CALIFORNIA BUSINESS MINUTE Mendocino 11-23-10
Hi, I am Tim Johnson and welcome to the California Business Minute.
Social and business networking are essential to rural-based ethnic entrepreneurs' according to a new report by the California Center for Rural Policy at Humboldt State University.
The report, “Rural Ethnic Entrepreneurship: A Spatial Networks Approach to Community Development” combines for the first time geographic information system spatial data with data from HSU's Department of Economics to profile ethnic entrepreneurs in Mendocino County. Together, the two sets of data showed that the factor most often associated with a profitable business is intensive networking, according to the release.
But the analysis also reveals that ethnic entrepreneurs in rural settings are less likely, for example, to use the Internet for business guidance. Often hobbled as well by the limited infrastructure and geographical isolation of rural life, they are more apt to rely on family and relatives for advice and counsel, or on church and school contacts, then on their local business community or the chamber of commerce, according to the report. They think of themselves as making a living rather than building an evolving enterprise.
Financed by a $150,000 Ford Foundation grant, the report is based on detailed research of Mendocino County because it is considered representative of rural northern California's ethnic entrepreneurial needs and Latino business experience.
One of the report's key findings is the need for tighter links between ethnic enterprises and economic development initiatives.
This is particularly important in regions like the redwoods, where rural business is shifting from a resource-based extraction economy to entrepreneurial niche enterprises that pivot on high technology and human capital.
The study recommends moving beyond economic development geared to “one-size-fits-all,” arguing that multiple sizes are needed.
I am Tim Johnson and this has been the California Business Minute.
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