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Building our E-Quotient

Is Whistler doing enough to support tomorrowÕs entrepreneurs?

As the old joke goes the three biggest lies in the world are: 1. The cheque is in the mail. 2. I'll respect you in the morning. 3. I'm from the government and IÕm here to help.

While people can believe numbers 1 and 2 at their peril, the reality is that government must foster an innovative culture for the general social good. This requirement is not as well understood as it should be.

There is also the perception that the commercial sector is where most innovation comes from, when in actuality government originally financed many of the innovations the public now takes for granted. (It was government that paid for the original development of the Internet.) What needs to be considered is the role government plays in laying the foundation needed to foster a healthy and viable economic climate, particularly in how entrepreneurs are supported.

According to the Global Entrepreneurship Monitor (GEM), an international project that measures global entrepreneurial activities, two features are critical in the entrepreneurial process: "One, the emergence or presence of market opportunities and, two, the capacity (i.e. motivation and skill) of the people to initiate new firms in pursuit of those opportunities. The entrepreneurial process is particularly robust in dynamic market settings where success is dictated by higher levels of creativity, innovation and speed to market."

Entrepreneurs create career opportunities for themselves but also for employees, and they supply the basis for viable communities.

According to the 2003 GEM Canadian National Report, Canada remains one of the most dynamic G7 nations with "8.0 per cent of its adult population engaged in entrepreneurial activities in 2003. Unfortunately, this is the third consecutive year where entrepreneurial activities in Canada have declined."

The report also highlights the fact that with the exception of the Prairie provinces (lots of farmers), British Columbians are more entrepreneurial than the rest of Canada with 9.6 per cent of their adult population participating in entrepreneurial activities.

Locally, the 2003-04 Resort Community Monitoring Report asserts that, "Of the total employed labor force, 6.7 per cent of Whistler employees identified themselves as self-employed."

If ours is a community that values entrepreneurship and innovation then it is crucial that we understand WhistlerÕs entrepreneurial quotient (E-Quotient). A communityÕs E-Quotient can be measured in part by factors such as its ability to attract new businesses, its ability to retain and sustain existing businesses, a skilled talent pool, and its ability to incubate new business start-ups.

To evaluate our community's E-Quotient, fundamental questions must be asked. Are we doing enough to provide entrepreneurs with an environment that creates innovation? What is the blueprint to create this culture? Is the government really capable of helping? And how do these fundamentals relate to municipal governance?

Answers to most of these questions are found in two of the most entrepreneurial projects ever started by government and both have their locations in the Lower Mainland. They are Citysoup.ca in Coquitlam/Port Moody and Leading Edge BC which has its head office in Vancouver.

Leading Edge British Columbia is a non-profit organization dedicated to the promotion of British Columbia as a technology destination. And Citysoup.ca is a hybrid between an online community and a real-world governance structure and economic development agency.

Leading Edge BCÕs Vice President of Economics and Research, Robert D. Grace, recently spoke at a Whistler Chamber of Commerce luncheon. In an interview, he had some telling insights into what business leaders and venture capitalists are looking for in an innovative community. "When speaking to investors, the three most important factors in making investment decisions is management, management, management. Knowing that there is a large pool of seasoned management talent is very attractive to investors."

He also added that Leading Edge BC had taken steps to address the issue. "ThatÕs why Leading Edge BC had developed a mentorship program so we can increase the breadth of talent across the province."

A strong case for developing a mentorship program for WhistlerÕs young entrepreneurs could be made. Such a program could help mitigate the potential loss of talent when older business owners retire. Grace accentuates the point by adding that when companies are thinking about relocating, "it goes back to the talent issue. The first question for businesses thinking of site relocation is about the talent pool."

To be competitive in the innovation game and to increase a communityÕs E-Quotient, access to capital is essential. Sourcing funding and venture capital is also central to Leading Edge BCÕs mandate, particularly for "early stage" businesses needing access capital.

"Early stage means the product is ready to market, but this stage can be risky and costly. ItÕs at this stage that lots of entrepreneurs get lost in the shuffle competing against thousands of others in a word marketÉ ThatÕs where leading edge BC comes in; we are trying to increase the number of players (venture capitalists) and increase the domestic availability of venture capital for high-tech," said Grace. "ItÕs about taking companies to the big timeÉwe need more of that."

As for determining success, Grace concedes that there is no standard blueprint. However, some of the conclusions from the GEM report offer several enlightening recommendations, including: "Access to government programs designed to support entrepreneurship should be improved. The scope and quality of government programs to support start-ups should be increased. Entrepreneurship education needs to be strengthened to increase the social acceptability and desirability of entrepreneurial activities. And management training programs for nascent entrepreneurs and managers of new firms should be expanded."

The concept of small business incubation units and innovation centres is one of the cornerstones of the success of the Citysoup project. The concept is the brainchild of Jennifer Wilkie, the former Project Office Leader for Citysoup and the current chair of Smart Choices Society. The size and scope of the website is enormous, as are the benefits itÕs brought to Coquitlam and Port Moody. In a recent interview she explained some of the impact Citysoup has had on the community and how the innovation centre works.

"The biggest benefit is how itÕs brought the community together. Citysoup now services two city halls, two libraries, 50 schools and 150 community non-profit groups (most with their first internet presence).

"One of the spin-off factors it that weÕve trained over 1,000 seniors on how to use the internet. ThatÕs gone a long way to bridging the digital divide."

Wilkie also explained how the investment in this type of municipal infrastructure has paid off. "From a government perspective, itÕs provided better service-driven e-commerce and kept costs constant despite significant growth."

The websiteÕs community portal is impressive technology where citizens can do everything from renewing their dog licence to paying utility bills, review property tax assessments, claim homeownersÕ grants and pay their parking tickets. Wilkie explains how the site became so all encompassing: "We had two goals; to make it local and citizen focusedÉ The beauty of the website is that itÕs citizen centric and not organizationally driven."

The innovation centre is equally impressive and Wilkie explains its simple mission: "ItÕs focused on supporting business growth in the communities."

The centre brings state of the art technology and online tools within reach of local small businesses by providing resources like business services, online training seminars, and an internet broadcast studio. The centre also boasts some of the best traditional business support services available, including video conferencing, temporary office rental, business support services, high speed wireless internet access, the Peter Legge Business Library, "smart" meeting and presentation rooms, "One-Stop" business registration services, employment and human resources services and light catering.

Data on the centreÕs impact on business is equally impressive.ÊBetween March and May of this year,Êthe innovation centre issued 225 One-Stop name approvals and Wilkie adds, "There are waitlists for the innovation centreÕs networking and training sessions."

WhistlerÕs own municipal website might not offer as many features (it has some capabilities to pay parking tickets etc.) but it does have the potential to evolve into something much greater. Duane Hepditch, owner of local design studio, Create Communications, worked on the whistler.ca site and described it the same way Wilkie describes Citysoup. "ItÕs definitely citizen-centric and not organizationally driven." whistler.ca is a highly technical website that allows department staff to update content with the click of a button. As Hepditch explains; "The site was developed in a way that would allow them to update the site on their own, using a web browser."

When Jennifer Wilkie was asked what advice she would have for local government starting its own citysoup type project, she was quick to point out that it was not all about the price and gee-whiz technology. "The technology is expensive and it can quickly become infrastructure focused, so you have to focus on community economic developmentÉ. We did not develop any new technology we just packaged the best technology and used it in a unique way to benefit the community."

WilkieÕs comments echo those of Robert Grace when asked about what local government can do to raise WhistlerÕs entrepreneurial quotient.

"Understand the role that technology plays in the community and unleash its opportunityÉ. The more engaged you get with local technology companies then the more opportunity you will realize."

Wilkie also had some final sage advice about the role of technology. "Remember that itÕs not about capacity building, itÕs about using technology to benefit the community by sharing information."

On May 19 th , four of WhistlerÕs technology companies hosted a comprehensive internet seminar for local businesses, entitled Soup to Nuts. Paradata Systems, Create Communications, VentureWeb and Eydeas Technology teamed up to give Whistler activity providers advice on the key elements for success online and access to new revenue opportunities. The nuts and bolts of the seminar included advice on quality web design, search engine optimization, revenue and channel management, and online payment transactions. Erica Rigik of Eydeas Technology explained how the project came to fruition.

"We came together as a result of some meetings we had with Inside Edge, WhistlerÕs high tech networking group. Our goal is to make Whistler business owners aware that all of their technology needs can be serviced by local businesses."

Many attendees were impressed by the array of services offered by local tech companies. As Rigik explains, "ThatÕs why we called it Soup to NutsÉ. We can take care of every step in the entire on-line business process, from website design, site optimization, booking functions and payment process."

More inspiring and perhaps more telling was how well attended the event was. In typical Whistler fashion, these entrepreneurs are aggressively taking their message to the streets as competition increases and local business margins tighten, traditional business power structures and established social networks seem to lack some of the capacity to innovate. These entrepreneurs are inventing ways to make change.

Create owner, Duane Hepditch, was one of the presenters and has also created an intimate networking initiative called "junctions" for Function Junction-based businesses. Both he and Rigik expressed that they felt Whistler had the ability to support innovation. Rigik explained how communication was the key. "In a place like Whistler, with so many entrepreneurs, sparking the innovation process is easy. ItÕs just a matter of understanding each otherÕs role. Most people might not see the connection between high tech and tourism but tonight we were talking to tourism and activity providers and demonstrating exactly how we can support each other."

Government innovation support programs and other forms of assistance constitute a necessary condition for fostering entrepreneurship, but often there is a lack of political will to embrace these new ideas. Because of its expense, governments tend to be averse to the acquisition of technology. Despite the enormous success of the citysoup project, Wilkie confides that, "itÕs a hard concept for people to understand."

One of the worldÕs great myths is the belief that innovation is a strictly creative process. Peter Ducker, one of the worldÕs leading authorities on innovation, offers crystal clarity in his prescription for innovation: focus on mission, define significant milestones, and do rigorous assessments.

If this process of government innovation is to manifest itself somehow, it will alter traditional governance models in ways we have yet to understand.

Strategic thinking, engaging the community and sparking innovation are innate features of Whistler. What is necessary now is a firm understanding of what it is to be truly innovative as a community, and to focus on a future that raises WhistleÕs E-Quotient. The question is no longer how we are doing, but what do we do next.



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