Entrepreneurship Everywhere Meet the Appalachian Regional Commission The Appalachian Regional Commission is a unique federal-state partnership providing social and economic support for a 13-state region stretching along the Appalachian mountains from southern New York to northern Mississippi. Established by Congress in 1965, when Appalachia was considered "a region apart" from the rest of the nation, ARC has worked to bring Appalachia’s 23 million people into America’s economic mainstream. The Commission has 14 members: the governors of the 13 Appalachian states and a federal co-chairman, who is appointed by the president and confirmed by the Senate. Each governor appoints an alternate who oversees state ARC business and serves as the state-level point of contact for those seeking ARC assistance. Each year one of the governors is elected by his or her fellow Appalachian governors to serve as the Commission’s states’ co-chairman. The federal co-chairman has one vote, and the 13 governors share one vote, on all Commission decisions. A basic element in the ARC partnership is local participation. To ensure this participation, ARC works closely with state-chartered multi-county planning and development agencies known as local development districts (LDDs), whose boards of directors are made up of elected officials, businesspeople, and other local leaders. The LDDs work with local citizens to determine local needs and priorities and to prepare and implement development plans to meet those needs. They cover all 410 Appalachian counties. How Projects Are Funded ARC receives an annual appropriation from Congress for its programs. Each fall funds are allocated by formula to the 13 states. The governor of each state develops an annual plan to carry out the objectives of the ARC program. The plan identifies specific projects for ARC funding, usually in combination with federal, state, or local funds. Each state’s development plan and project package must be approved annually by the Commission. In addition, Commission staff members work closely with state alternates and program managers to review individual projects. The process is completed when the federal co-chairman reviews a project and approves it. In 1996 the Commission adopted a new strategic plan for the Appalachian Region that sets specific goals for ARC programs and policies. ARC programs are divided into two areas: a highway program, which focuses on the construction of a 3,025-mile highway system; and a community and human development program, which seeks to create sustained local economic growth. An integral part of ARC’s mission is to build partnerships and forge alliances for regional collaboration among the 410 counties that ARC serves. ARC’s five goals—and strategies to reach those goals—include: Goal One: Skills and Knowledge ARC is reducing the school dropout rate, providing job training, increasing school readiness, training teachers and providing distance learning through new communication sites. Goal Two: Physical Infrastructure ARC is completing the Appalachian Development Highway System, providing clean drinking water, building water and sewer systems, and developing telecommunications networks. Goal Three: Community Capacity ARC is identifying and training emerging community leaders, encouraging citizen participation, and assisting with strategic planning and organization development. Goal Four: Dynamic Local Economies ARC is providing technical, managerial, and marketing assistance to entrepreneurs and enterprises so they can expand and compete in the global marketplace. Goal Five: Health Care ARC is expanding access to health care through telemedicine, increasing health manpower resources, and developing alliances to promote rural health-care systems. Entrepreneurship Initiative In 1997 the Commission has launched a three-year, $15 million regional initiative to build entrepreneurial economies in Appalachia. ARC views entrepreneurship as a critical element in the establishment of self-sustaining communities that create jobs, build local wealth, and contribute broadly to economic and community development. While the Region has several outstanding examples of entrepreneurial organizations, and possesses many entrepreneurial assets, including the self-reliance of its people, it also faces many challenges. These shortcomings stem from the Region’s longstanding dependence on extractive industries and branch plant manufacturing, and the presence of many absentee landlords who have siphoned off value from the Region. Furthermore, the culture of entrepreneurship is neither broad nor deep throughout the Region, and evidence suggests that there are many gaps in the infrastructure for supporting entrepreneurship, ranging from technical assistance to development finance. Appalachia needs to cultivate resourceful entrepreneurs who not only create value by recognizing and meeting new market opportunities, but who increase the value-added within the Region. After a year-long development process involving region-specific research, local focus groups and consultations with regional and national experts, the ARC adopted a strategy designed to strengthen key factors that play a central role in stimulating and sustaining entrepreneurship. ARC’s entrepreneurship initiative is focused on providing support for these five key elements of an entrepreneurial economy: access to capital and financial assistance; technical and managerial assistance; technology transfer; entrepreneurial education and training; and entrepreneurial networks. In each of these areas, ARC has convened advisory committees comprised of regional practitioners and state partners to identify innovative programming and bring additional resources and expertise into the Region. Through this Entrepreneurship Initiative, the Commission has so far approved over 311 projects providing a total of $25.6 million in support for a range of activities. Funded projects include: support for youth entrepreneurial education projects like the REAL Enterprises program; capitalization of microbusiness lending programs and support for statewide technical assistance intermediaries; targeted support for specific strategic industries like wood products, value-added food processing, and ceramics manufacture; and support for business incubators. ARC believes educational and training institutions have a key role to play in stimulating entrepreneurship through the introduction of entrepreneurial content into the curriculum of primary and secondary school courses. At the secondary education level, nonprofit organizations, as well as business and trade groups, can help start and assist in developing such programs through cooperation with schools and by providing alternative educational venues, including mentoring programs. In addition, conducting hands-on activities that expose students to entrepreneurial environments permit them to explore the tasks and challenges of enterprise development. Post-secondary educational institutions also play an important role as both two and four-year colleges and universities can offer more advanced educational and training courses to provide managerial and technical assistance and information to entrepreneurs and those who wish to start businesses. Applying for a Grant ARC awards grants to state and local agencies as well as to local governing boards and nonprofit organizations. Grants are not made to individuals or private corporations. Because the states originate most ARC grants, potential applicants should contact their state’s ARC program manager. Applicants should also contact their local development districts for guidance on a project's eligibility for funding and for assistance in preparing a grant application. For more information contact: The Appalachian Regional Commission Entrepreneurship Initiative Web site: www.arc.gov