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Creating Entrepreneurial Communities in Rural Places August 15, 2013
alt.Consulting
Launched in 1998 Became CDFI in 2011 Five offices 11 FTE management
consultants Work with >325
businesses per year
Why Entrepreneurship?
In alt Territory of 98 rural counties in Arkansas, Mississippi and Tennessee from 2006 through 2010: Business with fewer than 9 Employees
Created 108,706 new jobs
Businesses with 10 - 99 Employees Eliminated 40,872 jobs
Businesses with > 100 jobs Eliminated 53,607
In July 2013 alone, lost 570 jobs through corporate closures.
-60000
-40000
-20000
0
20000
40000
60000
80000
Self Employed 2 - 9 Employees 10 - 99 Employees 100 - 499 Employees > 500 Employees
Nu
mb
er
of
Job
s C
reat
ed
20
06
- 2
01
0
3 State Target Market
2012
“We learned from an early age that we have to create our own fun and jobs if we want to stay in our community”
Tami Hornbeck, DeWitt, Arkansas
Creativity and risk taking Retail opportunities
Bundle product lines Grow sales tax base Exceptional service
Wealth creation value chains Builds on assets in counties Example: Farm to Fuel value chain www.wealthworks.org
Local Opportunities for Entrepreneurship
Barriers Faced by Rural Entrepreneurs
Culture does not reward entrepreneurs Message: Economic development going to
happen from outside (recruiting) and not from inside (local business community)
Economic developers do not know how to support entrepreneurs
No culture of local investment in businesses No access to capital from community banks No support infrastructure
• No CPAs • No small business attorneys
Lack of business management experience
The Numbers Population 3292 24% of individuals live in poverty Remote: 2 hours from Little Rock and Memphis
Mayor Relyea’s Message: “ I would rather have 10 businesses with 10 employees than one employer with a 100.”
Pro-small business banker that lends to small businesses including tire repair shop
Pro-Entrepreneur Community: DeWitt, AR
Engaged county judge secured funds for small bio-refinery to be
leased to entrepreneur Town is becoming hub of 10 county waste vegetable oil
recycling initiative Creating biofuel for city vehicles Pilot site for larger biofuel initiative
Outcomes after 2 years in office: • 4 new business start-ups • 9 new jobs • Farmers = investors
Pro-Entrepreneur Community: DeWitt, AR
Influence Pro-Entrepreneurship Culture • Organize and attend ribbon cuttings for new
ventures • Identify and encourage pro-entrepreneurship
mayors in county Attract business development resources to county Create loan guarantee pool
• Encourage community banks to make smaller loans • Attract CDFIs and loan funds to county
Role of County Level Government
Questions?
www.altconsulting.org
Thank You!
Pine Bluff, AR 211 West 3rd Ave. Suite 255 P.O. Box 9858 Pine Bluff, AR 71611 870.535.0011
Memphis, TN 516 Tennessee Street Suite 234 P.O. Box 40210 Memphis, TN 38104 901. 312.9797
Jonesboro, AR 319 University Loop West Suite 220 P.O. Box 16264 Jonesboro, AR 72403 870.680.8285
North Little Rock, AR 516 Pershing Blvd North Little Rock, AR 72114 Phone: 501-352-3400
Presented by: Ines Polonius, Executive Director
Deborah Temple, Director of Lending
