Entrepreneurship in Indian Communities

Despite considerable economic and social obstacles, entrepreneurial business activity on and around Indian reservations is gaining momentum, according to a report released today by CFED and the Northwest Area Foundation.

The report, Native Entrepreneurship: Challenges and Opportunities for Rural Communities, looks at the current state of Native non-gaming entrepreneurship and analyzes the support network available to native entrepreneurs. The full report is available at www.cfed.org.

Irish Development Agency

Click here to see where it operates offices around the world. This is global reach if I have ever seen it.

Who Hires MBA Grads from Various B Schools?

This is an interesting look at who is hiring MBAs today and who has the biggest call on this talent. Does it surprise you that McKinsey and Company is the number one buyer? More here.

The War of Ideas

For many years, foundations have been sources of private wealth for public purposes; they have committed great resources to address society’s ills – but they have remained wary of straying too close to the political sphere. Foundations are prohibited from engaging in partisan political activity and from lobbying elected officials about legislation. So foundations have often viewed their funding as a counterweight to public spending, supporting, for example, domestic social services or international public health initiatives.

Yet a notable portion of foundation spending – a growing portion for some foundations – is targeted almost directly at the political process. This spending is intended to win the “war of ideas” under way in American politics. It supports research and advocacy that aims to influence how elected officials and the public think about a broad range of policies. This “war of ideas” is fundamentally a battle between liberals and conservatives, progressives and libertarians, over the appropriate role for government. Some progressive writers argue that conservatives have been winning battles in the war of ideas because liberal foundations are not spending near the amount that conservative foundations are on the war and the liberal money is not deployed nearly as effectively.

More here.

First Class Community Indicator Work

Check this one out. California's Regional Collaboratives (RCs) have been at the cutting edge of innovation in the emerging field of Regional Quality of Life Indicators. Through a recent report (2.9 MB, PDF) documenting California's 14 projects and a network of practitioners, CCRL is working to build the capacity of current and new indicator projects.

The report, titled Telling Our Story, Measuring Our Progress: California's Regional Quality of Life Indicator Projects, serves as a best practice and technical resource, documents what has been learned at a regional level, analyzes and compares data sets across regions, identifies emerging issues of policy importance through the development of new indicators, and lays the groundwork for a community of practice.

Create Your Own State Budget in California

Next Ten is inviting Californians to take the "California Budget Challenge." The California Budget Challenge lets you roll up your sleeves and create your own state budget for the next 10 years. You call the shots on how much to give to schools, health care, prisons and other areas and also on how to pay for these programs. Click here to learn more.

Strategic Flexibility

According to Deloitte Consulting, companies that want to stake out a defensible market position in this uncertain and volatile marketplace are finding themselves at a loss. They must stay nimble in this environment; however, that often means sacrificing exactly what allows companies to compete for market dominance — the scale and complexity of their organizations. Deloitte Research has developed Strategic Flexibility — an approach that allows organizations to prepare effectively for a future they cannot predict. The framework of Strategic Flexibility requires that companies:

* Anticipate multiple scenarios;
* Formulate strategies for each;
* Acquire the capabilities to execute those strategies;
* Execute the "most likely" strategy;
* Be prepared to rapidly adopt one of the alternatives if market forces dictate.

Here to read more.

My question is: Can communities apply the principles of "strategic flexibility" to position themselves for future economic development opportunities in uncertain times. Let's hope so, given the direction global business strategy is headed in today.

The Teflon Economy

This is an interesting article on how the US economy has managed to avoid falling off a cliff over the past decade. The question is: "how long can it last?" The answer seems to be: "for at least the next couple years."

"The ability of the U.S. economy to shrug off shock after shock in the last few years has been truly remarkable. Record high oil prices? Growth has barely slowed down. Iraq war? Postwar growth was the highest since the booming 1990s. Corporate scandals? U.S. companies are in the strongest financial shape they have been in decades. Terrorist attacks? The economy barely missed a beat. Biggest stock market crash since the 1930s? The ensuing recession was the mildest since the end of World War II. Too much debt and too little saving? The U.S. consumer has not noticed. A sharply lower dollar, gradually rising inflation, and a ballooning U.S. budget deficit? The bond market does not seem worried. And the list goes on."

"The amazing performance of the U.S. economy in the troubled half decade since the dawn of the new millennium is all the more remarkable given the very poor performances of both Japan and the Eurozone. Where the United States has rebounded, the other economies have faltered. In particular, during 2004, when the world economy enjoyed its strongest growth (4.1%) since 1988, the 1.8% growth of the Eurozone was very disappointing. At 2.6%, Japan's performance was somewhat better, but far short of the 4.4% growth in the United States. For 2005, Global Insight expects that both Japan and the Eurozone will grow at less than half the rate of the U.S. economy (i.e., 0.9% for Japan, 1.5% for the Eurozone, and 3.7% for the United States)."

Source: Global Insights

Personal Bankruptcies Expected to Climb

That is the forecast by Global Insight Economic Research. Some states are having much greater problems than others in this area: Utah, Tennessee, Alabama, Arkansas, and Georgia. Rising interest rates coupled with flat income growth are expected to increase the consumer debt burden. Solution? Develop higher paying jobs for your communities. Your citizens are going to need more money. Download the summary here. (Free registration required.)

Worldwide Science and Technology Indicator Data

Looking for this type data? You are in luck. Click here to access the OECD database. Go here.

Michigan’s SmartZones

Michigan SmartZones are collaborations between universities, industry, research organizations, government, and other community institutions intended to stimulate the growth of technology-based businesses and jobs by aiding in the creation of recognized clusters of new and emerging businesses, those primarily focused on commercializing ideas, patents, and other opportunities surrounding corporate, university or private research institute R&D efforts.

SmartZones provide distinct geographical locations where technology-based firms, entrepreneurs and researchers can locate in close proximity to all of the community assets that will assist in their endeavors. More here.

Massachusetts Technology Development Corporation

The Massachusetts Technology Development Corporation, a leading edge venture capital firm that addresses the "capital gap" for start-up and expansion of early-stage technology companies operating in the Commonwealth of Massachusetts. MTDC has invested in many of Massachusetts' most promising new technology-based companies.

What criteria does MTDC us in making investments? They include:

• The company must be located in, or agree to locate in, Massachusetts.

• The company's business must be technology-based, and its principal products or services must be sufficiently innovative to provide a competitive advantage.

• The business expansion which MTDC's venture capital investment would help to finance must produce a significant growth in employment.

• The company must be able to demonstrate that it has been unable to secure sufficient venture capital from conventional sources on affordable terms to finance its expansion.

• The company must be able to show the prospect of a high rate of return on MTDC's venture capital investment.

More

Technology Scotland

The overall aim of Technology Ventures Scotland is to increase employment, prosperity, industrial competitiveness and economic growth in Scotland through the commercialisation of our science and technology base.

The mission of the organization is:

* Encouragement of increased overall investment in technology research and development in Scotland.

* Identification and pursuit of priorities for investment in technology research and development that can contribute to Scotland's economic and social needs.

* Promotion and acceleration of the commercialisation of Scotland's science and technology for benefits of participants and the economy.

Learn more here.

State Personal Income

Get the latest state personal income data from US Bureau of Economic Analysis (BEA). The entire release is available in PDF format. The tables in this release are available in an XLS spreadsheet. Also available is a brief summary of highlights.

Pittsburgh Tech Index Report is Out

The Pittsburgh Technology Council annually compiles the latest growth numbers from state and federal resources in order to monitor the contribution that technology companies make to the southwestern Pennsylvania region.

Download the State of the Industry Report

The primary goal of this report is to quantify the impact and draw attention to the region’s significant technological resources, thereby engendering a deeper, more current understanding of the technology sector of the region’s economy. It is our hope that this report, the third in a series, will help to continue the process of redefining the region’s strengths and the way in which southwestern Pennsylvania is viewed by the rest of the world.

In addition to the macro-level regional analysis, this report features analyses of five key industry clusters that exist within our technology economy. They are:

*information technology
*life sciences
*advanced manufacturing
*advanced materials, including chemicals and plastics
*environmental technology

Geography of Venture Investing

Get the latest report (Fourth Quarter 2004) on states, metro areas, and Congressional Districts here. This is very useful benchmarking data for your area entrepreneurial activity index, if you have one.

Venture-Backed Mergers and Acquisitions

Did you know that the venture-backed mergers and acquisitions market experienced a rebound in activity in 2004 after three years of steady decline, according to Thomson Venture Economics and the National Venture Capital Association. Over the course of the year, 333 companies were acquired, with 181 companies disclosing a total value of $15.1 billion. The year saw marked increases in the number of deals completed, deals disclosing values, and average deal sizes. In 2004 the average disclosed value was $84.5 million, up from $62.8 in 2003. More here.

Grow America Fund

Do you know about NDC's Grow America Fund (GAF)? The fund provides SBA-guaranteed credit to small businesses in partnership with client communities throughout the country. It operates as a community development bank to support the creation or expansion of eligible small businesses in underserved urban or rural areas, and of minority- or women-owned businesses.

NDC’s mission means that GAF lending differs from conventional lending by providing:

-Patient Growth Capital – Longer, more patient terms mean smaller monthly loan payments, giving the borrower more time to reach full potential.
-Small Loans – GAF’s loans range from $50,000 to $2,000,000.
-Lower Down Payment – Higher loan-to-value ratios allow the business to maximize equity available for growth capital.
-Lower Interest Rate – Community development, not profit, is our goal so we can provide lower interest rates.
-Better Structure – GAF matches the term of the loan to the life of the assets being financed, and matches debt service to available cash flow.

Learn more here.

What One Sustainable Investor Looks for

Here are the main investment criteria used by Portfolio 21, a very good sustainable investment fund, in picking deals to put its money in:

Product/Service Impact: We look for companies that fully understand the ecological impact of their products and/or services and have taken steps to significantly reduce those impacts. We evaluate raw materials use, product packaging, transportation, product takeback and recycling programs, and the energy efficiency of products. We also consider the proportion of a company’s product range that is ecologically superior to its competition.

Investments: We favor companies that have demonstrated their commitment to sustainability through their investments. These may be capital investments in new plants or equipment or in the research and development of ecologically superior products or technologies. Favorable companies may also make merger, acquisition and divestiture decisions with an eye toward a future in which resource availability and quality of life will be significant considerations in determining the success of a business.

Leadership: It is essential that a company’s management understands the magnitude of the ecological crisis and views environmental sustainability as a major business opportunity. We expect corporate leaders to be advocates for environmental sustainability, and we seek companies that educate employees, customers, suppliers, and competitors about sustainable business practices. We also seek companies that lobby for progressive environmental legislation.

Environmental Management: Sustainability leaders have sound environmental management systems to help them identify and address environmental impacts and liabilities, develop action plans and procedures, and establish environmental accounting within the company. We expect companies to have identified those areas where its business activities (including products and services) have the greatest ecological impact, publicly report how these impacts are being addressed, and continuously improve performance over time.

Resource Efficiency: Resource efficiency and pollution prevention are good for both the environment and the company’s bottom line. We seek companies that recognize the value of resource efficiency, set goals and measure their progress. We expect improvements at both the plant and office level in the areas of building design, energy and material use, transportation, equipment upgrades, and production processes.

Liabilities: Global warming and climate change are among the greatest ecological risks we face, and the associated liabilities pose a threat to investors as well as the world. We evaluate companies with respect to liabilities such as greenhouse gas emissions, superfund sites, spills, toxic releases, and the fines and penalties associated with these liabilities.

Three Sustainable Business Trends to Watch for 2005

1. Rise of Climate-Neutral Companies: More and more companies are seeking to slash their greenhouse gas (GHG) emissions -- or even to come as close as possible to making no net contribution to global warming.

2. Enviro-Metrics for Accounting: An increasing number of companies are seeking to quantify the impact of their sustainable business practices.

3. Emergence of Cradle-To-Landfill Stewardship: More and more companies - including HP, IBM, Dell and Xerox -- are adopting a comprehensive life-cycle approach to thinking about their products and services.

More here.

Jobs Healing the Earth

A March 21, 2005 article in Fortune Magazine, 20 Fastest-Growing Professional Jobs, says "... the greatest increase in demand by far (54%) will be for folks who know how to clean up spaceship earth. That's because an increasingly health-conscious public is eager to find environmental engineers who can prevent problems rather than simply control those that already exist.

Says David Levy, chairman of the Jerome Levy Forecasting Center, a think tank in Mount Kisco, N.Y. "We expect the U.S. to start exporting environmental expertise to Europe and Asia, including to emerging markets like India.

Economic developers should be giving more attention to this important area.