Creative Class

Considering the report about Ontario in the Creative Age that came out of the MPI yesterday, and some interesting data that I came across browsing the web the other day, I thought I’d mash up some ideas and observations about youth enterprise and creative clustering emerging from youth scenes. Let’s see how they fit. While this might work better with a map, I hope that you can follow along.

So, about two years ago, the crew that I do Time Kode with (our monthly soul shakedown in Ottawa) found a spot off the beaten path to do our parties – an unsuspecting Eritrean community center called the Eri Café found at the intersection of Preston (Little Italy) and Somerset (China Town). If anyone reading knows/has been to Ottawa, they know that this intersection is quite a ways away from The Market area, where nightlife and commerce is traditionally clustered. Since we started the party, our enterprise has only picked up more steam and has really helped to put the Eri Café and that area in general on the map in the city with all of the traffic that we drive through there every month.

What I find interesting is that subsequent to – but not necessarily directly related to – our setting up shop there, more youth enterprise began to emerge along the Somerset strip. The Lay Up, an urban couture boutique successfully opened and has been building great momentum, as well as The Umi Café, a fair trade co-op that has become increasingly popular as a place that builds community between like-minded people.  My roommate, who is here from Germany for six months working as an intern for Environment Canada, found it without my instruction and has been frequenting it on a weekly basis.

All of these enterprises emerged out of the same creative scene in Ottawa – young urban artists turned business people. Most of us are under 30, and most of the people that we service are in that same age bracket, or can be described as youthful.

As I was thinking about this and knocking around the web, I thought about both the report from the MPI about creative density and innovation, and a blog entry that I stumbled upon that sought to break down some data to better understand the relationship between age and entrepreneurship. Both the findings of the report and the analysis of the data on the blog seem to combine to describe the phenomenon on Somerset.

Which brings us back to Ontario in the Creative Age. The emergence of these clusters of youth enterprise really demonstrates the value of creativity and management, even when an enterprise isn’t delivering a physical product. It also demonstrates how creative density can spur enterprise.

Can you think of any examples in your own regions where you’ve observed something like this? And how do you think this type of activity can be encouraged and not squelched as the economic climate begins to set in?

And now, with Black History Month in mind, some music.

As we sit and watch the crisis in global capitalism, it’s obvious that governments are sticking their hands deep into the global economy and various national economies. The U.S. government is taking stakes in major financial and insurance firms, becoming partners (in all likelihood) with Detroit, planning major stimulus packages, bailing out over-leveraged homeowners, and planning increased/new regulations on everything from CAFE standards to 401K management.

For entrepreneurs, the landscape has shifted dramatically. Entrepreneurs and venture investors and lenders are unlikely to get much support from policy makers and elected representatives as those political types look to support/consolidate their power through their new corporate partners and other bailout recipients. In fact, policy actions, from bailouts to government/corporate ties, will likely hurt entrepreneurs going forward. The irony, of course, is that growth and innovation will come from new and growing firms, not badly damaged and slimmed down corporations, unions, and low-income homeowners.

Unfortunately, a new report on entrepreneurship in the U.S. from the Global Entrepreneurship Monitor was released this week and it is not very sunny. The report is full of interesting information information (yes, the U.S. still exhibits high rates of entrepreneurship, albeit slowing) and for the first time GEM has looked into minority entrepreneurship in the U.S. The report is worth checking out.

One way of ensuring that the entrepreneur is kept at the center of our economy is by supporting entrepreneurship education. Yesterday, I was fortunate enough to attend a positive, future-oriented event on Capitol Hill presented by the Youth Entrepreneurship Strategy Group. (A negative, old economy event was also occurring as the Big 3 and their cronies were on the Hill asking for $$$.)

The YES Group, led by the Aspen Institute and the National Foundation for Teaching Entrepreneurship, presented a new policy paper/action guide on entrepreneurship education for policy makers. They also convened a great panel discussion with education committee staff from the Senate and House and  introduced some great young entrepreneurs from low-income areas in the U.S. who highlighted what a difference entrepreneurship education can make in the lives of at-risk youths.

The YES Group sees entrepreneurship education as a key to solving the costly high school drop-out crisis in the U.S. and also creating a generation of entrepreneurs to spur the U.S. economy and lower poverty rates. The most interesting thing I heard was that out of the millions of students in HS and junior high in the U.S., only a small percentage have access to any entrepreneurship/financial education. Only nine states have formal legislation that promotes entrepreneurship education.

So while we have this rising tide of government intervention in the economy, let’s ensure that we support entrepreneurs and entrepreneurship education. Only entrepreneurs can ensure the long-term growth of our economy.

BTW, for a little Canadian flavor, check out the VeloCity Residence at the University of Waterloo. The residence hall is a web/mobile media incubator for entrepreneurially minded students. I recently exchanged emails with one of their first residents and they have some great things going on. It is a great model for entrepreneurship education at the post-secondary level.