Published: May 05, 2008 08:52 am            

Entrepreneurship is critical for state

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Dear Editor:

The 2005 Kauffman Index of Entrepreneurial Activity by State ranks Kentucky among the nation’s “bottom five states with the lowest cumulative rate of entrepreneurship activity.”

In contrast to that data is the fact that the future economic success of our Commonwealth is directly linked to the cultivation, development and growth of entrepreneurial business. It does not take much study of Kentucky’s economy to come to that conclusion – the evidence is abundant.

Now the pressing question before us is, “How do we process these two conflicting statements into a positive and proactive response that will point to future actions and objectives for Kentucky?” Finding the answer will not be easy, but the good news is it can be done. A Kentucky Long-Term Policy Research Center report in 2006, entitled Visioning Kentucky’s Future: Measures and Milestone, provides encouraging news that progress is being made and that Kentucky appears to be headed in the right direction.

According to the report, an earlier study from 1996 stated that “an estimated 21 percent of Kentucky’s adult population reported they had started a business at home at some point in their career.” A full decade later, this percentage had climbed by 10 points to 31 percent. The Visioning report used this data and factors as evidence that Kentucky is experiencing “an encouraging trend that suggests rising levels of entrepreneurial skill, technological prowess and education.”

The report continues by saying these results point toward “a growing capacity for entrepreneurship” in Kentucky; a trend that should excite anyone who understands the critical relationship between nurturing the entrepreneurial spirit and the future economic success of our state.

The Report on Small Business in Kentucky also gives reason to be optimistic about the future of small business, and entrepreneurship, by noting that 93 percent of the 71,250 business establishments in Kentucky have fewer than 50 employees. The report, sponsored by the Kentucky Cabinet for Economic Development, its Small Business Services Division and the Commission on Small Business Advocacy, also points out that “a majority of businesses in Kentucky – more than 50,000 – employ 10 or fewer.”

Reports and studies from all sectors continue to underscore the fact that the small business owner is the backbone of Kentucky’s economy. And with the increasingly global nature of business and the changes in our business environment, especially in large-scale, high-payroll manufacturing, the strength and viability of that “backbone” is more crucial than ever.

Kentucky does have more than its share of challenges when compared to the rest of the nation including pockets of low educational attainment, poverty, wealth inequality and catching up to states that have done a better job of encouraging entrepreneurial growth. However, there is considerable evidence of what the Kentucky Long-Term Policy Research Center calls “latent entrepreneurial energy” in the people of our Commonwealth – an untapped energy that could help fuel Kentucky’s economic engine.

The responsibility of achieving this reality lies with each of us as Kentuckians, including our governmental leaders who need to ensure a business-friendly environment for the entrepreneurs of today – and tomorrow. It lies with business leaders in our communities who need to recognize and encourage entrepreneurial efforts at every opportunity. And it lies with all hourly and salaried employees who find pride and self-worth in doing the best job they can, no matter the task, day-in and day-out.

In an effort to lift up and applaud the many entrepreneurial success stories in our region, Eastern Kentucky University’s College of Business and Technology, Kentucky Highlands Investment Corporation and The Center for Rural Development have partnered to sponsor the annual Excellence In Entrepreneurship Awards (EIEA) program. Each year nominations are accepted in four categories: business, small business, non-profit and start-up. Nominated businesses are scored on the economic success of the business, contribution to the community and operational achievement. The top scoring businesses in each category will be invited as finalists to the 2008 luncheon on Monday, Sept. 8. As finalists, video profiles of each will be presented and award recipients named.

At the 2006 awards luncheon an emphasis on the importance of early exposure to entrepreneurship was added to the program. The 2008 luncheon will again feature the announcement of the Collegiate Business Concept Challenge award recipient, as well as recognition of the first place business concept team from The Center-sponsored Entrepreneurial Leadership Institute summer youth program.

For more information on the EIEA program and to download a copy of the 2008 nomination form, please visit us on the Web at www.eiea.eku.edu. Nominations may be submitted by any individual or business and must be received by the EIEA nomination committee on or before the June 2 deadline. Interested parties can also e-mail the committee at cbt.eiea@eku.edu, or call the EKU College of Business and Technology at (859) 622-1409. More detailed information on the EIEA, Collegiate Business Concept Challenge, and the youth-focused Entrepreneurial Leadership Institute programs, can be found on the Web site as well.

The economic success of Kentucky is a true entrepreneurial effort in and of itself, with each of us earning a share of the reward that will come with a successful venture. So, with that philosophy in mind, we urge you to reflect on the tremendous impact Kentucky’s entrepreneurs have had on our past, and will continue to have in the years ahead. Nominate deserving businesses from your hometown or region and help us lift up the best entrepreneurial efforts to provide a model, and inspiration, for the business leaders to come.



Respectfully,

Lonnie Lawson, President & CEO

The Center for Rural Development

Jerry Rickett, President

Kentucky Highlands Investment Corp.

        

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