a $2 million grant from the W.K. Kellogg Foundation to advance the Rural Entrepreneurship Development System. The grant began in June 2005 and runs through spring 2007.
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In July 2004, the N.C. Department of Commerce and the Rural Center funded 10 projects demonstrating ways communities and regions can build and strengthen their own entrepreneurial capacity. In connection with this, the center trained some 200 local leaders from 59 communities in entrepreneurial development strategies.
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The commerce department and the Rural Center collaborated again in designing the new Entrepreneurial Incubators program, which awarded grants to 14 local projects. The grants help cover the capital costs of launching or expanding a business incubator in a rural community.
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With the N.C. Department of Agriculture, the Rural Center funded demonstration projects in shared-use commercial kitchens and dairy pasteurization to reduce start-up costs for agricultural entrepreneurs.
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A new program is extending entrepreneurial training to dislocated workers with ideas for starting a business. Called the New Opportunities for Workers Program, it operates out of 15 community colleges and is a collaborative effort of the Rural Center, the N.C. Commission on Workforce Development, the N.C. Department of Commerce's Division of Employment and Training, the N.C. Community College System's Small Business Center Network and N.C. REAL Enterprises.
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The e-NC Authority is opening new Business and Technology Telecenters and training the centers' staff in entrepreneurship development. The centers provide high-speed Internet and business services in disadvantaged counties.
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The Rural Center examined one of the most crucial questions facing business today: how to provide affordable health insurance coverage for workers. In addition to releasing a report on its findings (Health Insurance in North Carolina), the center collaborated with legislative staff in drafting legislation the General Assembly to establish the N.C. Health Insurance Innovations Commission.
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