· Most of the watchmakers worked for bigger companies and later decided to break away.
· These entrepreneurs manufacture high end time pieces (much too impressive to simply label the product as a watch).
· These individuals are truly craftsmen.
· The internet is a key to the craftsmen marketing to and identifying potential customers.
What might be lost in the article is where and how each individual started. Note the third paragraph. These men are leaving prestigious companies to set up their own shop. By and large these men are in their early to mid 40s.
Also note this excerpt.
· Without Web exposure to precisely the right audience (obsessives) at precisely the right price--free--shops like McGonigle's wouldn't exist.
As a professional and practicing economic developer I drew the following conclusions:
· A component for entrepreneurship is having one or more large enterprises where potential entrepreneurs can learn several or all aspects of a chosen profession. This cannot be understated.
· The internet offers a potential advantage and equalizer to budding entrepreneurs.
· An ED professional office should have the necessary resources to help these people launch a successful enterprise, especially if these businesses are basic industries.
· These fledging firms face several obstacles that we as ED professionals should try to help resolve. An example noted in the article is the difficulty these small firms have in sourcing parts.
The immediate first bullet is worth additional discussion and an example. When I worked in Columbia, SC years ago we saw several innovative technology intensive companies’ form. It was an interesting dynamic. However, almost all of the new companies shared one key trait - the new entrepreneurs could trace a direct employment line to the NCR tower facility in Lexington, SC. The NCR tower facility manufactured computers and equally important, conducted R&D on site. When economic developers stress recruitment part of it is due to an unstated reason. By getting these kind of facilities to locate in an area, down the line you may have an incubator for budding entrepreneurs. The additional advantage is these individuals should have the opportunity to learn several aspects of a business, like marketing, accounting, production, and operations.
For those of us that have been in the economic development profession for a while, we have seen that every few years a renewed emphasis is placed on helping start-ups and entrepreneurs. First, I suggest noting and understanding the difference between an entrepreneurial enterprise and a small business. The key differential is that an entrepreneurial business is a basic industry. Most small business start-ups are not, they are oriented to providing services to the immediate population. This is not to say ignore all small business start-ups, but rather apply most of your resources to a true entrepreneurial endeavor.
Second, one key way to foster entrepreneurship that pops up with renewed vigor from time to time is to start an incubator. It is a worthy effort, but the key objectives should be to identify entrepreneurial efforts, provide the necessary resources and services, and offer discounted space. The emphasis should be on the first two parts, if it becomes primarily a real estate deal, then the incubator will probably fail. One key trend I suspect we will see more of is the formation of “virtual” incubators. However, I submit that a Fortune 500 basic industry that locates in your area could be a stealth incubator.
This is a fascinating discussion and one that the economic development profession should be front and center. We have the talent and intellectual capacity to offer excellent advice and recommendations. I am looking forward to hearing from other professionals.
The link follows.
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