Lake of the Ozarks Regional Entrepreneurship Assessment & Strategy
Methodology
Six different data driven tools are used to analyze the entrepreneurial and innovative activities that support the entrepreneurial ecosystem in the region. These data tools include:
- A Regional Survey
- An Interactive Focus Group
- The National Establishment Times Series (NETS)
- Industry Cluster Analysis
- Traded vs. Local Cluster Analysis
- An Innovation Index
Throughout the analysis, these tools will be used to highlight key factors related to strengths and challenges faced by the Lake of the Ozarks CLG's entrepreneurial ecosystem. The main section of the report applies the data tools to the entrepreneurship policy framework. The policy framework is comprised of 5 key drivers related to developing and fostering a healthy entrepreneurial ecosystem.
- Developing a Pipeline of Educated and Skilled Entrepreneurs
- Cultivating Technology Exchange and Innovation
- Improving Access to Capital
- Promoting Awareness and Building Networks
- Optimizing the Regulatory Environment
Lake Area Regional Profile
Below is a snapshot of the Lake of the Ozarks regional profile:
1. Population - The total regional population is approximately 124,615. The largest county is Camden, with 43,731 residents. There is a strong net internal migration rate in the overall region, meaning more people move into versus out of the region. One of the challenges is that a low percent of young adults between 15 and 34 in all counties, as compared with Missouri percent.
2. Income and Poverty - Overall the region has relatively low income levels and high poverty, as compared to Missouri levels. Camden County has the strongest income levels and lowest poverty rate, close to Missouri levels. One of the challenges is that Miller and Morgan counties have lowest income levels and highest poverty rates.
3. Education - There is a large variation in educational attainment levels between counties. Camden County has educational attainment levels fairly close to Missouri levels. Laclede, Miller and Morgan counties, however, lag farther behind on educational attainment as compare to Missouri averages, which is a challenge.
4. Job Growth - There has been an overall increase of 2,721 jobs from 2002 to 2013. Small and medium sized establishments have added a substantial number of jobs. A challenge for this area is that the larger establishments with more than 500 employees have lost jobs since 2002.
5. Important Industry Factors - The educational services and public administration industries have been the biggest job creators since 2002. Manufacturing is still strong with respect to employment and most of the job losses occurred prior to 2008. Educational services and public administration have grown substantially. Redirecting economic development focus towards industries that are prospering, like production technology and heavy machinery, while still helping industries like tourism that have struggled the past decade is challenging.
6. Innovation Levels - The region shows relatively low Human Capital and Economic Dynamics scores, and relatively strong Productivity & Employment and Economic Well-Being scores, as compared to Missouri scores. High net internal migration rates and high changes in income levels over time is a strength in the region. However, we're challenged with low higher educational attainment levels, negative change in young adult population, lack of high-tech jobs, lagging internet access, and a problematic balance of small versus large establishments.
Entrepreneurial Ecosystem Drivers Explained
The Small Business and Entrepreneurship Policy Framework is a strategic development tool
created by the Delta Regional Authority as a roadmap for creating and fostering entrepreneurial
ecosystems in local communities.
1. Developing a Pipeline of Educated and Skilled Entrepreneurs
A high level of focus on providing education and training for potential and existing entrepreneurs
has been a proven way to advance the entrepreneurial ecosystem. The educational component
should exist on all levels of formal and informal education, from the elementary school
classroom, to college majors and minors, to publicly available support programs, to local
networking groups. Providing resources for individuals to learn and apply the knowledge and
skills necessary to succeed as an entrepreneur is a key component of creating an
entrepreneurial ecosystem that can create new jobs, attract new industries, and spur economic
growth.
2. Cultivating Technology Exchange and Innovation
To help foster an innovative economy a region must understand and invest in technological
advances and opportunities. This must happen through collaboration among educational
institutions, companies, public policy makers, and entrepreneurs. This exchange of new
knowledge and ideas is a key factor in creating the optimal circumstances for economic growth
among small and medium sized establishments. The entrepreneurial ecosystem benefits in
many ways from a high level of technology exchange and innovation, among which is the ability
to attract and grow new competitive industries that will meet future market demands.
3. Improving Access to Capital
A region’s ability to provide the needed funding for new ventures, as well as growing companies,
is essential to a healthy entrepreneurial ecosystem. Access to traditional bank financing is just
one way to help entrepreneurs develop and grow. Attracting investors, whether they are angel
investors, venture capitalists, or larger companies looking for new ideas, is also an important
factor in ensuring the right type of funding can be accessed by entrepreneurs. Additionally, rural
regions can benefit greatly from establishing gap financing tools such as revolving loan funds,
intermediary lending programs, micro-loans, etc.
4. Promoting Awareness and Building Networks
Promoting an entrepreneurial culture where entrepreneurs are valued and the community is
willing to support local establishments is another key aspect of a successful entrepreneurial
ecosystem. This may be achieved through developing local networking opportunities, creating
mentorship programs, informing the public about the social and economic impact of
entrepreneurship, and engaging entrepreneurs to address the region’s greatest opportunities.
5. Optimizing the Regulatory Environment
Helping entrepreneurs navigate and succeed within legal boundaries is the final key driver of a
strong entrepreneurial ecosystem. This means that entrepreneurs should have easy access to
information and help with understanding regulations and policies that affect their businesses. It
also means that public officials should investigate the potential barriers that exist for
entrepreneurs to thrive. A dialogue must be cultivated where both entrepreneurs and policy
makers can meet and understand each other’s needs and wants.
Lake Region Strengths, Challenges & Opportunities
Below is a summary of the general strengths, challenges and opportunities in the region. Each section gives a brief, but focused overview of the main outcomes of the analysis.
Regional Strengths
1. Developing a Pipeline of Educated and Skilled Entrepreneurs - The major strengths in the region come from the general increase in educational attainment combined with the positive perception of the importance of educating and training the regional population. An increase in jobs in education-related industries may also prove valuable for the future of the region. Overall, the region needs to leverage these positive trends and build upon them to ensure continued improvements to education and training opportunities.
2. Cultivating Technology Exchange and Innovation - Advanced Materials, Biomedical/Biotechnical, and Primary Metal Manufacturing industry clusters appear to be the best candidates for technological and innovative developments. Providing support and connecting the key players in these clusters should be a regional priority.
3. Improving Access to Capital - The importance of ensuring entrepreneurs and small businesses have access to capital is recognized in the region. The first step towards improving the funding options is to understand the need for it. Additionally, the presence of a Certified Development Company with a 504 loan program and a Revolving Loan Fund shows there are already some options available. Also, the recent creation of a business plan completion with cash prizes (discussed in the “Promoting Awareness and Building Networks” driver”) is also a good sign that more capital for entrepreneurs is becoming available.
4. Promoting Awareness and Building Networks - Entrepreneurs and small businesses appear to be valued members of the business landscape. Having two SCORE chapters in the region is also a very positive indicator of communities’ willingness to help and mentor the region’s entrepreneurs and future leaders.
5. Optimizing the Regulatory Environment - The supportive views of implementing public programs shows a willingness to invest in the region’s attributes and opportunities. Also, the fact that Missouri’s Department of Economic Development was ranked number one in the country in 2014 speaks to the overall state’s ability to invest in economic development initiatives. This is something that benefits all counties in the state.
Regional Challenges
1. Developing a Pipeline of Educated and Skilled Entrepreneurs - The lack of higher educational institutes, negative view of current training programs, and decline in young adult population presents itself as the biggest challenges in the region. Without a strong foundation of well-educated young adults, future economic and entrepreneurial efforts will be more difficult to succeed at.
2. Cultivating Technology Exchange and Innovation - Low broadband access in Laclede, Miller, and Morgan counties combined with a decrease in several tech-related industries appear to be the most challenging issues facing the region going forward.
3. Improving Access to Capital - Slow increase in income levels and a lack of formalized investor groups may be the biggest challenges to the region.
4. Promoting Awareness and Building Networks - If communities do not show an understanding and support of business failures as a natural part of the
entrepreneurial ecosystem, it may discourage some from participating and taking the needed risks.
5. Optimizing the Regulatory Environment - Overall state and local regulations as well as state sponsored growth initiatives are not perceived in a favorable light.
Regional Opportunities
1. Developing a Pipeline of Educated and Skilled Entrepreneurs - The region faces multiple opportunities to invest in improvements for educating and training entrepreneurs, business owners, the workforce, and other stakeholders. In particular, the region would benefit from developing specialized training based on regional market needs. It should also be considered how the region can invest in new and existing amenities relevant to the young adult population.
2. Cultivating Technology Exchange and Innovation - The biggest opportunity may be to invest in regional improvements to broadband access. Additionally, key players in technology and innovation driven industries should be identified and provided with the support they need to grow and create jobs. The region would also benefit from updating the 2008 business industries survey to get a more current insight into the needs by the region’s employers.
3. Improving Access to Capital - The opportunities related to this driver deal primarily with continuing to establish alternative funding options, developing networks and partnerships with investor groups outside of the region, and ensuring proper information sharing about financing opportunities.
4. Promoting Awareness and Building Networks - The region has a great opportunity to build on the presence of the two SCORE chapters. Networks and mentoring opportunities provided through such programs must be available throughout the region. This should be done along with efforts to attract attention from outside organizations such as industry associations, investor groups, entrepreneurship focused foundations, etc.
5. Optimizing the Regulatory Environment - The most important opportunity is to invest time and effort towards developing a healthy dialogue between the public and private sector to discuss wants and needs related to regulations and incentive programs. This should be backed up by an annual survey measuring the perception of how business friendly the region is. Additionally, a startup package that is provided both in a physical format and a web-based format could be developed to help inform and educate entrepreneurs and businesses about regulatory issues, regional opportunities, and available resources.
Recommendations
Based on the regional analysis, a set of recommendations have been proposed to improve the entrepreneurial ecosystem in the Lake of the Ozarks region. Areas of improvement include:
- Establish Specialized Training and Educational Programs
- Develop New and Existing Amenities to Keep and Attract Young Adults
- Invest in Improvements to Internet Access Throughout the Region
- Survey Regional Businesses to Determine their Future Workforce Needs
- Evaluate the Formatting of Organized Angel Investors and Lending Groups
- Expand the Current Business Plan Competition
- Provide Easily Accessible Startup Packages
- Conduct Annual Survey to Gauge Perception of the Regulatory Environment
While the Lake region shows promise on some fronts, it is necessary to understand that both private and public entities must come together and help support continued economic and entrepreneurial development efforts at the Lake of the Ozarks. The analysis demonstrates that the Lake of the Ozarks region has the needed foundation to become an even more vibrant economy. Through an active and strong partnership, the public sector and private sector can create an improved entrepreneurial ecosystem which will stimulate more business development in the region. The Lake of the Ozarks Regional Economic Development Council is here to serve as your liaison for the Lake of the Ozarks area. Our goal is to make your site search as easy as possible and to provide you with all the information and resources you need to consider our community during your site search!
For the complete report, please visit: http://loredc.com/pdfs/LOCLG%20Entrepreneurship%20Assessment%202015.pdf
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