International Visitor Leadership Program

Business Development : A Project for Syria

Peter H. HackbertEntrepreneurship for the Public Good Program

Berea College, Berea KY

What has changed in just the last five years?

"Facebook didn't exist; Twitter was a sound; the cloud was in the sky; 4G

was a parking place; LinkedIn was a prison;

applications were what you sent to college; and Skype for most people

was typo."

Part 1

What we Used to Believe

Entrepreneurship can’t be taught

What We Now Know

Entrepreneurship can be taught to those that volunteer

Not Easy

2 Kinds of “E” activities

NecessityNecessity

OpportunityOpportunity

Kauffman Index of Entrepreneurial Activity

• In 2011, every month, an average of over 3.4 out of 1,000 adults created a new business – 540,000 new businesses (2002 = 623,000)

– 4.4 men 2.7 women– 5.2 Latinos– 3.2 Asian Americans– 2.3 African Americans– 5.1 Native Americans

10February 15, 2013

Kauffman Index of Entrepreneurial Activity

• California had 3rd highest entrepreneurial activity rates – 4.4 per 1,000 adults

11March 30, 2010

Kauffman Index of Entrepreneurial Activity

• Kentucky had 10th highest entrepreneurial activity rates – 3.7 per 1,000 adults

12March 30, 2010

What we Used to Believe

Entrepreneurship education = years in school or tons of money

What we Used to Believe

Startups are a Smaller Version of a Large Company

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

What We Now Know

Startups SearchCompanies Execute

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

What we Used to Believe

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

Plan Meets First Contact with Customers

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

What We Now Know

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

No Business Plan survives first contact with customers

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

What We Now Know

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

More startups fail from a lack of customers than from a failure of

product development

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

We Now Know How to Make Startups Fail Less

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

How?

Teach the Entrepreneurial API

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

Entrepreneurial Education begins with the Search for a Business

Model

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

All this content is OPEN SOURCE

What’s A Startup?

A temporary organizationdesigned to search for a repeatable and scalable

business model

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

A Startup aims to become a company

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

It is not the customer’s job to know what they want.

- Steve Jobs

Maximizing learning (about the customer) per unit time

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

Startups that succeed are those that manage to iterate enough

times before running out of resources.

- Eric Ries, The Lean Startup

Life’s too short to build something nobody wants.

- Ash Maurya, Running Lean

customer segments \ co-creators

key partners

value-streams

cost structure

value-streamsrevenue streamschannels

relationscustomer relationships

key activities

key resources

value proposition

9 Guesses

Guess Guess

Guess

Guess

GuessGuess

Guess

GuessGuess

Part 2

Source: Ezzell,T., Lambert, D., and E. Ogle. Strategies to Economic Improvement in Appalachia’s Distressed Rural Counties, University of Tennessee, Knoxville, Washington DC: ARC. February 2012.

Source: Ezzell,T., Lambert, D., and E. Ogle. Strategies to Economic Improvement in Appalachia’s Distressed Rural Counties, University of Tennessee, Knoxville, Washington DC: ARC. February 2012.

Source: Ezzell,T., Lambert, D., and E. Ogle. Strategies to Economic Improvement in Appalachia’s Distressed Rural Counties, University of Tennessee, Knoxville, Washington DC: ARC. February 2012.

Part 3

Multi-year

Interdisciplinary

2 Course Credit

Work College - $3,000

8 Week Summer Program

The Appalachian Region

Concept 1:

Design Thinking

My training and experience provided me an opportunity to learn and work with IDEO.

Ideation, Prototyping

Concept 2:

Team-Based Learning

Research Team

Concept 3:

Human-Centered Design

Characterizing a Design ThinkerEmpathy. They can imagine the world from multiple perspectives – those of colleagues, client, end users, and customers.

Integrative thinking. They not only rely on analytical processes but also exhibit the ability to see all of the salient – and sometime contradictory – aspects of a confounding problem and create novel solutions that go beyond and dramatically improve on existing alternatives.

Optimism. They assume that no matter how challenging the constraints of a given problem, at least one potential solution is better than the existing alternatives.

Experimentalism. Design thinkers pose questions and explore constraints in creative ways that proceed in entirely new directions.

Collaboration. The increasing complexity of products, services, and experiences has replaced the myth of the lone genius with the reality of the enthusiastic interdisciplinary collaborator.

Tim Brown, Design Thinking (Harvard Business Review, June 2008)

Part 4

Small Rural Appalachian Community Economic Development (CED)

Traditional ED Strategy / Tool

Alternative ED Strategy / Tool

CD Capacity Building Strategy / Tool

Economic Development Approaches

Economic Outcomes

Other Outcomes

Direct, Short-term

Indirect, Long-term

• Industrial development• Business retention / expansion• Workforce development• Tourism

• Entrepreneurship• Downtown development• Arts / Creative economy• Cluster-based development• Residential development

• Transportation• Broadband / Internet / Social Media • ED finance• Philanthropy• Strategic planning• Leadership development• Organizational development

1. Recruit firms from the outside2. Strengthen/expand existing firms3. Promote development of new

firms

• jobs• firms• prosperity• wealth

• social• civic• environmental

EPG Small Rural Appalachian Community Economic Development Model

Traditional ED Strategy / Tool

Alternative ED Strategy / Tool

CD Capacity Building Strategy / Tool

Economic Development Approaches

Economic Outcomes

Other Outcomes

Direct, Short-term

Indirect, Long-term

• Tourism

• Entrepreneurship economy• Cluster-based development• Local Living Economies• Residential development

• Transportation

• Broadband / Internet / Social Media

e

1. Strengthen/expand existing firms

2. Promote new firms

• jobs• firms

• social / civic• environmental

Tourism is the 3rd largest industry in Kentucky,

providing $3.3 billion in salaries annually

This is despite only 34% of first-time Kentucky visitors actually recalling seeing any advertisements or

promotions for Kentucky prior to their visit.

The tourism and travel industry contributed

nearly $11.7 billion to Kentucky’s economy

in 2011.—an increase of 3.0 percent

In the Daniel Boone Region, where the KRADD is

located, there was a 1.6% increase

Key FactsKey Facts

Visitors come to Daniel Boone Country Region

•It is peaceful/relaxing (81%),

• It is a safe destination (74%),

• There is plenty to see and do (72%),

• It is a good value for the money (71%)

• The clean unspoiled environment (72%)

The Daniel Boone Country VisitorAverage Income: $68,560

Average Age: 50.8

Average Travel Group Size: 3

69% short pleasure trip

53% use internet

Recommend their visit to others: 96%

…growing popularity of ecotourism and heritage tourism…contained the potential for building an alternative economy, one that promised greater monetary returns for local residents, the preservation of rural traditions, and the protection of sensitive natural resources.

- Ronald D. Eller, Uneven Ground, The University of Kentucky Press, 2008: 256.

3 Years Research Activities

• Demographic Analysis• Economic Analysis• Community Survey• Site visits

"The traveler/tourist persona profile gives you a chance to truly

empathize with target market segments, stepping out of the role as someone who wants to promote

a product and see, through your travelers' eyes…”

Peter H. Hackbert

34 Personas

Online consumer recommendations are the second most trusted source of brand

advertising, second only to “recommendations from people I know” in a global 2012 study of 28,000 consumers in

56 countries

Source: Nielson, “Consumer Trust in Online, Social and Mobile advertising Grows, 2012

Key Question

Can Social Media be a tool to develop an alternative economy in

Appalachian communities?

We observed and we listened to the KRADD business owners,

attraction and destination operators

Part 5

How to spend 36 hours in Damacus?

36 Hours in Damacus

Straight Street

Umayyad Mosque

The National Museum of Damascus

Grape Leaves

Who Cares?

“When multiple reviewers start to mention the same thematic things,

such as the service is poor, users then assume this could be true because

multiple people have mentioned it.”

- Adam Medros, TripAdvisor's vice president of global product

Source: Read more at http://www.emarketer.com/Article/TripAdvisors-Scale-Ensures-More-Trustworthy-Reviews/1009673#r6h3Vtl251KucAOu.99

The Travelers’ Next Steps

• Once returning home from their trip• Uploaded multiple pictures on Facebook• Wrote reviews on their food and lodging• Told their friends about their trip and passed

along their brochures• Planned an annual trip to Damacus

So What?

1,214 Social Media Reviews

250,000 views

Source: http://www.dr4ward.com/dr4ward/2013/02/what-does-the-chinese-smartphone-market-look-like-infographic-chart.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+Dr4ward+%28DR4WARD%29

Any Questions or Comments??

Who is the next DUKE in the

Perry County?

Use social media to

acknowledge loyal local customers