GEC 2017: KC Accelerator Challenge

www.kauffman.org© 2016 Ewing Marion Kauffman Foundation

EntrepreneurshipMarch 2017

© 2016 Ewing Marion Kauffman Foundation

"Plans are only good intentions unless they immediately degenerate into hard work."

Peter Drucker


ENTREPRENEURSHIP STRATEGY OVERVIEW

PROBLEMNational entrepreneurship rates have generally been in decline, and there are a number of potential causes that the Foundation is well-positioned to address. Specifically, there exist:• Significant barriers for new and emerging entrepreneurs to start and grow businesses;• Certain populations (demographic, geographic - including KC, socioeconomic, sectoral) that begin at a disadvantage when seeking to be

entrepreneurial;• Few proven, practical tools and guides for leaders who want to support entrepreneurship;• Few empirically-proven ways to measure and impact entrepreneurial success at both individual and ecosystem levels; and• A lack of leadership from others in the field.

INITIATIVES & STRATEGIES IMPACT

Across the nation, individuals achieve economic independence through entrepreneurial success

GOALS

Increase rates of new business starts and successes, with short-term impact in target communities and long-term impact nationally

Founder education, an online and offline learning platform, enables entrepreneurs to engage in interactive peer-learning and collaboration to start/grow firms

Barriers to entry for underperfor-ming groups are reduced, closing systemic market gaps

Ecosystems to support entrepreneurial growth are understood and measured, leading to proven tools that improve entrepreneurial starts/successes

As a convener, the Foundation has increased recognition as a leader in the field by generating new ideas, creating communities of practice, and contributing to greater program effectiveness

Research and Experimental Innovation initiatives generate new insights, tools, rapid prototypes, and innovative strategies that contribute to the progress of entrepreneurs

Policy improvements at the local, state, and national levels reduce impediments and provide support for entrepreneurial starts and successes

Founder Education

• Interactive learning

• 1MC

Market Gaps

• Excelerate• Inclusion• Support

orgs

Ecosystems

• Tools and playbooks

• Metrics and rulers

• Summits

Convening & Engagement

Research / Experimental Innovation

Policy


overview

1. Research/Policy integration

2. General strategy updates

3. Entrepreneurial Ecosystems

4. Grant Overview: KC Accelerator Challenge


research & policy integration update

Teams operating together as of January 1

• Strategy: focus on problem-solving.

• Integrated budget.

• Search for R&P Director progressing.


integrated org chartVPVictor Hwang

+1 staff

Founders Education

Wendy Torrance (interim)John Lusk (consultant)

+6 staff

Research & Policy Wendy Torrance (interim) +7 staff

Convening & Engagement

Mark Beam

+0.5 staff

Ecosystems & Market Gaps

Philip Gaskin

+4 staff

Kansas City

Nathan Kurtz

+1 staff

Operations Wendy Torrance +1.5 staff


progress updates

Enhanced user engagement.

Initial launch of new, free FastTrac in June, integrated with Founders School.

Will present business plan at June board meeting, including: market landscape, prototyping timeline, metrics, feedback from entrepreneurs.

Founder EducationBudget $2.85MInteractive peer-learning for entrepreneurs to start & grow firms more successfully


progress updates

Inclusion Challenge• Lower barriers for women and minority entrepreneurs

(economy missing 10M jobs).• 376 applications >> $4.2 million to 13 organizations

over 2 yrs. • Current landscaping for RFP in April.

Excelerate • All 8 grantees expanded services.

Market GapsBudget $5.54MClosing barriers for underperforming groups (socioeconomic, demographic, geographic)


progress updates

Entrepreneurship Funders Network, May 2017.

Residence program being designed. Focus on KC in year one.

Designing innovation pipeline to source ideas from the wider public.

Convening & EngagementBudget $1.38MLeadership through new ideas, communities of practice, and greater program effectiveness


Ecosystems (Metro)Budget $3.82M Proven tools, metrics, and insights that improve entrepreneurial starts/successes in communities

• Why?• Definition?• What is success?• What’s the workplan?


strategy overview

Why are communities/ecosystems important?

The nation is a collection of local economies.

Shift from industrial economy to networked economy based on entrepreneurial activity. Research link with economic prosperity.

Geographical disparity persists.

Emerging practice area, opportunity for Kauffman to exercise leadership.

Why ecosystems?


strategy overview

Community of people interacting in a system, where whole greater than sum of parts.

Similar to corporate process perspectives, like Deming, Lean, Agile, Six Sigma.

What defines an ecosystem?


strategy overview

To increase entrepreneurial starts/successes, promulgate new models, tools, and metrics for entrepreneurship-led economic development.

Identify key levers based on empirical evidence.

Define effective process tools.

Wide adoption by stakeholders. Create professional class of ecosystem builders.

New metrics by June.

What is success?


Example of process tool for entrepreneurial development…




Initial Draft Framework for Experimentation

Tool Ecosystem VariableCulture Building and Convenings Measurements of Cultural NormsConnections Social Capital Characteristics and CompositionTraining and Bootcamps Skill Acquisition and Talent (Human Capital)Peer Mentoring Participation by Serial EntrepreneursPolicy and Governance Policy and Regulator EnvironmentCommunity of Practice Capacity of Ecosystem Builders as “Honest Brokers”


strategy overview

Major components over initial 3-year cycle:

• State of Entrepreneurship (February)• ESHIP Summit (June)• Playbook (June)• Mayors Conference (October)• “CityLabs” (6 in Q4 2017; kickoff at SOE 2018)

Current Workplan


June 21-23, 2017 in KC

• Goal. Gather leaders as source of best-practices and co-creators to define and disseminate frameworks, tools, practices, metrics.

• Invitees. Initially 500 attendees from 50 states. Invitation or application only. Scholarships available.

• Design. Hands-on, interactive, practical. Goal is for attendees to leave with action plans to implement in their communities.


ecosystems: Playbook

Playbook Alpha (launch June 2017 at ESHIP Summit)

Synthesize and distill current “state of the art” from current know-how relating to ecosystem development.

Communicate through an accessible “playbook” and living website, including case stories.

Tools selected by Kauffman for interventions in CityLab sites.


ecosystems: CityLabs (working name)

Phase One in 6 cities for 2017 (including Kansas City)

• Hand-selected communities.

• Identify ecosystem ESOs and/or identified ecosystem champions

• Mayors’ involvement through peer-learning cohorts.

• Playbook as basis for Kauffman engagement process.

• $2M budgeted.


progress updates

Kauffman Fellows already received 25 applicants throughout Heartland for 1st program (which begins June 2017).

First regional gathering for Kauffman Fellows at InvestMidwest, March 28-29.

Currently exploring other ideas on micro-scale financing. Upcoming design lab.

KC MetroBudget $3.15MImprove entrepreneurial starts/successes in KC ecosystem; test novel ideas as laboratory for nation


grant overview

Goal: increase entrepreneurial success through high quality support in structured, short-term, cohort programs with final product demos.

Total up to $1.5M over 1 year. No grant over $300K.

Advance efforts through education, helping underserved, and studying results.

Apply learnings from Kauffman-sponsored research.

KCAcceleratorChallenge


grant overview

RFP selection criteria:

(1) strong leadership team, (2) proven educational program, and (3) focus on human capital development.

15 applicants: 5 strong, 5 need work, 5 weak.

1:1 matching.

Requesting board approval.

KCAcceleratorChallenge

Small Business & Entrepreneurship

GEC 2017: KC Accelerator Challenge