Entrepreneurship Vital to Rural America's Future
"Lifting Appalachia's capacity to grow its own businesses and to generate its own jobs will help
the region control its own economic destiny," according to Jesse White, Federal Co-Chairman of
the Appalachian Regional Commission.
"Too often rural communities hitch their economic
fortunes to cost-sensitive branch plants that have been recruited from the outside with low wages,
tax abatements, subsidies or other incentives. A day of reckoning usually comes, however, when
another community, often in another country, offers a much lower cost structure and the branch
plant closes its doors and moves on, taking jobs with it."
"A 'home-grown' business is more likely to stay put and reinvest in the community. True wealth
is created within the community. Profits, and business decisions, are kept in local hands and not
relinquished to outsiders who lack a long-term stake in the economic viability of the community".
Created by the U.S. Congress, the Appalachian Regional Commission is a unique partnership
between the federal government and the governors of the 13 Appalachian states designed to
improve health, education and economic opportunities throughout the region. New York
Governor and 1998 States' Co-Chairman George Pataki said, "Every governor recognizes how
important it is to do all we can to strengthen small businesses, particularly those in rural areas.
The Commission will continue to look at new ways to add vigor to the Entrepreneurship Initiative
and create stronger local economies and new jobs in all our states."
Since launching its Entrepreneurship Initiative last year, ARC has awarded 25 special grants
totaling $2 million. Following the framework of the initiative, new activities will address one of
five areas critical to entrepreneurship:
* Access to Capital and Financial Assistance. A 1998 study commissioned by ARC
revealed significant gaps in the availability of equity capital and working capital financing in
Appalachia. A panel of development finance specialists will assist the Commission identify ways
to expand the availability of equity and working capital financing programs in the region.
* Entrepreneurial Education and Training.
The top entrepreneurial education and
training programs will be identified by a team of leading educators and state and regional officials.
With assistance from the nonprofit Corporation for Enterprise Development, ARC will examine
ways to expand the availability of these programs for both young people and adults by partnering
with other organizations, making greater use of technologies such as the Internet, and sponsoring
forums and other activities.
* Technical and Managerial Assistance.
Special strategies for developingcompetitive
economies in the region's most economically distressed counties will be examined by state and
regional authorities. ARC, with assistance from the nonprofit Regional Technologies Strategies
(RTS), will seek opportunities to build greater public and private sector partnerships, boost
local business development and create new jobs.
* Entrepreneurial Networks.
The majority of business incubators located in Appalachia lack a network to share ideas important for the success of small businesses. The National
Business Incubator Association will assist ARC identify "best practices" across the nation and help lead the establishment of an information network to strengthen business incubators in
Appalachia. With advice from rural incubator managers in the region, the Commission will sponsor technical assistance workshops and undertake other activities designed to improve success of business incubators.
* Technology Transfer.
Jobs created by recent technologies and new commercial products developed in the Appalachian states have predominantly occurred in urban areas,
research shows. To support the participation of rural Appalachian communities in new jobs tied
to the commercialization of new technologies, ARC will bring together universities, colleges
and private firms in the region to help develop a broad-ranged strategy. ARC's long-standing
partnership with Appalachia's community colleges and vocational-technical schools will continue
to be strengthened.
For further information please contact Ray Daffner, Manager - ARC Entrepreneurial Development, 202-884-7777.
To view the ARC Entrepreneurship Web Page
To contact Ray Daffner at rdaffner@arc.gov.
