For the past twelve years, the NebraskaEDGE Program has assisted nascent and active entrepreneurs through the delivery of a community-based educational program. Administered by the Center for Applied Rural Innovation at the University of Nebraska-Lincoln, the program’s overall goals are to build community capacity, develop new entrepreneurial support coalitions and increase entrepreneurial activity within the community and region

Schlake, Marilyn R.

English

UNL | Libraries

University of Nebraska - Lincoln 
DigitalCommons@University of Nebraska - Lincoln 
Cornhusker Economics Agricultural Economics Department 
June 2005 
Community-based Entrepreneurship: A Community Development 
Strategy 
Marilyn R. Schlake 
University of Nebraska-Lincoln 
Follow this and additional works at: https://digitalcommons.unl.edu/agecon_cornhusker 
 Part of the Agricultural and Resource Economics Commons 
Schlake, Marilyn R., "Community-based Entrepreneurship: A Community Development Strategy" (2005). 
Cornhusker Economics. 217. 
https://digitalcommons.unl.edu/agecon_cornhusker/217 
This Article is brought to you for free and open access by the Agricultural Economics Department at 
DigitalCommons@University of Nebraska - Lincoln. It has been accepted for inclusion in Cornhusker Economics by an 
authorized administrator of DigitalCommons@University of Nebraska - Lincoln. 
UNIVERSITY OF NEBRASKA-LINCOLN, COOPERATING W ITH THE COUNTIES AND THE U.S. DEPARTMENT OF AGRICULTURE
University of Nebraska Extension educational programs abide with the non-discrimination policies of the
University of Nebraska-Lincoln and the United States Department of Agriculture.
Cornhusker
Economics
June 1, 2005
Cooperative Extension
Institute of Agriculture & Natural Resources
Department of Agricultural Economics
University of Nebraska -- Lincoln
http://agecon.unl.edu/pub/cornhusker.htm
Community-based Entrepreneurship: A Community Development Strategy
Market Report
Yr 
Ago
4 Wks
Ago 5/27/05
Livestock and Products,
 Weekly Average
Nebraska Slaughter Steers,
  35-65% Choice, Live Weight . . . . . . . .
Nebraska Feeder Steers, 
  Med. & Large Frame, 550-600 lb . . . . .
Nebraska Feeder Steers, 
  Med. & Large Frame 750-800 lb . . . . .
Choice Boxed Beef, 
  600-750 lb. Carcass . . . . . . . . . . . . . .
Western Corn Belt Base Hog Price
  Carcass, Negotiated . . . . . . . . . . . . . .
Feeder Pigs, National Direct
  45 lbs, FOB . . . . . . . . . . . . . . . . . . . . .
Pork Carcass Cutout, 185 lb. Carcass,     
  51-52% Lean . . . . . . . . . . . . . . . . . . . .
Slaughter Lambs, Ch. & Pr., 90-160 lbs.,
  Shorn, Midwest . . . . . . . . . . . . . . . . . .
National Carcass Lamb Cutout,
   FOB . . . . . . . . . . . . . . . . . . . . . . . . . .
$85.27
119.43
116.21
149.49
73.13
45.87
79.89
97.50
229.84
$91.96
141.67
117.68
162.21
74.90
69.32
69.79
106.00
257.59
$86.85
151.98
116.43
153.39
66.82
51.42
71.57
111.00
249.73
Crops, 
 Daily Spot Prices
Wheat, No. 1, H.W.
  Omaha, bu . . . . . . . . . . . . . . . . . . . . .
Corn, No. 2, Yellow
  Omaha, bu . . . . . . . . . . . . . . . . . . . . .
Soybeans, No. 1, Yellow
  Omaha, bu . . . . . . . . . . . . . . . . . . . . .
Grain Sorghum, No. 2, Yellow
  Columbus, cwt . . . . . . . . . . . . . . . . . .
Oats, No. 2, Heavy
  Minneapolis, MN , bu . . . . . . . . . . . . .
3.68
2.87
8.30
4.64
       *
3.02
1.85
6.09
2.93
1.66
3.08
1.92
6.54
2.96
1.59
Hay
 Alfalfa, Large Square Bales, 
  Good to Premium, RFV 160-185
  Northeast Nebraska, ton . . . . . . . . . . .
Alfalfa, Large Rounds, Good
  Platte Valley, ton . . . . . . . . . . . . . . . . .
Grass Hay, Large Rounds, Good
  Northeast Nebraska, ton . . . . . . . . . . .
115.00
62.50
57.50
115.00
57.50
62.50
115.00
67.50
57.50
* No market.
For the past twelve years, the NebraskaEDGE Program has
assisted nascent and active entrepreneurs through the delivery of
a community-based educational program. Administered by the
Center for Applied Rural Innovation at the University of
Nebraska-Lincoln, the program’s overall goals are to build
community capacity, develop new entrepreneurial support
coalitions and increase entrepreneurial activity within the
community and region.  
The program was developed with the premise that entrepre-
neurship is enhanced when local involvement, investment and
control are incorporated into the program structure. The EDGE
program was designed to help communities mobilize resources
and develop leadership structures that support the entrepreneurial
education and subsequent business development efforts. 
In 2003, Dr. Pete Korsching, Iowa State University and Dr.
John C. Allen, University of Nebraska, set out to research the
NebraskaEDGE model and examine the degree to which the
theory behind the EDGE program is supported by the community.
The two main research questions were, what role does the
community play in fostering entrepreneurial behavior and does
community structure influence the number of new jobs and
businesses?  
The researchers interviewed local program leaders and
participants to obtain information on program history, success and
failures. Based on this initial research, eight communities were
selected and categorized according to geographic dispersion,
community size, perceived success of the program and differences
in organizational principles. Additional interviews were con-
ducted to obtain in-depth information on the organization,
operation and leadership of the local programs. Case studies of
each community were written and the communities were catego-
rized as being most successful, moderately successful and least
successful. 
Most successful communities held five or more classes, and
had an active and involved coalition with strong leadership.
Moderately successful communities held fewer classes, and had
some problems with the coalition and leadership structure. The
least successful communities held less than two classes, and
experienced strong deficiencies in the coalition structure and
leadership.
Korsching and Allen found the EDGE model played a role in
fostering entrepreneurial behavior. The EDGE model closely
follows Wilkinson’s model of the five phases of a community
action process. However, Korsching and Allen expanded the
model to fit action problems not addressed in the Wilkinson
(1970) model. The revised model includes seven phases:
Awareness:  During the initial phases, a community will acknowl-
edge a problem and become aware that a solution may be
available to help solve the problem. Of the eight EDGE communi-
ties, all acknowledged they needed to help their business commu-
nity and were aware the EDGE program was a possible solution
for their community.
Interest: Even though communities recognize a problem, motiva-
tion or interest to pursue a potential solution is necessary. For
example, although many Nebraska communities recognize the
need to help their local businesses and are knowledgeable about
the different resources available to assist, a smaller number of
communities will actually pursue the available resources.
Organization: How the community organizes itself to implement
the program is important to the overall success of the program. In
the EDGE model, successful communities organize through a
large (25-30 member) coalition with broad representation of the
community. This coalition is empowered to act, and is structured
to include macro-entrepreneurs (key individuals who understand
and facilitate the development of a supportive business climate).
A successful coalition will also have a coordinator who is
legitimized to act on behalf of the coalition, and is capable of
handling daily programmatic activities. To function effectively,
the coordinator will need sufficient time and resources to carry out
the coalition mission.
Initiation: How communities mobilize their resources to accom-
plish tasks helps to determine their short and long-term success.
Successful EDGE communities had coalitions that raised monies
on the local level to match state resources. Monies were renewed
and fairly allocated throughout the community as coalition
members retired and new members were integrated into the
coalition.
Implementation: This phase addresses how resources are applied
to carry out the program objectives, such as hiring instructors,
coordinators and teaching the course. In successful communities,
the resources were used to hire the most qualified individuals in
the region. The coalition was instrumental in the selection
decisions and was supportive of the program staff.
Confirmation: Continuation of the program needs to be made and
confirmed by the community. In the EDGE program, student
evaluations, community perceptions of impacts and initial success
helped to determine if the program became institutionalized into
the community.  If the community becomes burdened and does not
perceive positive impacts, the activity most likely will not have
the support to continue.
Succession: As a program matures, having a succession plan to
replace leadership is important, both on the coalition governing
level and with the individuals who are hired to carry out the
activities of the coalition. Successful communities are able to
bridge leadership transitions by recruiting new coalition members
and training instructors and coordinators to replace existing staff.
Korsching and Allen found two elements to be crucial to a
successful EDGE program:
1. A locally based and committed leader who believes in the
program, has time to commit to the project and understands the
community.
2. Active, empowered and contributing coalition members who
believe in and support the program.
Other important factors that contribute to the program are:
1. Local funding from a broad array of individuals and organiza-
tions within the community.
2. A hired coordinator who is committed to the program and has
sufficient time to devote to the activities.
3. A hired instructor who is committee to the program and has the
background and credentials to teach.
4. Plans for succession of key programmatic roles.
The second question Korsching and Allen addressed was
whether community structure influences the number of  new jobs
and businesses. The second phase of the research was a mail
survey to 231 macro-entrepreneurs within the community who
were knowledgeable about the community’s business environ-
ment. A total of 125 individuals answered questions pertaining to
the community’s entrepreneurial activity, coalition structure, state
support, infrastructure and the community generalizing structure.
The survey results showed that in the most successful
communities the average number of jobs upgraded or created was
170, in comparison to 54 in the moderately successful communi-
ties. Likewise, the most successful communities experienced on
average 54 business starts or expansions compared to 14 in the
moderately successful communities.
The analysis of the research indicates that community
structure is important in enhancing job creation and new business
development, coalition diversity is important to increased job
creation and business expansion, and the macro-entrepreneurs are
important to facilitating entrepreneurial activity within the
community. 
Marilyn Schlake, (402) 472-4138
Associate Director, NebraskaEDGE Program
Center for Applied Rural Innovation
Sources:
Korshing, Peter F. and John C. Allen. “Locality Based Entrepreneurship:
A Strategy for Community Economic Vitality.”  Community Develop-
ment Journal Vol 39 No. 4, 2004, pp. 385-400.
Korsching, Peter F. and John C. Allen. “Local Entrepreneurship: A
Development Model Based on Community Interaction Field Theory.”
Journal of the Community Development Society. Vol. 35 No. 1, 2004.
pp. 25-43.
Wilkinson, K.P. 1970. “Phases and Roles in Community Action.” Rural
Sociology 35: 54-68.


Community-based Entrepreneurship: A Community Development Strategy

DigitalCommons@University of Nebraska

University of Nebraska - Lincoln DigitalCommons@University of Nebraska - Lincoln Cornhusker Economics Agricultural Economics Department June 2005 Community-based Entrepreneurship: A Community Development Strategy Marilyn R. Schlake University of Nebraska-Lincoln Follow this and additional works at: https://digitalcommons.unl.edu/agecon_cornhusker  Part of the Agricultural and Resource Economics Commons Schlake, Marilyn R., "Community-based Entrepreneurship: A Community Development Strategy" (2005). Cornhusker Economics. 217. https://digitalcommons.unl.edu/agecon_cornhusker/217 This Article is brought to you for free and open access by the Agricultural Economics Department at DigitalCommons@University of Nebraska - Lincoln. It has been accepted for inclusion in Cornhusker Economics by an authorized administrator of DigitalCommons@University of Nebraska - Lincoln. UNIVERSITY OF NEBRASKA-LINCOLN, COOPERATING W ITH THE COUNTIES AND THE U.S. DEPARTMENT OF AGRICULTUREUniversity of Nebraska Extension educational programs abide with the non-discrimination policies of theUniversity of Nebraska-Lincoln and the United States Department of Agriculture.CornhuskerEconomicsJune 1, 2005Cooperative ExtensionInstitute of Agriculture & Natural ResourcesDepartment of Agricultural EconomicsUniversity of Nebraska -- Lincolnhttp://agecon.unl.edu/pub/cornhusker.htmCommunity-based Entrepreneurship: A Community Development StrategyMarket ReportYr Ago4 WksAgo 5/27/05Livestock and Products, Weekly AverageNebraska Slaughter Steers,  35-65% Choice, Live Weight . . . . . . . .Nebraska Feeder Steers,   Med. & Large Frame, 550-600 lb . . . . .Nebraska Feeder Steers,   Med. & Large Frame 750-800 lb . . . . .Choice Boxed Beef,   600-750 lb. Carcass . . . . . . . . . . . . . .Western Corn Belt Base Hog Price  Carcass, Negotiated . . . . . . . . . . . . . .Feeder Pigs, National Direct  45 lbs, FOB . . . . . . . . . . . . . . . . . . . . .Pork Carcass Cutout, 185 lb. Carcass,       51-52% Lean . . . . . . . . . . . . . . . . . . . .Slaughter Lambs, Ch. & Pr., 90-160 lbs.,  Shorn, Midwest . . . . . . . . . . . . . . . . . .National Carcass Lamb Cutout,   FOB . . . . . . . . . . . . . . . . . . . . . . . . . .$85.27119.43116.21149.4973.1345.8779.8997.50229.84$91.96141.67117.68162.2174.9069.3269.79106.00257.59$86.85151.98116.43153.3966.8251.4271.57111.00249.73Crops,  Daily Spot PricesWheat, No. 1, H.W.  Omaha, bu . . . . . . . . . . . . . . . . . . . . .Corn, No. 2, Yellow  Omaha, bu . . . . . . . . . . . . . . . . . . . . .Soybeans, No. 1, Yellow  Omaha, bu . . . . . . . . . . . . . . . . . . . . .Grain Sorghum, No. 2, Yellow  Columbus, cwt . . . . . . . . . . . . . . . . . .Oats, No. 2, Heavy  Minneapolis, MN , bu . . . . . . . . . . . . .3.682.878.304.64       *3.021.856.092.931.663.081.926.542.961.59Hay Alfalfa, Large Square Bales,   Good to Premium, RFV 160-185  Northeast Nebraska, ton . . . . . . . . . . .Alfalfa, Large Rounds, Good  Platte Valley, ton . . . . . . . . . . . . . . . . .Grass Hay, Large Rounds, Good  Northeast Nebraska, ton . . . . . . . . . . .115.0062.5057.50115.0057.5062.50115.0067.5057.50* No market.For the past twelve years, the NebraskaEDGE Program hasassisted nascent and active entrepreneurs through the delivery ofa community-based educational program. Administered by theCenter for Applied Rural Innovation at the University ofNebraska-Lincoln, the program’s overall goals are to buildcommunity capacity, develop new entrepreneurial supportcoalitions and increase entrepreneurial activity within thecommunity and region.  The program was developed with the premise that entrepre-neurship is enhanced when local involvement, investment andcontrol are incorporated into the program structure. The EDGEprogram was designed to help communities mobilize resourcesand develop leadership structures that support the entrepreneurialeducation and subsequent business development efforts. In 2003, Dr. Pete Korsching, Iowa State University and Dr.John C. Allen, University of Nebraska, set out to research theNebraskaEDGE model and examine the degree to which thetheory behind the EDGE program is supported by the community.The two main research questions were, what role does thecommunity play in fostering entrepreneurial behavior and doescommunity structure influence the number of new jobs andbusinesses?  The researchers interviewed local program leaders andparticipants to obtain information on program history, success andfailures. Based on this initial research, eight communities wereselected and categorized according to geographic dispersion,community size, perceived success of the program and differencesin organizational principles. Additional interviews were con-ducted to obtain in-depth information on the organization,operation and leadership of the local programs. Case studies ofeach community were written and the communities were catego-rized as being most successful, moderately successful and leastsuccessful. Most successful communities held five or more classes, andhad an active and involved coalition with strong leadership.Moderately successful communities held fewer classes, and hadsome problems with the coalition and leadership structure. Theleast successful communities held less than two classes, andexperienced strong deficiencies in the coalition structure andleadership.Korsching and Allen found the EDGE model played a role infostering entrepreneurial behavior. The EDGE model closelyfollows Wilkinson’s model of the five phases of a communityaction process. However, Korsching and Allen expanded themodel to fit action problems not addressed in the Wilkinson(1970) model. The revised model includes seven phases:Awareness:  During the initial phases, a community will acknowl-edge a problem and become aware that a solution may beavailable to help solve the problem. Of the eight EDGE communi-ties, all acknowledged they needed to help their business commu-nity and were aware the EDGE program was a possible solutionfor their community.Interest: Even though communities recognize a problem, motiva-tion or interest to pursue a potential solution is necessary. Forexample, although many Nebraska communities recognize theneed to help their local businesses and are knowledgeable aboutthe different resources available to assist, a smaller number ofcommunities will actually pursue the available resources.Organization: How the community organizes itself to implementthe program is important to the overall success of the program. Inthe EDGE model, successful communities organize through alarge (25-30 member) coalition with broad representation of thecommunity. This coalition is empowered to act, and is structuredto include macro-entrepreneurs (key individuals who understandand facilitate the development of a supportive business climate).A successful coalition will also have a coordinator who islegitimized to act on behalf of the coalition, and is capable ofhandling daily programmatic activities. To function effectively,the coordinator will need sufficient time and resources to carry outthe coalition mission.Initiation: How communities mobilize their resources to accom-plish tasks helps to determine their short and long-term success.Successful EDGE communities had coalitions that raised monieson the local level to match state resources. Monies were renewedand fairly allocated throughout the community as coalitionmembers retired and new members were integrated into thecoalition.Implementation: This phase addresses how resources are appliedto carry out the program objectives, such as hiring instructors,coordinators and teaching the course. In successful communities,the resources were used to hire the most qualified individuals inthe region. The coalition was instrumental in the selectiondecisions and was supportive of the program staff.Confirmation: Continuation of the program needs to be made andconfirmed by the community. In the EDGE program, studentevaluations, community perceptions of impacts and initial successhelped to determine if the program became institutionalized intothe community.  If the community becomes burdened and does notperceive positive impacts, the activity most likely will not havethe support to continue.Succession: As a program matures, having a succession plan toreplace leadership is important, both on the coalition governinglevel and with the individuals who are hired to carry out theactivities of the coalition. Successful communities are able tobridge leadership transitions by recruiting new coalition membersand training instructors and coordinators to replace existing staff.Korsching and Allen found two elements to be crucial to asuccessful EDGE program:1. A locally based and committed leader who believes in theprogram, has time to commit to the project and understands thecommunity.2. Active, empowered and contributing coalition members whobelieve in and support the program.Other important factors that contribute to the program are:1. Local funding from a broad array of individuals and organiza-tions within the community.2. A hired coordinator who is committed to the program and hassufficient time to devote to the activities.3. A hired instructor who is committee to the program and has thebackground and credentials to teach.4. Plans for succession of key programmatic roles.The second question Korsching and Allen addressed waswhether community structure influences the number of  new jobsand businesses. The second phase of the research was a mailsurvey to 231 macro-entrepreneurs within the community whowere knowledgeable about the community’s business environ-ment. A total of 125 individuals answered questions pertaining tothe community’s entrepreneurial activity, coalition structure, statesupport, infrastructure and the community generalizing structure.The survey results showed that in the most successfulcommunities the average number of jobs upgraded or created was170, in comparison to 54 in the moderately successful communi-ties. Likewise, the most successful communities experienced onaverage 54 business starts or expansions compared to 14 in themoderately successful communities.The analysis of the research indicates that communitystructure is important in enhancing job creation and new businessdevelopment, coalition diversity is important to increased jobcreation and business expansion, and the macro-entrepreneurs areimportant to facilitating entrepreneurial activity within thecommunity. Marilyn Schlake, (402) 472-4138Associate Director, NebraskaEDGE ProgramCenter for Applied Rural InnovationSources:Korshing, Peter F. and John C. Allen. “Locality Based Entrepreneurship:A Strategy for Community Economic Vitality.”  Community Develop-ment Journal Vol 39 No. 4, 2004, pp. 385-400.Korsching, Peter F. and John C. Allen. “Local Entrepreneurship: ADevelopment Model Based on Community Interaction Field Theory.”Journal of the Community Development Society. Vol. 35 No. 1, 2004.pp. 25-43.Wilkinson, K.P. 1970. “Phases and Roles in Community Action.” RuralSociology 35: 54-68.

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