Entrepreneurial Cooperation and Networking: A Case Study in Economic Development

Abstract

This paper describes and interprets the origins of a new northeastern Minnesota company in the dimensioned lumber industry. Connections and contacts used by the founder included existing informal networks of people in public and private organizations as well as local business people; all shared a dedication to aiding economic development. Participants were largely individuals with authority to deploy resources; working or personal contacts preexisted among them. When addressing an entrepreneur's needs they worked cooperatively, providing funding and skills including technology, finance, marketing, manufacturing and business planning. Many individuals played small but significant roles, introducing alternatives without preempting the entrepreneur's control. Providing access for a qualified entrepreneur to a broad range of informally cooperating, autonomous people and organizations is described in terms of an effective economic development network. An analogy to corporate entrepreneurial networks is noted.