THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, August 9, 1996 TAG: 9608090007
SECTION: FRONT PAGE: A16 EDITION: FINAL
TYPE: Opinion
SOURCE: By DENNIS ACKERMAN
LENGTH: 70 lines
Entrepreneurship, innovation and adaptation are concepts found in U.S. communities creating economic growth, higher-paying jobs and (we hope) a higher quality of life. The model most cited and studied is Silicon Valley. This area has access to a major airport, excellent transportation and communication infrastructure, a major research university, good primary and secondary schools, inexpensive to very expensive housing, moderate to low crime rates, a vibrant urban center in close proximity, access to ``risk'' capital and a community ``culture'' that promotes new initiatives.
Community leaders (both for-profit and nonprofit) in the Research Triangle area of North Carolina studied Silicon Valley before initiating its very successful long-term economic-development program in the 1950s. Austin, Texas; Phoenix; Atlanta; Orlando, Fla.; San Diego, Seattle, Route 128 (outside Boston) and Charlotte, N.C., are examples of communities that have assessed other models and developed dynamic entrepreneurial, cooperative and innovative communities. Each community is different, but the general guidelines mentioned above are in place.
Institutional ``risk'' capital is an indicator of an entrepreneurial community. According to Price Waterhouse, in the first quarter of 1996, Silicon Valley placed close to 500 million unsecured equity dollars in regional businesses; $68 million of institutional risk capital was placed in Northern Virginia during the same period. Research Triangle companies acquired almost $14 million, and one Richmond company acquired several million dollars. Rarely does Southeastern Virginia show up on the institutional-risk-capital radar screen.
The first institutional-risk-capital equity fund for growth businesses was only recently established in the area. The Eastern Virginia Small Business Investment Corp. received its license in May 1996 and is now open for business. This is an important step in linking with other institutional-risk-capital funds and developing a more entrepreneurial business community, which is important economically for the health of the larger community.
The most important factor in creating an entrepreneurial and innovative general community is to have a supportive ``culture.'' The attitudes and behavior of community leaders, business leaders and the general population determine whether communities move ahead proactively or stagnate. The communities mentioned above recognize and reward their for-profit and nonprofit innovators, entrepreneurs and change agents. They also create an atmosphere which allows experimentation, failure and change. The Atlanta Olympics demonstrated what an entrepreneurial community with visionary leadership and community support can achieve.
The most-difficult obstacle facing Hampton Roads is the development of a ``culture'' which balances cooperation and competition to facilitate agreement among area leaders and the general population concerning proactive and innovative directions for the next century.
Necessity is called the mother of invention, and most people in this region have not felt the necessity for moving in more diverse and innovative directions. Many new experiments are met with resistance or ambivalence. Certain champions of change in our region feel more comfortable working behind closed doors, which further alienates other special interests and the general population.
Creating a more entrepreneurial and innovative Hampton Roads culture will take years of effort, dialogue and action. Many of the pieces are now in place. Will we be able to weave the pieces into a different whole cloth? Are enough community and business leaders motivated? Is the general population interested? Do we understand the consequences of continuing on our present course? If the community plans for the future, we may get there without a plan, we may end up in a situation where everybody is dissatisfied. MEMO: Dennis Ackerman is director of the Old Dominion University
Entrepreneurial Center. by CNB